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ONE HUNDRED AND THIRD DAY





MORNING SESSION


House Chamber, Olympia, Friday, April 23, 1999


             The House was called to order at 10:00 a.m. by Speaker Pro Tempore Ogden. The Clerk called the roll and a quorum was present.


             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Meghan Byrne, Sean Wood and Brandon Woods. Prayer was offered by Reverend Reggie Buddle, Chaplain, Boeing Auburn Division.


RESOLUTION


             HOUSE RESOLUTION NO. 99-4688, by Representatives Kenney, Anderson, Skinner, Van Luven, Romero, Regala, Lovick, Santos, O'Brien, Dunn, Linville, Veloria, McIntire, Doumit, Scott, Reardon, Keiser, Murray, Cody, Hurst, Constantine, Dickerson, Kagi, Carlson, McMorris, Lambert, Schual-Berke, Hankins, Conway, Esser and Thomas


             WHEREAS, It is the policy of the Washington State legislature to recognize and honor the contributions of individuals who reflect the standards of excellence that advance the well-being and quality of lives of all citizens of the state of Washington; and

             WHEREAS, The paintings by Alfredo Arreguin graphically reflect the graceful beauty of our state's untamed natural resources, the vivid color and diverse textures of our bountiful landscapes, and the endless rainbow of hope, pride, and achievement of all our citizens; and

             WHEREAS, Alfredo Arreguin was selected by our state's centennial commission to paint the Washington State centennial poster; and

             WHEREAS, Alfredo Arreguin is recognized as a pioneer in his field of art for his stylistic introduction of intricately detailed repetitive patterning of abstract motifs combined with vivid portraiture and lush landscapes; and

             WHEREAS, The signature patterned paintings of master artist Alfredo Arreguin have brought national and international recognition to the artistic tradition of our state; and

             WHEREAS, Works by Alfredo Arreguin have been exhibited in shows across North America, Mexico, Europe, Poland, Russia, South America, and Asia, and have been used in over one hundred books; and

             WHEREAS, The Smithsonian Institution's National Museum of American Art, our nation's most prestigious art museum, has selected a recent painting by Alfredo Arreguin for its permanent collection; and

             WHEREAS, Alfredo Arreguin has donated countless hours of his time and talent to assist the Hispanic community, and has served as the artistic ambassador for many young and aspiring artists nation-wide;

             NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives recognize and honor Alfredo Arreguin for his artistic genius, creativity, and contributions to the arts and culture in Washington State; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Co-Chief Clerks of the House of Representatives to the Washington State Arts Commission, Seattle Arts Museum, Tacoma Art Museum, and the Consul General of Mexico.


             Representative Kenney moved adoption of the resolution.


             Representatives Kenney, Skinner, Anderson, H. Sommers, Veloria and Van Luven spoke in favor of the adoption of the resolution.


             House Resolution No. 99-4688 was adopted.


SPEAKER'S PRIVILEGE


             The Speaker (Representative Ogden presiding) introduced Alfredo Arrequin, his wife Susan Lytle, Jorge Gilbert, Consul of Chile; Miguel Valasquez, Consul of Peru; and Ernie Aguilar, representing the Consul of Mexico, and asked the Chamber to acknowledge them.


RESOLUTION


             HOUSE RESOLUTION NO. 99-4691, by Representatives Conway, Fortunato, Alexander, Anderson, Ballard, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Chopp, Clements, Cody, Constantine, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Quall, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, D. Schmidt, Schindler, K. Schmidt, Schoesler, Schual-Berke, Scott, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe and Wood


             WHEREAS, Nearly 6,000 Washington residents died during World War II, the seminal event of the 20th Century; and

             WHEREAS, Thousands of other state residents served in our nation's Armed Forces during that time; and

             WHEREAS, Many others served on the "home front" to provide the necessary equipment and support for our men and women in uniform; and

             WHEREAS, World War II was a total effort by the citizens of the United States and united our country like no other time in our nation's history; and

             WHEREAS, Creation of a World War II memorial on the state Capitol Campus is a fitting and long overdue tribute to acknowledge the sacrifices of these veterans, home front civilians, and family members; and

             WHEREAS, The memorial will focus on educating our young people about what took place during the war, where it took place, and why it took place, so future generations may avoid such conflicts, and may understand the pivotal role of the war in the history of our state and country;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington recognize and honor the tremendous sacrifices of the World War II generation for preserving our cherished freedoms and way of life; and

             BE IT FURTHER RESOLVED, That our citizens are encouraged to attend the dedication and unveiling ceremony for the Washington state World War II Memorial on Friday, May 28, 1999, at 1:00 p.m. on the state Capitol Campus; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Co-Chief Clerks of the House of Representatives to the Governor.


             Representative Conway moved adoption of the resolution.


             Representatives Conway, Haigh, K. Schmidt, Parlette, Bensen, Veloria, Lambert, Dickerson, Miloscia, Campbell, Van Luven and Mulliken spoke in favor of the adoption of the resolution.


             House Resolution No. 99-4691 was adopted.


SPEAKER'S PRIVILEGE


             The Speaker (Representative Ogden presiding) introduced the World War II Memorial and Fund Raising Committee: Richard & Julie Kirk, Chosen Few; Jack and Thelma Colman, Chosen Few; John and Betty Des Jarlais, Chosen Few; Dan Gogerty, Veterans' Legislative Coalition; Keith Sherman, Veterans' Legislative Coalition; Doris Grass, American Legion; Don Newbold, Marine Corps League; Bob and Patty Linden, The Retired Officers Association; Bill and Ginny Merifield, Military Order of Purple Heart; Betty Chandler, Military Order of Purple Heart; Patrick McDonald, Veterans' Legislative Coalition; and Yu Box, Vietnam Veterans of America, and asked the Chamber to acknowledge them.


RESOLUTIONS


             HOUSE RESOLUTION NO. 99-4663, by Representatives Lantz, Santos, McMorris, Dunn, Schindler, Miloscia, Keiser, Tokuda, Mitchell, Schual-Berke, Huff, Fortunato, Thomas, Benson and Hankins


             WHEREAS, Children represent the future of Washington State, and providing quality education is of paramount interest to our citizens; and

             WHEREAS, The annual Golden Apple Awards program has earned a reputation for recognizing and celebrating innovation, dedication, and success in education; and

             WHEREAS, The Golden Apple Awards program seeks out and honors outstanding education strategies, and seeks to cultivate an understanding of and excitement for the world of work;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the State of Washington commend the 1998 recipients of Golden Apple Awards:

             Sandra L. Everlove, teacher at Franklin High School in Seattle;

             Roland MacNichol, teacher at Gig Harbor High School in Gig Harbor;

             Benjamin Ostrom, teacher at Madrona Elementary School in Seattle;

             Janet Jones-Preston, family support worker at B.F. Day Elementary School in Seattle;

             Suzanne Ruth-Scott, counselor and teacher for the West Valley School District in Spokane;

             The African-American parent Support Group at Decatur High School in Federal Way;

             The Fifth-Grade Orchard project at Tonasket Elementary School in Tonasket;

             The Highline School District Teen Parent program in Des Moines;

             The Restoring Animals in Nature program at Fircrest Elementary School in Vancouver;

             The Science Education Partnership program at Fred Hutchinson Cancer Research Center in Seattle; and

             John Merk, recipient of the 1998 Stanley O. McNaughton Golden Apple Award, noted for his support of vocational building projects at Pasco High School in Pasco; and

             BE IT FURTHER RESOLVED, That the House of Representatives commend sponsors of the Golden Apple Awards program, including KCTS Television of Seattle; KYVE Television of Yakima; and PEMCO Financial Services, with special recognition to the late Stanley O. McNaughton, former chief executive officer, who contributed greatly to the growth and success of the awards program; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Co-Chief Clerks of the House of Representatives to the aforementioned award recipients and program sponsors, and to the family of Stanley O. McNaughton.


             Representative Lantz moved adoption of the resolution.


             Representatives Lantz, Schual-Berke, McMorris and Santos spoke in favor of the adoption of the resolution.


             House Resolution No. 99-4663 was adopted.


             HOUSE RESOLUTION NO. 99-4689, by Representatives Ballasiotes, Reardon, Linville, McDonald, Fortunato, Radcliff, Buck, Talcott, Sullivan, Miloscia, Anderson, Constantine, Poulsen, Edwards, Veloria, Cox, K. Schmidt, Mulliken, Kenney, Pflug, D. Schmidt, Campbell, Dunn, Thomas, Mitchell, Santos, Pennington, Hankins, Carlson, Lambert, Mielke, Bush, Crouse, Delvin, Esser, Murray, Schoesler, Wensman, Skinner, Hurst, Dickerson, Keiser, Fisher, Conway, D. Sommers and Benson


             WHEREAS, April 25th through May 1st is National Crime Victims' Rights Week; and

             WHEREAS, This event began twenty-three years ago in Philadelphia to remember crime victims; and

             WHEREAS, It has since spread throughout the country in an effort to increase the public's awareness and support of crime victims' rights and services; and

             WHEREAS, This need is apparent as a violent crime is committed in America every nineteen seconds, and seventy percent of homicides involve firearms; and

             WHEREAS, In 1997, more than 18,000 people were murdered in the United States, including two hundred forty-four murders in Washington that were committed with weapons; and

             WHEREAS, The highest percentage of murder victims in Washington are young adults, ages eighteen through twenty-four; and

             WHEREAS, It is estimated that one woman is battered every nine seconds in the United States and 1.3 adult women are raped every minute; and

             WHEREAS, While the number of reported rapes in Washington has decreased since 1992, nearly 3,000 rapes occurred in 1997; and

             WHEREAS, Law-abiding citizens are no less deserving of justice, rights, resources, restoration, and rehabilitation than the violent offenders who harm them; and

             WHEREAS, The week's theme, "Victims' Voices -- Silent No More", reflects the power generated when crime victims and their advocates speak out against crime victimization; and

             WHEREAS, Crime does not concentrate in one specific area; it encompasses rape, murder, robbery, burglary, theft, violence, stalking, domestic violence, child abuse, and vehicular assault; and

             WHEREAS, As a nation devoted to liberty and justice for all, America must increase its efforts to protect and expand crime victims' rights and services;

             NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives recognize the pain and suffering victims must endure as a result of crime and express its unequivocal support for crime victims nation-wide, their families, and their friends.


             Representative Ballasiotes moved adoption of the resolution.


             Representatives Ballasiotes and Lovick spoke in favor of the adoption of the resolution.


             House Resolution No. 99-4689 was adopted.


             Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.


MESSAGES FROM THE SENATE

April 22, 1999

Mr. Speaker:


             The President has signed:


SUBSTITUTE SENATE BILL NO. 5304,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5345,

SUBSTITUTE SENATE BILL NO. 5399,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5424,

SECOND SUBSTITUTE SENATE BILL NO. 5536,

SUBSTITUTE SENATE BILL NO. 5553,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5599,

SUBSTITUTE SENATE BILL NO. 5666,

SUBSTITUTE SENATE BILL NO. 5828,

ENGROSSED SENATE BILL NO. 5897,

SENATE BILL NO. 5911,

ENGROSSED SENATE BILL NO. 5962,

SENATE BILL NO. 6025,

SENATE JOINT RESOLUTION NO. 8206,


and the same are herewith transmitted.

Tony M. Cook, Secretary


April 22, 1999

Mr. Speaker:


             The Senate receded from its amendment(s) to SUBSTITUTE HOUSE BILL NO. 1935 and passed the bill without said amendment(s), and the same is herewith transmitted.

Tony M. Cook, Secretary


April 22, 1999

Mr. Speaker:


             The Senate receded from its amendment(s) to SUBSTITUTE HOUSE BILL NO. 1701 and passed the bill without said amendment(s), and the same is herewith transmitted.

Tony M. Cook, Secretary


April 22, 1999

Mr. Speaker:


             The Senate receded from its amendment(s) to SECOND SUBSTITUTE HOUSE BILL NO. 1871 and passed the bill without said amendment(s), and the same is herewith transmitted.

Tony M. Cook, Secretary


April 22, 1999

Mr. Speaker:


             The Senate has adopted:


SENATE CONCURRENT RESOLUTION NO. 8410,

and the same is herewith transmitted.

Tony M. Cook, Secretary


April 23, 1999

Mr. Speaker:


             The President has signed:


ENGROSSED SENATE BILL NO. 5109,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5175,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5208,

SUBSTITUTE SENATE BILL NO. 5312,

SENATE BILL NO. 5382,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5421,

SUBSTITUTE SENATE BILL NO. 5744,

SECOND SUBSTITUTE SENATE BILL NO. 5821,

SENATE BILL NO. 5837,

SUBSTITUTE SENATE BILL NO. 5864,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5866,

SENATE BILL NO. 5915,

SUBSTITUTE SENATE BILL NO. 6001,

SENATE BILL NO. 6065,

SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8406,


and the same are herewith transmitted.

Tony M. Cook, Secretary


April 22, 1999

Mr. Speaker:


             The Senate receded from its amendment(s) to SUBSTITUTE HOUSE BILL NO. 1525 and passed the bill without said amendment(s), and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House advanced to the seventh order of business.


SENATE AMENDMENTS TO HOUSE BILL


             There being no objection, the House reconsidered the vote concurring in the Senate amendment(s) to House Bill No. 1872. (For message and amendment(s) see Journal, 100th Day, April 20, 1999).


             There being no objection, the House refused to concur in the Senate Amendment(s) to House Bill No. 1872 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1250 with the following amendment(s)


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. INTENT. The legislature finds that financial information is personal and sensitive information that if unlawfully obtained by others may do significant harm to a person's privacy, financial security, and other interests. The legislature finds that unscrupulous persons find ever more clever ways, including identity theft, to improperly obtain and use financial information. The legislature intends to penalize unscrupulous people for improperly obtaining financial information.


             NEW SECTION. Sec. 2. PROHIBITING ATTEMPTS TO IMPROPERLY OBTAIN FINANCIAL INFORMATION. (1) No person may obtain or attempt to obtain, or cause to be disclosed or attempt to cause to be disclosed to any person, financial information from a financial information repository:

             (a) By knowingly making a false, fictitious, or fraudulent statement or representation to an officer, employee, or agent of a financial information repository with the intent to deceive the officer, employee, or agent into relying on that statement or representation for purposes of releasing the financial information;

             (b) By knowingly making a false, fictitious, or fraudulent statement or representation to a customer of a financial information repository with the intent to deceive the customer into releasing financial information or authorizing the release of such information;

             (c) By knowingly providing any document to an officer, employee, or agent of a financial information repository, knowing that the document is forged, counterfeit, lost, or stolen; was fraudulently obtained; or contains a false, fictitious, or fraudulent statement or representation, if the document is provided with the intent to deceive the officer, employee, or agent to release the financial information.

             (2) No person may request another person to obtain financial information from a financial information repository and knows or should have known that the person will obtain or attempt to obtain the information from the financial institution repository in any manner described in subsection (1) of this section.

             (3) As used in this section, unless the context clearly requires otherwise:

             (a) "Financial information" means, to the extent it is nonpublic, any of the following information identifiable to the individual that concerns the amount and conditions of an individual's assets, liabilities, or credit:

             (i) Account numbers and balances;

             (ii) Transactional information concerning any account; and

             (iii) Codes, passwords, social security numbers, tax identification numbers, driver's license or permit numbers, state identicard numbers issued by the department of licensing, and other information held for the purpose of account access or transaction initiation.

             (b) "Financial information repository" means any person engaged in the business of providing services to customers who have a credit, deposit, trust, stock, or other financial account or relationship with the person.

             (c) "Person" means an individual, partnership, corporation, or association.

             (4) No provision of this section shall be construed so as to prevent any action by a law enforcement agency, or any officer, employee, or agent of such agency, or any action of an agent of the financial information repository when working in conjunction with a law enforcement agency.

             (5) This section does not apply to:

             (a) Efforts by the financial information repository to test security procedures or systems of the financial institution repository for maintaining the confidentiality of customer information;

             (b) Investigation of alleged employee misconduct or negligence; or

             (c) Efforts to recover financial or personal information of the financial institution obtained or received by another person in any manner described in subsection (1) or (2) of this section.

             (6) Violation of this section is a class C felony.

             (7) A person that violates this section is liable for five hundred dollars or actual damages, whichever is greater, and reasonable attorneys' fees. If the person violating this section is a business that repeatedly violates this section, that person also violates the consumer protection act, chapter 19.86 RCW.


             NEW SECTION. Sec. 3. PROHIBITING IDENTITY THEFT. (1) No person may knowingly use or knowingly transfer a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity harming or intending to harm the person whose identity is used, or for committing any felony.

             (2) For purposes of this section, "means of identification" means any information or item that is not describing finances or credit but is personal to or identifiable with any individual or other person, including any current or former name of the person, telephone number, and electronic address or identifier of the individual or any member of his or her family, including the ancestor of such person; any information relating to a change in name, address, telephone number, or electronic address or identifier of the individual or his or her family; any social security, driver's license, or tax identification number of the individual or any member of his or her family; and other information which could be used to identify the person, including unique biometric data.

             (3) Violation of this section is a class C felony.

             (4) A person that violates this section is liable for five hundred dollars or actual damages, including costs to repair the person's credit record, whichever is greater, and reasonable attorneys' fees. If the person violating this section is a business that repeatedly violates this section, that person also violates the consumer protection act, chapter 19.86 RCW.


             Sec. 4. RCW 9A.82.010 and 1995 c 285 s 34 and 1995 c 92 s 5 are each reenacted and amended to read as follows:

             Unless the context requires the contrary, the definitions in this section apply throughout this chapter.

             (1) "Creditor" means a person making an extension of credit or a person claiming by, under, or through a person making an extension of credit.

             (2) "Debtor" means a person to whom an extension of credit is made or a person who guarantees the repayment of an extension of credit or in any manner undertakes to indemnify the creditor against loss resulting from the failure of a person to whom an extension is made to repay the same.

             (3) "Extortionate extension of credit" means an extension of credit with respect to which it is the understanding of the creditor and the debtor at the time the extension is made that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person, reputation, or property of any person.

             (4) "Extortionate means" means the use, or an express or implicit threat of use, of violence or other criminal means to cause harm to the person, reputation, or property of any person.

             (5) "To collect an extension of credit" means to induce in any way a person to make repayment thereof.

             (6) "To extend credit" means to make or renew a loan or to enter into an agreement, tacit or express, whereby the repayment or satisfaction of a debt or claim, whether acknowledged or disputed, valid or invalid, and however arising, may or shall be deferred.

             (7) "Repayment of an extension of credit" means the repayment, satisfaction, or discharge in whole or in part of a debt or claim, acknowledged or disputed, valid or invalid, resulting from or in connection with that extension of credit.

             (8) "Dealer in property" means a person who buys and sells property as a business.

             (9) "Stolen property" means property that has been obtained by theft, robbery, or extortion.

             (10) "Traffic" means to sell, transfer, distribute, dispense, or otherwise dispose of stolen property to another person, or to buy, receive, possess, or obtain control of stolen property, with intent to sell, transfer, distribute, dispense, or otherwise dispose of the property to another person.

             (11) "Control" means the possession of a sufficient interest to permit substantial direction over the affairs of an enterprise.

             (12) "Enterprise" includes any individual, sole proprietorship, partnership, corporation, business trust, or other profit or nonprofit legal entity, and includes any union, association, or group of individuals associated in fact although not a legal entity, and both illicit and licit enterprises and governmental and nongovernmental entities.

             (13) "Financial institution" means any bank, trust company, savings and loan association, savings bank, mutual savings bank, credit union, or loan company under the jurisdiction of the state or an agency of the United States.

             (14) "Criminal profiteering" means any act, including any anticipatory or completed offense, committed for financial gain, that is chargeable or indictable under the laws of the state in which the act occurred and, if the act occurred in a state other than this state, would be chargeable or indictable under the laws of this state had the act occurred in this state and punishable as a felony and by imprisonment for more than one year, regardless of whether the act is charged or indicted, as any of the following:

             (a) Murder, as defined in RCW 9A.32.030 and 9A.32.050;

             (b) Robbery, as defined in RCW 9A.56.200 and 9A.56.210;

             (c) Kidnapping, as defined in RCW 9A.40.020 and 9A.40.030;

             (d) Forgery, as defined in RCW 9A.60.020 and 9A.60.030;

             (e) Theft, as defined in RCW 9A.56.030, 9A.56.040, 9A.56.060, and 9A.56.080;

             (f) Unlawful sale of subscription television services, as defined in RCW 9A.56.230;

             (g) Theft of telecommunication services or unlawful manufacture of a telecommunication device, as defined in RCW 9A.56.262 and 9A.56.264;

             (h) Child selling or child buying, as defined in RCW 9A.64.030;

             (i) Bribery, as defined in RCW 9A.68.010, 9A.68.020, 9A.68.040, and 9A.68.050;

             (j) Gambling, as defined in RCW 9.46.220 and 9.46.215 and 9.46.217;

             (k) Extortion, as defined in RCW 9A.56.120 and 9A.56.130;

             (l) Extortionate extension of credit, as defined in RCW 9A.82.020;

             (m) Advancing money for use in an extortionate extension of credit, as defined in RCW 9A.82.030;

             (n) Collection of an extortionate extension of credit, as defined in RCW 9A.82.040;

             (o) Collection of an unlawful debt, as defined in RCW 9A.82.045;

             (p) Delivery or manufacture of controlled substances or possession with intent to deliver or manufacture controlled substances under chapter 69.50 RCW;

             (q) Trafficking in stolen property, as defined in RCW 9A.82.050;

             (r) Leading organized crime, as defined in RCW 9A.82.060;

             (s) Money laundering, as defined in RCW 9A.83.020;

             (t) Obstructing criminal investigations or prosecutions in violation of RCW 9A.72.090, 9A.72.100, 9A.72.110, 9A.72.120, 9A.72.130, 9A.76.070, or 9A.76.180;

             (u) Fraud in the purchase or sale of securities, as defined in RCW 21.20.010;

             (v) Promoting pornography, as defined in RCW 9.68.140;

             (w) Sexual exploitation of children, as defined in RCW 9.68A.040, 9.68A.050, and 9.68A.060;

             (x) Promoting prostitution, as defined in RCW 9A.88.070 and 9A.88.080;

             (y) Arson, as defined in RCW 9A.48.020 and 9A.48.030;

             (z) Assault, as defined in RCW 9A.36.011 and 9A.36.021;

             (aa) Assault of a child, as defined in RCW 9A.36.120 and 9A.36.130;

             (bb) A pattern of equity skimming, as defined in RCW 61.34.020;

             (cc) Commercial telephone solicitation in violation of RCW 19.158.040(1);

             (dd) Trafficking in insurance claims, as defined in RCW 48.30A.015;

             (ee) Unlawful practice of law, as defined in RCW 2.48.180;

             (ff) Commercial bribery, as defined in RCW 9A.68.060;

             (gg) Health care false claims, as defined in RCW 48.80.030; ((or))

             (hh) Unlicensed practice of a profession or business, as defined in RCW 18.130.190(7); or

             (ii) Identity, theft as defined in section 3 of this act.

             (15) "Pattern of criminal profiteering activity" means engaging in at least three acts of criminal profiteering, one of which occurred after July 1, 1985, and the last of which occurred within five years, excluding any period of imprisonment, after the commission of the earliest act of criminal profiteering. In order to constitute a pattern, the three acts must have the same or similar intent, results, accomplices, principals, victims, or methods of commission, or be otherwise interrelated by distinguishing characteristics including a nexus to the same enterprise, and must not be isolated events. However, in any civil proceedings brought pursuant to RCW 9A.82.100 by any person other than the attorney general or county prosecuting attorney in which one or more acts of fraud in the purchase or sale of securities are asserted as acts of criminal profiteering activity, it is a condition to civil liability under RCW 9A.82.100 that the defendant has been convicted in a criminal proceeding of fraud in the purchase or sale of securities under RCW 21.20.400 or under the laws of another state or of the United States requiring the same elements of proof, but such conviction need not relate to any act or acts asserted as acts of criminal profiteering activity in such civil action under RCW 9A.82.100.

             (16) "Records" means any book, paper, writing, record, computer program, or other material.

             (17) "Documentary material" means any book, paper, document, writing, drawing, graph, chart, photograph, phonograph record, magnetic tape, computer printout, other data compilation from which information can be obtained or from which information can be translated into usable form, or other tangible item.

             (18) "Unlawful debt" means any money or other thing of value constituting principal or interest of a debt that is legally unenforceable in the state in full or in part because the debt was incurred or contracted:

             (a) In violation of any one of the following:

             (i) Chapter 67.16 RCW relating to horse racing;

             (ii) Chapter 9.46 RCW relating to gambling;

             (b) In a gambling activity in violation of federal law; or

             (c) In connection with the business of lending money or a thing of value at a rate that is at least twice the permitted rate under the applicable state or federal law relating to usury.

             (19)(a) "Beneficial interest" means:

             (i) The interest of a person as a beneficiary under a trust established under Title 11 RCW in which the trustee for the trust holds legal or record title to real property;

             (ii) The interest of a person as a beneficiary under any other trust arrangement under which a trustee holds legal or record title to real property for the benefit of the beneficiary; or

             (iii) The interest of a person under any other form of express fiduciary arrangement under which one person holds legal or record title to real property for the benefit of the other person.

             (b) "Beneficial interest" does not include the interest of a stockholder in a corporation or the interest of a partner in a general partnership or limited partnership.

             (c) A beneficial interest shall be considered to be located where the real property owned by the trustee is located.

             (20) "Real property" means any real property or interest in real property, including but not limited to a land sale contract, lease, or mortgage of real property.

             (21)(a) "Trustee" means:

             (i) A person acting as a trustee under a trust established under Title 11 RCW in which the trustee holds legal or record title to real property;

             (ii) A person who holds legal or record title to real property in which another person has a beneficial interest; or

             (iii) A successor trustee to a person who is a trustee under subsection (21)(a)(i) or (ii) of this section.

             (b) "Trustee" does not mean a person appointed or acting as:

             (i) A personal representative under Title 11 RCW;

             (ii) A trustee of any testamentary trust;

             (iii) A trustee of any indenture of trust under which a bond is issued; or

             (iv) A trustee under a deed of trust.


             NEW SECTION. Sec. 5. EFFECTIVE DATE. This act takes effect January 1, 2000.


             NEW SECTION. Sec. 6. CAPTIONS NOT LAW. Captions used in this chapter are not part of the law.


             NEW SECTION. Sec. 7. SEVERABILITY CLAUSE. 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. 8. Sections 1 through 3 and 5 through 7 of this act constitute a new chapter in Title 9 RCW."


             On page 1, line 1 of the title, after "information;" strike the remainder of the title and insert "reenacting and amending RCW 9A.82.010; adding a new chapter to Title 9 RCW; prescribing penalties; and providing an effective date."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to House Bill No. 1250 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1462 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


"INTENT


             NEW SECTION. Sec. 1. INTENT. The legislature finds that the purpose of Washington's accountability system is to improve student learning and student achievement of the essential academic learning requirement standards so that each individual student will be given the opportunity to become a responsible citizen and successfully live, learn, and work in the twenty-first century. To achieve this purpose, the accountability system should be based on continuous improvement at all levels of Washington's education system and on a fundamental principle that all students have access to curriculum and instruction that is aligned to the standards.

             The legislature further finds that the accountability system should rely on local responsibility and leadership. Districts and schools should be expected to improve and be evaluated based on their improvement over time. Districts should recognize exceptional progress and work closely with struggling schools. The state should provide technical assistance and expertise where needed.

             The legislature further finds that the accountability system must be simple to use and understand. Consequences must be predictable and fair. Differences among students, schools, and districts should be recognized and respected as the system is implemented. There should be a balance of each student's right to privacy and the public's right to know the overall levels of learning and achievement at the school, district, and state levels. In addition, the accountability system should be continuously reviewed and improved as more is learned about how schools operate to meet the learning needs of Washington's students.


PART 1

OVERSIGHT OF THE ACCOUNTABILITY SYSTEM


             NEW SECTION. Sec. 101. COMPOSITION OF THE COMMISSION. (1) The Washington commission on academic achievement is hereby established. The primary purpose of the commission is to provide oversight of the accountability system.

             (2) The commission shall include one member of the state board of education, the superintendent of public instruction, and seven members appointed by the governor with the consent of the senate. All appointments shall be made by July 1, 1999. The governor shall appoint a chair from the commission members, and fill any vacancies in gubernatorial appointments that may occur. Gubernatorial and state board appointees shall serve for a term of four years. However, four of the initial seven gubernatorial appointments and the state board appointee shall serve two-year terms. Appointees may be reappointed to serve more than one term. The state board of education shall fill any vacancies of the state board of education appointment that may occur. Of the appointments made by the governor, one shall be from a list of names submitted by the superintendent of public instruction. In making the appointments, educators, business leaders, and parents shall be represented, and nominations from state-wide education, business, and parent organizations shall be requested. Efforts shall be made to ensure that the commission reflects the racial and ethnic diversity of the state's K-12 student population and that the major geographic regions in the state are represented. Appointees shall be qualified individuals who are supportive of educational improvement and accountability, who have a positive record of service, and who will devote sufficient time to the responsibilities of the commission to ensure that the objectives of the commission are achieved.


             NEW SECTION. Sec. 102. DUTIES OF THE COMMISSION. (1) For purposes of state-wide accountability, the commission shall:

             (a) Establish goals for reading, writing, communications, and mathematics at the appropriate grade level as the commission deems appropriate to improve student learning when assessments in reading, writing, communications, and mathematics are required to be administered state-wide. The commission may revise the state-wide accountability goals as necessary. The commission shall adopt the goals by rule. Before adopting or revising the rules, the commission shall present the goals to the education committees of the senate and the house of representatives for review and comment;

             (b) Develop criteria for deciding when it is appropriate for the commission to make recommendations to the superintendent about assistance and recognition;

             (c) Review data and make recommendations to the superintendent of public instruction about school districts requiring school assistance and recognition;

             (d) Submit recommendations to the superintendent of public instruction about appropriate assistance and recognition;

             (e) Develop recommendations to the legislature about criteria for deciding when it is appropriate for the commission to make recommendations for interventions and recommendations for appropriate types of interventions.

             (f) Annually review the reporting system to ensure fairness, accuracy, timeliness, and equity of opportunity, especially with regard to schools with special circumstances and unique populations of students, and recommend to the superintendent of public instruction needed improvements;

             (g) Recommend changes to the superintendent and the legislature regarding accountability policy and legislation, as necessary;

             (h) Report annually by December 1st to the legislature, the governor, the superintendent of public instruction, and the state board of education on the progress, findings, and recommendations of the commission;

             (i) By December 1, 2000, and by December 31st annually thereafter, report to the education committees of the house of representatives and the senate on the progress that has been made in achieving the goals, and on the setting of goals and progress in achieving goals; and

             (j) Make recommendations to the legislature and take other actions necessary or desirable to help students meet the student learning goals.

             (2) The commission shall coordinate its activities with the state board of education and the office of the superintendent of public instruction.

             (3) The commission shall seek advice broadly from the public and all interested educational organizations in the conduct of its work, including holding periodic regional public hearings.

             (4) The commission may hire an executive director and staff to perform the duties in support of the activities of the commission. The office of the superintendent of public instruction shall provide administrative oversight and be the fiscal agent for the commission. The commission may direct the office of the superintendent of public instruction to enter into subcontracts, within the commission's resources, with school districts, teachers, higher education faculty, state agencies, business organizations, and other individuals and organizations to assist the commission in its deliberations.

             (5) Members of the commission shall be reimbursed for per diem and travel expenses as provided in RCW 43.03.050 and 43.03.060.


             NEW SECTION. Sec. 103. RECOGNITION. (1) The commission on academic achievement annually shall make recommendations to the superintendent of public instruction on school districts and schools that should be recognized based on the results of the Washington assessment of student learning. The commission shall develop the criteria for selecting districts and schools for recognition. Recognition shall be given to schools and school districts that have achieved exceptional growth:

             (a) As measured by an increase in the percent of students meeting standards. The level of achievement required for recognition shall be based on the achievement goals established by the legislature and the commission on academic achievement under RCW 28A.630.887 (as recodified by this act);

             (b) As measured by an improvement index that measures improvement in all levels of the assessment; and

             (c) Despite challenges such as high levels of mobility, poverty, English as a second language learners, and large numbers of students in special populations as measured by either the percent of students meeting the standard, or the improvement index.

             (2) When determining the baseline year or years for recognizing individual schools, the commission may use the assessment results from the initial years the assessments were administered, if doing so with individual schools would be appropriate.


             NEW SECTION. Sec. 104. INTERVENTION. (1) Improved student learning depends on the initiative of educators, parents, and students in each school, the school's local community, and state support. Schools should take responsibility for their own improvement while also having access to assistance from school districts, educational service districts, and the state.

             (2) School districts have primary responsibility for intervening in schools with large numbers of students who are not achieving the essential academic learning requirements. In some cases, school district intervention may not prove successful. Beginning in the 2001-02 school year, continuing levels of low achievement in elementary schools in which there is little or no improvement shall trigger an evaluation by the commission on academic achievement. The purpose of the evaluation is to decide whether to initiate additional state-level assistance. For middle and high schools, the evaluation shall occur three years after assessments are required state-wide. When making recommendations to the superintendent of public instruction regarding additional state-level assistance, the commission on academic achievement shall use multiple sources of information including:

             (a) The results of the Washington assessment of student learning;

             (b) Student achievement evidence from district or other state assessments;

             (c) The level of improvement in student achievement over time;

             (d) Student mobility and poverty;

             (e) Attendance and dropout rates;

             (f) Graduation rates and posthigh school indicators;

             (g) Percent of students in special programs; and

             (h) Other factors presented by individual districts or schools.


PART 2

ACCOUNTABILITY GOALS


             Sec. 201. RCW 28A.630.887 and 1998 c 319 s 101 are each amended to read as follows:

             (((1))) By December 15, 1998, each school district board of directors shall:

             (((a))) (1) Select the reading standard results on either the 1997 or 1998 fourth grade Washington assessment of student learning as the school district's initial baseline reading standard. Districts may select the 1997 results only if all of the elementary schools with fourth grade students administered the assessment;

             (((b))) (2) Establish a three-year, district-wide goal to increase, by the end of the 2000-01 school year, the percentage of students who meet or exceed the reading standard on the fourth grade Washington assessment of student learning. The ((three-year)) 2000-01 percentage increase goal may not be less than the district's total percentage of students who did not meet the baseline reading standard multiplied by twenty-five percent;

             (((c))) (3) Specify the annual district-wide percentage improvement increments to meet the ((three-year)) 2000-01 goal; and

             (((d))) (4) Direct each elementary school to establish a three-year goal for its fourth grade students, subject to approval by the board. The aggregate of the elementary school goals must meet or exceed the district-wide goals established by the board.

             (((2) Each school district board of directors shall:

             (a) Report biannually to parents in writing and to the community in a public meeting the following information:

             (i) District-wide and school-level three-year goals;

             (ii) Student performance relative to the goals; and

             (iii) District-wide and school-level plans to achieve the reading goal in kindergarten through fourth grade, including grade-level expectations, curriculum and instruction, parental or guardian involvement, and resources available to parents and guardians to help students meet the reading standard;

             (b) Report annually to the superintendent of public instruction and in a news release to the local media the district's progress toward meeting the district-wide and school-level goals; and

             (c) Include the reported information in each school's annual school performance report under RCW 28A.320.205.

             (3) By December 1, 2000, the superintendent of public instruction shall report to the education committees of the house of representatives and the senate on the progress that has been made in achieving the three-year reading goal, and provide recommendations to the legislature on setting reading goals for the next three years.

             (4) This section expires July 1, 2006.))


PART 3

REPORTING RESULTS


             Sec. 301. RCW 28A.630.889 and 1998 c 319 s 301 are each amended to read as follows:

             (1) By September 10, 1998, and by September 10th each year thereafter, the superintendent of public instruction shall:

             (a) Report to the public, schools, school districts, and the legislature on the results of the ((fourth grade)) Washington assessment of student learning; and

             (b) Post individual school results of the ((fourth grade)) Washington assessment of student learning on the superintendent of public instruction's internet world-wide web site.

             (2) The reports shall include the assessment results by school and school district, and include changes over time. Results shall be reported in two ways:

             (a) The percent of students meeting the standards; and

             (b) A learning improvement index that shows changes in student performance within the different levels of student learning reported on the Washington assessment of student learning.

             (3) Data regarding the different characteristics of schools, such as poverty levels, percent of English as a second language students, drop-out rates, attendance, percent of students in special education, and student mobility shall also be reported so that districts and schools can learn from the improvement efforts of other schools and districts with similar characteristics.

             (4) To protect the privacy of students, the results of schools and districts that test fewer than ten students in a grade level shall not be reported. In addition, in order to ensure that results are reported accurately, the superintendent of public instruction shall maintain the confidentiality of state-wide data files until the superintendent determines that the data are complete and accurate.

             (5) The superintendent of public instruction shall monitor the percentage and number of special education and limited English-proficient students exempted from taking the assessments by schools and school districts to ensure the exemptions are in compliance with exemption guidelines.

             (((2) This section expires July 1, 2006.))


             NEW SECTION. Sec. 302. DISTRICT REPORTS. (1) Each school district board of directors shall:

             (a) Annually report to parents and to the community in a public meeting and twice annually report in writing the following information:

             (i) District-wide and school-level three-year goals;

             (ii) Student performance relative to the goals; and

             (iii) District-wide and school-level plans to achieve the reading goal in kindergarten through fourth grade, including curriculum and instruction, parental or guardian involvement, and resources available to parents and guardians to help students meet the reading standard;

             (b) Report annually in a news release to the local media the district's progress toward meeting the district-wide and school-level goals; and

             (c) Include the school-level goals, student performance relative to the goals, and a summary of school-level plans to achieve the goals in each school's annual school performance report under RCW 28A.320.205. This shall be considered one of the twice-annual written reports required in (a) of this subsection.

             (2) Schools and school districts in which ten or fewer students are eligible to be assessed in a grade level are not required to establish or report numerical improvement goals and performance relative to the goals, but are required to report to parents and the community their plans to improve reading achievement in kindergarten through fourth grade as required in subsection (1)(a)(iii) of this section.


             Sec. 303. RCW 28A.320.205 and 1993 c 336 s 1006 are each amended to read as follows:

             (1) Beginning with the 1994-95 school year, to provide the local community and electorate with access to information on the educational programs in the schools in the district, each school shall publish annually a school performance report and deliver the report to each parent with children enrolled in the school and make the report available to the community served by the school. The annual performance report shall be in a form that can be easily understood and be used by parents, guardians, and other members of the community who are not professional educators to make informed educational decisions. As data from the assessments in RCW 28A.630.885 (as recodified by this act) becomes available, the annual performance report should enable parents, educators, and school board members to determine whether students in the district's schools are attaining mastery of the student learning goals under RCW 28A.150.210, and other important facts about the schools' performance in assisting students to learn. The annual report shall make comparisons to a school's performance in preceding years and shall ((project goals in performance categories)) include school level goals under RCW 28A.630.887 (as recodified by this act), student performance relative to the goals, and information regarding school-level plans to achieve the goals.

             (2) The annual performance report shall include, but not be limited to: A brief statement of the mission of the school and the school district; enrollment statistics including student demographics; expenditures per pupil for the school year; a summary of student scores on all mandated tests; a concise annual budget report; student attendance, graduation, and dropout rates; information regarding the use and condition of the school building or buildings; a brief description of ((the restructuring)) learning improvement plans for the school; and an invitation to all parents and citizens to participate in school activities.

             (3) The superintendent of public instruction shall develop by June 30, 1994, a model report form, which shall also be adapted for computers, that schools may use to meet the requirements of subsections (1) and (2) of this section.


PART 4

ASSISTANCE FOR SCHOOLS AND DISTRICTS


             NEW SECTION. Sec. 401. ACCOUNTABILITY IMPLEMENTATION FUNDS. (1) To the extent funds are appropriated, the office of the superintendent of public instruction annually shall allocate accountability implementation funds to school districts. The purposes of the funds are to provide time for teachers and other certificated instructional staff and classified staff to: Develop and update student learning improvement plans; implement curriculum materials and instructional strategies; provide staff professional development to implement the selected curricula and instruction; develop and implement assessment strategies and training in assessment scoring; and fund other activities intended to improve student learning for all students, including students with diverse needs. Activities funded by the allocations shall be consistent with the school or district improvement plan, designed to improve the ability of teachers and other instructional certificated and classified staff to assist students in meeting the essential academic learning requirements, and designed to achieve state and local accountability goals. Activities funded by the allocations shall be designed to protect the teachers' instructional time with students and minimize the use of substitute teachers.

             (2) Schools receiving funds shall develop, update as needed, and keep on file a school student learning improvement plan to achieve the student learning goals and essential academic learning requirements and to implement the assessment system as it is developed. The plan shall describe how the accountability implementation funds will be used to accomplish the requirements of this section. The plan shall be made available to the public and to others upon request.

             (3) To the extent funds are appropriated, the state schools for the deaf and blind are eligible to receive allocations under this section.

             (4) The superintendent of public instruction may adopt timelines and rules as necessary under chapter 34.05 RCW to administer the program, and require that schools and districts submit reports regarding the use of the funds.


             NEW SECTION. Sec. 402. HELPING CORPS. (1) In order to increase the availability and quality of technical assistance state-wide, the superintendent of public instruction, subject to available funding, shall employ regional school improvement coordinators and school improvement specialists to provide assistance to schools and districts. The regional coordinators and specialists shall be hired by and work under the direction of a state-wide school improvement coordinator. The improvement specialists shall serve on a rotating basis from one to three years and shall not be permanent employees of the superintendent of public instruction.

             (2) The school improvement coordinators and specialists shall provide the following:

             (a) Assistance to schools to disaggregate student performance data and develop improvement plans based on those data;

             (b) Consultation with schools and districts concerning their performance on the Washington assessment of student learning and other assessments;

             (c) Consultation concerning curricula that aligns with the essential academic learning requirements, the Washington assessment of student learning, and meets the needs of diverse learners;

             (d) Assistance in the identification and implementation of research-based instructional practices;

             (e) Staff training that emphasizes effective instructional strategies and classroom-based assessment;

             (f) Assistance in developing and implementing family and community involvement programs; and

             (g) Other assistance to schools and school districts intended to improve student learning.


             Sec. 403. RCW 28A.300.130 and 1996 c 273 s 5 are each amended to read as follows:

             (1) Expanding activity in educational research, educational restructuring, and educational improvement initiatives has produced and continues to produce much valuable information. The legislature finds that such information should be shared with the citizens and educational community of the state as widely as possible. To facilitate access to information and materials on educational improvement and research, the superintendent of public instruction, to the extent funds are appropriated, shall establish the center for the improvement of student learning. The primary purpose of the center is to provide assistance and advice to parents, school board members, educators, and the public regarding strategies for assisting students in learning the essential academic learning requirements pursuant to RCW 28A.630.885 (as recodified by this act). The center shall work in conjunction with the commission on ((student learning)) academic achievement, educational service districts, ((and)) institutions of higher education, and education, parent, community, and business organizations.

             (2) The center, in conjunction with other staff in the office of the superintendent of public instruction, shall:

             (a) Serve as a clearinghouse for the completed work and activities of the commission on ((student learning)) academic achievement;

             (b) Serve as a clearinghouse for information regarding successful educational ((restructuring)) improvement and parental involvement programs in schools and districts, and information about efforts within institutions of higher education in the state to support educational ((restructuring)) improvement initiatives in Washington schools and districts;

             (c) Provide best practices research and advice that can be used to help schools develop and implement: Programs and practices to improve ((reading)) instruction of the essential academic learning requirements under section 501 of this act; systems to analyze student assessment data, with an emphasis on systems that will combine the use of state and local data to monitor the academic progress of each and every student in the school district; ((school)) comprehensive, school-wide improvement plans; school-based shared decision-making models; programs to promote lifelong learning and community involvement in education; school-to-work transition programs; programs to meet the needs of highly capable students; programs and practices to meet the diverse needs of students based on gender, racial, ethnic, economic, and special needs status; research, information, and technology systems; and other programs and practices that will assist educators in helping students learn the essential academic learning requirements;

             (d) Develop and distribute, in conjunction with the commission on ((student learning)) academic achievement, parental involvement materials, including instructional guides developed to inform parents of the essential academic learning requirements. The instructional guides also shall contain actions parents may take to assist their children in meeting the requirements, and should focus on reaching parents who have not previously been involved with their children's education;

             (e) Identify obstacles to greater parent and community involvement in school shared decision-making processes and recommend strategies for helping parents and community members to participate effectively in school shared decision-making processes, including understanding and respecting the roles of school building administrators and staff;

             (f) Develop and maintain an internet web site to increase the availability of information, research, and other materials;

             (g) Take other actions to increase public awareness of the importance of parental and community involvement in education;

             (((g))) (h) Work with appropriate organizations to inform teachers, district and school administrators, and school directors about the waivers available ((under RCW 28A.305.140)) and the broadened school board powers under RCW 28A.320.015;

             (((h))) (i) Provide training and consultation services, including conducting regional summer institutes;

             (((i))) (j) Address methods for improving the success rates of certain ethnic and racial student groups; and

             (((j))) (k) Perform other functions consistent with the purpose of the center as prescribed in subsection (1) of this section.

             (3) The superintendent of public instruction, after consultation with the commission on ((student learning)) academic achievement, shall select and employ a director for the center.

             (4) The superintendent may enter into contracts with individuals or organizations including but not limited to: School districts; educational service districts; educational organizations; teachers; higher education faculty; institutions of higher education; state agencies; business or community-based organizations; and other individuals and organizations to accomplish the duties and responsibilities of the center. ((The superintendent shall contract out with community-based organizations to meet the provisions of subsection (2)(d) and (e) of this section.)) In carrying out the duties and responsibilities of the center, the superintendent, whenever possible, shall use practitioners to assist agency staff as well as assist educators and others in schools and districts.

             (((5) The superintendent shall report annually to the commission on student learning on the activities of the center.))


PART 5

TRANSFER OF DUTIES AND MATERIALS


             NEW SECTION. Sec. 501. SUPERINTENDENT OF PUBLIC INSTRUCTION'S DUTIES FOR STANDARDS AND ASSESSMENTS. (1) The superintendent of public instruction shall identify the knowledge and skills all public school students need to know and be able to do based on the student learning goals in RCW 28A.150.210 to develop student assessments and implement the accountability recommendations of the commission on academic achievement.

             (2) The superintendent of public instruction shall periodically revise the essential academic learning requirements, as needed, based on the student learning goals in RCW 28A.150.210. Goals one and two shall be considered primary. To the maximum extent possible, the superintendent shall integrate goal four and the knowledge and skill areas in the other goals in the essential academic learning requirements.

             (3) The superintendent of public instruction shall maintain and continue to develop and revise a state-wide academic assessment system for use in the elementary, middle, and high school years designed to determine if each student has mastered the essential academic learning requirements identified in subsection (1) of this section. The academic assessment system shall include a variety of assessment methods, including criterion-referenced and performance-based measures. Performance standards for determining if a student has successfully completed an assessment shall be determined by the superintendent.

             (4) The assessment system shall be designed so that the results under the assessment system are used by educators as tools to evaluate instructional practices, and to initiate appropriate educational support for students who have not mastered the essential academic learning requirements at the appropriate periods in the student's educational development.

             (5) The assessments in reading, writing, mathematics, and communications are required at the elementary level, beginning with the 1997-98 school year and for middle and secondary levels beginning with the 2000-01 school year. The assessment for middle and high school in science shall be required beginning with the 2000-01 school year. The superintendent shall develop timelines for the remaining assessments in history, civics, geography, arts, health, fitness, and science at the elementary, middle, and high school level, to the extent the legislature has not adopted timelines in statute. However the assessments shall be completed not later than the 2003-04 school year and shall be required in the 2007-08 school year. The assessments shall not be implemented if the legislature takes action to delay or prevent implementation of the assessment system and the essential academic learning requirements.

             (6) To the maximum extent possible, the superintendent shall integrate knowledge and skill areas in development of the assessments.

             (7) Assessments for goals three and four of RCW 28A.150.210 shall be integrated in the essential academic learning requirements and assessments for goals one and two.

             (8) The superintendent shall develop assessments that are directly related to the essential academic learning requirements, and are not biased toward persons with different learning styles, racial or ethnic backgrounds, or on the basis of gender.

             (9) The superintendent shall consider methods to address the unique needs of special education students when developing the assessments under this section.

             (10) The superintendent shall consider methods to address the unique needs of highly capable students when developing the assessments under this section.


             NEW SECTION. Sec. 502. COMMISSION ON STUDENT LEARNING--TRANSFER OF POWERS. (1) Beginning July 1, 1999, the powers, duties, and functions of the commission on student learning are transferred to the commission on academic achievement or to the superintendent of public instruction as appropriate under the transfer of duties made from the commission on student learning to the commission on academic achievement or the superintendent of public instruction under this act. All references to the commission on student learning in the Revised Code of Washington shall be construed to mean the commission on academic achievement when addressing the duties, activities, or functions regarding the accountability system under this act. All references to the commission on student learning in the Revised Code of Washington shall be construed to mean the superintendent of public instruction when addressing the duties, activities, or functions regarding the essential academic learning requirements, the standards, or the assessments addressed under this act.

             (2) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the commission on student learning shall be delivered to the custody of the commission on academic achievement or the superintendent of public instruction, as appropriate. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the commission on student learning shall be made available to the commission on academic achievement or the superintendent of public instruction, as appropriate.

             (3) The transfer of the powers, duties, functions, and personnel of the commission on student learning shall not affect the validity of any act performed before the effective date of this section.


PART 6

MISCELLANEOUS


             NEW SECTION. Sec. 601. CONSOLIDATED PLANNING. The superintendent of public instruction, in consultation with school district personnel, shall consolidate and streamline the planning, application, and reporting requirements for major state and federal categorical and grant programs. The superintendent also shall take actions to increase the use of online electronic applications and reporting.


             NEW SECTION. Sec. 602. SLIGS. RCW 28A.300.138 (Student learning improvement grants) and 1994 c 245 s 1 & 1993 c 336 s 301 are each repealed.


             NEW SECTION. Sec. 603. REPEALERS. The following acts or parts of acts are each repealed:

             (1). 1998 c 225 s 3 (uncodified);

             (2). 1995 c 209 s 3 (uncodified); and

             (3). 1995 c 209 s 2 & 1992 c 141 s 203 (uncodified).


             NEW SECTION. Sec. 604. PART HEADINGS AND SECTION CAPTIONS NOT LAW. Part headings and section captions used in this act are not any part of the law.


             NEW SECTION. Sec. 605. NEW ACCOUNTABILITY CHAPTER CREATED. Sections 101 through 104, 302, 401, 402, 501, and 502 of this act constitute a new chapter in Title 28A RCW.


             NEW SECTION. Sec. 606. RECODIFICATIONS. RCW 28A.630.887, 28A.630.889, 28A.320.205, 28A.630.885, 28A.630.883, 28A.630.945, 28A.630.950, 28A.630.951, 28A.630.952, 28A.630.953, and 28A.630.954 are each recodified as new sections in the chapter created in section 605 of this act.


             NEW SECTION. Sec. 607. EMERGENCY CLAUSE. Sections 101, 502, and 603 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.


             NEW SECTION. Sec. 608. SEVERABILITY CLAUSE. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."


             On page 1, line 1 of the title, after "assistance;" strike the remainder of the title and insert "amending RCW 28A.630.887, 28A.630.889, 28A.320.205, and 28A.300.130; adding a new chapter to Title 28A RCW; creating new sections; recodifying RCW 28A.630.887, 28A.630.889, 28A.320.205, 28A.630.885, 28A.630.883, 28A.630.945, 28A.630.950, 28A.630.951, 28A.630.952, 28A.630.953, and 28A.630.954; repealing RCW 28A.300.138; repealing 1998 c 225 s 3 (uncodified); repealing 1995 c 209 s 3 (uncodified); repealing 1995 c 209 s 2 and 1992 c 141 s 203 (uncodified); and declaring an emergency."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to Second Substitute House Bill No. 1462 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1544 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 9.94A.040 and 1997 c 365 s 2 and 1997 c 338 s 3 are each reenacted and amended to read as follows:

             (1) A sentencing guidelines commission is established as an agency of state government.

             (2) The legislature finds that the commission, having accomplished its original statutory directive to implement this chapter, and having expertise in sentencing practice and policies, shall:

             (a) Evaluate state sentencing policy, to include whether the sentencing ranges and standards are consistent with and further:

             (i) The purposes of this chapter as defined in RCW 9.94A.010; and

             (ii) The intent of the legislature to emphasize confinement for the violent offender and alternatives to confinement for the nonviolent offender.

             The commission shall provide the governor and the legislature with its evaluation and recommendations under this subsection not later than December 1, 1996, and every two years thereafter;

             (b) Recommend to the legislature revisions or modifications to the standard sentence ranges, state sentencing policy, prosecuting standards, and other standards. If implementation of the revisions or modifications would result in exceeding the capacity of correctional facilities, then the commission shall accompany its recommendation with an additional list of standard sentence ranges which are consistent with correction capacity;

             (c) Study the existing criminal code and from time to time make recommendations to the legislature for modification;

             (d)(i) Serve as a clearinghouse and information center for the collection, preparation, analysis, and dissemination of information on state and local adult and juvenile sentencing practices; (ii) develop and maintain a computerized adult and juvenile sentencing information system by individual superior court judge consisting of offender, offense, history, and sentence information entered from judgment and sentence forms for all adult felons; and (iii) conduct ongoing research regarding adult and juvenile sentencing guidelines, use of total confinement and alternatives to total confinement, plea bargaining, and other matters relating to the improvement of the adult criminal justice system and the juvenile justice system;

             (e) Assume the powers and duties of the juvenile disposition standards commission after June 30, 1996;

             (f) Evaluate the effectiveness of existing disposition standards and related statutes in implementing policies set forth in RCW 13.40.010 generally, specifically review the guidelines relating to the confinement of minor and first offenders as well as the use of diversion, and review the application of current and proposed juvenile sentencing standards and guidelines for potential adverse impacts on the sentencing outcomes of racial and ethnic minority youth;

             (g) Solicit the comments and suggestions of the juvenile justice community concerning disposition standards, and make recommendations to the legislature regarding revisions or modifications of the standards. The evaluations shall be submitted to the legislature on December 1 of each odd-numbered year. The department of social and health services shall provide the commission with available data concerning the implementation of the disposition standards and related statutes and their effect on the performance of the department's responsibilities relating to juvenile offenders, and with recommendations for modification of the disposition standards. The office of the administrator for the courts shall provide the commission with available data on diversion and dispositions of juvenile offenders under chapter 13.40 RCW; and

             (h) Not later than December 1, 1997, and at least every two years thereafter, based on available information, report to the governor and the legislature on:

             (i) Racial disproportionality in juvenile and adult sentencing;

             (ii) The capacity of state and local juvenile and adult facilities and resources; and

             (iii) Recidivism information on adult and juvenile offenders.

             (3) Each of the commission's recommended standard sentence ranges shall include one or more of the following: Total confinement, partial confinement, community supervision, community service, and a fine.

             (4) The standard sentence ranges of total and partial confinement under this chapter are subject to the following limitations:

             (a) If the maximum term in the range is one year or less, the minimum term in the range shall be no less than one-third of the maximum term in the range, except that if the maximum term in the range is ninety days or less, the minimum term may be less than one-third of the maximum;

             (b) If the maximum term in the range is greater than one year, the minimum term in the range shall be no less than seventy-five percent of the maximum term in the range, except that for murder in the second degree in seriousness ((category XIII)) level XIV under RCW 9.94A.310, the minimum term in the range shall be no less than fifty percent of the maximum term in the range; and

             (c) The maximum term of confinement in a range may not exceed the statutory maximum for the crime as provided in RCW 9A.20.021.

             (5) The commission shall exercise its duties under this section in conformity with chapter 34.05 RCW.


             Sec. 2. RCW 9.94A.310 and 1998 c 235 s 1 and 1998 c 211 s 3 are each reenacted and amended to read as follows:

             (1)                                                                 TABLE 1

 

Sentencing Grid

 

SERIOUSNESS

((SCORE))

LEVEL                                               OFFENDER SCORE

                                                                                                                                                          9 or

               0             1             2             3             4             5             6             7             8             more

                                                                                                                                                                                       

((XV))

XVI        Life Sentence without Parole/Death Penalty

                                                                                                                                                                                       

((XIV))

XV         23y4m    24y4m    25y4m    26y4m    27y4m    28y4m    30y4m    32y10m  36y         40y

               240-        250-        261-        271-        281-        291-        312-        338-        370-        411-

               320         333         347         361         374         388         416         450         493         548

                                                                                                                                                                                       

((XIII))

XIV        14y4m    15y4m    16y2m    17y         17y11m  18y9m    20y5m    22y2m    25y7m    29y

               123-        134-        144-        154-        165-        175-        195-        216-        257-        298-

               220         234         244         254         265         275         295         316         357         397

                                                                                                                                                                                       

XIII        12y         13y         14y         15y         16y         17y         19y         21y         25y         29y

               123-        134-        144-        154-        165-        175-        195-        216-        257-        298-

               164         178         192         205         219         233         260         288         342         397

                                                                                                                                                                                       

XII         9y           9y11m    10y9m    11y8m    12y6m    13y5m    15y9m    17y3m    20y3m    23y3m

               93-          102-        111-        120-        129-        138-        162-        178-        209-        240-

               123         136         147         160         171         184         216         236         277         318

                                                                                                                                                                                       

XI           7y6m      8y4m      9y2m      9y11m    10y9m    11y7m    14y2m    15y5m    17y11m  20y5m

               78-          86-          95-          102-        111-        120-        146-        159-        185-        210-

               102         114         125         136         147         158         194         211         245         280

                                                                                                                                                                                       

X            5y           5y6m      6y           6y6m      7y           7y6m      9y6m      10y6m    12y6m    14y6m

               51-          57-          62-          67-          72-          77-          98-          108-        129-        149-

               68           75           82           89           96           102         130         144         171         198

                                                                                                                                                                                       

IX           3y           3y6m      4y           4y6m      5y           5y6m      7y6m      8y6m      10y6m    12y6m

               31-          36-          41-          46-          51-          57-          77-          87-          108-        129-

               41           48           54           61           68           75           102         116         144         171

                                                                                                                                                                                       

VIII        2y           2y6m      3y           3y6m      4y           4y6m      6y6m      7y6m      8y6m      10y6m

               21-          26-          31-          36-          41-          46-          67-          77-          87-          108-

               27           34           41           48           54           61           89           102         116         144

                                                                                                                                                                                       

VII         18m        2y           2y6m      3y           3y6m      4y           5y6m      6y6m      7y6m      8y6m

               15-          21-          26-          31-          36-          41-          57-          67-          77-          87-

               20           27           34           41           48           54           75           89           102         116

                                                                                                                                                                                       

VI           13m        18m        2y           2y6m      3y           3y6m      4y6m      5y6m      6y6m      7y6m

               12+-       15-          21-          26-          31-          36-          46-          57-          67-          77-

               14          20           27           34           41           48           61           75           89           102

                                                                                                                                                                                       

V            9m          13m        15m        18m        2y2m      3y2m      4y           5y           6y           7y

               6-            12+-       13-          15-          22-          33-          41-          51-          62-          72-

               12           14           17           20           29           43           54           68           82           96

                                                                                                                                                                                       

IV           6m          9m          13m        15m        18m        2y2m      3y2m      4y2m      5y2m      6y2m

               3-            6-            12+-       13-          15-          22-          33-          43-          53-          63-

               9             12           14           17           20           29           43           57           70           84

                                                                                                                                                                                       

III           2m          5m          8m          11m        14m        20m        2y2m      3y2m      4y2m      5y

               1-            3-            4-            9-            12+-       17-          22-          33-          43-          51-

               3             8             12           12           16           22           29           43           57           68

                                                                                                                                                                                       

II                            4m          6m          8m          13m        16m        20m        2y2m      3y2m      4y2m

               0-90        2-            3-            4-            12+-       14-          17-          22-          33-          43-

               Days       6             9             12           14           18           22           29           43           57

                                                                                                                                                                                       

I                                             3m          4m          5m          8m          13m        16m        20m        2y2m

               0-60        0-90        2-            2-            3-            4-            12+-       14-          17-          22-

               Days       Days       5             6             8             12           14          18           22           29

                                                                                                                                                                                       

 

NOTE: Numbers in the first horizontal row of each seriousness category represent sentencing midpoints in years(y) and months(m). Numbers in the second and third rows represent presumptive sentencing ranges in months, or in days if so designated. 12+ equals one year and one day.

             (2) For persons convicted of the anticipatory offenses of criminal attempt, solicitation, or conspiracy under chapter 9A.28 RCW, the presumptive sentence is determined by locating the sentencing grid sentence range defined by the appropriate offender score and the seriousness level of the completed crime, and multiplying the range by 75 percent.

             (3) The following additional times shall be added to the presumptive sentence for felony crimes committed after July 23, 1995, if the offender or an accomplice was armed with a firearm as defined in RCW 9.41.010 and the offender is being sentenced for one of the crimes listed in this subsection as eligible for any firearm enhancements based on the classification of the completed felony crime. If the offender is being sentenced for more than one offense, the firearm enhancement or enhancements must be added to the total period of confinement for all offenses, regardless of which underlying offense is subject to a firearm enhancement. If the offender or an accomplice was armed with a firearm as defined in RCW 9.41.010 and the offender is being sentenced for an anticipatory offense under chapter 9A.28 RCW to commit one of the crimes listed in this subsection as eligible for any firearm enhancements, the following additional times shall be added to the presumptive sentence determined under subsection (2) of this section based on the felony crime of conviction as classified under RCW 9A.28.020:

             (a) Five years for any felony defined under any law as a class A felony or with a maximum sentence of at least twenty years, or both, and not covered under (f) of this subsection.

             (b) Three years for any felony defined under any law as a class B felony or with a maximum sentence of ten years, or both, and not covered under (f) of this subsection.

             (c) Eighteen months for any felony defined under any law as a class C felony or with a maximum sentence of five years, or both, and not covered under (f) of this subsection.

             (d) If the offender is being sentenced for any firearm enhancements under (a), (b), and/or (c) of this subsection and the offender has previously been sentenced for any deadly weapon enhancements after July 23, 1995, under (a), (b), and/or (c) of this subsection or subsection (4)(a), (b), and/or (c) of this section, or both, any and all firearm enhancements under this subsection shall be twice the amount of the enhancement listed.

             (e) Notwithstanding any other provision of law, any and all firearm enhancements under this section are mandatory, shall be served in total confinement, and shall run consecutively to all other sentencing provisions, including other firearm or deadly weapon enhancements, for all offenses sentenced under this chapter.

             (f) The firearm enhancements in this section shall apply to all felony crimes except the following: Possession of a machine gun, possessing a stolen firearm, drive-by shooting, theft of a firearm, unlawful possession of a firearm in the first and second degree, and use of a machine gun in a felony.

             (g) If the presumptive sentence under this section exceeds the statutory maximum for the offense, the statutory maximum sentence shall be the presumptive sentence unless the offender is a persistent offender as defined in RCW 9.94A.030. If the addition of a firearm enhancement increases the sentence so that it would exceed the statutory maximum for the offense, the portion of the sentence representing the enhancement may not be reduced.

             (4) The following additional times shall be added to the presumptive sentence for felony crimes committed after July 23, 1995, if the offender or an accomplice was armed with a deadly weapon as defined in this chapter other than a firearm as defined in RCW 9.41.010 and the offender is being sentenced for one of the crimes listed in this subsection as eligible for any deadly weapon enhancements based on the classification of the completed felony crime. If the offender is being sentenced for more than one offense, the deadly weapon enhancement or enhancements must be added to the total period of confinement for all offenses, regardless of which underlying offense is subject to a deadly weapon enhancement. If the offender or an accomplice was armed with a deadly weapon other than a firearm as defined in RCW 9.41.010 and the offender is being sentenced for an anticipatory offense under chapter 9A.28 RCW to commit one of the crimes listed in this subsection as eligible for any deadly weapon enhancements, the following additional times shall be added to the presumptive sentence determined under subsection (2) of this section based on the felony crime of conviction as classified under RCW 9A.28.020:

             (a) Two years for any felony defined under any law as a class A felony or with a maximum sentence of at least twenty years, or both, and not covered under (f) of this subsection.

             (b) One year for any felony defined under any law as a class B felony or with a maximum sentence of ten years, or both, and not covered under (f) of this subsection.

             (c) Six months for any felony defined under any law as a class C felony or with a maximum sentence of five years, or both, and not covered under (f) of this subsection.

             (d) If the offender is being sentenced under (a), (b), and/or (c) of this subsection for any deadly weapon enhancements and the offender has previously been sentenced for any deadly weapon enhancements after July 23, 1995, under (a), (b), and/or (c) of this subsection or subsection (3)(a), (b), and/or (c) of this section, or both, any and all deadly weapon enhancements under this subsection shall be twice the amount of the enhancement listed.

             (e) Notwithstanding any other provision of law, any and all deadly weapon enhancements under this section are mandatory, shall be served in total confinement, and shall run consecutively to all other sentencing provisions, including other firearm or deadly weapon enhancements, for all offenses sentenced under this chapter.

             (f) The deadly weapon enhancements in this section shall apply to all felony crimes except the following: Possession of a machine gun, possessing a stolen firearm, drive-by shooting, theft of a firearm, unlawful possession of a firearm in the first and second degree, and use of a machine gun in a felony.

             (g) If the presumptive sentence under this section exceeds the statutory maximum for the offense, the statutory maximum sentence shall be the presumptive sentence unless the offender is a persistent offender as defined in RCW 9.94A.030. If the addition of a deadly weapon enhancement increases the sentence so that it would exceed the statutory maximum for the offense, the portion of the sentence representing the enhancement may not be reduced.

             (5) The following additional times shall be added to the presumptive sentence if the offender or an accomplice committed the offense while in a county jail or state correctional facility as that term is defined in this chapter and the offender is being sentenced for one of the crimes listed in this subsection. If the offender or an accomplice committed one of the crimes listed in this subsection while in a county jail or state correctional facility as that term is defined in this chapter, and the offender is being sentenced for an anticipatory offense under chapter 9A.28 RCW to commit one of the crimes listed in this subsection, the following additional times shall be added to the presumptive sentence determined under subsection (2) of this section:

             (a) Eighteen months for offenses committed under RCW 69.50.401(a)(1) (i) or (ii) or 69.50.410;

             (b) Fifteen months for offenses committed under RCW 69.50.401(a)(1) (iii), (iv), and (v);

             (c) Twelve months for offenses committed under RCW 69.50.401(d).

             For the purposes of this subsection, all of the real property of a state correctional facility or county jail shall be deemed to be part of that facility or county jail.

             (6) An additional twenty-four months shall be added to the presumptive sentence for any ranked offense involving a violation of chapter 69.50 RCW if the offense was also a violation of RCW 69.50.435.

             (7) An additional two years shall be added to the presumptive sentence for vehicular homicide committed while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502 for each prior offense as defined in RCW 46.61.5055.


             Sec. 3. RCW 9.94A.320 and 1998 c 290 s 4, 1998 c 219 s 4, 1998 c 82 s 1, and 1998 c 78 s 1 are each reenacted and amended to read as follows:

TABLE 2

 

CRIMES INCLUDED WITHIN EACH SERIOUSNESS LEVEL

 

((XV))

     XVI             Aggravated Murder 1 (RCW 10.95.020)

 

((XIV))

       XV             Murder 1 (RCW 9A.32.030)

                          Homicide by abuse (RCW 9A.32.055)

                          Malicious explosion 1 (RCW 70.74.280(1))

 

((XIII))

     XIV             Murder 2 (RCW 9A.32.050)

 

      XIII            Malicious explosion 2 (RCW 70.74.280(2))

                          Malicious placement of an explosive 1 (RCW 70.74.270(1))

 

       XII             Assault 1 (RCW 9A.36.011)

                          Assault of a Child 1 (RCW 9A.36.120)

                          Rape 1 (RCW 9A.44.040)

                          Rape of a Child 1 (RCW 9A.44.073)

                          Malicious placement of an imitation device 1 (RCW 70.74.272(1)(a))

 

        XI             Rape 2 (RCW 9A.44.050)

                          Rape of a Child 2 (RCW 9A.44.076)

                          Manslaughter 1 (RCW 9A.32.060)

 

          X             Kidnapping 1 (RCW 9A.40.020)

                          Child Molestation 1 (RCW 9A.44.083)

                          Malicious explosion 3 (RCW 70.74.280(3))

                          Over 18 and deliver heroin, methamphetamine, a narcotic from Schedule I or II, or flunitrazepam from Schedule IV to someone under 18 (RCW 69.50.406)

                          Leading Organized Crime (RCW 9A.82.060(1)(a))

                          Indecent Liberties (with forcible compulsion) (RCW 9A.44.100(1)(a))

                          Manufacture of methamphetamine (RCW 69.50.401(a)(1)(ii))

 

        IX             Assault of a Child 2 (RCW 9A.36.130)

                          Robbery 1 (RCW 9A.56.200)

                          Explosive devices prohibited (RCW 70.74.180)

                          Malicious placement of an explosive 2 (RCW 70.74.270(2))

                          Over 18 and deliver narcotic from Schedule III, IV, or V or a nonnarcotic, except flunitrazepam or methamphetamine, from Schedule I-V to someone under 18 and 3 years junior (RCW 69.50.406)

                          Controlled Substance Homicide (RCW 69.50.415)

                          Sexual Exploitation (RCW 9.68A.040)

                          Inciting Criminal Profiteering (RCW 9A.82.060(1)(b))

                          Vehicular Homicide, by being under the influence of intoxicating liquor or any drug (RCW 46.61.520)

                          Homicide by Watercraft, by being under the influence of intoxicating liquor or any drug (RCW 88.12.029)

 

      VIII            Arson 1 (RCW 9A.48.020)

                          Promoting Prostitution 1 (RCW 9A.88.070)

                          Selling for profit (controlled or counterfeit) any controlled substance (RCW 69.50.410)

                          Manufacture, deliver, or possess with intent to deliver heroin or cocaine (RCW 69.50.401(a)(1)(i))

                          Deliver or possess with intent to deliver methamphetamine (RCW 69.50.401(a)(1)(ii))

                          Manufacture, deliver, or possess with intent to deliver amphetamine (RCW 69.50.401(a)(1)(ii))

                          Possession of ephedrine or pseudoephedrine with intent to manufacture methamphetamine (RCW 69.50.440)

                          Vehicular Homicide, by the operation of any vehicle in a reckless manner (RCW 46.61.520)

                          Homicide by Watercraft, by the operation of any vessel in a reckless manner (RCW 88.12.029)

                          Manslaughter 2 (RCW 9A.32.070)

 

       VII             Burglary 1 (RCW 9A.52.020)

                          Vehicular Homicide, by disregard for the safety of others (RCW 46.61.520)

                          Homicide by Watercraft, by disregard for the safety of others (RCW 88.12.029)

                          Introducing Contraband 1 (RCW 9A.76.140)

                          Indecent Liberties (without forcible compulsion) (RCW 9A.44.100(1) (b) and (c))

                          Child Molestation 2 (RCW 9A.44.086)

                          Dealing in depictions of minor engaged in sexually explicit conduct (RCW 9.68A.050)

                          Sending, bringing into state depictions of minor engaged in sexually explicit conduct (RCW 9.68A.060)

                          Involving a minor in drug dealing (RCW 69.50.401(f))

                          Drive-by Shooting (RCW 9A.36.045)

                          Unlawful Possession of a Firearm in the first degree (RCW 9.41.040(1)(a))

                          Malicious placement of an explosive 3 (RCW 70.74.270(3))

                          Use of a Machine Gun in Commission of a Felony (RCW 9.41.225)

 

        VI             Bribery (RCW 9A.68.010)

                          Rape of a Child 3 (RCW 9A.44.079)

                          Intimidating a Juror/Witness (RCW 9A.72.110, 9A.72.130)

                          Malicious placement of an imitation device 2 (RCW 70.74.272(1)(b))

                          Incest 1 (RCW 9A.64.020(1))

                          Manufacture, deliver, or possess with intent to deliver narcotics from Schedule I or II (except heroin or cocaine) or flunitrazepam from Schedule IV (RCW 69.50.401(a)(1)(i))

                          Intimidating a Judge (RCW 9A.72.160)

                          Bail Jumping with Murder 1 (RCW 9A.76.170(2)(a))

                          Theft of a Firearm (RCW 9A.56.300)

 

          V             Persistent prison misbehavior (RCW 9.94.070)

                          Criminal Mistreatment 1 (RCW 9A.42.020)

                          Abandonment of dependent person 1 (RCW 9A.42.060)

                          Rape 3 (RCW 9A.44.060)

                          Sexual Misconduct with a Minor 1 (RCW 9A.44.093)

                          Child Molestation 3 (RCW 9A.44.089)

                          Kidnapping 2 (RCW 9A.40.030)

                          Extortion 1 (RCW 9A.56.120)

                          Incest 2 (RCW 9A.64.020(2))

                          Perjury 1 (RCW 9A.72.020)

                          Extortionate Extension of Credit (RCW 9A.82.020)

                          Advancing money or property for extortionate extension of credit (RCW 9A.82.030)

                          Extortionate Means to Collect Extensions of Credit (RCW 9A.82.040)

                          Rendering Criminal Assistance 1 (RCW 9A.76.070)

                          Bail Jumping with class A Felony (RCW 9A.76.170(2)(b))

                          Sexually Violating Human Remains (RCW 9A.44.105)

                          Delivery of imitation controlled substance by person eighteen or over to person under eighteen (RCW 69.52.030(2))

                          Possession of a Stolen Firearm (RCW 9A.56.310)

                          On and after July 1, 2000: Stalking (RCW 9A.46.110)

                          On and after July 1, 2000: No-Contact Order Violation: Domestic Violence Pretrial Condition (RCW 10.99.040(4) (b) and (c))

                          On and after July 1, 2000: No-Contact Order Violation: Domestic Violence Sentence Condition (RCW 10.99.050(2))

                          On and after July 1, 2000: Protection Order Violation: Domestic Violence Civil Action (RCW 26.50.110 (4) and (5))

 

        IV             Residential Burglary (RCW 9A.52.025)

                          Theft of Livestock 1 (RCW 9A.56.080)

                          Robbery 2 (RCW 9A.56.210)

                          Assault 2 (RCW 9A.36.021)

                          Escape 1 (RCW 9A.76.110)

                          Arson 2 (RCW 9A.48.030)

                          Commercial Bribery (RCW 9A.68.060)

                          Bribing a Witness/Bribe Received by Witness (RCW 9A.72.090, 9A.72.100)

                          Malicious Harassment (RCW 9A.36.080)

                          Threats to Bomb (RCW 9.61.160)

                          Willful Failure to Return from Furlough (RCW 72.66.060)

                          Hit and Run--Injury Accident (RCW 46.52.020(4))

                          Hit and Run with Vessel--Injury Accident (RCW 88.12.155(3))

                          Vehicular Assault (RCW 46.61.522)

                          Assault by Watercraft (RCW 88.12.032)

                          Manufacture, deliver, or possess with intent to deliver narcotics from Schedule III, IV, or V or nonnarcotics from Schedule I-V (except marijuana, amphetamine, methamphetamines, or flunitrazepam) (RCW 69.50.401(a)(1) (iii) through (v))

                          Influencing Outcome of Sporting Event (RCW 9A.82.070)

                          Use of Proceeds of Criminal Profiteering (RCW 9A.82.080 (1) and (2))

                          Knowingly Trafficking in Stolen Property (RCW 9A.82.050(2))

                          Indecent Exposure to Person Under Age Fourteen (subsequent sex offense) (RCW 9A.88.010)

 

         III            Criminal Gang Intimidation (RCW 9A.46.120)

                          Criminal Mistreatment 2 (RCW 9A.42.030)

                          Abandonment of dependent person 2 (RCW 9A.42.070)

                          Extortion 2 (RCW 9A.56.130)

                          Unlawful Imprisonment (RCW 9A.40.040)

                          Assault 3 (RCW 9A.36.031)

                          Assault of a Child 3 (RCW 9A.36.140)

                          Custodial Assault (RCW 9A.36.100)

                          Unlawful possession of firearm in the second degree (RCW 9.41.040(1)(b))

                          Harassment (RCW 9A.46.020)

                          Promoting Prostitution 2 (RCW 9A.88.080)

                          Willful Failure to Return from Work Release (RCW 72.65.070)

                          Burglary 2 (RCW 9A.52.030)

                          Introducing Contraband 2 (RCW 9A.76.150)

                          Communication with a Minor for Immoral Purposes (RCW 9.68A.090)

                          Patronizing a Juvenile Prostitute (RCW 9.68A.100)

                          Escape 2 (RCW 9A.76.120)

                          Perjury 2 (RCW 9A.72.030)

                          Bail Jumping with class B or C Felony (RCW 9A.76.170(2)(c))

                          Intimidating a Public Servant (RCW 9A.76.180)

                          Tampering with a Witness (RCW 9A.72.120)

                          Manufacture, deliver, or possess with intent to deliver marijuana (RCW 69.50.401(a)(1)(iii))

                          Delivery of a material in lieu of a controlled substance (RCW 69.50.401(c))

                          Manufacture, distribute, or possess with intent to distribute an imitation controlled substance (RCW 69.52.030(1))

                          Recklessly Trafficking in Stolen Property (RCW 9A.82.050(1))

                          Theft of livestock 2 (RCW 9A.56.080)

                          Securities Act violation (RCW 21.20.400)

                          Maintaining a Dwelling or Place for Controlled Substances (RCW 69.50.402(a)(6))

                          Malicious Injury to Railroad Property (RCW 81.60.070)

                          Possession of Incendiary Device (RCW 9.40.120)

                          Possession of Machine Gun or Short-Barreled Shotgun or Rifle (RCW 9.41.190)

                          Telephone Harassment (subsequent conviction or threat of death) (RCW 9.61.230)

                          Unlawful Use of Building for Drug Purposes (RCW 69.53.010)

 

          II            Unlawful Practice of Law (RCW 2.48.180)

                          Malicious Mischief 1 (RCW 9A.48.070)

                          Possession of Stolen Property 1 (RCW 9A.56.150)

                          Theft 1 (RCW 9A.56.030)

                          ((Class B Felony)) Theft of Rental, Leased, or Lease-purchased Property (valued at one thousand five hundred dollars or more) (RCW 9A.56.096(4))

                          Trafficking in Insurance Claims (RCW 48.30A.015)

                          Unlicensed Practice of a Profession or Business (RCW 18.130.190(7))

                          Health Care False Claims (RCW 48.80.030)

                          Possession of controlled substance that is either heroin or narcotics from Schedule I or II or flunitrazepam from Schedule IV (RCW 69.50.401(d))

                          Possession of phencyclidine (PCP) (RCW 69.50.401(d))

                          Create, deliver, or possess a counterfeit controlled substance (RCW 69.50.401(b))

                          Computer Trespass 1 (RCW 9A.52.110)

                          Escape from Community Custody (RCW 72.09.310)

 

           I             Theft 2 (RCW 9A.56.040)

                          ((Class C Felony)) Theft of Rental, Leased, or Lease-purchased Property (valued at two hundred fifty dollars or more but less than one thousand five hundred dollars) (RCW 9A.56.096(4))

                          Possession of Stolen Property 2 (RCW 9A.56.160)

                          Forgery (RCW 9A.60.020)

                          Taking Motor Vehicle Without Permission (RCW 9A.56.070)

                          Vehicle Prowl 1 (RCW 9A.52.095)

                          Attempting to Elude a Pursuing Police Vehicle (RCW 46.61.024)

                          Malicious Mischief 2 (RCW 9A.48.080)

                          Reckless Burning 1 (RCW 9A.48.040)

                          Unlawful Issuance of Checks or Drafts (RCW 9A.56.060)

                          Unlawful Use of Food Stamps (RCW 9.91.140 (2) and (3))

                          False Verification for Welfare (RCW 74.08.055)

                          Forged Prescription (RCW 69.41.020)

                          Forged Prescription for a Controlled Substance (RCW 69.50.403)

                          Possess Controlled Substance that is a Narcotic from Schedule III, IV, or V or Non-narcotic from Schedule I-V (except phencyclidine or flunitrazepam) (RCW 69.50.401(d))


             Sec. 4. RCW 81.60.070 and 1992 c 7 s 60 are each amended to read as follows:

             Every person who, in such manner as might, if not discovered, endanger the safety of any engine, motor, car or train, or any person thereon, shall in any manner interfere or tamper with or obstruct any switch, frog, rail, roadbed, sleeper, viaduct, bridge, trestle, culvert, embankment, structure, or appliance pertaining to or connected with any railway, or any train, engine, motor, or car on such railway, and every person who shall discharge any firearm or throw any dangerous missile at any train, engine, motor, or car on any railway, shall be punished by imprisonment in a state correctional facility for not more than ((twenty-five)) ten years.


             Sec. 5. RCW 9.40.120 and 1971 ex.s. c 302 s 4 are each amended to read as follows:

             Every person who possesses, manufactures, or disposes of an incendiary device knowing it to be such is guilty of a felony, and upon conviction, shall be punished by imprisonment in a state prison for a term of not more than ((twenty-five)) ten years.


             NEW SECTION. Sec. 6. The code reviser shall alphabetize the offenses within each seriousness level in RCW 9.94A.320, including any offenses added in the 1999 legislative session.


             NEW SECTION. Sec. 7. The amendments made by sections 3 through 5 of this act shall apply to offenses committed on or after the effective date of this act except that the amendments made by this act to seriousness level V in RCW 9.94A.320 shall apply to offenses committed on or after July 1, 2000.


             Sec. 8. RCW 9.94A.030 and 1998 c 290 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) "Collect," or any derivative thereof, "collect and remit," or "collect and deliver," when used with reference to the department of corrections, means that the department is responsible for monitoring and enforcing the offender's sentence with regard to the legal financial obligation, receiving payment thereof from the offender, and, consistent with current law, delivering daily the entire payment to the superior court clerk without depositing it in a departmental account.

             (2) "Commission" means the sentencing guidelines commission.

             (3) "Community corrections officer" means an employee of the department who is responsible for carrying out specific duties in supervision of sentenced offenders and monitoring of sentence conditions.

             (4) "Community custody" means that portion of an inmate's sentence of confinement in lieu of earned early release time or imposed pursuant to RCW 9.94A.120 (6), (8), or (10) served in the community subject to controls placed on the inmate's movement and activities by the department of corrections.

             (5) "Community placement" means that period during which the offender is subject to the conditions of community custody and/or postrelease supervision, which begins either upon completion of the term of confinement (postrelease supervision) or at such time as the offender is transferred to community custody in lieu of earned early release. Community placement may consist of entirely community custody, entirely postrelease supervision, or a combination of the two.

             (6) "Community service" means compulsory service, without compensation, performed for the benefit of the community by the offender.

             (7) "Community supervision" means a period of time during which a convicted offender is subject to crime-related prohibitions and other sentence conditions imposed by a court pursuant to this chapter or RCW 16.52.200(6) or 46.61.524. For first-time offenders, the supervision may include crime-related prohibitions and other conditions imposed pursuant to RCW 9.94A.120(5). For purposes of the interstate compact for out-of-state supervision of parolees and probationers, RCW 9.95.270, community supervision is the functional equivalent of probation and should be considered the same as probation by other states.

             (8) "Confinement" means total or partial confinement as defined in this section.

             (9) "Conviction" means an adjudication of guilt pursuant to Titles 10 or 13 RCW and includes a verdict of guilty, a finding of guilty, and acceptance of a plea of guilty.

             (10) "Court-ordered legal financial obligation" means a sum of money that is ordered by a superior court of the state of Washington for legal financial obligations which may include restitution to the victim, statutorily imposed crime victims' compensation fees as assessed pursuant to RCW 7.68.035, court costs, county or interlocal drug funds, court-appointed attorneys' fees, and costs of defense, fines, and any other financial obligation that is assessed to the offender as a result of a felony conviction. Upon conviction for vehicular assault while under the influence of intoxicating liquor or any drug, RCW 46.61.522(1)(b), or vehicular homicide while under the influence of intoxicating liquor or any drug, RCW 46.61.520(1)(a), legal financial obligations may also include payment to a public agency of the expense of an emergency response to the incident resulting in the conviction, subject to the provisions in RCW 38.52.430.

             (11) "Crime-related prohibition" means an order of a court prohibiting conduct that directly relates to the circumstances of the crime for which the offender has been convicted, and shall not be construed to mean orders directing an offender affirmatively to participate in rehabilitative programs or to otherwise perform affirmative conduct. However, affirmative acts necessary to monitor compliance with the order of a court may be required by the department.

             (12) "Criminal history" means the list of a defendant's prior convictions and juvenile adjudications, whether in this state, in federal court, or elsewhere. The history shall include, where known, for each conviction (a) whether the defendant has been placed on probation and the length and terms thereof; and (b) whether the defendant has been incarcerated and the length of incarceration.

             (13) "Day fine" means a fine imposed by the sentencing judge that equals the difference between the offender's net daily income and the reasonable obligations that the offender has for the support of the offender and any dependents.

             (14) "Day reporting" means a program of enhanced supervision designed to monitor the defendant's daily activities and compliance with sentence conditions, and in which the defendant is required to report daily to a specific location designated by the department or the sentencing judge.

             (15) "Department" means the department of corrections.

             (16) "Determinate sentence" means a sentence that states with exactitude the number of actual years, months, or days of total confinement, of partial confinement, of community supervision, the number of actual hours or days of community service work, or dollars or terms of a legal financial obligation. The fact that an offender through "earned early release" can reduce the actual period of confinement shall not affect the classification of the sentence as a determinate sentence.

             (17) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of any amount required by law to be withheld. For the purposes of this definition, "earnings" means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonuses, or otherwise, and, notwithstanding any other provision of law making the payments exempt from garnishment, attachment, or other process to satisfy a court-ordered legal financial obligation, specifically includes periodic payments pursuant to pension or retirement programs, or insurance policies of any type, but does not include payments made under Title 50 RCW, except as provided in RCW 50.40.020 and 50.40.050, or Title 74 RCW.

             (18) "Drug offense" means:

             (a) Any felony violation of chapter 69.50 RCW except possession of a controlled substance (RCW 69.50.401(d)) or forged prescription for a controlled substance (RCW 69.50.403);

             (b) Any offense defined as a felony under federal law that relates to the possession, manufacture, distribution, or transportation of a controlled substance; or

             (c) Any out-of-state conviction for an offense that under the laws of this state would be a felony classified as a drug offense under (a) of this subsection.

             (19) "Escape" means:

             (a) Escape in the first degree (RCW 9A.76.110), escape in the second degree (RCW 9A.76.120), willful failure to return from furlough (RCW 72.66.060), willful failure to return from work release (RCW 72.65.070), or willful failure to be available for supervision by the department while in community custody (RCW 72.09.310); or

             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as an escape under (a) of this subsection.

             (20) "Felony traffic offense" means:

             (a) Vehicular homicide (RCW 46.61.520), vehicular assault (RCW 46.61.522), eluding a police officer (RCW 46.61.024), or felony hit-and-run injury-accident (RCW 46.52.020(4)); or

             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a felony traffic offense under (a) of this subsection.

             (21) "Fines" means the requirement that the offender pay a specific sum of money over a specific period of time to the court.

             (22) "First-time offender" means any person who is convicted of a felony (a) not classified as a violent offense or a sex offense under this chapter, or (b) that is not the manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance classified in Schedule I or II that is a narcotic drug or flunitrazepam classified in Schedule IV, nor the manufacture, delivery, or possession with intent to deliver methamphetamine, its salts, isomers, and salts of its isomers as defined in RCW 69.50.206(d)(2), nor the selling for profit of any controlled substance or counterfeit substance classified in Schedule I, RCW 69.50.204, except leaves and flowering tops of marihuana, who previously has never been convicted of a felony in this state, federal court, or another state, and who has never participated in a program of deferred prosecution for a felony offense.

             (23) "Most serious offense" means any of the following felonies or a felony attempt to commit any of the following felonies, as now existing or hereafter amended:

             (a) Any felony defined under any law as a class A felony or criminal solicitation of or criminal conspiracy to commit a class A felony;

             (b) Assault in the second degree;

             (c) Assault of a child in the second degree;

             (d) Child molestation in the second degree;

             (e) Controlled substance homicide;

             (f) Extortion in the first degree;

             (g) Incest when committed against a child under age fourteen;

             (h) Indecent liberties;

             (i) Kidnapping in the second degree;

             (j) Leading organized crime;

             (k) Manslaughter in the first degree;

             (l) Manslaughter in the second degree;

             (m) Promoting prostitution in the first degree;

             (n) Rape in the third degree;

             (o) Robbery in the second degree;

             (p) Sexual exploitation;

             (q) Vehicular assault;

             (r) Vehicular homicide, when proximately caused by the driving of any vehicle by any person while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502, or by the operation of any vehicle in a reckless manner;

             (s) Any other class B felony offense with a finding of sexual motivation, as "sexual motivation" is defined under this section;

             (t) Any other felony with a deadly weapon verdict under RCW 9.94A.125;

             (u) Any felony offense in effect at any time prior to December 2, 1993, that is comparable to a most serious offense under this subsection, or any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a most serious offense under this subsection;

             (v)(i) A prior conviction for indecent liberties under RCW 9A.88.100(1) (a), (b), and (c), chapter 260, Laws of 1975 1st ex. sess. as it existed until July 1, 1979, RCW 9A.44.100(1) (a), (b), and (c) as it existed from July 1, 1979, until June 11, 1986, and RCW 9A.44.100(1) (a), (b), and (d) as it existed from June 11, 1986, until July 1, 1988;

             (ii) A prior conviction for indecent liberties under RCW 9A.44.100(1)(c) as it existed from June 11, 1986, until July 1, 1988, if: (A) The crime was committed against a child under the age of fourteen; or (B) the relationship between the victim and perpetrator is included in the definition of indecent liberties under RCW 9A.44.100(1)(c) as it existed from July 1, 1988, through July 27, 1997, or RCW 9A.44.100(1) (d) or (e) as it existed from July 25, 1993, through July 27, 1997.

             (24) "Nonviolent offense" means an offense which is not a violent offense.

             (25) "Offender" means a person who has committed a felony established by state law and is eighteen years of age or older or is less than eighteen years of age but whose case is under superior court jurisdiction under RCW 13.04.030 or has been transferred by the appropriate juvenile court to a criminal court pursuant to RCW 13.40.110. Throughout this chapter, the terms "offender" and "defendant" are used interchangeably.

             (26) "Partial confinement" means confinement for no more than one year in a facility or institution operated or utilized under contract by the state or any other unit of government, or, if home detention or work crew has been ordered by the court, in an approved residence, for a substantial portion of each day with the balance of the day spent in the community. Partial confinement includes work release, home detention, work crew, and a combination of work crew and home detention as defined in this section.

             (27) "Persistent offender" is an offender who:

             (a)(i) Has been convicted in this state of any felony considered a most serious offense; and

             (ii) Has, before the commission of the offense under (a) of this subsection, been convicted as an offender on at least two separate occasions, whether in this state or elsewhere, of felonies that under the laws of this state would be considered most serious offenses and would be included in the offender score under RCW 9.94A.360; provided that of the two or more previous convictions, at least one conviction must have occurred before the commission of any of the other most serious offenses for which the offender was previously convicted; or

             (b)(i) Has been convicted of: (A) Rape in the first degree, rape of a child in the first degree, child molestation in the first degree, rape in the second degree, rape of a child in the second degree, or indecent liberties by forcible compulsion; (B) murder in the first degree, murder in the second degree, homicide by abuse, kidnapping in the first degree, kidnapping in the second degree, assault in the first degree, assault in the second degree, assault of a child in the first degree, or burglary in the first degree, with a finding of sexual motivation; or (C) an attempt to commit any crime listed in this subsection (27)(b)(i); and

             (ii) Has, before the commission of the offense under (b)(i) of this subsection, been convicted as an offender on at least one occasion, whether in this state or elsewhere, of an offense listed in (b)(i) of this subsection. A conviction for rape of a child in the first degree constitutes a conviction under subsection (27)(b)(i) only when the offender was sixteen years of age or older when the offender committed the offense. A conviction for rape of a child in the second degree constitutes a conviction under subsection (27)(b)(i) only when the offender was eighteen years of age or older when the offender committed the offense.

             (28) "Postrelease supervision" is that portion of an offender's community placement that is not community custody.

             (29) "Restitution" means the requirement that the offender pay a specific sum of money over a specific period of time to the court as payment of damages. The sum may include both public and private costs. The imposition of a restitution order does not preclude civil redress.

             (30) "Serious traffic offense" means:

             (a) Driving while under the influence of intoxicating liquor or any drug (RCW 46.61.502), actual physical control while under the influence of intoxicating liquor or any drug (RCW 46.61.504), reckless driving (RCW 46.61.500), or hit-and-run an attended vehicle (RCW 46.52.020(5)); or

             (b) Any federal, out-of-state, county, or municipal conviction for an offense that under the laws of this state would be classified as a serious traffic offense under (a) of this subsection.

             (31) "Serious violent offense" is a subcategory of violent offense and means:

             (a) Murder in the first degree, homicide by abuse, murder in the second degree, manslaughter in the first degree, assault in the first degree, kidnapping in the first degree, or rape in the first degree, assault of a child in the first degree, or an attempt, criminal solicitation, or criminal conspiracy to commit one of these felonies; or

             (b) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a serious violent offense under (a) of this subsection.

             (32) "Sentence range" means the sentencing court's discretionary range in imposing a nonappealable sentence.

             (33) "Sex offense" means:

             (a) A felony that is a violation of chapter 9A.44 RCW, other than RCW 9A.44.130(10), or RCW 9A.64.020 or 9.68A.090 or a felony that is, under chapter 9A.28 RCW, a criminal attempt, criminal solicitation, or criminal conspiracy to commit such crimes;

             (b) Any conviction for a felony offense in effect at any time prior to July 1, 1976, that is comparable to a felony classified as a sex offense in (a) of this subsection;

             (c) A felony with a finding of sexual motivation under RCW 9.94A.127 or 13.40.135; or

             (((c))) (d) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a sex offense under (a) of this subsection.

             (34) "Sexual motivation" means that one of the purposes for which the defendant committed the crime was for the purpose of his or her sexual gratification.

             (35) "Total confinement" means confinement inside the physical boundaries of a facility or institution operated or utilized under contract by the state or any other unit of government for twenty-four hours a day, or pursuant to RCW 72.64.050 and 72.64.060.

             (36) "Transition training" means written and verbal instructions and assistance provided by the department to the offender during the two weeks prior to the offender's successful completion of the work ethic camp program. The transition training shall include instructions in the offender's requirements and obligations during the offender's period of community custody.

             (37) "Victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the crime charged.

             (38) "Violent offense" means:

             (a) Any of the following felonies, as now existing or hereafter amended: Any felony defined under any law as a class A felony or an attempt to commit a class A felony, criminal solicitation of or criminal conspiracy to commit a class A felony, manslaughter in the first degree, manslaughter in the second degree, indecent liberties if committed by forcible compulsion, kidnapping in the second degree, arson in the second degree, assault in the second degree, assault of a child in the second degree, extortion in the first degree, robbery in the second degree, drive-by shooting, vehicular assault, and vehicular homicide, when proximately caused by the driving of any vehicle by any person while under the influence of intoxicating liquor or any drug as defined by RCW 46.61.502, or by the operation of any vehicle in a reckless manner;

             (b) Any conviction for a felony offense in effect at any time prior to July 1, 1976, that is comparable to a felony classified as a violent offense in (a) of this subsection; and

             (c) Any federal or out-of-state conviction for an offense that under the laws of this state would be a felony classified as a violent offense under (a) or (b) of this subsection.

             (39) "Work crew" means a program of partial confinement consisting of civic improvement tasks for the benefit of the community of not less than thirty-five hours per week that complies with RCW 9.94A.135. The civic improvement tasks shall have minimal negative impact on existing private industries or the labor force in the county where the service or labor is performed. The civic improvement tasks shall not affect employment opportunities for people with developmental disabilities contracted through sheltered workshops as defined in RCW 82.04.385. Only those offenders sentenced to a facility operated or utilized under contract by a county or the state are eligible to participate on a work crew. Offenders sentenced for a sex offense as defined in subsection (33) of this section are not eligible for the work crew program.

             (40) "Work ethic camp" means an alternative incarceration program designed to reduce recidivism and lower the cost of corrections by requiring offenders to complete a comprehensive array of real-world job and vocational experiences, character-building work ethics training, life management skills development, substance abuse rehabilitation, counseling, literacy training, and basic adult education.

             (41) "Work release" means a program of partial confinement available to offenders who are employed or engaged as a student in a regular course of study at school. Participation in work release shall be conditioned upon the offender attending work or school at regularly defined hours and abiding by the rules of the work release facility.

             (42) "Home detention" means a program of partial confinement available to offenders wherein the offender is confined in a private residence subject to electronic surveillance.


             Sec. 9. RCW 9A.44.130 and 1998 c 220 s 1 and 1998 c 139 s 1 are each reenacted and amended to read as follows:

             (1) Any adult or juvenile residing, or who is a student, is employed, or carries on a vocation in this state who has been found to have committed or has been convicted of any sex offense or kidnapping offense, or who has been found not guilty by reason of insanity under chapter 10.77 RCW of committing any sex offense or kidnapping offense, shall register with the county sheriff for the county of the person's residence, or if the person is not a resident of Washington, the county of the person's school, or place of employment or vocation. Where a person required to register under this section is in custody of the state department of corrections, the state department of social and health services, a local division of youth services, or a local jail or juvenile detention facility as a result of a sex offense or kidnapping offense, the person shall also register at the time of release from custody with an official designated by the agency that has jurisdiction over the person. In addition, any such adult or juvenile who is admitted to a public or private institution of higher education shall, within ten days of enrolling or by the first business day after arriving at the institution, whichever is earlier, notify the sheriff for the county of the person's residence of the person's intent to attend the institution. Persons required to register under this section who are enrolled in a public or private institution of higher education on June 11, 1998, must notify the county sheriff immediately. The sheriff shall notify the institution's department of public safety and shall provide that department with the same information provided to a county sheriff under subsection (3) of this section.

             (2) This section may not be construed to confer any powers pursuant to RCW 4.24.500 upon the public safety department of any public or private institution of higher education.

             (3) The person shall provide the following information when registering: (a) Name; (b) address; (c) date and place of birth; (d) place of employment; (e) crime for which convicted; (f) date and place of conviction; (g) aliases used; (h) social security number; (i) photograph; and (j) fingerprints.

             (4)(a) Offenders shall register with the county sheriff within the following deadlines. For purposes of this section the term "conviction" refers to adult convictions and juvenile adjudications for sex offenses or kidnapping offenses:

             (i) OFFENDERS IN CUSTODY. (A) Sex offenders who committed a sex offense on, before, or after February 28, 1990, and who, on or after July 28, 1991, are in custody, as a result of that offense, of the state department of corrections, the state department of social and health services, a local division of youth services, or a local jail or juvenile detention facility, and (B) kidnapping offenders who on or after July 27, 1997, are in custody of the state department of corrections, the state department of social and health services, a local division of youth services, or a local jail or juvenile detention facility, must register at the time of release from custody with an official designated by the agency that has jurisdiction over the offender. The agency shall within three days forward the registration information to the county sheriff for the county of the offender's anticipated residence. The offender must also register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence, or if the person is not a resident of Washington, the county of the person's school, or place of employment or vocation. The agency that has jurisdiction over the offender shall provide notice to the offender of the duty to register. Failure to register at the time of release and within twenty-four hours of release constitutes a violation of this section and is punishable as provided in subsection (9) of this section.

             When the agency with jurisdiction intends to release an offender with a duty to register under this section, and the agency has knowledge that the offender is eligible for developmental disability services from the department of social and health services, the agency shall notify the division of developmental disabilities of the release. Notice shall occur not more than thirty days before the offender is to be released. The agency and the division shall assist the offender in meeting the initial registration requirement under this section. Failure to provide such assistance shall not constitute a defense for any violation of this section.

             (ii) OFFENDERS NOT IN CUSTODY BUT UNDER STATE OR LOCAL JURISDICTION. Sex offenders who, on July 28, 1991, are not in custody but are under the jurisdiction of the indeterminate sentence review board or under the department of correction's active supervision, as defined by the department of corrections, the state department of social and health services, or a local division of youth services, for sex offenses committed before, on, or after February 28, 1990, must register within ten days of July 28, 1991. Kidnapping offenders who, on July 27, 1997, are not in custody but are under the jurisdiction of the indeterminate sentence review board or under the department of correction's active supervision, as defined by the department of corrections, the state department of social and health services, or a local division of youth services, for kidnapping offenses committed before, on, or after July 27, 1997, must register within ten days of July 27, 1997. A change in supervision status of a sex offender who was required to register under this subsection (4)(a)(ii) as of July 28, 1991, or a kidnapping offender required to register as of July 27, 1997, shall not relieve the offender of the duty to register or to reregister following a change in residence. The obligation to register shall only cease pursuant to RCW 9A.44.140.

             (iii) OFFENDERS UNDER FEDERAL JURISDICTION. Sex offenders who, on or after July 23, 1995, and kidnapping offenders who, on or after July 27, 1997, as a result of that offense are in the custody of the United States bureau of prisons or other federal or military correctional agency for sex offenses committed before, on, or after February 28, 1990, or kidnapping offenses committed on, before, or after July 27, 1997, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence, or if the person is not a resident of Washington, the county of the person's school, or place of employment or vocation. Sex offenders who, on July 23, 1995, are not in custody but are under the jurisdiction of the United States bureau of prisons, United States courts, United States parole commission, or military parole board for sex offenses committed before, on, or after February 28, 1990, must register within ten days of July 23, 1995. Kidnapping offenders who, on July 27, 1997, are not in custody but are under the jurisdiction of the United States bureau of prisons, United States courts, United States parole commission, or military parole board for kidnapping offenses committed before, on, or after July 27, 1997, must register within ten days of July 27, 1997. A change in supervision status of a sex offender who was required to register under this subsection (4)(a)(iii) as of July 23, 1995, or a kidnapping offender required to register as of July 27, 1997 shall not relieve the offender of the duty to register or to reregister following a change in residence, or if the person is not a resident of Washington, the county of the person's school, or place of employment or vocation. The obligation to register shall only cease pursuant to RCW 9A.44.140.

             (iv) OFFENDERS WHO ARE CONVICTED BUT NOT CONFINED. Sex offenders who are convicted of a sex offense on or after July 28, 1991, for a sex offense that was committed on or after February 28, 1990, and kidnapping offenders who are convicted on or after July 27, 1997, for a kidnapping offense that was committed on or after July 27, 1997, but who are not sentenced to serve a term of confinement immediately upon sentencing, shall report to the county sheriff to register immediately upon completion of being sentenced.

             (v) OFFENDERS WHO ARE NEW RESIDENTS OR RETURNING WASHINGTON RESIDENTS. Sex offenders and kidnapping offenders who move to Washington state from another state or a foreign country that are not under the jurisdiction of the state department of corrections, the indeterminate sentence review board, or the state department of social and health services at the time of moving to Washington, must register within thirty days of establishing residence or reestablishing residence if the person is a former Washington resident. The duty to register under this subsection applies to sex offenders convicted under the laws of another state or a foreign country, federal or military statutes, or Washington state for offenses committed on or after February 28, 1990, and to kidnapping offenders convicted under the laws of another state or a foreign country, federal or military statutes, or Washington state for offenses committed on or after July 27, 1997. Sex offenders and kidnapping offenders from other states or a foreign country who, when they move to Washington, are under the jurisdiction of the department of corrections, the indeterminate sentence review board, or the department of social and health services must register within twenty-four hours of moving to Washington. The agency that has jurisdiction over the offender shall notify the offender of the registration requirements before the offender moves to Washington.

             (vi) OFFENDERS FOUND NOT GUILTY BY REASON OF INSANITY. Any adult or juvenile who has been found not guilty by reason of insanity under chapter 10.77 RCW of (A) committing a sex offense on, before, or after February 28, 1990, and who, on or after July 23, 1995, is in custody, as a result of that finding, of the state department of social and health services, or (B) committing a kidnapping offense on, before, or after July 27, 1997, and who on or after July 27, 1997, is in custody, as a result of that finding, of the state department of social and health services, must register within twenty-four hours from the time of release with the county sheriff for the county of the person's residence. The state department of social and health services shall provide notice to the adult or juvenile in its custody of the duty to register. Any adult or juvenile who has been found not guilty by reason of insanity of committing a sex offense on, before, or after February 28, 1990, but who was released before July 23, 1995, or any adult or juvenile who has been found not guilty by reason of insanity of committing a kidnapping offense but who was released before July 27, 1997, shall be required to register within twenty-four hours of receiving notice of this registration requirement. The state department of social and health services shall make reasonable attempts within available resources to notify sex offenders who were released before July 23, 1995, and kidnapping offenders who were released before July 27, 1997. Failure to register within twenty-four hours of release, or of receiving notice, constitutes a violation of this section and is punishable as provided in subsection (9) of this section.

             (b) Failure to register within the time required under this section constitutes a per se violation of this section and is punishable as provided in subsection (9) of this section. The county sheriff shall not be required to determine whether the person is living within the county.

             (c) An arrest on charges of failure to register, service of an information, or a complaint for a violation of this section, or arraignment on charges for a violation of this section, constitutes actual notice of the duty to register. Any person charged with the crime of failure to register under this section who asserts as a defense the lack of notice of the duty to register shall register immediately following actual notice of the duty through arrest, service, or arraignment. Failure to register as required under this subsection (4)(c) constitutes grounds for filing another charge of failing to register. Registering following arrest, service, or arraignment on charges shall not relieve the offender from criminal liability for failure to register prior to the filing of the original charge.

             (d) The deadlines for the duty to register under this section do not relieve any sex offender of the duty to register under this section as it existed prior to July 28, 1991.

             (5)(a) If any person required to register pursuant to this section changes his or her residence address within the same county, the person must send written notice of the change of address to the county sheriff within seventy-two hours of moving. If any person required to register pursuant to this section moves to a new county, the person must send written notice of the change of address at least fourteen days before moving to the county sheriff in the new county of residence and must register with that county sheriff within twenty-four hours of moving. The person must also send written notice within ten days of the change of address in the new county to the county sheriff with whom the person last registered. The county sheriff with whom the person last registered shall promptly forward the information concerning the change of address to the county sheriff for the county of the person's new residence. If any person required to register pursuant to this section moves out of Washington state, the person must also send written notice within ten days of moving to the new state or a foreign country to the county sheriff with whom the person last registered in Washington state. Upon receipt of notice of change of address to a new state, the county sheriff shall promptly forward the information regarding the change of address to the agency designated by the new state as the state's offender registration agency.

             (b) It is an affirmative defense to a charge that the person failed to send a notice at least fourteen days in advance of moving as required under (a) of this subsection that the person did not know the location of his or her new residence at least fourteen days before moving. The defendant must establish the defense by a preponderance of the evidence and, to prevail on the defense, must also prove by a preponderance that the defendant sent the required notice within twenty-four hours of determining the new address.

             (6) A sex offender subject to registration requirements under this section who applies to change his or her name under RCW 4.24.130 or any other law shall submit a copy of the application to the county sheriff of the county of the person's residence and to the state patrol not fewer than five days before the entry of an order granting the name change. No sex offender under the requirement to register under this section at the time of application shall be granted an order changing his or her name if the court finds that doing so will interfere with legitimate law enforcement interests, except that no order shall be denied when the name change is requested for religious or legitimate cultural reasons or in recognition of marriage or dissolution of marriage. A sex offender under the requirement to register under this section who receives an order changing his or her name shall submit a copy of the order to the county sheriff of the county of the person's residence and to the state patrol within five days of the entry of the order.

             (7) The county sheriff shall obtain a photograph of the individual and shall obtain a copy of the individual's fingerprints.

             (8) For the purpose of RCW 9A.44.130, 10.01.200, 43.43.540, 70.48.470, and 72.09.330:

             (a) "Sex offense" means any offense defined as a sex offense by RCW 9.94A.030 and any violation of RCW 9.68A.040 (sexual exploitation of a minor), 9.68A.050 (dealing in depictions of minor engaged in sexually explicit conduct), 9.68A.060 (sending, bringing into state depictions of minor engaged in sexually explicit conduct), 9.68A.090 (communication with minor for immoral purposes), 9.68A.100 (patronizing juvenile prostitute), or 9A.44.096 (sexual misconduct with a minor in the second degree), as well as any gross misdemeanor that is, under chapter 9A.28 RCW, a criminal attempt, criminal solicitation, or criminal conspiracy to commit an offense that is classified as a sex offense under RCW 9.94A.030.

             (b) "Kidnapping offense" means the crimes of kidnapping in the first degree, kidnapping in the second degree, and unlawful imprisonment as defined in chapter 9A.40 RCW, where the victim is a minor and the offender is not the minor's parent.

             (c) "Employed" or "carries on a vocation" means employment that is full-time or part-time for a period of time exceeding fourteen days, or for an aggregate period of time exceeding thirty days during any calendar year. A person is employed or carries on a vocation whether the person's employment is financially compensated, volunteered, or for the purpose of government or educational benefit.

             (d) "Student" means a person who is enrolled, on a full-time or part-time basis, in any public or private educational institution. An educational institution includes any secondary school, trade or professional institution, or institution of higher education.

             (9) A person who knowingly fails to register with the county sheriff or notify the county sheriff, or who changes his or her name without notifying the county sheriff and the state patrol, as required by this section is guilty of a class C felony if the crime for which the individual was convicted was a felony sex offense as defined in subsection (8)(a) of this section or a federal or out-of-state conviction for an offense that under the laws of this state would be a felony sex offense as defined in subsection (8)(a) of this section. If the crime was other than a felony or a federal or out-of-state conviction for an offense that under the laws of this state would be other than a felony, violation of this section is a gross misdemeanor.

             (10) A person who knowingly fails to register or who moves without notifying the county sheriff as required by this section is guilty of a class C felony if the crime for which the individual was convicted was a felony kidnapping offense as defined in subsection (8)(b) of this section or a federal or out-of-state conviction for an offense that under the laws of this state would be a felony kidnapping offense as defined in subsection (8)(b) of this section. If the crime was other than a felony or a federal or out-of-state conviction for an offense that under the laws of this state would be other than a felony, violation of this section is a gross misdemeanor.


             Sec. 10. RCW 9.94A.360 and 1998 c 211 s 4 are each amended to read as follows:

             The offender score is measured on the horizontal axis of the sentencing grid. The offender score rules are as follows:

             The offender score is the sum of points accrued under this section rounded down to the nearest whole number.

             (1) A prior conviction is a conviction which exists before the date of sentencing for the offense for which the offender score is being computed. Convictions entered or sentenced on the same date as the conviction for which the offender score is being computed shall be deemed "other current offenses" within the meaning of RCW 9.94A.400.

             (2) Class A and sex prior felony convictions shall always be included in the offender score. Class B prior felony convictions other than sex offenses shall not be included in the offender score, if since the last date of release from confinement (including full-time residential treatment) pursuant to a felony conviction, if any, or entry of judgment and sentence, the offender had spent ten consecutive years in the community without committing any crime that subsequently results in a conviction. Class C prior felony convictions other than sex offenses shall not be included in the offender score if, since the last date of release from confinement (including full-time residential treatment) pursuant to a felony conviction, if any, or entry of judgment and sentence, the offender had spent five consecutive years in the community without committing any crime that subsequently results in a conviction. Serious traffic convictions shall not be included in the offender score if, since the last date of release from confinement (including full-time residential treatment) pursuant to a felony conviction, if any, or entry of judgment and sentence, the offender spent five years in the community without committing any crime that subsequently results in a conviction. This subsection applies to both adult and juvenile prior convictions.

             (3) Out-of-state convictions for offenses shall be classified according to the comparable offense definitions and sentences provided by Washington law. Federal convictions for offenses shall be classified according to the comparable offense definitions and sentences provided by Washington law. If there is no clearly comparable offense under Washington law or the offense is one that is usually considered subject to exclusive federal jurisdiction, the offense shall be scored as a class C felony equivalent if it was a felony under the relevant federal statute.

             (4) Score prior convictions for felony anticipatory offenses (attempts, criminal solicitations, and criminal conspiracies) the same as if they were convictions for completed offenses.

             (5)(a) In the case of multiple prior convictions, for the purpose of computing the offender score, count all convictions separately, except:

             (i) Prior offenses which were found, under RCW 9.94A.400(1)(a), to encompass the same criminal conduct, shall be counted as one offense, the offense that yields the highest offender score. The current sentencing court shall determine with respect to other prior adult offenses for which sentences were served concurrently or prior juvenile offenses for which sentences were served consecutively, whether those offenses shall be counted as one offense or as separate offenses using the "same criminal conduct" analysis found in RCW 9.94A.400(1)(a), and if the court finds that they shall be counted as one offense, then the offense that yields the highest offender score shall be used. The current sentencing court may presume that such other prior offenses were not the same criminal conduct from sentences imposed on separate dates, or in separate counties or jurisdictions, or in separate complaints, indictments, or informations;

             (ii) In the case of multiple prior convictions for offenses committed before July 1, 1986, for the purpose of computing the offender score, count all adult convictions served concurrently as one offense, and count all juvenile convictions entered on the same date as one offense. Use the conviction for the offense that yields the highest offender score.

             (b) As used in this subsection (5), "served concurrently" means that: (i) The latter sentence was imposed with specific reference to the former; (ii) the concurrent relationship of the sentences was judicially imposed; and (iii) the concurrent timing of the sentences was not the result of a probation or parole revocation on the former offense.

             (6) If the present conviction is one of the anticipatory offenses of criminal attempt, solicitation, or conspiracy, count each prior conviction as if the present conviction were for a completed offense.

             (7) If the present conviction is for a nonviolent offense and not covered by subsection (11) or (12) of this section, count one point for each adult prior felony conviction and one point for each juvenile prior violent felony conviction and 1/2 point for each juvenile prior nonviolent felony conviction.

             (8) If the present conviction is for a violent offense and not covered in subsection (9), (10), (11), or (12) of this section, count two points for each prior adult and juvenile violent felony conviction, one point for each prior adult nonviolent felony conviction, and 1/2 point for each prior juvenile nonviolent felony conviction.

             (9) If the present conviction is for ((Murder 1 or 2, Assault 1, Assault of a Child 1, Kidnapping 1, Homicide by Abuse, or Rape 1)) a serious violent offense, count three points for prior adult and juvenile convictions for crimes in ((these categories)) this category, two points for each prior adult and juvenile violent conviction (not already counted), one point for each prior adult nonviolent felony conviction, and 1/2 point for each prior juvenile nonviolent felony conviction.

             (10) If the present conviction is for Burglary 1, count prior convictions as in subsection (8) of this section; however count two points for each prior adult Burglary 2 or residential burglary conviction, and one point for each prior juvenile Burglary 2 or residential burglary conviction.

             (11) If the present conviction is for a felony traffic offense count two points for each adult or juvenile prior conviction for Vehicular Homicide or Vehicular Assault; for each felony offense ((or serious traffic offense,)) count one point for each adult and 1/2 point for each juvenile prior conviction((. This subsection shall not apply when additional time is added to a sentence pursuant to RCW 46.61.520(2))); for each serious traffic offense, other than those used for an enhancement pursuant to RCW 46.61.520(2), count one point for each adult and 1/2 point for each juvenile prior conviction.

             (12) If the present conviction is for a drug offense count three points for each adult prior felony drug offense conviction and two points for each juvenile drug offense. All other adult and juvenile felonies are scored as in subsection (8) of this section if the current drug offense is violent, or as in subsection (7) of this section if the current drug offense is nonviolent.

             (13) If the present conviction is for Willful Failure to Return from Furlough, RCW 72.66.060, Willful Failure to Return from Work Release, RCW 72.65.070, or Escape from Community Custody, RCW 72.09.310, count only prior escape convictions in the offender score. Count adult prior escape convictions as one point and juvenile prior escape convictions as 1/2 point.

             (14) If the present conviction is for Escape 1, RCW 9A.76.110, or Escape 2, RCW 9A.76.120, count adult prior convictions as one point and juvenile prior convictions as 1/2 point.

             (15) If the present conviction is for Burglary 2 or residential burglary, count priors as in subsection (7) of this section; however, count two points for each adult and juvenile prior Burglary 1 conviction, two points for each adult prior Burglary 2 or residential burglary conviction, and one point for each juvenile prior Burglary 2 or residential burglary conviction.

             (16) If the present conviction is for a sex offense, count priors as in subsections (7) through (15) of this section; however count three points for each adult and juvenile prior sex offense conviction.

             (17) If the present conviction is for an offense committed while the offender was under community placement, add one point.


             Sec. 11. RCW 9.94A.400 and 1998 c 235 s 2 are each amended to read as follows:

             (1)(a) Except as provided in (b) or (c) of this subsection, whenever a person is to be sentenced for two or more current offenses, the sentence range for each current offense shall be determined by using all other current and prior convictions as if they were prior convictions for the purpose of the offender score: PROVIDED, That if the court enters a finding that some or all of the current offenses encompass the same criminal conduct then those current offenses shall be counted as one crime. Sentences imposed under this subsection shall be served concurrently. Consecutive sentences may only be imposed under the exceptional sentence provisions of RCW 9.94A.120 and 9.94A.390(2)(g) or any other provision of RCW 9.94A.390. "Same criminal conduct," as used in this subsection, means two or more crimes that require the same criminal intent, are committed at the same time and place, and involve the same victim. This definition applies in cases involving vehicular assault or vehicular homicide even if the victims occupied the same vehicle.

             (b) Whenever a person is convicted of two or more serious violent offenses, as defined in RCW 9.94A.030, arising from separate and distinct criminal conduct, the sentence range for the offense with the highest seriousness level under RCW 9.94A.320 shall be determined using the offender's prior convictions and other current convictions that are not serious violent offenses in the offender score and the sentence range for other serious violent offenses shall be determined by using an offender score of zero. The sentence range for any offenses that are not serious violent offenses shall be determined according to (a) of this subsection. All sentences imposed under (b) of this subsection shall be served consecutively to each other and concurrently with sentences imposed under (a) of this subsection.

             (c) If an offender is convicted under RCW 9.41.040 for unlawful possession of a firearm in the first or second degree and for the felony crimes of theft of a firearm or possession of a stolen firearm, or both, ((then)) the sentence range for each of these current offenses shall be determined by using all other current and prior convictions, except other current convictions for the felony crimes listed in this subsection (1)(c), as if they were prior convictions. The offender shall serve consecutive sentences for each conviction of the felony crimes listed in this subsection (1)(c), and for each firearm unlawfully possessed.

             (2)(a) Except as provided in (b) of this subsection, whenever a person while under sentence of felony commits another felony and is sentenced to another term of confinement, the latter term shall not begin until expiration of all prior terms.

             (b) Whenever a second or later felony conviction results in community supervision with conditions not currently in effect, under the prior sentence or sentences of community supervision the court may require that the conditions of community supervision contained in the second or later sentence begin during the immediate term of community supervision and continue throughout the duration of the consecutive term of community supervision.

             (3) Subject to subsections (1) and (2) of this section, whenever a person is sentenced for a felony that was committed while the person was not under sentence of a felony, the sentence shall run concurrently with any felony sentence which has been imposed by any court in this or another state or by a federal court subsequent to the commission of the crime being sentenced unless the court pronouncing the current sentence expressly orders that they be served consecutively.

             (4) Whenever any person granted probation under RCW 9.95.210 or 9.92.060, or both, has the probationary sentence revoked and a prison sentence imposed, that sentence shall run consecutively to any sentence imposed pursuant to this chapter, unless the court pronouncing the subsequent sentence expressly orders that they be served concurrently.

             (5) However, in the case of consecutive sentences, all periods of total confinement shall be served before any partial confinement, community service, community supervision, or any other requirement or conditions of any of the sentences. Except for exceptional sentences as authorized under RCW 9.94A.120(2), if two or more sentences that run consecutively include periods of community supervision, the aggregate of the community supervision period shall not exceed twenty-four months."


             On page 1, line 1 of the title, after "offenders;" strike the remainder of the title and insert "amending RCW 81.60.070, 9.40.120, 9.94A.030, 9.94A.360, and 9.94A.400; reenacting and amending RCW 9.94A.040, 9.94A.310, 9.94A.320, and 9A.44.130; creating new sections; and prescribing penalties."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to House Bill No. 1544 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of House Bill No. 1544 as amended by the Senate.


             Representatives O'Brien and Ballasiotes spoke in favor of passage of the bill as amended by the Senate.


MOTION


             On motion of Representative Wolfe, Representatives Quall and Scott were excused.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 1544, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.



             House Bill No. 1544, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 1747 with the following amendment(s)


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 89.08.020 and 1973 1st ex.s. c 184 s 3 are each amended to read as follows:

             Unless the context clearly indicates otherwise, as used in this chapter:

             "Commission" and "state conservation commission" means the agency created hereunder. All former references to "state soil and water conservation committee", "state committee" or "committee" shall be deemed to be references to the "state conservation commission";

             "District", or "conservation district" means a governmental subdivision of this state and a public body corporate and politic, organized in accordance with the provisions of ((this 1973 amendatory act)) chapter 184, Laws of 1973 1st ex. sess., for the purposes, with the powers, and subject to the restrictions set forth in this chapter. All districts created under ((this 1973 amendatory act)) chapter 184, Laws of 1973 1st ex. sess. shall be known as conservation districts and shall have all the powers and duties set out in ((this 1973 amendatory act)) chapter 184, Laws of 1973 1st ex. sess.. All references in ((this 1973 amendatory act)) chapter 184, Laws of 1973 1st ex. sess. to "districts", or "soil and water conservation districts" shall be deemed to be reference to "conservation districts";

             "Board" and "supervisors" mean the board of supervisors of a conservation district;

             "Land occupier" or "occupier of land" includes any person, firm, political subdivision, government agency, municipality, public or private corporation, copartnership, association, or any other entity whatsoever which holds title to, or is in possession of, any lands lying within a district organized under the provisions of ((this 1973 amendatory act)) chapter 184, Laws of 1973 1st ex. sess., whether as owner, lessee, renter, tenant, or otherwise;

             "District elector" or "voter" means a ((qualified county elector occupying land)) registered voter in the county where the district is located who resides within the district boundary or in the area affected by a petition;

             "Due notice" means a notice published at least twice, with at least six days between publications, in a publication of general circulation within the affected area, or if there is no such publication, by posting at a reasonable number of public places within the area, where it is customary to post notices concerning county and municipal affairs. Any hearing held pursuant to due notice may be postponed from time to time without a new notice;

             "Renewable natural resources", "natural resources" or "resources" includes land, air, water, vegetation, fish, wildlife, wild rivers, wilderness, natural beauty, scenery and open space;

             "Conservation" includes conservation, development, improvement, maintenance, preservation, protection and use, and alleviation of floodwater and sediment damages, and the disposal of excess surface waters.

             "Farm and agricultural land" means either (a) land in any contiguous ownership of twenty or more acres devoted primarily to agricultural uses; (b) any parcel of land 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 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; or (c) any parcel of land of less than five acres devoted primarily to agricultural uses which has produced a gross income of one thousand dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter. Agricultural lands shall also include farm woodlots of less than twenty and more than five acres and the land on which appurtenances necessary to 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".


             Sec. 2. RCW 89.08.080 and 1973 1st ex.s. c 184 s 9 are each amended to read as follows:

             To form a conservation district, ((twenty-five or more persons occupying land)) twenty percent of the voters within the area to be affected may file a petition with the commission asking that the area be organized into a district.

             The petition shall give the name of the proposed district, state that it is needed in the interest of the public health, safety, and welfare, give a general description of the area proposed to be organized and request that the commission determine that it be created, and that it define the boundaries thereof and call an election on the question of creating the district.

             If more than one petition is filed covering parts of the same area, the commission may consolidate all or any of them.


             Sec. 3. RCW 89.08.110 and 1973 1st ex.s. c 184 s 12 are each amended to read as follows:

             If the commission finds that the district is needed, it shall then determine whether it is practicable. To assist the commission in determining this question, it shall, within a reasonable time, submit the proposition to a vote of the ((land occupiers)) district electors in the proposed district.

             The commission shall fix the date of the election, designate the polling places, fix the hours for opening and closing the polls, and appoint the election officials. The election shall be conducted, the vote counted and returns canvassed and the results published by the commission.


             Sec. 4. RCW 89.08.130 and 1973 1st ex.s. c 184 s 14 are each amended to read as follows:

             The commission shall give due notice of the election, which shall state generally the purpose of the election, the date thereof, the place and hours of voting, and set forth the boundaries of the proposed district.

             Only qualified district electors within the proposed district as determined by the commission may vote at the election. Each voter shall vote in the polling place nearest ((his)) the voter's residence. ((If he resides outside the district, he shall vote at the nearest polling place of the district.))


             Sec. 5. RCW 89.08.150 and 1973 1st ex.s. c 184 s 16 are each amended to read as follows:

             If a majority of the votes cast at the election are against the creation of the district, the commission shall deny the petition. If a majority favor the district, the commission shall determine the practicability of the project.

             In making such determination, the commission shall consider the attitude of the ((land occupiers)) voters of the district; the number of eligible voters who voted at the election; the size of the majority vote; the wealth and income of the land occupiers; the probable expense of carrying out the project; and any other economic factors relevant thereto.

             If the commission finds that the project is impracticable it shall enter an order to that effect and deny the petition. When the petition has been denied, no new petition covering the same or substantially the same area may be filed within six months therefrom.


             Sec. 6. RCW 89.08.180 and 1973 1st ex.s. c 184 s 19 are each amended to read as follows:

             Territory may be added to an existing district upon filing a petition as in the case of formation with the commission by ((occupiers of the lands)) twenty percent of the voters of the affected area to be included. The same procedure shall be followed as for the creation of the district.

             As an alternate procedure, the commission may upon the petition of a majority of the ((land occupiers)) voters in any one or more districts or in unorganized territory adjoining a conservation district change the boundaries of a district, or districts, if such action will promote the practical and feasible administration of such district or districts.

             Upon petition of the boards of supervisors of two or more districts, the commission may approve the combining of all or parts of such districts and name the district, or districts, with the approval of the name by the secretary of state. A public hearing and/or a referendum may be held if deemed necessary or desirable by the commission in order to determine the wishes of ((land occupiers)) the voters.

             When districts are combined, the joint boards of supervisors will first select a chairman, secretary and other necessary officers and select a regular date for meetings. All elected supervisors will continue to serve as members of the board until the expiration of their current term of office, and/or until the election date nearest their expiration date. All appointed supervisors will continue to serve until the expiration of their current term of office, at which time the commission will make the necessary appointments. In the event that more than two districts are combined, a similar procedure will be set up and administered by the commission.

             When districts are combined or territory is moved from one district to another, the property, records and accounts of the districts involved shall be distributed to the remaining district or districts as approved by the commission. A new certificate of organization, naming and describing the new district or districts, shall be issued by the secretary of state.


             NEW SECTION. Sec. 7. A new section is added to chapter 89.08 RCW to read as follows:

             The local governing body of any city or incorporated town within an existing district may approve by majority vote a petition to withdraw from the district. The petition shall be submitted to the district for its approval. If approved by the district, the petition shall be sent to the commission. The commission shall approve the petition and forward it to the secretary of state and the boundary of the district shall be adjusted accordingly. If the petition is not approved by the district, the district shall adopt a resolution specifying the reasons why the petition is not approved. The petition and the district's resolution shall be sent to the commission for its review. The commission shall approve or reject the petition based upon criteria it has adopted for the evaluation of petitions in dispute. If the commission approves the petition, it shall forward the petition to the secretary of state and the boundaries of the district shall be adjusted accordingly. The criteria used by the commission to evaluate petitions which are in dispute shall be adopted as rules by the commission under chapter 34.05 RCW, the administrative procedure act.


             Sec. 8. RCW 89.08.350 and 1973 1st ex.s. c 184 s 25 are each amended to read as follows:

             At any time after five years from the organization of a district, ((one hundred land occupiers)) twenty percent of the voters in the district may file with the commission a petition, praying that the district be dissolved. The commission may hold public hearings thereon, and within sixty days from receipt of the petition, shall give due notice of an election on the question of dissolution. It shall provide appropriate ballots, conduct the election, canvass the returns, and declare the results in the same manner as for elections to create a district.

             All district electors may vote at the election. No informality relating to the election shall invalidate it if notice is substantially given and the election is fairly conducted.


             Sec. 9. RCW 89.08.360 and 1973 1st ex.s. c 184 s 26 are each amended to read as follows:

             If a majority of the votes cast at the election are for dissolution, the district shall be dissolved. ((If two-thirds of the votes are against dissolution, the commission shall determine whether the continuance of the district is practicable. In making the determination it shall consider all the factors considered by it in determining that the district was practicable originally. If it finds that further operation of the district is impracticable it shall order it dissolved and certify its determination to the supervisors.))


             Sec. 10. RCW 89.08.370 and 1973 1st ex.s. c 184 s 27 are each.mended to read as follows:

             If the district is ordered dissolved, the supervisors shall forthwith terminate the affairs of the district and dispose of all district property at public auction, and pay the proceeds therefrom to pay any debts of the district and any remaining balance to the state treasurer.

             They shall then file a verified application with the secretary of state for the dissolution of the district, accompanied by a certificate of the commission reciting the determination that further operation of the district is impracticable. The application shall recite that the property of the district has been disposed of, that the proceeds therefrom have been used to pay any debts of the district and any remaining balance paid to the treasurer, and contain a full accounting of the property and proceeds. Thereupon the secretary shall issue to the supervisors a certificate of dissolution and file a copy thereof in his or her records.


             NEW SECTION. Sec. 11. RCW 89.08.380 (Effect of dissolution--Commission substituted) and 1973 1st ex.s. c 184 s 28 & 1955 c 304 s 28 are each repealed."


             On page 1, line 2 of the title, after "liability;" strike the remainder of the title and insert "amending RCW 89.08.020, 89.08.080, 89.08.110, 89.08.130, 89.08.150, 89.08.180, 89.08.350, 89.08.360, and 89.08.370; adding a new section to chapter 89.08 RCW; and repealing RCW 89.08.380."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to Substitute House Bill No. 1747 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 16, 1999

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1037 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 19.190.010 and 1998 c 149 s 2 are each amended to read as follows:

             The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

             (1) "Assist the transmission" means actions taken by a person to provide substantial assistance or support which enables any person to formulate, compose, send, originate, initiate, or transmit a commercial electronic mail message when the person providing the assistance knows or consciously avoids knowing that the initiator of the commercial electronic mail message is engaged, or intends to engage, in any practice that violates the consumer protection act.

             (2) "Commercial electronic mail message" means an electronic mail message sent for the purpose of promoting real property, goods, or services for sale or lease. It does not mean an electronic mail message to which an interactive computer service provider has attached an advertisement in exchange for free use of an electronic mail account, when the sender has agreed to such an arrangement.

             (((2))) (3) "Electronic mail address" means a destination, commonly expressed as a string of characters, to which electronic mail may be sent or delivered.

             (((3))) (4) "Initiate the transmission" refers to the action by the original sender of an electronic mail message, not to the action by any intervening interactive computer service that may handle or retransmit the message, unless such intervening interactive computer service assists in the transmission of an electronic mail message when it knows, or consciously avoids knowing, that the person initiating the transmission is engaged, or intends to engage, in any act or practice that violates the consumer protection act.

             (((4))) (5) "Interactive computer service" means any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the internet and such systems operated or services offered by libraries or educational institutions.

             (((5))) (6) "Internet domain name" refers to a globally unique, hierarchical reference to an internet host or service, assigned through centralized internet naming authorities, comprising a series of character strings separated by periods, with the right-most string specifying the top of the hierarchy.

             (7) "Person" means a person, corporation, partnership, or association.


             Sec. 2. RCW 19.190.020 and 1998 c 149 s 3 are each amended to read as follows:

             (1) No person((, corporation, partnership, or association)) may initiate the transmission, conspire with another to initiate the transmission, or assist the transmission, of a commercial electronic mail message from a computer located in Washington or to an electronic mail address that the sender knows, or has reason to know, is held by a Washington resident that:

             (a) Uses a third party's internet domain name without permission of the third party, or otherwise misrepresents or obscures any information in identifying the point of origin or the transmission path of a commercial electronic mail message; or

             (b) Contains false or misleading information in the subject line.

             (2) For purposes of this section, a person((, corporation, partnership, or association)) knows that the intended recipient of a commercial electronic mail message is a Washington resident if that information is available, upon request, from the registrant of the internet domain name contained in the recipient's electronic mail address.


             Sec. 3. RCW 19.190.030 and 1998 c 149 s 4 are each amended to read as follows:

             (1) It is a violation of the consumer protection act, chapter 19.86 RCW, to conspire with another person to initiate the transmission or to initiate the transmission of a commercial electronic mail message that:

             (a) Uses a third party's internet domain name without permission of the third party, or otherwise misrepresents or obscures any information in identifying the point of origin or the transmission path of a commercial electronic mail message; or

             (b) Contains false or misleading information in the subject line.

             (2) It is a violation of the consumer protection act, chapter 19.86 RCW, to assist in the transmission of a commercial electronic mail message, when the person providing the assistance knows, or consciously avoids knowing, that the initiator of the commercial electronic mail message is engaged, or intends to engage, in any act or practice that violates the consumer protection act.

             (3) The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of this chapter is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.


             NEW SECTION. Sec. 4. RCW 19.190.005 (Findings) and 1998 c 149 s 1 are each repealed.


             NEW SECTION. Sec. 5. (1) The legislature finds that:

             (a) The internet presents a new medium of communication through which speakers can publish false or defamatory statements about businesses or individuals to vast audiences at little or no cost to the speaker;

             (b) The publication of false or defamatory statements via the internet has the potential to cause serious injury to the victims of such statements, particularly financial injury to businesses that are the victims of false or defamatory on-line rumors about their stock, products or services, or executives or personnel;

             (c) False or defamatory statements on the internet are often published anonymously, making it difficult for victims to determine the identity and physical location of the speakers; and

             (d) Current legal procedures do not adequately address the challenges and opportunities the internet presents as a new medium of communication, both as a tool for publishing false or defamatory statements and for pursuing legal recourse against the speakers of such statements.

             (2) The legislature therefore intends that:

             (a) When the internet is used to publish false or defamatory statements about individuals residing in Washington or businesses doing business in Washington, a rebuttable presumption is created that the statements are published in Washington; and

             (b) When the identity or physical location of a speaker who has published false or defamatory statements via the internet about an individual residing in Washington or a business doing business in Washington is not known, a plaintiff in an action for libel or slander may serve a summons by publication via the internet.


             Sec. 6. RCW 4.36.120 and Code 1881 s 99 are each amended to read as follows:

             In an action for libel or slander, it shall not be necessary to state in the complaint any extrinsic facts, for the purpose of showing the application to the plaintiff, of the defamatory matter out of which the cause arose, but it shall be sufficient to state generally, that the same was published or spoken concerning the plaintiff; and if such allegation be controverted, the plaintiff shall be bound to establish on trial that it was so published or spoken. Where false or defamatory statements concerning a person residing in Washington or a business doing business in Washington are posted or electronically transmitted via the internet, a rebuttable presumption is created that the statements have been published in Washington.


             Sec. 7. RCW 4.28.100 and 1981 c 331 s 13 are each amended to read as follows:

             When the defendant cannot be found within the state, and upon the filing of an affidavit of the plaintiff, his agent, or attorney, with the clerk of the court, stating that he believes that the defendant is not a resident of the state, or cannot be found therein, and that he has deposited a copy of the summons (substantially in the form prescribed in RCW 4.28.110) and complaint in the post office, directed to the defendant at his place of residence, unless it is stated in the affidavit that such residence is not known to the affiant, and stating the existence of one of the cases hereinafter specified, the service may be made by publication of the summons, by the plaintiff or his attorney in any of the following cases:

             (1) When the defendant is a foreign corporation, and has property within the state;

             (2) When the defendant, being a resident of this state, has departed therefrom with intent to defraud his creditors, or to avoid the service of a summons, or keeps himself concealed therein with like intent;

             (3) When the defendant is not a resident of the state, but has property therein and the court has jurisdiction of the subject of the action;

             (4) When the action is for divorce in the cases prescribed by law;

             (5) When the subject of the action is real or personal property in this state, and the defendant has or claims a lien or interest, actual or contingent, therein, or the relief demanded consists wholly, or partly, in excluding the defendant from any interest or lien therein;

             (6) When the action is to foreclose, satisfy, or redeem from a mortgage, or to enforce a lien of any kind on real estate in the county where the action is brought, or satisfy or redeem from the same;

             (7) When the action is against any corporation, whether private or municipal, organized under the laws of the state, and the proper officers on whom to make service do not exist or cannot be found;

             (8) When the action is brought under RCW 4.08.160 and 4.08.170 to determine conflicting claims to property in this state; and

             (9) When the action is for defamation concerning a person residing in Washington or a business doing business in Washington, where the false or defamatory statements were posted or electronically transmitted via the internet and the identity of the defendant is not known or readily ascertainable.


             Sec. 8. RCW 4.28.110 and 1985 c 469 s 2 are each amended to read as follows:

             The publication shall be made in a newspaper of general circulation in the county where the action is brought once a week for six consecutive weeks: PROVIDED, That publication of summons shall not be made until after the filing of the complaint, and the service of the summons shall be deemed complete at the expiration of the time prescribed for publication. The summons must be subscribed by the plaintiff or his attorney or attorneys. The summons shall contain the date of the first publication, and shall require the defendant or defendants upon whom service by publication is desired, to appear and answer the complaint within sixty days from the date of the first publication of the summons; and the summons for publication shall also contain a brief statement of the object of the action. The summons for publication shall be substantially as follows:

 

             In the superior court of the State of Washington for the county of . . . . . .

 

. . . . . . . . ., Plaintiff,

                          vs.                                                            No. . . . .

. . . . . . . . ., Defendant.

 

             The State of Washington to the said (naming the defendant or defendants to be served by publication):

             You are hereby summoned to appear within sixty days after the date of the first publication of this summons, to wit, within sixty days after the . . . . day of . . . . . ., 1. . . ., and defend the above entitled action in the above entitled court, and answer the complaint of the plaintiff . . . . . ., and serve a copy of your answer upon the undersigned attorneys for plaintiff . . . . . ., at his (or their) office below stated; and in case of your failure so to do, judgment will be rendered against you according to the demand of the complaint, which has been filed with the clerk of said court. (Insert here a brief statement of the object of the action.)

                                                    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,

                                                                                        Plaintiff's Attorneys.

                                                    P.O. Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                    County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                                                                                              Washington.

 

             When service of summons by publication is authorized under RCW 4.28.100(9), the publication specified in this section may be made via the internet, provided that the summons shall be posted to the same on-line location where the false or defamatory statements were posted or electronically transmitted to the electronic address of the sender of the false or defamatory statements, once a week for six consecutive weeks.


             NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."


             On page 1, line 1 of the title, after "mail;" strike the remainder of the title and insert "amending RCW 19.190.010, 19.190.020, 19.190.030, 4.36.120, 4.28.100, and 4.28.110; creating a new section; and repealing RCW 19.190.005."


and the same are herewith transmitted.

Tony M. Cook, Secretary


POINT OF ORDER


             Representative Poulsen requested a scope and object ruling on the Senate amendments to Second Substitute House Bill No. 1037.


SPEAKERS' RULING


             The Speaker (Representative Ogden presiding): "Representative Poulsen, the co-Speakers have examined the Senate amendment to Second Substitute House Bill No. 1037, and agree that the Senate amendment is beyond the scope and object of the bill.

             The Title of Second Substitute House Bill No. 1037 is, "AN ACT Relating to commercial electronic mail." The Object of the bill is to address the issue of unsolicited commercial electronic mail.

             The Senate amendment, sections 5 through 8, deals with electronic defamation of character. The Senate amendment, to the extent that it deals with defamation of character, is beyond the scope and object of Second Substitute House Bill No. 1037.

             Representative Poulsen, the co-Speakers find that your Point of Order is well taken."


             There being no objection, the House refused to concur in the Senate Amendment(s) to Second Substitute House Bill No. 1037 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 13, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1233 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 6.13.010 and 1993 c 200 s 1 are each amended to read as follows:

             (1) The homestead consists of real or personal property that the owner uses as a residence. In the case of a dwelling house or mobile home, the homestead consists of the dwelling house or the mobile home in which the owner resides or intends to reside, with appurtenant buildings, and the land on which the same are situated and by which the same are surrounded, or improved or unimproved land owned with the intention of placing a house or mobile home thereon and residing thereon. A mobile home may be exempted under this chapter whether or not it is permanently affixed to the underlying land and whether or not the mobile home is placed upon a lot owned by the mobile home owner. Property included in the homestead must be actually intended or used as the principal home for the owner.

             (2) As used in this chapter, the term "owner" includes but is not limited to a purchaser under a deed of trust, mortgage, or real estate contract.

             (3) As used in this chapter, the term "net value" means market value less all liens and encumbrances senior to the judgment being executed upon and not including the judgment being executed upon.


             Sec. 2. RCW 6.13.150 and 1987 c 442 s 215 are each amended to read as follows:

             If, from the report, it appears to the court that the value of the homestead, less liens and encumbrances senior to the judgment being executed upon and not including the judgment being executed upon, exceeds the homestead exemption and the property can be divided without material injury and without violation of any governmental restriction, the court may, by an order, direct the appraiser to set off to the owner so much of the land, including the residence, as will amount in net value to the homestead exemption, and the execution may be enforced against the remainder of the land.


             Sec. 3. RCW 6.13.160 and 1987 c 442 s 216 are each amended to read as follows:

             If, from the report, it appears to the court that the appraised value of the homestead property, less liens and encumbrances senior to the judgment being executed upon and not including the judgment being executed upon, exceeds the amount of the homestead exemption and the property is not divided, the court must make an order directing its sale under the execution. The order shall direct that at such sale no bid may be received unless it exceeds the amount of the homestead exemption.


             Sec. 4. RCW 6.13.030 and 1993 c 200 s 2 are each amended to read as follows:

             A homestead may consist of lands, as described in RCW 6.13.010, regardless of area, but the homestead exemption amount shall not exceed the lesser of (1) the total net value of the lands, mobile home, improvements, and other personal property, as described in RCW 6.13.010, or (2) the sum of ((thirty)) forty thousand dollars in the case of lands, mobile home, and improvements, or the sum of fifteen thousand dollars in the case of other personal property described in RCW 6.13.010, except where the homestead is subject to execution, attachment, or seizure by or under any legal process whatever to satisfy a judgment in favor of any state for failure to pay that state's income tax on benefits received while a resident of the state of Washington from a pension or other retirement plan, in which event there shall be no dollar limit on the value of the exemption."


             On page 1, line 1 of the title, after "exemption;" strike the remainder of the title and insert "and amending RCW 6.13.010, 6.13.150, 6.13.160, and 6.13.030."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to House Bill No. 1233 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of House Bill No. 1233 as amended by the Senate.


             Representatives Edmonds and Carrell spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 1233, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             House Bill No. 1233, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 15, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1539 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 48.66.045 and 1995 c 85 s 3 are each amended to read as follows:

             Every issuer of a medicare supplement insurance policy or certificate providing coverage to a resident of this state issued on or after January 1, 1996, shall:

             (1) Issue coverage under its approved standardized benefit plans ((B, C, D, E, F, and G)) without evidence of insurability to any resident of this state who is eligible for both medicare hospital and physician services by reason of age or by reason of disability or end-stage renal disease, if the medicare supplement policy replaces another ((medicare supplement standardized)) benefit plan, policy, or certificate ((B, C, D, E, F, or G,)) or other ((more comprehensive)) coverage ((than the replaced policy)). The replacing issuer shall waive any time periods applicable to preexisting conditions in the medicare supplement contract for similar benefits to the extent that similar exclusions have been satisfied under the original coverage; and

             (2) ((Issue coverage under its standardized plans A, H, I, and J without evidence of insurability to any resident of this state who is eligible for both medicare hospital and physician services by reason of age or by reason of disability or end-stage renal disease, if the medicare supplement policy replaces another medicare supplement policy or certificate which is the same standardized plan as the replaced policy; and

             (3))) Set rates only on a community-rated basis. Premiums shall be equal for all policyholders and certificate holders under a standardized medicare supplement benefit plan form, except that an issuer may develop no more than two rating pools that distinguish between an insured's eligibility for medicare by reason of:

             (a) Age; or

             (b) Disability or end-stage renal disease.


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


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to House Bill No. 1539 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 15, 1999

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2260 with the following amendment(s)


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The legislature finds that while Washington's economy is currently prospering, economic growth continues to be uneven, particularly as between metropolitan and rural areas. This has created in effect two Washingtons: One afflicted by inadequate infrastructure to support and attract investment, another suffering from congestion and soaring housing prices. In order to address these problems, the legislature intends to use resources strategically to build on our state's strengths while addressing threats to our prosperity.


PART I

LOCAL OPTION SALES AND USE TAX


             Sec. 101. RCW 82.14.370 and 1998 c 55 s 6 are each amended to read as follows:

             (1) The legislative authority of a ((distressed)) rural 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)) 0.08 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. The public facility must be listed as an item in the officially adopted county overall economic development plan, or the economic development section of the county's comprehensive plan, or the comprehensive plan of a city or town located within the county for those counties planning under RCW 36.70A.040. For those counties that do not have an adopted overall economic development plan and do not plan under the growth management act, the public facility must be listed in the county's capital facilities plan or the capital facilities plan of a city or town located within the county. In implementing this section, the county shall consult with cities, towns, and port districts located within the county. For the purposes of this section, "public facilities" means bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, storm sewer facilities, railroad, electricity, natural gas, buildings, structures, telecommunications infrastructure, transportation infrastructure, or commercial infrastructure, and port facilities in the state of Washington.

             (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)) rural 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 unemployment for those years by twenty percent)) an eligible area as defined in RCW 82.60.020.


PART II

DISTRESSED COUNTY ASSISTANCE ACCOUNT


             Sec. 201. RCW 82.14.380 and 1998 c 321 s 10 (Referendum Bill No. 49) are each amended to read as follows:

             (1) The distressed county assistance account is created in the state treasury. Into this account shall be placed a portion of all motor vehicle excise tax receipts as provided in RCW 82.44.110. At such times as distributions are made under RCW 82.44.150, the state treasurer shall distribute the funds in the distressed county assistance account to each county imposing the sales and use tax authorized under RCW 82.14.370 as of January 1, 1999, in the same proportions as distributions of the tax imposed under RCW 82.14.370 for these counties for the previous quarter.

             (2) Funds distributed from the distressed county assistance account shall be expended by the counties for criminal justice and other purposes.


PART III

TECHNOLOGY-BASED BUSINESSES

Software


             NEW SECTION. Sec. 301. It is the intent of the legislature to attract and retain technology-based businesses in distressed counties. Section 302 of this act provides a tax incentive to those businesses that develop or manufacture software in distressed counties. Section 303 of this act provides a tax incentive to those businesses that are engaged in the business of providing technical support services from distressed counties. Encouragement of these types of business will stimulate the information technology industry and be of benefit to the state economy in general. To further the impact and benefit of this program, this incentive is limited to those counties of the state that are characterized by unemployment or low income. The legislature finds that providing this targeted incentive will both increase its effectiveness and create a high technology work force in distressed counties.


             NEW SECTION. Sec. 302. A new section is added to chapter 82.04 RCW to read as follows:

             (1) Subject to the limits and provisions of this section, a credit is authorized against the tax otherwise due under this chapter for persons engaged in a distressed county in the business of manufacturing software or programming computers, as those terms are defined in this section.

             (2) A person who partially or totally relocates a business from one distressed county to another distressed county is eligible for any qualifying new jobs created as a result of the relocation but is not eligible to receive credit for the jobs moved from one county to the other.

             (3)(a) To qualify for the credit, the qualifying activity of the person must be conducted in a distressed county and the qualified employment position must be located in the distressed county.

             (b) If an activity is conducted both from a distressed county and outside of a distressed county, the credit is available if at least ninety percent of the qualifying activity takes place within a distressed county. If the qualifying activity is a service taxable activity, the place where the work is performed is the place at which the activity is conducted.

             (4)(a) The credit under this section shall equal one thousand dollars for each qualified employment position created after July 1, 1999, in an eligible area. A credit is earned for the calendar year the person is hired to fill the position. Additionally a credit is earned for each year the position is maintained over the subsequent consecutive years, up to six years. The county must meet the definition of a distressed county at the time the position is filled. If the county does not have a distressed county status the following year or years, the position is still eligible for the remaining years if all other conditions are met.

             (b) Credit may not be taken for hiring of persons into positions that exist before July 1, 1999. Credit is authorized for new employees hired for new positions created on or after July 1, 1999. New positions filled by existing employees are eligible for the credit under this section only if the position vacated by the existing employee is filled by a new hire. A business that is a sole proprietorship without any employees is equivalent to one employee position and this type of business is eligible to receive credit for one position.

             (c) If a position is filled before July 1st, this position is eligible for the full yearly credit. If it is filled after June 30th, this position is eligible for half of the credit.

             (d) A person that has engaged in qualifying activities in the distressed county before the effective date of this section qualifies for the credit under this section for positions created and filled after the effective date of this section.

             (5) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section. This information includes information relating to description of qualifying activity engaged in the distressed county and outside the distressed county by the person as well as detailed records on positions and employees. The department shall, in consultation with a representative group of affected taxpayers, develop a method of segregating activity and related income so that those persons who engage in multiple activities can determine eligibility for credit under this section.

             (6) If at any time the department finds that a person is not eligible for tax credit under this section, the amount of taxes for which a credit has been claimed shall be immediately due. The department shall assess interest, but not penalties, on the taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, shall be assessed retroactively to the date the tax credit was taken, and shall accrue until the taxes for which a credit has been used are repaid.

             (7) The credit under this section may be used against any tax due under this chapter, but in no case may a credit earned during one calendar year be carried over to be credited against taxes incurred in a subsequent calendar year. A person is not eligible to receive a credit under this section if the person is receiving credit for the same position under chapter 82.62 RCW or RCW 82.04.44525 or is taking the credit under section 303 of this act. No refunds may be granted for credits under this section.

             (8) County eligibility under this section shall be based on the same list as published by the department under chapter 82.60 RCW. The eligibility period is from July 1st of each year to June 30th of the next year.

             (9) A person taking tax credits under this section shall make an annual report to the department. The report shall be in a letter form and shall include the following information: Number of positions for which credit is being claimed, type of position for which credit is being claimed, type of activity in which the person is engaged in the county, and how long the person has been located in the county. The report must be filed by January 30th of each year for which credit was claimed during the previous year.

             (10) Transfer of ownership does not affect credit eligibility; however, the credit is available to the successor for remaining periods in the seven years only if the eligibility conditions of this section are met.

             (11) As used in this section:

             (a) "Distressed county" means an eligible area as defined in RCW 82.60.020.

             (b) "Manufacturing" means the same as "to manufacture" under RCW 82.04.120. Manufacturing includes the activities of both manufacturers and processors for hire.

             (c) "Programming" means the activities that involve the creation or modification of software, as that term is defined in this chapter, and that are taxable as a service under RCW 82.04.290(2) or as a retail sale under RCW 82.04.050.

             (d) "Qualifying activity" means manufacturing of software or programming computers.

             (e) "Qualified employment position" means a permanent full-time position doing programming of software or manufacturing of software. This excludes administrative, professional, service, executive, and other similar positions. If an employee is either voluntarily or involuntarily separated from employment, the employment position is considered filled on a full-time basis if the employer is either training or actively recruiting a replacement employee. Full-time means a position for at least thirty-five hours a week.

             (f) "Software" has the same meaning as defined in RCW 82.04.215.

             (12) No credit may be taken or accrued under this section on or after July 1, 2003.

             (13) This section expires June 30, 2003.


Help Desk Services


             NEW SECTION. Sec. 303. A new section is added to chapter 82.04 RCW to read as follows:

             (1) Subject to the limits and provisions of this section, a credit is authorized against the tax otherwise due under this chapter for persons engaged in a distressed county in the business of providing information technology help desk services to third parties.

             (2) To qualify for the credit, the help desk services must be conducted from a distressed county.

             (3)(a) For the first eighty-four months in which the person is engaged in the activity of providing information technology help desk services in the distressed county, the amount of the credit shall be equal to one hundred percent of the amount of tax due under this chapter that is attributable to providing the services from the distressed county. In order to qualify for the credit under this subsection (3)(a), the county must meet the definition of "distressed county" at the time the person begins to conduct qualifying business in the county. If the county subsequently does not qualify for distressed county status, the person may continue to take the credit for the remaining time in the eighty-four months if all other conditions are met. A person who locates in a county during a period of time for which the county does not meet the distressed county status is not eligible to receive the credit under this subsection (3)(a).

             (b) A person who is not eligible for the credit under (a) of this subsection is potentially eligible for credit under this subsection (3)(b). If the person is engaged in the activity of providing information technology help desk services in a distressed county, the amount of the credit shall equal sixty-eight percent of the amount of tax due under this chapter that is attributable to providing the service from the distressed county. In order to qualify for the credit under this subsection, the county must meet the definition of "distressed county" during the period of time for which the credit is being claimed. A person is not eligible for a credit under this subsection (3)(b) for activity conducted during any period of time the county does not have a distressed county status.

             (c) A person who has engaged in providing information technology help desk services in the distressed county before the effective date of this section qualifies for the credit under (a) of this subsection for any remaining time in the eighty-four months, after which time the person is potentially eligible for the credit under (b) of this subsection. A person who has engaged in providing information technology help desk services in the distressed county before the effective date of this section for more than eighty-four months is potentially eligible for the credit under (b) of this subsection.

             (4) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section. These records include information relating to description of activity engaged in a distressed county by the person.

             (5) If at any time the department finds that a person is not eligible for tax credit under this section, the amount of taxes for which a credit has been used is immediately due. The department shall assess interest, but not penalties, on the credited taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, shall be assessed retroactively to the date the tax credit was taken, and shall accrue until the taxes for which a credit has been used are repaid.

             (6) The credit under this section may be used against any tax due under this chapter, but in no case may a credit earned during one calendar year be carried over to be credited against taxes incurred in a subsequent calendar year. A person is not eligible to receive a credit under this section if the person is receiving credit under section 302 of this act or RCW 82.04.44525 or chapter 82.62 RCW. No refunds may be granted for credits under this section.

             (7) County eligibility under this section shall be based on the same list as published by the department under chapter 82.60 RCW. The eligibility period is from July 1st of each year to June 30th of the next year.

             (8) A person taking tax credits under this section shall make an annual report to the department. The report shall be in a letter form and shall include the following information: Type of activity in which the person is engaged in the county, number of employees in the distressed county, and how long the person has been located in the county. The report must be filed by January 30th of each year for which credit was claimed during the previous year.

             (9) Transfer of ownership does not affect credit eligibility; however, the credit is available to the successor only if the eligibility conditions of this section are met.

             (10) As used in this section:

             (a) "Distressed county" means an eligible area as defined in RCW 82.60.020.

             (b) "First eighty-four months" means the eighty-four months of operation in a county following commencement of business activity. Business activity is deemed to commence upon the act of engaging in the business of providing the help desk services from the county.

             (c) "Information technology help desk services" means the following inbound technical or customer support services performed using electronic and telephonic communication:

             (i) Hardware and software maintenance;

             (ii) Hardware and software diagnostics and troubleshooting;

             (iii) Hardware and software installation;

             (iv) Hardware and software repair;

             (v) Hardware and software information and training; and

             (vi) Hardware and software upgrade.

             (11) No credit may be taken or accrued under this section on or after July 1, 2003.

             (12) This section expires June 30, 2003.


             NEW SECTION. Sec. 304. A new section is added to chapter 82.62 RCW to read as follows:

             (1) A person is not eligible to receive a credit under this chapter if the person is receiving credit for the same position under section 302 of this act or RCW 82.04.44525 or is receiving a credit under section 303 of this act.

             (2) This section expires June 30, 2003.


             NEW SECTION. Sec. 305. The following acts or parts of acts are each repealed:

             (1). RCW 82.60.045 (Eligible projects--Additional requirements) and 1995 1st sp.s. c 3 s 7 & 1994 sp.s. c 1 s 4; and

             (2). RCW 82.60.047 (Governor designation of county as eligible area--Natural disaster, business closure, military base closure, mass layoff) and 1994 sp.s. c 1 s 9.


PART IV

ELECTRIC UTILITIES


             NEW SECTION. Sec. 401. The legislature finds that it is necessary to employ multiple approaches to revitalize the economy of Washington state's rural areas. The legislature also finds that where possible, Washington state should develop programs which can complement other private, state, and federal programs. It is the intent of section 402 of this act to complement such rural economic development efforts by creating a public utility tax offset program to help establish locally based electric utility revolving fund programs to be used for economic development and job creation.


             NEW SECTION. Sec. 402. A new section is added to chapter 82.16 RCW to read as follows:

             (1) The following definitions apply to this section:

             (a) "Qualifying project" means a project designed to achieve job creation or business retention, to add or upgrade nonelectrical infrastructure, to add or upgrade health and safety facilities, to accomplish energy and water use efficiency improvements, including renewable energy development, or to add or upgrade emergency services in any designated qualifying rural area.

             (b) "Qualifying rural area" means:

             (i) An eligible area as defined in RCW 82.60.020; or

             (ii) Any geographic area in the state that receives electricity from a light and power business with twelve thousand or fewer customers with fewer than twenty-six meters per mile of distribution line as determined and published by the department of revenue effective July 1st of each year. The department shall use current data provided by the electricity industry.

             (c) "Electric utility rural economic development revolving fund" means a fund devoted exclusively to funding qualifying projects in qualifying rural areas.

             (d) "Local board" is a board of directors with at least, but not limited to, three members representing local businesses and community groups who have been appointed by the sponsoring electric utility to oversee and direct the activities of the electric utility rural economic development revolving fund.

             (2) A light and power business with fewer than twenty-six active meters per mile of distribution line in any geographic area in the state shall be allowed a credit against taxes due under this chapter in an amount equal to fifty percent of contributions made in any calendar year directly to an electric utility rural economic development revolving fund. The credit shall be taken in a form and manner as required by the department. The credit under this section shall not exceed twenty-five thousand dollars per calendar year per light and power business. The credit may not exceed the tax that would otherwise be due under this chapter. Refunds shall not be granted in the place of credits. Expenditures not used to earn a credit in one calendar year may not be used to earn a credit in subsequent years.

             (3) The right to earn tax credits under this section expires December 31, 2005.

             (4) To qualify for the credit in subsection (2) of this section, the light and power business shall establish an electric utility rural economic development revolving fund which is governed by a local board whose members shall reside in the qualifying rural area served by the light and power business. The local board shall have authority to determine all criteria and conditions for the expenditure of funds from the electric utility rural economic development fund, and for the terms and conditions of repayment.

             (5) Any funds repaid to the electric utility rural economic development fund by recipients shall be made available for additional qualifying projects.

             (6) If at any time the electric utility rural economic development fund is dissolved, any moneys claimed as a tax credit under this section shall either be granted to a qualifying project or refunded to the state within two years of termination.

             (7) The total amount of credits that may be used in any fiscal year shall not exceed three hundred fifty thousand dollars in any fiscal year. The department shall allow the use of earned credits on a first-come, first-served basis. Unused earned credits may be carried over to subsequent years.


PART V

DISASTER VICTIMS' RELIEF


             NEW SECTION. Sec. 501. A new section is added to chapter 82.08 RCW to read as follows:

             (1) The tax levied by RCW 82.08.020 shall not apply to sales of labor and services rendered in respect to:

             (a) The moving of houses out of any landslide area that has been declared as a federal disaster area;

             (b) The demolition of houses located in a landslide area that has been declared as a federal disaster area; or

             (c) The removal of debris from a landslide area that has been declared as a federal disaster area.

             (2) This section expires July 1, 2000.


PART VI

MISCELLANEOUS


             NEW SECTION. Sec. 601. Part headings and subheadings used in this act are not any part of the law.


             NEW SECTION. Sec. 602. Section 501 of this act applies retroactively to March 1, 1998.


             NEW SECTION. Sec. 603. Section 501 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.


             NEW SECTION. Sec. 604. Sections 1, 101, 201, 301 through 305, 401, 402, 601, and 605 of this act take effect August 1, 1999.


             NEW SECTION. Sec. 605. Section 305 of this act does not affect any existing right acquired or liability or obligation under the sections repealed in section 305 of this act or any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections.


             NEW SECTION. Sec. 606. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."


             On page 1, line 1 of the title, after "counties;" strike the remainder of the title and insert "amending RCW 82.14.370 and 82.14.380; adding new sections to chapter 82.04 RCW; adding a new section to chapter 82.16 RCW; adding a new section to chapter 82.60 RCW; adding a new section to chapter 82.08 RCW; creating new sections; repealing RCW 82.60.045 and 82.60.047; providing an effective date; providing expiration dates; and declaring an emergency."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to Engrossed Substitute House Bill No. 2260 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 21, 1999

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1140 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 28B.10 RCW to read as follows:

             (1) The legislature finds that the higher education coordinating board, in consultation with the higher education community, has completed a review of the state need grant program. It is the intent of the legislature to endorse the board's proposed changes to the state need grant program, including:

             (a) Reaffirmation that the primary purpose of the state need grant program is to assist low-income, needy, and disadvantaged Washington residents attending institutions of higher education;

             (b) A goal that the base state need grant amount over time be increased to be equivalent to the rate of tuition charged to resident undergraduate students attending Washington state public colleges and universities;

             (c) State need grant recipients be required to contribute a portion of the total cost of their education through self-help;

             (d) State need grant recipients be required to document their need for dependent care assistance after taking into account other public funds provided for like purposes; and

             (e) Institutional aid administrators be allowed to determine whether a student eligible for a state need grant in a given academic year may remain eligible for the ensuing year if the student's family income increases by no more than a marginal amount.

             (2) The legislature further finds that the higher education coordinating board, under its authority to implement the proposed changes in subsection (1) of this section, should do so in a timely manner.

             (3) The legislature also finds that:

             (a) In most circumstances, need grant eligibility should not extend beyond five years or one hundred twenty-five percent of the published length of the program in which the student is enrolled or the credit or clock-hour equivalent; and

             (b) State financial aid programs should continue to adhere to the principle that funding follows resident students to their choice of institution of higher education.


             Sec. 2. RCW 28B.10.800 and 1993 sp.s. c 18 s 2 are each amended to read as follows:

             The ((sole)) purposes of RCW 28B.10.800 through 28B.10.824 ((is)) are to establish ((a)) the principles upon which the state financial aid programs will be based and to establish the state of Washington ((student financial aid)) state need grant program, thus assisting financially needy or disadvantaged students domiciled in Washington to obtain the opportunity of attending an accredited institution of higher education, as defined in RCW 28B.10.802(1). ((Financial aid)) State need grants under RCW 28B.10.800 through 28B.10.824 ((is)) are available only to students who are resident students as defined in RCW 28B.15.012(2) (a) through (d).


             Sec. 3. RCW 28B.10.804 and 1995 c 269 s 801 are each amended to read as follows:

             The ((commission)) board shall be cognizant of the following guidelines in the performance of its duties:

             (1) The ((commission)) board shall be research oriented, not only at its inception but continually through its existence.

             (2) The ((commission)) board shall coordinate all existing programs of financial aid except those specifically dedicated to a particular institution by the donor.

             (3) The ((commission)) board shall take the initiative and responsibility for coordinating all federal student financial aid programs to ((insure)) ensure that the state recognizes the maximum potential effect of these programs, and shall design ((the)) state programs ((which)) that complement((s)) existing federal, state, and institutional programs. The board shall ensure that state programs continue to follow the principle that state financial aid funding follows the student to the student's choice of institution of higher education.

             (4) Counseling is a paramount function of the state need grant and other state student financial aid programs, and in most cases could only be properly implemented at the institutional levels; therefore, state student financial aid programs shall be concerned with the attainment of those goals which, in the judgment of the ((commission)) board, are the reasons for the existence of a student financial aid program, and not solely with administration of the program on an individual basis.

             (5) The "package" approach of combining loans, grants and employment for student financial aid shall be the ((conceptional)) conceptual element of the state's involvement.


             Sec. 4. RCW 28B.10.806 and 1989 c 254 s 3 are each amended to read as follows:

             The ((commission)) board shall have the following powers and duties:

             (1) Conduct a full analysis of student financial aid as a means of:

             (a) Fulfilling educational aspirations of students of the state of Washington, and

             (b) Improving the general, social, cultural, and economic character of the state.

             Such an analysis will be a continuous one and will yield current information relevant to needed improvements in the state program of student financial aid. The ((commission)) board will disseminate the information yielded by their analyses to all appropriate individuals and agents.

             (((c) This study should include information on the following:

             (i) all programs and sources of available student financial aid,

             (ii) distribution of Washington citizens by socio-economic class,

             (iii) data from federal and state studies useful in identifying:

             (A) demands of students for specific educational goals in colleges, and

             (B) the discrepancy between high school students' preferences and the colleges they actually selected.))

             (2) Design a state program of student financial aid based on the data of the study referred to in this section. The state programs will supplement available federal and local aid programs. The state programs of student financial aid will not exceed the difference between the budgetary costs of attending an institution of higher ((learning)) education and the student's total resources, including family support, personal savings, employment, and federal, state, and local aid programs.

             (3) Determine and establish criteria for financial need of the individual applicant based upon the consideration of that particular applicant. In making this determination the ((commission)) board shall consider the following:

             (a) Assets and income of the student.

             (b) Assets and income of the parents, or the individuals legally responsible for the care and maintenance of the student.

             (c) The cost of attending the institution the student is attending or planning to attend.

             (d) Any other criteria deemed relevant to the ((commission)) board.

             (4) Set the amount of financial aid to be awarded to any individual needy or disadvantaged student in any school year.

             (5) Award financial aid to needy or disadvantaged students for a school year based upon only that amount necessary to fill the financial gap between the budgetary cost of attending an institution of higher education and the family and student contribution.

             (6) Review the need and eligibility of all applications on an annual basis and adjust financial aid to reflect changes in the financial need of the recipients and the cost of attending the institution of higher education.


             Sec. 5. RCW 28B.10.808 and 1991 c 164 s 4 are each amended to read as follows:

             In awarding need grants, the ((commission)) board shall proceed substantially as follows: PROVIDED, That nothing contained herein shall be construed to prevent the ((commission)) board, in the exercise of its sound discretion, from following another procedure when the best interest of the program so dictates:

             (1) The ((commission)) board shall annually select the financial aid award ((winners)) recipients from among Washington residents applying for student financial aid who have been ranked according to financial need as determined by the amount of the family contribution and other considerations brought to the ((commission's)) board's attention.

             (2) The financial need of the highest ranked students shall be met by grants depending upon the evaluation of financial need until the total allocation has been disbursed. Funds from grants which are declined, forfeited or otherwise unused shall be reawarded until dispersed.

             (3) ((A grant may be renewed until the course of study is completed, but not for more than an additional four academic years beyond the first year of the award. These shall not be required to be consecutive years)) A student shall be eligible to receive a state need grant for up to five years, or the credit or clock hour equivalent of five years, or up to one hundred twenty-five percent of the published length of time of the student's program. A student may not start a new associate degree program as a state need grant recipient until at least five years have elapsed since earning an associate degree as a need grant recipient, except that a student may earn two associate degrees concurrently. Qualifications for renewal will include maintaining satisfactory academic ((standing)) progress toward completion of ((the course of study, and continued eligibility)) an eligible program as determined by the ((commission)) board. Should the recipient terminate his or her enrollment for any reason during the academic year, the unused portion of the grant shall be returned to the state educational grant fund by the institution according to the institution's own policy for issuing refunds, except as provided in RCW 28B.10.8081.

             (4) In computing financial need, the ((commission)) board shall determine a maximum student expense budget allowance, not to exceed an amount equal to the total maximum student expense budget at the public institutions plus the current average state appropriation per student for operating expense in the public institutions.


             Sec. 6. RCW 28B.10.810 and 1989 c 254 s 5 are each amended to read as follows:

             For a student to be eligible for ((financial aid the)) a state need grant a student must:

             (1) Be a "needy student" or "disadvantaged student" as determined by the ((commission)) board in accordance with RCW 28B.10.802 (3) and (4).

             (2) Have been domiciled within the state of Washington for at least one year.

             (3) Be enrolled or accepted for enrollment on at least a half-time basis at an institution of higher education in Washington as defined in RCW 28B.10.802(1).

             (4) Have complied with all the rules and regulations adopted by the ((commission)) board for the administration of RCW 28B.10.800 through 28B.10.824.


             Sec. 7. RCW 28B.10.822 and 1973 c 62 s 4 are each amended to read as follows:

             The ((commission)) board shall adopt rules ((and regulations)) as may be necessary or appropriate for effecting the provisions of RCW 28B.10.800 through 28B.10.824 and section 1 of this act, and not in conflict with RCW 28B.10.800 through 28B.10.824, in accordance with the provisions of chapter 34.05 RCW, the ((state higher education)) administrative procedure act."


             On page 1, line 1 of the title, after "education;" strike the remainder of the title and insert "amending RCW 28B.10.800, 28B.10.804, 28B.10.806, 28B.10.808, 28B.10.810, and 28B.10.822; and adding a new section to chapter 28B.10 RCW."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Second Substitute House Bill No. 1140 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Second Substitute House Bill No. 1140 as amended by the Senate.


             Representatives Carlson and Kenney spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute House Bill No. 1140, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Second Substitute House Bill No. 1140, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 21, 1999

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 1222 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 43.63A RCW to read as follows:

             (1) A competitive grant program to assist nonprofit organizations in acquiring, constructing, or rehabilitating performing arts, art museums, and cultural facilities is created.

             (2)(a) The department shall submit a list of recommended performing arts, art museum projects, and cultural organization projects eligible for funding to the governor and the legislature in the department's biennial capital budget request beginning with the 2001-2003 biennium and thereafter. The list, in priority order, shall include a description of each project, the amount of recommended state funding, and documentation of nonstate funds to be used for the project. The total amount of recommended state funding for projects on a biennial project list shall not exceed four million dollars. The department may provide an additional alternate project list which shall not exceed five hundred thousand dollars.

             (b) The department shall establish a competitive process to prioritize applications for state assistance as follows:

             (i) The department shall conduct a state-wide solicitation of project applications from nonprofit organizations, local governments, and other entities, as determined by the department. The department shall evaluate and rank applications in consultation with a citizen advisory committee, including a representative from the state arts commission, using objective criteria. The evaluation and ranking process shall also consider local community support for projects and an examination of existing assets that applicants may apply to projects.

             (ii) The department may establish the amount of state grant assistance for individual project applications but the amount shall not exceed twenty percent of the estimated total capital cost or actual cost of a project, whichever is less. The remaining portions of the project capital cost shall be a match from nonstate sources. The nonstate match may include cash, the value of real property when acquired solely for the purpose of the project, and in-kind contributions. The department is authorized to set matching requirements for individual projects. State assistance may be used to fund separate definable phases of a project if the project demonstrates adequate progress and has secured the necessary match funding.

             (iii) The department shall not sign contracts or otherwise financially obligate funds under this section until the legislature has approved a specific list of projects. In contracts for grants authorized under this section, the department shall include provisions requiring that capital improvements be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities be used for the express purpose of the grant. If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.


             Sec. 2. RCW 27.34.330 and 1995 c 182 s 2 are each amended to read as follows:

             The Washington state historical society shall establish a competitive process to solicit proposals for and prioritize heritage capital projects for potential funding in the state capital budget. The society shall adopt rules governing project eligibility and evaluation criteria. Application for funding of specific projects may be made to the society by local governments, public development authorities, nonprofit corporations, tribal governments, and other entities, as determined by the society. The society, with the advice of leaders in the heritage field, including but not limited to representatives from the office of the secretary of state, the eastern Washington state historical society, and the state office of archaeology and historic preservation, shall establish and submit a prioritized list of heritage capital projects to ((be recommended to the governor and the legislature by September 1st of each even-numbered year, beginning in 1996. The prioritized list shall be developed through open and public meetings. The governor and the legislature shall consider the prioritized list of heritage projects as a guide for appropriating funds to heritage capital projects beginning with the 1997-99 biennium and thereafter)) the governor and the legislature in the society's biennial capital budget request. The list shall include a description of each project, the amount of recommended state funding, and documentation of nonstate funds to be used for the project. The total amount of recommended state funding for projects on a biennial project list shall not exceed four million dollars. The department may provide an additional alternate project list which shall not exceed five hundred thousand dollars. The prioritized list shall be developed through open and public meetings and the amount of state funding shall not exceed thirty-three percent of the total cost of the project. The nonstate portion of the total project cost may include cash, the value of real property when acquired solely for the purpose of the project, and in-kind contributions. The department shall not sign contracts or otherwise financially obligate funds under this section until the legislature has approved a specific list of projects. In contracts for grants authorized under this section, the society shall include provisions requiring that capital improvements be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities be used for the express purpose of the grant. If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.


             Sec. 3. RCW 43.63A.125 and 1997 c 374 s 2 are each amended to read as follows:

             ((If the legislature provides an appropriation to)) (1) The department shall establish a competitive process to solicit proposals for and prioritize projects that assist nonprofit organizations in acquiring, constructing, or rehabilitating facilities used for the delivery of nonresidential social services((, the legislature may direct the department of community, trade, and economic development to)).

             (2) The department shall establish a competitive process to prioritize applications for the assistance as follows:

             (((1))) (a) The department shall conduct a state-wide solicitation of project applications from local governments, nonprofit organizations, and other entities, as determined by the department. The department shall evaluate and rank applications in consultation with a citizen advisory committee using objective criteria. At a minimum, applicants must demonstrate that the requested assistance will increase the efficiency or quality of the social services it provides to citizens. The evaluation and ranking process shall also include an examination of existing assets that applicants may apply to projects. Grant assistance under this section shall not exceed twenty-five percent of the total cost of the project. The nonstate portion of the total project cost may include((, but is not limited to, land, facilities)) cash, the value of real property when acquired solely for the purpose of the project, and in-kind contributions.

             (((2))) (b) The department shall submit a prioritized list of recommended projects to the ((legislature by November 1st following the effective date of the appropriation)) governor and the legislature in the department's biennial capital budget request beginning with the 2001-2003 biennium and thereafter. For the 1999-2001 biennium, the department shall conduct a solicitation and ranking process, as described in (a) of this subsection, for projects to be funded by appropriations provided for this program in the 1999-2001 capital budget. The list shall include a description of each project, the amount of recommended state funding, and documentation of nonstate funds to be used for the project. The total amount of recommended state funding for projects on a biennial project list shall not exceed four million dollars. The department may provide an additional alternate project list which shall not exceed five hundred thousand dollars. Except for the 1999-2001 biennium, the department shall not sign contracts or otherwise financially obligate funds under this section until the legislature has approved a specific list of projects.

             (((3))) (c) In contracts for grants authorized under this section the department shall include provisions which require that capital improvements shall be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities shall be used for the express purpose of the grant. If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.

             (((4) The department shall develop model contract provisions for compliance with subsection (3) of this section and shall distribute its recommendations to the appropriate legislative committees, the office of financial management, and to all state agencies which provide capital grants to nonstate entities.))


             NEW SECTION. Sec. 4. Section 1 of this act, RCW 27.34.330, and 43.63A.125 shall expire June 30, 2007."


             On page 1, line 2 of the title, after "organizations;" strike the remainder of the title and insert "amending RCW 27.34.330 and 43.63A.125; adding a new section to chapter 43.63A RCW; and providing an expiration date."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1222 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Substitute House Bill No. 1222 as amended by the Senate.


             Representatives Edmonds and Esser spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1222, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Substitute House Bill No. 1222, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 15, 1999

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 1240 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 74.09.5255 and 1994 c 180 s 6 are each amended to read as follows:

             Of the projected federal medicaid and private insurance revenue collected under RCW 74.09.5249, ((twenty)) one-half of the percent of potential medicaid eligible students billed by the school district as calculated by the superintendent multiplied by the federal portion of medicaid payments, after deduction for billing fees, shall be for incentive payments to districts. Incentive payments shall only be used by districts for children with disabilities.


             Sec. 2. RCW 74.09.5256 and 1994 c 180 s 7 are each amended to read as follows:

             (1) Districts shall reassign medicaid payments to be received under RCW 74.09.5249 through 74.09.5253, 74.09.5254 and 74.09.5255, and this section to the superintendent of public instruction.

             (2) The superintendent of public instruction shall receive medicaid payments from the department of social and health services for all state and federal moneys under Title XIX of the federal social security act due to districts for medical assistance provided in the district's special education program.

             (3) The superintendent shall use reports from the department of social and health services, the state billing agent, districts acting as their own billing agent, and firms to calculate the appropriate amounts of incentive payments and state special education program moneys due each district.

             (4) Moneys received by the superintendent of public instruction shall be disbursed for the following purposes:

             (a) Reimbursement to the department of social and health services for the state-funded portion of medicaid payments;

             (b) Reimbursement for billing agent's fees, including those of districts acting as their own agent and billing fees of firms;

             (c) Incentive payments to each school district((s)) equal to ((twenty)) one-half of the percent of potential medicaid eligible students billed by the school district as calculated by the superintendent multiplied by the federal portion of medicaid payments after deduction for billing fees; and

             (d) The remainder shall be distributed to districts as part of state allocations for the special education program provided under RCW 28A.150.390.

             (5) With respect to private insurer funds received by districts, the superintendent of public instruction shall reduce state special education program allocations to the districts by ((eighty percent of the amount received)) one minus the percent calculated by the superintendent in subsection (4)(c) of this section, after deduction for billing fees."


             On page 1, line 1 of the title, after "districts;" strike the remainder of the title and insert "and amending RCW 74.09.5255 and 74.09.5256."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1240 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Substitute House Bill No. 1240 as amended by the Senate.


             Representatives Haigh and Cox spoke favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1240, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Substitute House Bill No. 1240, as amended by the Senate, having received the constitutional majority, was declared passed.


MESSAGE FROM THE SENATE

April 23, 1999

Mr. Speaker:


             The President has signed:


ENGROSSED SENATE BILL NO. 5109,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5175,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5208,

SUBSTITUTE SENATE BILL NO. 5312,

SENATE BILL NO. 5382,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5421,

SUBSTITUTE SENATE BILL NO. 5744,

SECOND SUBSTITUTE SENATE BILL NO. 5821,

SENATE BILL NO. 5837,

SUBSTITUTE SENATE BILL NO. 5864,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5866,

SENATE BILL NO. 5915,

SUBSTITUTE SENATE BILL NO. 6001,

SENATE BILL NO. 6065,

SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8406,


and the same are herewith transmitted.

Tony M. Cook, Secretary


April 23, 1999

Mr. Speaker:


             The President has signed:

HOUSE BILL NO. 1023,

SUBSTITUTE HOUSE BILL NO. 1068,

HOUSE BILL NO. 1080,

SECOND SUBSTITUTE HOUSE BILL NO. 1116,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1131,

HOUSE BILL NO. 1154,

HOUSE BILL NO. 1299,

SUBSTITUTE HOUSE BILL NO. 1371,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1514,

HOUSE BILL NO. 1556,

SUBSTITUTE HOUSE BILL NO. 1558,

HOUSE BILL NO. 1599,

SUBSTITUTE HOUSE BILL NO. 1647,

SUBSTITUTE HOUSE BILL NO. 1677,

HOUSE BILL NO. 1699,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1798,

SUBSTITUTE HOUSE BILL NO. 1838,

SUBSTITUTE HOUSE BILL NO. 1848,

HOUSE BILL NO. 1849,

SUBSTITUTE HOUSE BILL NO. 1880,

SUBSTITUTE HOUSE BILL NO. 1951,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1991,

SUBSTITUTE HOUSE BILL NO. 2053,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2090,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2107,

HOUSE BILL NO. 2207,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2239,

HOUSE JOINT MEMORIAL NO. 4012,


and the same are herewith transmitted.

Tony M. Cook, Secretary


SIGNED BY THE SPEAKERS


             The Speakers signed the following bills:


SUBSTITUTE HOUSE BILL NO. 1015,

SUBSTITUTE HOUSE BILL NO. 1016,

SUBSTITUTE HOUSE BILL NO. 1024,

SUBSTITUTE HOUSE BILL NO. 1053,

SECOND SUBSTITUTE HOUSE BILL NO. 1132,

SUBSTITUTE HOUSE BILL NO. 1163,

HOUSE BILL NO. 1388,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1407,

HOUSE BILL NO. 1442,

HOUSE BILL NO. 1549,

SUBSTITUTE HOUSE BILL NO. 1569,

SUBSTITUTE HOUSE BILL NO. 1619,

HOUSE BILL NO. 1642,

SECOND SUBSTITUTE HOUSE BILL NO. 1716,

HOUSE BILL NO. 1761,

SUBSTITUTE HOUSE BILL NO. 1770,

SUBSTITUTE HOUSE BILL NO. 1811,

SUBSTITUTE HOUSE BILL NO. 1826,

SUBSTITUTE HOUSE BILL NO. 1969,

SUBSTITUTE HOUSE BILL NO. 1971,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2085,

SUBSTITUTE SENATE BILL NO. 5134,

SUBSTITUTE SENATE BILL NO. 5304,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5345,

SUBSTITUTE SENATE BILL NO. 5399,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5424,

SECOND SUBSTITUTE SENATE BILL NO. 5452,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5508,

SUBSTITUTE SENATE BILL NO. 5513,

SECOND SUBSTITUTE SENATE BILL NO. 5536,

SUBSTITUTE SENATE BILL NO. 5553,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5599,

SUBSTITUTE SENATE BILL NO. 5619,

SENATE BILL NO. 5628,

SUBSTITUTE SENATE BILL NO. 5638,

SENATE BILL NO. 5643,

ENGROSSED SENATE BILL NO. 5649,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5661,

SUBSTITUTE SENATE BILL NO. 5666,

SUBSTITUTE SENATE BILL NO. 5706,

ENGROSSED SENATE BILL NO. 5720,

SUBSTITUTE SENATE BILL NO. 5728,

SENATE BILL NO. 5731,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5803,

SUBSTITUTE SENATE BILL NO. 5828,

ENGROSSED SENATE BILL NO. 5897,

SENATE BILL NO. 5911,

ENGROSSED SENATE BILL NO. 5962,

SENATE BILL NO. 6025,

SENATE JOINT RESOLUTION NO. 8206,


             There being no objection, the bills passed in the day's session were immediately transmitted to the Senate.


SENATE AMENDMENTS TO HOUSE BILL

April 16, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1192 with the following amendment(s)


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 43.163.010 and 1994 c 238 s 1 and 1994 c 92 s 498 are each reenacted and amended to read as follows:

             As used in this chapter, the following words and terms have the following meanings, unless the context requires otherwise:

             (1) "Authority" means the Washington economic development finance authority created under RCW 43.163.020 or any board, body, commission, department or officer succeeding to the principal functions of the authority or to whom the powers conferred upon the authority shall be given by law;

             (2) "Bonds" means any bonds, notes, debentures, interim certificates, conditional sales or lease financing agreements, lines of credit, forward purchase agreements, investment agreements, and other banking or financial arrangements, guaranties, or other obligations issued by or entered into by the authority. Such bonds may be issued on either a tax-exempt or taxable basis;

             (3) "Borrower" means one or more public or private persons or entities acting as lessee, purchaser, mortgagor, or borrower who has obtained or is seeking to obtain financing either from the authority or from an eligible banking organization that has obtained or is seeking to obtain funds from the authority to finance a project. A borrower may include a party who transfers the right of use and occupancy to another party by lease, sublease or otherwise, or a party who is seeking or has obtained a financial guaranty from the authority;

             (4) "Eligible banking organization" means any organization subject to regulation by the director of the department of financial institutions, any national bank, federal savings and loan association, and federal credit union located within this state;

             (5) "Eligible export transaction" means any preexport or export activity by a person or entity located in the state of Washington involving a sale for export and product sale which, in the judgment of the authority: (a) Will create or maintain employment in the state of Washington, (b) will obtain a material percent of its value from manufactured goods or services made, processed or occurring in Washington, and (c) could not otherwise obtain financing on reasonable terms from an eligible banking organization;

             (6) "Eligible farmer" means any person who is a resident of the state of Washington and whose specific acreage qualifying for receipts from the federal department of agriculture under its conservation reserve program is within the state of Washington;

             (7) "Eligible person" means an individual, partnership, corporation, or joint venture carrying on business, or proposing to carry on business within the state and is seeking financial assistance under RCW 43.163.210;

             (8) "Financial assistance" means the infusion of capital to persons for use in the development and exploitation of specific inventions and products;

             (9) "Financing document" means an instrument executed by the authority and one or more persons or entities pertaining to the issuance of or security for bonds, or the application of the proceeds of bonds or other funds of, or payable to, the authority. A financing document may include, but need not be limited to, a lease, installment sale agreement, conditional sale agreement, mortgage, loan agreement, trust agreement or indenture, security agreement, letter or line of credit, reimbursement agreement, insurance policy, guaranty agreement, or currency or interest rate swap agreement. A financing document also may be an agreement between the authority and an eligible banking organization which has agreed to make a loan to a borrower;

             (10) "Plan" means the general plan of economic development finance objectives developed and adopted by the authority, and updated from time to time, as required under RCW 43.163.090;

             (11) "Economic development activities" means activities related to: Manufacturing, processing, research, production, assembly, tooling, warehousing, airports, docks and wharves, mass commuting facilities, high-speed intercity rail facilities, public broadcasting, pollution control, solid waste recycling, federally qualified hazardous waste facilities, energy generating, conservation, or transmission facilities, ((and sports facilities and)) industrial parks and activities conducted within a federally designated enterprise or empowerment zone or geographic area of similar nature. Economic development activities shall not include parking garages operated primarily for use by the public, sports stadiums or facilities, convention centers, or bridges primarily for motor vehicle use;

             (12) "Project costs" means costs of:

             (a) Acquisition, lease, construction, reconstruction, remodeling, refurbishing, rehabilitation, extension, and enlargement of land, rights to land, buildings, structures, docks, wharves, fixtures, machinery, equipment, excavations, paving, landscaping, utilities, approaches, roadways and parking, handling and storage areas, and similar ancillary facilities, and any other real or personal property included in an economic development activity;

             (b) Architectural, engineering, consulting, accounting, and legal costs related directly to the development, financing, acquisition, lease, construction, reconstruction, remodeling, refurbishing, rehabilitation, extension, and enlargement of an activity included under subsection (11) of this section, including costs of studies assessing the feasibility of an economic development activity;

             (c) Finance costs, including the costs of credit enhancement and discounts, if any, the costs of issuing revenue bonds, and costs incurred in carrying out any financing document;

             (d) Start-up costs, working capital, capitalized research and development costs, capitalized interest during construction and during the eighteen months after estimated completion of construction, and capitalized debt service or repair and replacement or other appropriate reserves;

             (e) The refunding of any outstanding obligations incurred for any of the costs outlined in this subsection; and

             (f) Other costs incidental to any of the costs listed in this section;

             (13) "Product" means a product, device, technique, or process that is or may be exploitable commercially. "Product" does not refer to pure research, but shall be construed to apply to products, devices, techniques, or processes that have advanced beyond the theoretic stage and are readily capable of being, or have been, reduced to practice;

             (14) "Financing agreements" means, and includes without limitation, a contractual arrangement with an eligible person whereby the authority obtains rights from or in an invention or product or proceeds from an invention or product in exchange for the granting of financial and other assistance to the person.

             Sec. 2. RCW 39.36.020 and 1994 c 277 s 1 are each amended to read as follows:

             (1) Except as otherwise expressly provided by law or in subsections (2), (3) and (4) of this section, no taxing district shall for any purpose become indebted in any manner to an amount exceeding three-eighths of one percent of the value of the taxable property in such taxing district without the assent of three-fifths of the voters therein voting at an election to be held for that purpose, nor in cases requiring such assent shall the total indebtedness incurred at any time exceed one and one-fourth percent on the value of the taxable property therein.

             (2)(a)(i) Public hospital districts are limited to an indebtedness amount not exceeding three-fourths of one percent of the value of the taxable property in such public hospital districts without the assent of three-fifths of the voters therein voting at an election held for that purpose.

             (ii) Counties, cities, and towns are limited to an indebtedness amount not exceeding one and one-half percent of the value of the taxable property in such counties, cities, or towns without the assent of three-fifths of the voters therein voting at an election held for that purpose.

             (b) In cases requiring such assent counties, cities, towns, and public hospital districts are limited to a total indebtedness of two and one-half percent of the value of the taxable property therein. However, any county that has assumed the rights, powers, functions, and obligations of a metropolitan municipal corporation under chapter 36.56 RCW may become indebted to a larger amount for its authorized metropolitan functions, as provided under chapter 35.58 RCW, but not exceeding an additional three-fourths of one percent of the value of the taxable property in the county without the assent of three-fifths of the voters therein voting at an election held for that purpose, and in cases requiring such assent not exceeding an additional two and one-half percent of the value of the taxable property in the county.

             (3) School districts are limited to an indebtedness amount not exceeding three-eighths of one percent of the value of the taxable property in such district without the assent of three-fifths of the voters therein voting at an election held for that purpose. In cases requiring such assent school districts are limited to a total indebtedness of two and one-half percent of the value of the taxable property therein.

             (4) No part of the indebtedness allowed in this chapter shall be incurred for any purpose other than strictly county, city, town, school district, township, port district, metropolitan park district, or other municipal purposes: PROVIDED, That a city or town, with such assent, may become indebted to a larger amount, but not exceeding two and one-half percent additional, determined as herein provided, for supplying such city or town with water, artificial light, and sewers, when the works for supplying such water, light, and sewers shall be owned and controlled by the city or town; and a city or town, with such assent, may become indebted to a larger amount, but not exceeding two and one-half percent additional for acquiring or developing open space ((and)), park facilities, and capital facilities associated with economic development: PROVIDED FURTHER, That any school district may become indebted to a larger amount but not exceeding two and one-half percent additional for capital outlays.

             (5) Such indebtedness may be authorized in any total amount in one or more propositions and the amount of such authorization may exceed the amount of indebtedness which could then lawfully be incurred. Such indebtedness may be incurred in one or more series of bonds from time to time out of such authorization but at no time shall the total general indebtedness of any taxing district exceed the above limitation.

             The term "value of the taxable property" as used in this section shall have the meaning set forth in RCW 39.36.015.


             NEW SECTION. Sec. 3. A new section is added to chapter 39.36 RCW to read as follows:

             A city or town seeking voter approval to increase its total indebtedness above two and one-half percent of the value of the taxable property therein for purposes of acquiring or developing capital facilities associated with economic development as provided in RCW 39.36.020 shall notify the Washington economic development finance authority created under RCW 43.163.020 at least thirty days prior to the election held for the purpose of obtaining such assent.


             NEW SECTION. Sec. 4. 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 "authority;" strike the remainder of the title and insert "amending RCW 39.36.020; reenacting and amending RCW 43.163.010; adding a new section to chapter 39.36 RCW; and declaring an emergency."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to House Bill No. 1192 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 21, 1999

Mr. Speaker:


             The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1484 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 74.46.020 and 1998 c 322 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) "Accrual method of accounting" means a method of accounting in which revenues are reported in the period when they are earned, regardless of when they are collected, and expenses are reported in the period in which they are incurred, regardless of when they are paid.

             (2) "Appraisal" means the process of estimating the fair market value or reconstructing the historical cost of an asset acquired in a past period as performed by a professionally designated real estate appraiser with no pecuniary interest in the property to be appraised. It includes a systematic, analytic determination and the recording and analyzing of property facts, rights, investments, and values based on a personal inspection and inventory of the property.

             (3) "Arm's-length transaction" means a transaction resulting from good-faith bargaining between a buyer and seller who are not related organizations and have adverse positions in the market place. Sales or exchanges of nursing home facilities among two or more parties in which all parties subsequently continue to own one or more of the facilities involved in the transactions shall not be considered as arm's-length transactions for purposes of this chapter. Sale of a nursing home facility which is subsequently leased back to the seller within five years of the date of sale shall not be considered as an arm's-length transaction for purposes of this chapter.

             (4) "Assets" means economic resources of the contractor, recognized and measured in conformity with generally accepted accounting principles.

             (5) "Audit" or "department audit" means an examination of the records of a nursing facility participating in the medicaid payment system, including but not limited to: The contractor's financial and statistical records, cost reports and all supporting documentation and schedules, receivables, and resident trust funds, to be performed as deemed necessary by the department and according to department rule.

             (6) "Bad debts" means amounts considered to be uncollectible from accounts and notes receivable.

             (7) "Beneficial owner" means:

             (a) Any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares:

             (i) Voting power which includes the power to vote, or to direct the voting of such ownership interest; and/or

             (ii) Investment power which includes the power to dispose, or to direct the disposition of such ownership interest;

             (b) Any person who, directly or indirectly, creates or uses a trust, proxy, power of attorney, pooling arrangement, or any other contract, arrangement, or device with the purpose or effect of divesting himself or herself of beneficial ownership of an ownership interest or preventing the vesting of such beneficial ownership as part of a plan or scheme to evade the reporting requirements of this chapter;

             (c) Any person who, subject to (b) of this subsection, has the right to acquire beneficial ownership of such ownership interest within sixty days, including but not limited to any right to acquire:

             (i) Through the exercise of any option, warrant, or right;

             (ii) Through the conversion of an ownership interest;

             (iii) Pursuant to the power to revoke a trust, discretionary account, or similar arrangement; or

             (iv) Pursuant to the automatic termination of a trust, discretionary account, or similar arrangement;

except that, any person who acquires an ownership interest or power specified in (c)(i), (ii), or (iii) of this subsection with the purpose or effect of changing or influencing the control of the contractor, or in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition shall be deemed to be the beneficial owner of the ownership interest which may be acquired through the exercise or conversion of such ownership interest or power;

             (d) Any person who in the ordinary course of business is a pledgee of ownership interest under a written pledge agreement shall not be deemed to be the beneficial owner of such pledged ownership interest until the pledgee has taken all formal steps necessary which are required to declare a default and determines that the power to vote or to direct the vote or to dispose or to direct the disposition of such pledged ownership interest will be exercised; except that:

             (i) The pledgee agreement is bona fide and was not entered into with the purpose nor with the effect of changing or influencing the control of the contractor, nor in connection with any transaction having such purpose or effect, including persons meeting the conditions set forth in (b) of this subsection; and

             (ii) The pledgee agreement, prior to default, does not grant to the pledgee:

             (A) The power to vote or to direct the vote of the pledged ownership interest; or

             (B) The power to dispose or direct the disposition of the pledged ownership interest, other than the grant of such power(s) pursuant to a pledge agreement under which credit is extended and in which the pledgee is a broker or dealer.

             (8) "Capital portion of the rate" means the sum of the property and financing allowance rate allocations, as established in part E of this chapter.

             (9) "Capitalization" means the recording of an expenditure as an asset.

             (((9))) (10) "Case mix" means a measure of the intensity of care and services needed by the residents of a nursing facility or a group of residents in the facility.

             (((10))) (11) "Case mix index" means a number representing the average case mix of a nursing facility.

             (((11))) (12) "Case mix weight" means a numeric score that identifies the relative resources used by a particular group of a nursing facility's residents.

             (((12))) (13) "Contractor" means a person or entity licensed under chapter 18.51 RCW to operate a medicare and medicaid certified nursing facility, responsible for operational decisions, and contracting with the department to provide services to medicaid recipients residing in the facility.

             (((13))) (14) "Default case" means no initial assessment has been completed for a resident and transmitted to the department by the cut-off date, or an assessment is otherwise past due for the resident, under state and federal requirements.

             (((14))) (15) "Department" means the department of social and health services (DSHS) and its employees.

             (((15))) (16) "Depreciation" means the systematic distribution of the cost or other basis of tangible assets, less salvage, over the estimated useful life of the assets.

             (((16))) (17) "Direct care" means nursing care and related care provided to nursing facility residents. Therapy care shall not be considered part of direct care.

             (((17))) (18) "Direct care supplies" means medical, pharmaceutical, and other supplies required for the direct care of a nursing facility's residents.

             (((18))) (19) "Entity" means an individual, partnership, corporation, limited liability company, or any other association of individuals capable of entering enforceable contracts.

             (((19))) (20) "Equity" means the net book value of all tangible and intangible assets less the recorded value of all liabilities, as recognized and measured in conformity with generally accepted accounting principles.

             (((20))) (21) "Facility" or "nursing facility" means a nursing home licensed in accordance with chapter 18.51 RCW, excepting nursing homes certified as institutions for mental diseases, or that portion of a multiservice facility licensed as a nursing home, or that portion of a hospital licensed in accordance with chapter 70.41 RCW which operates as a nursing home.

             (((21))) (22) "Fair market value" means the replacement cost of an asset less observed physical depreciation on the date for which the market value is being determined.

             (((22))) (23) "Financial statements" means statements prepared and presented in conformity with generally accepted accounting principles including, but not limited to, balance sheet, statement of operations, statement of changes in financial position, and related notes.

             (((23))) (24) "Generally accepted accounting principles" means accounting principles approved by the financial accounting standards board (FASB).

             (((24))) (25) "Goodwill" means the excess of the price paid for a nursing facility business over the fair market value of all net identifiable tangible and intangible assets acquired, as measured in accordance with generally accepted accounting principles.

             (((25))) (26) "Grouper" means a computer software product that groups individual nursing facility residents into case mix classification groups based on specific resident assessment data and computer logic.

             (((26))) (27) "Historical cost" means the actual cost incurred in acquiring and preparing an asset for use, including feasibility studies, architect's fees, and engineering studies.

             (((27))) (28) "Imprest fund" means a fund which is regularly replenished in exactly the amount expended from it.

             (((28))) (29) "Joint facility costs" means any costs which represent resources which benefit more than one facility, or one facility and any other entity.

             (((29))) (30) "Lease agreement" means a contract between two parties for the possession and use of real or personal property or assets for a specified period of time in exchange for specified periodic payments. Elimination (due to any cause other than death or divorce) or addition of any party to the contract, expiration, or modification of any lease term in effect on January 1, 1980, or termination of the lease by either party by any means shall constitute a termination of the lease agreement. An extension or renewal of a lease agreement, whether or not pursuant to a renewal provision in the lease agreement, shall be considered a new lease agreement. A strictly formal change in the lease agreement which modifies the method, frequency, or manner in which the lease payments are made, but does not increase the total lease payment obligation of the lessee, shall not be considered modification of a lease term.

             (((30))) (31) "Medical care program" or "medicaid program" means medical assistance, including nursing care, provided under RCW 74.09.500 or authorized state medical care services.

             (((31))) (32) "Medical care recipient," "medicaid recipient," or "recipient" means an individual determined eligible by the department for the services provided under chapter 74.09 RCW.

             (((32))) (33) "Minimum data set" means the overall data component of the resident assessment instrument, indicating the strengths, needs, and preferences of an individual nursing facility resident.

             (((33))) (34) "Net book value" means the historical cost of an asset less accumulated depreciation.

             (((34))) (35) "Net invested funds" means the net book value of tangible fixed assets employed by a contractor to provide services under the medical care program, including land, buildings, and equipment as recognized and measured in conformity with generally accepted accounting principles((, plus an allowance for working capital which shall be five percent of the product of the per patient day rate multiplied by the prior calendar year reported total patient days of each contractor)).

             (((35))) (36) "Noncapital portion of the rate" means the sum of the direct care, therapy care, operations, support services, and variable return rate allocations, as established in part E of this chapter.

             (37) "Operating lease" means a lease under which rental or lease expenses are included in current expenses in accordance with generally accepted accounting principles.

             (((36))) (38) "Owner" means a sole proprietor, general or limited partners, members of a limited liability company, and beneficial interest holders of five percent or more of a corporation's outstanding stock.

             (((37))) (39) "Ownership interest" means all interests beneficially owned by a person, calculated in the aggregate, regardless of the form which such beneficial ownership takes.

             (((38))) (40) "Patient day" or "resident day" means a calendar day of care provided to a nursing facility resident, regardless of payment source, which will include the day of admission and exclude the day of discharge; except that, when admission and discharge occur on the same day, one day of care shall be deemed to exist. A "medicaid day" or "recipient day" means a calendar day of care provided to a medicaid recipient determined eligible by the department for services provided under chapter 74.09 RCW, subject to the same conditions regarding admission and discharge applicable to a patient day or resident day of care.

             (((39))) (41) "Professionally designated real estate appraiser" means an individual who is regularly engaged in the business of providing real estate valuation services for a fee, and who is deemed qualified by a nationally recognized real estate appraisal educational organization on the basis of extensive practical appraisal experience, including the writing of real estate valuation reports as well as the passing of written examinations on valuation practice and theory, and who by virtue of membership in such organization is required to subscribe and adhere to certain standards of professional practice as such organization prescribes.

             (((40))) (42) "Qualified therapist" means:

             (a) A mental health professional as defined by chapter 71.05 RCW;

             (b) A mental retardation professional who is a therapist approved by the department who has had specialized training or one year's experience in treating or working with the mentally retarded or developmentally disabled;

             (c) A speech pathologist who is eligible for a certificate of clinical competence in speech pathology or who has the equivalent education and clinical experience;

             (d) A physical therapist as defined by chapter 18.74 RCW;

             (e) An occupational therapist who is a graduate of a program in occupational therapy, or who has the equivalent of such education or training; and

             (f) A respiratory care practitioner certified under chapter 18.89 RCW.

             (((41))) (43) "Rate" or "rate allocation" means the medicaid per-patient-day payment amount for medicaid patients calculated in accordance with the allocation methodology set forth in part E of this chapter.

             (((42))) (44) "Real property," whether leased or owned by the contractor, means the building, allowable land, land improvements, and building improvements associated with a nursing facility.

             (((43))) (45) "Rebased rate" or "cost-rebased rate" means a facility-specific component rate assigned to a nursing facility for a particular rate period established on desk-reviewed, adjusted costs reported for that facility covering at least six months of a prior calendar year designated as a year to be used for cost-rebasing payment rate allocations under the provisions of this chapter.

             (((44))) (46) "Records" means those data supporting all financial statements and cost reports including, but not limited to, all general and subsidiary ledgers, books of original entry, and transaction documentation, however such data are maintained.

             (((45))) (47) "Related organization" means an entity which is under common ownership and/or control with, or has control of, or is controlled by, the contractor.

             (a) "Common ownership" exists when an entity is the beneficial owner of five percent or more ownership interest in the contractor and any other entity.

             (b) "Control" exists where an entity has the power, directly or indirectly, significantly to influence or direct the actions or policies of an organization or institution, whether or not it is legally enforceable and however it is exercisable or exercised.

             (((46))) (48) "Related care" means only those services that are directly related to providing direct care to nursing facility residents. These services include, but are not limited to, nursing direction and supervision, medical direction, medical records, pharmacy services, activities, and social services.

             (((47))) (49) "Resident assessment instrument," including federally approved modifications for use in this state, means a federally mandated, comprehensive nursing facility resident care planning and assessment tool, consisting of the minimum data set and resident assessment protocols.

             (((48))) (50) "Resident assessment protocols" means those components of the resident assessment instrument that use the minimum data set to trigger or flag a resident's potential problems and risk areas.

             (((49))) (51) "Resource utilization groups" means a case mix classification system that identifies relative resources needed to care for an individual nursing facility resident.

             (((50))) (52) "Restricted fund" means those funds the principal and/or income of which is limited by agreement with or direction of the donor to a specific purpose.

             (((51))) (53) "Secretary" means the secretary of the department of social and health services.

             (((52))) (54) "Support services" means food, food preparation, dietary, housekeeping, and laundry services provided to nursing facility residents.

             (((53))) (55) "Therapy care" means those services required by a nursing facility resident's comprehensive assessment and plan of care, that are provided by qualified therapists, or support personnel under their supervision, including related costs as designated by the department.

             (((54))) (56) "Title XIX" or "medicaid" means the 1965 amendments to the social security act, P.L. 89-07, as amended and the medicaid program administered by the department.


             Sec. 2. RCW 74.46.360 and 1997 c 277 s 1 are each amended to read as follows:

             (1) For all partial or whole rate periods after December 31, 1984, the cost basis of land and depreciation base of depreciable assets shall be the historical cost of the contractor or lessor, when the assets are leased by the contractor, in acquiring the asset in an arm's-length transaction and preparing it for use, less goodwill, and less accumulated depreciation, if applicable, which has been incurred during periods that the assets have been used in or as a facility by any contractor, such accumulated depreciation to be measured in accordance with subsections (4), (5), and (6) of this section and RCW 74.46.350 and 74.46.370. If the department challenges the historical cost of an asset, or if the contractor cannot or will not provide the historical costs, the department will have the department of general administration, through an appraisal procedure, determine the fair market value of the assets at the time of purchase. The cost basis of land and depreciation base of depreciable assets will not exceed such fair market value.

             (2) For new or replacement building construction or for substantial building additions requiring the acquisition of land and which commenced to operate on or after July 1, 1997, the department shall determine allowable land costs of the additional land acquired for the replacement construction or building additions to be the lesser of:

             (a) The contractor's or lessor's actual cost per square foot; or

             (b) The square foot land value as established by an appraisal that meets the latest publication of the Uniform Standards of Professional Appraisal Practice (USPAP) and the financial institutions reform, recovery, and enhancement act (FIRREA).

             (3) Subject to the provisions of subsection (2) of this section, if, in the course of financing a project, an arm's-length lender has ordered a Uniform Standards of Professional Appraisal Practice appraisal on the land that meets financial institutions reform, recovery, and enhancement act standards and the arm's-length lender has accepted the ordered appraisal, the department shall accept the appraisal value as allowable land costs for calculation of payment.

             If the contractor or lessor is unable or unwilling to provide or cause to be provided to the department, or the department is unable to obtain from the arm's-length lender, a lender-approved appraisal that meets the standards of the Uniform Standards of Professional Appraisal Practice and financial institutions reform, recovery, and enhancement act, the department shall order such an appraisal and accept the appraisal as the allowable land costs. If the department orders the Uniform Standards of Professional Appraisal Practice and financial institutions reform, recovery, and enhancement act appraisal, the contractor shall immediately reimburse the department for the costs incurred.

             (4) The historical cost of depreciable and nondepreciable donated assets, or of depreciable and nondepreciable assets received through testate or intestate distribution, shall be the lesser of:

             (a) Fair market value at the date of donation or death; or

             (b) The historical cost base of the owner last contracting with the department, if any.

             (5) Estimated salvage value of acquired, donated, or inherited assets shall be deducted from historical cost where the straight-line or sum-of-the-years' digits method of depreciation is used.

             (6)(a) For facilities, other than those described under subsection (2) of this section, operating prior to July 1, 1997, where land or depreciable assets are acquired that were used in the medical care program subsequent to January 1, 1980, the cost basis or depreciation base of the assets will not exceed the net book value which did exist or would have existed had the assets continued in use under the previous contract with the department; except that depreciation shall not be assumed to accumulate during periods when the assets were not in use in or as a facility.

             (b) The provisions of (a) of this subsection shall not apply to the most recent arm's-length acquisition if it occurs at least ten years after the ownership of the assets has been previously transferred in an arm's-length transaction nor to the first arm's-length acquisition that occurs after January 1, 1980, for facilities participating in the medical care program prior to January 1, 1980. The new cost basis or depreciation base for such acquisitions shall not exceed the fair market value of the assets as determined by the department of general administration through an appraisal procedure. A determination by the department of general administration of fair market value shall be final unless the procedure used to make such determination is shown to be arbitrary and capricious. For all partial or whole rate periods after July 17, 1984, this subsection is inoperative for any transfer of ownership of any asset, depreciable or nondepreciable, occurring on or after July 18, 1984, leaving (a) of this subsection to apply alone to such transfers: PROVIDED, HOWEVER, That this subsection shall apply to transfers of ownership of assets occurring prior to January 1, 1985, if the costs of such assets have never been reimbursed under medicaid cost reimbursement on an owner-operated basis or as a related-party lease: PROVIDED FURTHER, That for any contractor that can document in writing an enforceable agreement for the purchase of a nursing home dated prior to July 18, 1984, and submitted to the department prior to January 1, 1988, the cost basis of allowable land and the depreciation base of the nursing home, for rates established after July 18, 1984, shall not exceed the fair market value of the assets at the date of purchase as determined by the department of general administration through an appraisal procedure. For medicaid cost reimbursement purposes, an agreement to purchase a nursing home dated prior to July 18, 1984, is enforceable, even though such agreement contains no legal description of the real property involved, notwithstanding the statute of frauds or any other provision of law.

             (c) In the case of land or depreciable assets leased by the same contractor since January 1, 1980, in an arm's-length lease, and purchased by the lessee/contractor, the lessee/contractor shall have the option:

             (i) To have the provisions of subsection (b) of this section apply to the purchase; or

             (ii) To have the reimbursement for property and ((return on investment continue to be)) financing allowance calculated pursuant to ((the provisions contained in RCW 74.46.530(1) (e) and (f))) this chapter based upon the provisions of the lease in existence on the date of the purchase, but only if the purchase date meets one of the following criteria:

             (A) The purchase date is after the lessor has declared bankruptcy or has defaulted in any loan or mortgage held against the leased property;

             (B) The purchase date is within one year of the lease expiration or renewal date contained in the lease;

             (C) The purchase date is after a rate setting for the facility in which the reimbursement rate set pursuant to this chapter no longer is equal to or greater than the actual cost of the lease; or

             (D) The purchase date is within one year of any purchase option in existence on January 1, 1988.

             (d) For all rate periods past or future where land or depreciable assets are acquired from a related organization, the contractor's cost basis and depreciation base shall not exceed the base the related organization had or would have had under a contract with the department.

             (e) Where the land or depreciable asset is a donation or distribution between related organizations, the cost basis or depreciation base shall be the lesser of (i) fair market value, less salvage value, or (ii) the cost basis or depreciation base the related organization had or would have had for the asset under a contract with the department.


             Sec. 3. RCW 74.46.421 and 1998 c 322 s 18 are each amended to read as follows:

             (1) The purpose of part E of this chapter is to determine nursing facility medicaid payment rates that, in the aggregate for all participating nursing facilities, are in accordance with the biennial appropriations act.

             (2)(a) The department shall use the nursing facility medicaid payment rate methodologies described in this chapter to determine initial component rate allocations for each medicaid nursing facility.

             (b) The initial component rate allocations shall be subject to adjustment as provided in this section in order to assure that the state-wide average payment rate to nursing facilities is less than or equal to the state-wide average payment rate specified in the biennial appropriations act.

             (3) Nothing in this chapter shall be construed as creating a legal right or entitlement to any payment that (a) has not been adjusted under this section or (b) would cause the state-wide average payment rate to exceed the state-wide average payment rate specified in the biennial appropriations act.

             (4)(a) The state-wide average payment rate for the capital portion of the rate for any state fiscal year under the nursing facility medicaid payment system, weighted by patient days, shall not exceed the annual state-wide weighted average nursing facility payment rate for the capital portion of the rate identified for that fiscal year in the biennial appropriations act.

             (b) If the department determines that the weighted average nursing facility payment rate for the capital portion of the rate calculated in accordance with this chapter is likely to exceed the weighted average nursing facility payment rate for the capital portion of the rate identified in the biennial appropriations act, then the department shall adjust all nursing facility property and financing allowance payment rates proportional to the amount by which the weighted average rate allocations would otherwise exceed the budgeted capital portion of the rate amount. Any such adjustments shall only be made prospectively, not retrospectively, and shall be applied proportionately to each component rate allocation for each facility.

             (5)(a) The state-wide average payment rate for the noncapital portion of the rate for any state fiscal year under the nursing facility payment system, weighted by patient days, shall not exceed the annual state-wide weighted average nursing facility payment rate for the noncapital portion of the rate identified for that fiscal year in the biennial appropriations act.

             (b) If the department determines that the weighted average nursing facility payment rate for the noncapital portion of the rate calculated in accordance with this chapter is likely to exceed the weighted average nursing facility payment rate for the noncapital portion of the rate identified in the biennial appropriations act, then the department shall adjust all nursing facility direct care, therapy care, support services, operations, and variable return payment rates proportional to the amount by which the weighted average rate allocations would otherwise exceed the budgeted noncapital portion of the rate amount. Any such adjustments shall only be made prospectively, not retrospectively, and shall be applied proportionately to each direct care, therapy care, support services, operations, and variable return rate allocation for each facility.


             Sec. 4. RCW 74.46.431 and 1998 c 322 s 19 are each amended to read as follows:

             (1) Effective ((October 1, 1998)) July 1, 1999, nursing facility medicaid payment rate allocations shall be facility-specific and shall have ((six)) seven components: Direct care, therapy care, support services, operations, property, financing allowance, and variable return ((on investment)). The department shall establish and adjust each of these components, as provided in this section and elsewhere in this chapter, for each medicaid nursing facility in this state.

             (2) All component rate allocations shall be based upon a minimum facility occupancy of eighty-five percent of licensed beds, regardless of how many beds are set up or in use.

             (3) Information and data sources used in determining medicaid payment rate allocations, including formulas, procedures, cost report periods, resident assessment instrument formats, resident assessment methodologies, and resident classification and case mix weighting methodologies, may be substituted or altered from time to time as determined by the department.

             (4)(a) Direct care component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 will be used for October 1, 1998, through June 30, 2001, direct care component rate allocations; adjusted cost report data from 1999 will be used for July 1, 2001, through June 30, 2004, direct care component rate allocations.

             (b) Direct care component rate allocations based on 1996 cost report data shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act. A different economic trends and conditions adjustment factor or factors may be defined in the biennial appropriations act for facilities whose direct care component rate is set equal to their adjusted June 30, 1998, rate, as provided in RCW 74.46.506(5)(k).

             (c) Direct care component rate allocations based on 1999 cost report data shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act. A different economic trends and conditions adjustment factor or factors may be defined in the biennial appropriations act for facilities whose direct care component rate is set equal to their adjusted June 30, 1998, rate, as provided in RCW 74.46.506(5)(k).

             (5)(a) Therapy care component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 will be used for October 1, 1998, through June 30, 2001, therapy care component rate allocations; adjusted cost report data from 1999 will be used for July 1, 2001, through June 30, 2004, therapy care component rate allocations.

             (b) Therapy care component rate allocations shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act.

             (6)(a) Support services component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 shall be used for October 1, 1998, through June 30, 2001, support services component rate allocations; adjusted cost report data from 1999 shall be used for July 1, 2001, through June 30, 2004, support services component rate allocations.

             (b) Support services component rate allocations shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act.

             (7)(a) Operations component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 shall be used for October 1, 1998, through June 30, 2001, operations component rate allocations; adjusted cost report data from 1999 shall be used for July 1, 2001, through June 30, 2004, operations component rate allocations.

             (b) Operations component rate allocations shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act.

             (8) For July 1, 1998, through September 30, 1998, a facility's property and return on investment component rates shall be the facility's June 30, 1998, property and return on investment component rates, without increase. For October 1, 1998, through June 30, 1999, a facility's property and return on investment component rates shall be rebased utilizing 1997 adjusted cost report data covering at least six months of data.

             (9) Total payment rates under the nursing facility medicaid payment system shall not exceed facility rates charged to the general public for comparable services.

             (10) Medicaid contractors shall pay to all facility staff a minimum wage of the greater of five dollars and fifteen cents per hour or the federal minimum wage.

             (11) The department shall establish in rule procedures, principles, and conditions for determining component rate allocations for facilities in circumstances not directly addressed by this chapter, including but not limited to: The need to prorate inflation for partial-period cost report data, newly constructed facilities, existing facilities entering the medicaid program for the first time or after a period of absence from the program, existing facilities with expanded new bed capacity, existing medicaid facilities following a change of ownership of the nursing facility business, facilities banking beds or converting beds back into service, facilities having less than six months of either resident assessment, cost report data, or both, under the current contractor prior to rate setting, and other circumstances.

             (12) The department shall establish in rule procedures, principles, and conditions, including necessary threshold costs, for adjusting rates to reflect capital improvements or new requirements imposed by the department or the federal government. Any such rate adjustments are subject to the provisions of RCW 74.46.421.


             Sec. 5. RCW 74.46.506 and 1998 c 322 s 25 are each amended to read as follows:

             (1) The direct care component rate allocation corresponds to the provision of nursing care for one resident of a nursing facility for one day, including direct care supplies. Therapy services and supplies, which correspond to the therapy care component rate, shall be excluded. The direct care component rate includes elements of case mix determined consistent with the principles of this section and other applicable provisions of this chapter.

             (2) Beginning October 1, 1998, the department shall determine and update quarterly for each nursing facility serving medicaid residents a facility-specific per-resident day direct care component rate allocation, to be effective on the first day of each calendar quarter. In determining direct care component rates the department shall utilize, as specified in this section, minimum data set resident assessment data for each resident of the facility, as transmitted to, and if necessary corrected by, the department in the resident assessment instrument format approved by federal authorities for use in this state.

             (3) The department may question the accuracy of assessment data for any resident and utilize corrected or substitute information, however derived, in determining direct care component rates. The department is authorized to impose civil fines and to take adverse rate actions against a contractor, as specified by the department in rule, in order to obtain compliance with resident assessment and data transmission requirements and to ensure accuracy.

             (4) Cost report data used in setting direct care component rate allocations shall be 1996 and 1999, for rate periods as specified in RCW 74.46.431(4)(a).

             (5) Beginning October 1, 1998, the department shall rebase each nursing facility's direct care component rate allocation as described in RCW 74.46.431, adjust its direct care component rate allocation for economic trends and conditions as described in RCW 74.46.431, and update its medicaid average case mix index, consistent with the following:

             (a) Reduce total direct care costs reported by each nursing facility for the applicable cost report period specified in RCW 74.46.431(4)(a) to reflect any department adjustments, and to eliminate reported resident therapy costs and adjustments, in order to derive the facility's total allowable direct care cost;

             (b) Divide each facility's total allowable direct care cost by its adjusted resident days for the same report period, increased if necessary to a minimum occupancy of eighty-five percent; that is, the greater of actual or imputed occupancy at eighty-five percent of licensed beds, to derive the facility's allowable direct care cost per resident day;

             (c) Adjust the facility's per resident day direct care cost by the applicable factor specified in RCW 74.46.431(4) (b) and (c) to derive its adjusted allowable direct care cost per resident day;

             (d) Divide each facility's adjusted allowable direct care cost per resident day by the facility average case mix index for the applicable quarters specified by RCW 74.46.501(7)(b) to derive the facility's allowable direct care cost per case mix unit;

             (e) Divide nursing facilities into two peer groups: Those located in metropolitan statistical areas as determined and defined by the United States office of management and budget or other appropriate agency or office of the federal government, and those not located in a metropolitan statistical area;

             (f) Array separately the allowable direct care cost per case mix unit for all metropolitan statistical area and for all nonmetropolitan statistical area facilities, and determine the median allowable direct care cost per case mix unit for each peer group;

             (g) Except as provided in (k) of this subsection, from October 1, 1998, through June 30, 2000, determine each facility's quarterly direct care component rate as follows:

             (i) Any facility whose allowable cost per case mix unit is less than eighty-five percent of the facility's peer group median established under (f) of this subsection shall be assigned a cost per case mix unit equal to eighty-five percent of the facility's peer group median, and shall have a direct care component rate allocation equal to the facility's assigned cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (ii) Any facility whose allowable cost per case mix unit is greater than one hundred fifteen percent of the peer group median established under (f) of this subsection shall be assigned a cost per case mix unit equal to one hundred fifteen percent of the peer group median, and shall have a direct care component rate allocation equal to the facility's assigned cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (iii) Any facility whose allowable cost per case mix unit is between eighty-five and one hundred fifteen percent of the peer group median established under (f) of this subsection shall have a direct care component rate allocation equal to the facility's allowable cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (h) Except as provided in (k) of this subsection, from July 1, 2000, through June 30, 2002, determine each facility's quarterly direct care component rate as follows:

             (i) Any facility whose allowable cost per case mix unit is less than ninety percent of the facility's peer group median established under (f) of this subsection shall be assigned a cost per case mix unit equal to ninety percent of the facility's peer group median, and shall have a direct care component rate allocation equal to the facility's assigned cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (ii) Any facility whose allowable cost per case mix unit is greater than one hundred ten percent of the peer group median established under (f) of this subsection shall be assigned a cost per case mix unit equal to one hundred ten percent of the peer group median, and shall have a direct care component rate allocation equal to the facility's assigned cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (iii) Any facility whose allowable cost per case mix unit is between ninety and one hundred ten percent of the peer group median established under (f) of this subsection shall have a direct care component rate allocation equal to the facility's allowable cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (i) From July 1, 2002, through June 30, 2004, determine each facility's quarterly direct care component rate as follows:

             (i) Any facility whose allowable cost per case mix unit is less than ninety-five percent of the facility's peer group median established under (f) of this subsection shall be assigned a cost per case mix unit equal to ninety-five percent of the facility's peer group median, and shall have a direct care component rate allocation equal to the facility's assigned cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (ii) Any facility whose allowable cost per case mix unit is greater than one hundred five percent of the peer group median established under (f) of this subsection shall be assigned a cost per case mix unit equal to one hundred five percent of the peer group median, and shall have a direct care component rate allocation equal to the facility's assigned cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (iii) Any facility whose allowable cost per case mix unit is between ninety-five and one hundred five percent of the peer group median established under (f) of this subsection shall have a direct care component rate allocation equal to the facility's allowable cost per case mix unit multiplied by that facility's medicaid average case mix index from the applicable quarter specified in RCW 74.46.501(7)(c);

             (j) Beginning July 1, 2004, determine each facility's quarterly direct care component rate by multiplying the facility's peer group median allowable direct care cost per case mix unit by that facility's medicaid average case mix index from the applicable quarter as specified in RCW 74.46.501(7)(c).

             (k)(i) Between October 1, 1998, and June 30, 2000, the department shall compare each facility's direct care component rate allocation calculated under (g) of this subsection with the facility's nursing services component rate in effect on June 30, 1998, less therapy costs, plus any exceptional care offsets as reported on the cost report, adjusted for economic trends and conditions as provided in RCW 74.46.431. A facility shall receive the higher of the two rates;

             (ii) Between July 1, 2000, and June 30, 2002, the department shall compare each facility's direct care component rate allocation calculated under (h) of this subsection with the facility's direct care component rate in effect on June 30, 2000. A facility shall receive the higher of the two rates.

             (6) The direct care component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421. ((If the department determines that the weighted average rate allocations for all rate components for all facilities is likely to exceed the weighted average total rate specified in the state biennial appropriations act, the department shall adjust the rate allocations calculated in this section proportional to the amount by which the total weighted average rate allocations would otherwise exceed the budgeted level. Such adjustments shall only be made prospectively, not retrospectively.))


             Sec. 6. RCW 74.46.511 and 1998 c 322 s 26 are each amended to read as follows:

             (1) The therapy care component rate allocation corresponds to the provision of medicaid one-on-one therapy provided by a qualified therapist as defined in this chapter, including therapy supplies and therapy consultation, for one day for one medicaid resident of a nursing facility. The therapy care component rate allocation for October 1, 1998, through June 30, 2001, shall be based on adjusted therapy costs and days from calendar year 1996. The therapy component rate allocation for July 1, 2001, through June 30, 2004, shall be based on adjusted therapy costs and days from calendar year 1999. The therapy care component rate shall be adjusted for economic trends and conditions as specified in RCW 74.46.431(5)(b), and shall be determined in accordance with this section.

             (2) In rebasing, as provided in RCW 74.46.431(5)(a), the department shall take from the cost reports of facilities the following reported information:

             (a) Direct one-on-one therapy charges for all residents by payer including charges for supplies;

             (b) The total units or modules of therapy care for all residents by type of therapy provided, for example, speech or physical. A unit or module of therapy care is considered to be fifteen minutes of one-on-one therapy provided by a qualified therapist or support personnel; and

             (c) Therapy consulting expenses for all residents.

             (3) The department shall determine for all residents the total cost per unit of therapy for each type of therapy by dividing the total adjusted one-on-one therapy expense for each type by the total units provided for that therapy type.

             (4) The department shall divide medicaid nursing facilities in this state into two peer groups:

             (a) Those facilities located within a metropolitan statistical area; and

             (b) Those not located in a metropolitan statistical area.

             Metropolitan statistical areas and nonmetropolitan statistical areas shall be as determined by the United States office of management and budget or other applicable federal office. The department shall array the facilities in each peer group from highest to lowest based on their total cost per unit of therapy for each therapy type. The department shall determine the median total cost per unit of therapy for each therapy type and add ten percent of median total cost per unit of therapy. The cost per unit of therapy for each therapy type at a nursing facility shall be the lesser of its cost per unit of therapy for each therapy type or the median total cost per unit plus ten percent for each therapy type for its peer group.

             (5) The department shall calculate each nursing facility's therapy care component rate allocation as follows:

             (a) To determine the allowable total therapy cost for each therapy type, the allowable cost per unit of therapy for each type of therapy shall be multiplied by the total therapy units for each type of therapy;

             (b) The medicaid allowable one-on-one therapy expense shall be calculated taking the allowable total therapy cost for each therapy type times the medicaid percent of total therapy charges for each therapy type;

             (c) The medicaid allowable one-on-one therapy expense for each therapy type shall be divided by total adjusted medicaid days to arrive at the medicaid one-on-one therapy cost per patient day for each therapy type;

             (d) The medicaid one-on-one therapy cost per patient day for each therapy type shall be multiplied by total adjusted patient days for all residents to calculate the total allowable one-on-one therapy expense. The lesser of the total allowable therapy consultant expense for the therapy type or a reasonable percentage of allowable therapy consultant expense for each therapy type, as established in rule by the department, shall be added to the total allowable one-on-one therapy expense to determine the allowable therapy cost for each therapy type;

             (e) The allowable therapy cost for each therapy type shall be added together, the sum of which shall be the total allowable therapy expense for the nursing facility;

             (f) The total allowable therapy expense will be divided by the greater of adjusted total patient days from the cost report on which the therapy expenses were reported, or patient days at eighty-five percent occupancy of licensed beds. The outcome shall be the nursing facility's therapy care component rate allocation.

             (6) The therapy care component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421. ((If the department determines that the weighted average rate allocations for all rate components for all facilities is likely to exceed the weighted average total rate specified in the state biennial appropriations act, the department shall adjust the rate allocations calculated in this section proportional to the amount by which the total weighted average rate allocations would otherwise exceed the budgeted level. Such adjustments shall only be made prospectively, not retrospectively.))


             Sec. 7. RCW 74.46.515 and 1998 c 322 s 27 are each amended to read as follows:

             (1) The support services component rate allocation corresponds to the provision of food, food preparation, dietary, housekeeping, and laundry services for one resident for one day.

             (2) Beginning October 1, 1998, the department shall determine each medicaid nursing facility's support services component rate allocation using cost report data specified by RCW 74.46.431(6).

             (3) To determine each facility's support services component rate allocation, the department shall:

             (a) Array facilities' adjusted support services costs per adjusted resident day for each facility from facilities' cost reports from the applicable report year, for facilities located within a metropolitan statistical area, and for those not located in any metropolitan statistical area and determine the median adjusted cost for each peer group;

             (b) Set each facility's support services component rate at the lower of the facility's per resident day adjusted support services costs from the applicable cost report period or the adjusted median per resident day support services cost for that facility's peer group, either metropolitan statistical area or nonmetropolitan statistical area, plus ten percent; and

             (c) Adjust each facility's support services component rate for economic trends and conditions as provided in RCW 74.46.431(6).

             (4) The support services component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421. ((If the department determines that the weighted average rate allocations for all rate components for all facilities is likely to exceed the weighted average total rate specified in the state biennial appropriations act, the department shall adjust the rate allocations calculated in this section proportional to the amount by which the total weighted average rate allocations would otherwise exceed the budgeted level. Such adjustments shall only be made prospectively, not retrospectively.))


             Sec. 8. RCW 74.46.521 and 1998 c 322 s 28 are each amended to read as follows:

             (1) The operations component rate allocation corresponds to the general operation of a nursing facility for one resident for one day, including but not limited to management, administration, utilities, office supplies, accounting and bookkeeping, minor building maintenance, minor equipment repairs and replacements, and other supplies and services, exclusive of direct care, therapy care, support services, property, financing allowance, and variable return ((on investment)).

             (2) Beginning October 1, 1998, the department shall determine each medicaid nursing facility's operations component rate allocation using cost report data specified by RCW 74.46.431(7)(a).

             (3) To determine each facility's operations component rate the department shall:

             (a) Array facilities' adjusted general operations costs per adjusted resident day for each facility from facilities' cost reports from the applicable report year, for facilities located within a metropolitan statistical area and for those not located in a metropolitan statistical area and determine the median adjusted cost for each peer group;

             (b) Set each facility's operations component rate at the lower of the facility's per resident day adjusted operations costs from the applicable cost report period or the adjusted median per resident day general operations cost for that facility's peer group, metropolitan statistical area or nonmetropolitan statistical area; and

             (c) Adjust each facility's operations component rate for economic trends and conditions as provided in RCW 74.46.431(7)(b).

             (4) The operations component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421. ((If the department determines that the weighted average rate allocations for all rate components for all facilities is likely to exceed the weighted average total rate specified in the state biennial appropriations act, the department shall adjust the rate allocations calculated in this section proportional to the amount by which the total weighted average rate allocations would otherwise exceed the budgeted level. Such adjustments shall only be made prospectively, not retrospectively.))


             NEW SECTION. Sec. 9. (1) The department shall establish for each medicaid nursing facility a variable return component rate allocation. In determining the variable return allowance:

             (a) The variable return array and percentage assigned at the October 1, 1998, rate setting shall remain in effect until June 30, 2001.

             (b) The department shall then compute the variable return allowance by multiplying the appropriate percentage amounts, which shall not be less than one percent and not greater than four percent, by the sum of the facility's direct care, therapy care, support services, and operations rate components. The percentage amounts will be based on groupings of facilities according to the rankings prescribed in (a) of this subsection, as applicable. Those groups of facilities with lower per diem costs shall receive higher percentage amounts than those with higher per diem costs.

             (2) The variable return rate allocation calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421.


             Sec. 10. 1998 c 322 s 29 (uncodified) is amended to read as follows:

             (1) The property component rate allocation for each facility shall be determined by dividing the sum of the reported allowable prior period actual depreciation, subject to RCW 74.46.310 through 74.46.380, adjusted for any capitalized additions or replacements approved by the department, and the retained savings from such cost center, by the greater of a facility's total resident days for the facility in the prior period or resident days as calculated on eighty-five percent facility occupancy. If a capitalized addition or retirement of an asset will result in a different licensed bed capacity during the ensuing period, the prior period total resident days used in computing the property component rate shall be adjusted to anticipated resident day level.

             (2) A nursing facility's property component rate allocation shall be rebased annually, effective July 1st or October 1st as applicable, in accordance with this section and this chapter.

             (3) When a certificate of need for a new facility is requested, the department, in reaching its decision, shall take into consideration per-bed land and building construction costs for the facility which shall not exceed a maximum to be established by the secretary.

             (4) For the purpose of calculating a nursing facility's property component rate, if a contractor elects to bank licensed beds or to convert banked beds to active service, under chapter 70.38 RCW, the department shall use the facility's anticipated resident occupancy level subsequent to the decrease or increase in licensed bed capacity. However, in no case shall the department use less than eighty-five percent occupancy of the facility's licensed bed capacity after banking or conversion.

             (5) The property component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with ((section 18 of this act)) RCW 74.46.421. ((If the department determines that the weighted average rate allocations for all rate components for all facilities is likely to exceed the weighted average total rate specified in the state biennial appropriations act, the department shall adjust the rate allocations calculated in this section proportional to the amount by which the total weighted average rate allocations would otherwise exceed the budgeted level. Such adjustments shall only be made prospectively, not retrospectively.))


             NEW SECTION. Sec. 11. (1) Beginning July 1, 1999, the department shall establish for each medicaid nursing facility a financing allowance component rate allocation. The financing allowance component rate shall be rebased annually, effective July 1st, in accordance with the provisions of this section and this chapter.

             (2) The financing allowance shall be determined by multiplying the net invested funds of each facility by .10, and dividing by the greater of a nursing facility's total resident days from the most recent cost report period or resident days calculated on eighty-five percent facility occupancy. However, assets acquired on or after the effective date of this section shall be grouped in a separate financing allowance calculation that shall be multiplied by .085. The financing allowance factor of .085 shall not be applied to the net invested funds pertaining to new construction or major renovations receiving certificate of need approval or an exemption from certificate of need requirements under chapter 70.38 RCW, or to working drawings that have been submitted to the department of health for construction review approval, prior to the effective date of this section. If a capitalized addition or retirement of an asset will result in a different licensed bed capacity during the ensuing period, the prior period total resident days used in computing the financing allowance shall be adjusted to the greater of the anticipated resident day level or eighty-five percent of the new licensed bed capacity.

             (3) In computing the portion of net invested funds representing the net book value of tangible fixed assets, the same assets, depreciation bases, lives, and methods referred to in RCW 74.46.330, 74.46.350, 74.46.360, 74.46.370, and 74.46.380, including owned and leased assets, shall be utilized, except that the capitalized cost of land upon which the facility is located and such other contiguous land which is reasonable and necessary for use in the regular course of providing resident care shall also be included. Subject to provisions and limitations contained in this chapter, for land purchased by owners or lessors before July 18, 1984, capitalized cost of land shall be the buyer's capitalized cost. For all partial or whole rate periods after July 17, 1984, if the land is purchased after July 17, 1984, capitalized cost shall be that of the owner of record on July 17, 1984, or buyer's capitalized cost, whichever is lower. In the case of leased facilities where the net invested funds are unknown or the contractor is unable to provide necessary information to determine net invested funds, the secretary shall have the authority to determine an amount for net invested funds based on an appraisal conducted according to RCW 74.46.360(1).

             (4) For the purpose of calculating a nursing facility's financing allowance component rate, if a contractor elects to bank licensed beds or to convert banked beds to active service, under chapter 70.38 RCW, the department shall use the facility's anticipated resident occupancy level subsequent to the decrease or increase in licensed bed capacity. However, in no case shall the department use less than eighty-five percent occupancy of the facility's licensed bed capacity after banking or conversion.

             (5) The financing allowance rate allocation calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421.


             NEW SECTION. Sec. 12. (1) In the case of a facility that was leased by the contractor as of January 1, 1980, in an arm's-length agreement, which continues to be leased under the same lease agreement, and for which the annualized lease payment, plus any interest and depreciation expenses associated with contractor-owned assets, for the period covered by the prospective rates, divided by the contractor's total resident days, minus the property component rate allocation, is more than the sum of the financing allowance and the variable return rate determined according to this chapter, the following shall apply:

             (a) The financing allowance shall be recomputed substituting the fair market value of the assets as of January 1, 1982, as determined by the department of general administration through an appraisal procedure, less accumulated depreciation on the lessor's assets since January 1, 1982, for the net book value of the assets in determining net invested funds for the facility. A determination by the department of general administration of fair market value shall be final unless the procedure used to make such a determination is shown to be arbitrary and capricious.

             (b) The sum of the financing allowance computed under (a) of this subsection and the variable return rate shall be compared to the annualized lease payment, plus any interest and depreciation associated with contractor-owned assets, for the period covered by the prospective rates, divided by the contractor's total resident days, minus the property component rate. The lesser of the two amounts shall be called the alternate return on investment rate.

             (c) The sum of the financing allowance and variable return rate determined according to this chapter or the alternate return on investment rate, whichever is greater, shall be added to the prospective rates of the contractor.

             (2) In the case of a facility that was leased by the contractor as of January 1, 1980, in an arm's-length agreement, if the lease is renewed or extended under a provision of the lease, the treatment provided in subsection (1) of this section shall be applied, except that in the case of renewals or extensions made subsequent to April 1, 1985, reimbursement for the annualized lease payment shall be no greater than the reimbursement for the annualized lease payment for the last year prior to the renewal or extension of the lease.

             (3) The alternate return on investment component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421.


             Sec. 13. RCW 74.46.350 and 1980 c 177 s 35 are each amended to read as follows:

             (1) Buildings, land improvements, and fixed equipment shall be depreciated using the straight-line method of depreciation. For new or replacement building construction or for major renovations, either of which receives certificate of need approval or certificate of need exemption under chapter 70.38 RCW on or after the effective date of this section, the number of years used to depreciate fixed equipment shall be the same number of years as the life of the building to which it is affixed. Major-minor equipment shall be depreciated using either the straight-line method, the sum-of-the-years' digits method, or declining balance method not to exceed one hundred fifty percent of the straight line rate. Contractors who have elected to take either the sum-of-the-years' digits method or the declining balance method of depreciation on major-minor equipment may change to the straight-line method without permission of the department.

             (2) The annual provision for depreciation shall be reduced by the portion allocable to use of the asset for purposes which are neither necessary nor related to patient care.

             (3) No further depreciation shall be claimed after an asset has been fully depreciated unless a new depreciation base is established pursuant to RCW 74.46.360.


             Sec. 14. RCW 74.46.370 and 1997 c 277 s 2 are each amended to read as follows:

             (1) Except for new buildings, major remodels, and major repair projects, as defined in subsection (2) of this section, the contractor shall use lives which reflect the estimated actual useful life of the asset and which shall be no shorter than guideline lives as established by the department. Lives shall be measured from the date on which the assets were first used in the medical care program or from the date of the most recent arm's-length acquisition of the asset, whichever is more recent. In cases where RCW 74.46.360(6)(a) does apply, the shortest life that may be used for buildings is the remaining useful life under the prior contract. In all cases, lives shall be extended to reflect periods, if any, when assets were not used in or as a facility.

             (2) Effective July 1, 1997, for asset acquisitions and new facilities, major remodels, and major repair projects that begin operations on or after July 1, 1997, the department shall use the most current edition of Estimated Useful Lives of Depreciable Hospital Assets, or as it may be renamed, published by the American Hospital Publishing, Inc., an American hospital association company, for determining the useful life of new buildings, major remodels, and major repair projects, however, the shortest life that may be used for new buildings receiving certificate of need approval or certificate of need exemptions under chapter 70.38 RCW on or after the effective date of this section, is ((thirty)) forty years. New buildings, major remodels, and major repair projects include those projects that meet or exceed the expenditure minimum established by the department of health pursuant to chapter 70.38 RCW.

             (3) Building improvements, other than major remodels and major repairs, shall be depreciated over the remaining useful life of the building, as modified by the improvement.

             (4) Improvements to leased property which are the responsibility of the contractor under the terms of the lease shall be depreciated over the useful life of the improvement.

             (5) A contractor may change the estimate of an asset's useful life to a longer life for purposes of depreciation.

             (6) For new or replacement building construction or for major renovations, either of which receives certificate of need approval or certificate of need exemption under chapter 70.38 RCW on or after the effective date of this section, the number of years used to depreciate fixed equipment shall be the same number of years as the life of the building to which it is affixed.


             NEW SECTION. Sec. 15. If a contractor experiences an increase in state or county property taxes as a result of new building construction, replacement building construction, or substantial building additions that require the acquisition of land, then the department shall adjust the contractor's prospective rates to cover the medicaid share of the tax increase. The rate adjustments shall only apply to construction and additions completed on or after July 1, 1997. The rate adjustments authorized by this section are effective on the first day after July 1, 1999, on which the increased tax payment is due. Rate adjustments made under this section are subject to all applicable cost limitations contained in this chapter.


             NEW SECTION. Sec. 16. Sections 9 through 12 and 15 of this act are each added to part E of chapter 74.46 RCW.


             NEW SECTION. Sec. 17. The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2001:

             (1) RCW 74.46.--- and 1999 c . . . s 9 (section 9 of this act);

             (2) RCW 74.46.--- and 1999 c . . . s 10 (section 10 of this act) & 1998 c 322 s 29 (uncodified);

             (3) RCW 74.46.--- and 1999 c . . . s 11 (section 11 of this act);

             (4) RCW 74.46.--- and 1999 c . . . s 12 (section 12 of this act);

             (5) RCW 74.46.350 (Methods of depreciation) and 1999 c . . . s 13 (section 13 of this act) & 1980 c 177 s 35;

             (6) RCW 74.46.370 (Lives of assets) and 1999 c . . . s 14 (section 14 of this act), 1997 c 277 s 2, & 1980 c 177 s 37; and

             (7) RCW 74.46.--- and 1999 c . . . s 15 (section 15 of this act).


             NEW SECTION. Sec. 18. 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. Section 11 of this act takes effect immediately, and sections 1 through 10 and 12 through 17 take effect July 1, 1999."


             On page 1, line 2 of the title, after "facilities;" strike the remainder of the title and insert "amending RCW 74.46.020, 74.46.360, 74.46.421, 74.46.431, 74.46.506, 74.46.511, 74.46.515, 74.46.521, 74.46.350, and 74.46.370; amending 1998 c 322 s 29 (uncodified); adding new sections to chapter 74.46 RCW; repealing RCW 74.46.350 and 74.46.370; repealing 1998 c 322 s 29 (uncodified); providing an effective date; and declaring an emergency."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1484 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1484 as amended by the Senate.


             Representatives Alexander and Ruderman spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1484, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Engrossed Second Substitute House Bill No. 1484, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 21, 1999

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 1673 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. (1) The Washington supreme court in a case involving a ballot measure, State v. 119 Vote No! Committee, 135 Wn.2d 618 (1998), found the statute that prohibits persons from sponsoring, with actual malice, political advertising containing false statements of material fact to be invalid under the First Amendment to the United States Constitution.

             (2) The legislature finds that a review of the opinions indicates that a majority of the supreme court may find valid a statute that limited such a prohibition on sponsoring with actual malice false statements of material fact in a political campaign to statements about a candidate in an election for public office.

             (3) It is the intent of the legislature to amend the current law to provide protection for candidates for public office against false statements of material fact sponsored with actual malice.


             Sec. 2. RCW 42.17.530 and 1988 c 199 s 2 are each amended to read as follows:

             (1) It is a violation of this chapter for a person to sponsor with actual malice:

             (a) Political advertising that contains a false statement of material fact about a candidate for public office. However, this subsection (1)(a) does not apply to statements made by a candidate or the candidate's agent about the candidate himself or herself;"

             (b) Political advertising that falsely represents that a candidate is the incumbent for the office sought when in fact the candidate is not the incumbent;

             (c) Political advertising that makes either directly or indirectly, a false claim stating or implying the support or endorsement of any person or organization when in fact the candidate does not have such support or endorsement.

             (2) Any violation of this section shall be proven by clear and convincing evidence."


             In line 1 of the title, after "advertising;" strike the remainder of the title and insert "amending RCW 42.17.530; and creating a new section."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1673 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Substitute House Bill No. 1673 as amended by the Senate.


             Representatives Romero and Lambert spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1673, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Substitute House Bill No. 1673, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1810 with the following amendment(s)


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 74.13.500 and 1997 c 305 s 2 are each amended to read as follows:

             (1) Consistent with the provisions of chapter 42.17 RCW and applicable federal law, the secretary, or the secretary's designee, shall disclose information regarding the abuse or neglect of a child, the investigation of the abuse ((or)), neglect, or near fatality of a child, and any services related to the abuse or neglect of a child if any one of the following factors is present:

             (a) The subject of the report has been charged in an accusatory instrument with committing a crime related to a report maintained by the department in its case and management information system;

             (b) The investigation of the abuse or neglect of the child by the department or the provision of services by the department has been publicly disclosed in a report required to be disclosed in the course of their official duties, by a law enforcement agency or official, a prosecuting attorney, any other state or local investigative agency or official, or by a judge of the superior court;

             (c) There has been a prior knowing, voluntary public disclosure by an individual concerning a report of child abuse or neglect in which such individual is named as the subject of the report; or

             (d) The child named in the report has died and the child's death resulted from abuse or neglect or the child was in the care of, or receiving services from the department at the time of death or within twelve months before death.

             (2) The secretary is not required to disclose information if the factors in subsection (1) of this section are present if he or she specifically determines the disclosure is contrary to the best interests of the child, the child's siblings, or other children in the household.

             (3) Except for cases in subsection (1)(d) of this section, requests for information under this section shall specifically identify the case about which information is sought and the facts that support a determination that one of the factors specified in subsection (1) of this section is present.

             (4) For the purposes of this section, "near fatality" means an act that, as certified by a physician, places the child in serious or critical condition. The secretary is under no obligation to have an act certified by a physician in order to comply with this section.


             Sec. 2. RCW 13.34.030 and 1998 c 130 s 1 are each amended to read as follows:

             For purposes of this chapter:

             (1) "Child" and "juvenile" means any individual under the age of eighteen years.

             (2) "Current placement episode" means the period of time that begins with the most recent date that the child was removed from the home of the parent, guardian, or legal custodian for purposes of placement in out-of-home care and continues until the child returns home, an adoption decree, a permanent custody order, or guardianship order is entered, or the dependency is dismissed, whichever occurs soonest. If the most recent date of removal occurred prior to the filing of a dependency petition under this chapter or after filing but prior to entry of a disposition order, such time periods shall be included when calculating the length of a child's current placement episode.

             (3) "Dependency guardian" means the person, nonprofit corporation, or Indian tribe appointed by the court pursuant to RCW 13.34.232 for the limited purpose of assisting the court in the supervision of the dependency.

             (4) "Dependent child" means any child:

             (a) Who has been abandoned; that is, where the child's parent, guardian, or other custodian has expressed either by statement or conduct, an intent to forego, for an extended period, parental rights or parental responsibilities despite an ability to do so. If the court finds that the petitioner has exercised due diligence in attempting to locate the parent, no contact between the child and the child's parent, guardian, or other custodian for a period of three months creates a rebuttable presumption of abandonment, even if there is no expressed intent to abandon;

             (b) Who is abused or neglected as defined in chapter 26.44 RCW by a person legally responsible for the care of the child; or

             (c) Who has no parent, guardian, or custodian capable of adequately caring for the child, such that the child is in circumstances which constitute a danger of substantial damage to the child's psychological or physical development.

             (5) "Guardian" means the person or agency that: (a) Has been appointed as the guardian of a child in a legal proceeding other than a proceeding under this chapter; and (b) has the legal right to custody of the child pursuant to such appointment. The term "guardian" shall not include a "dependency guardian" appointed pursuant to a proceeding under this chapter.

             (6) "Guardian ad litem" means a person, appointed by the court to represent the best interest of a child in a proceeding under this chapter, or in any matter which may be consolidated with a proceeding under this chapter. A "court-appointed special advocate" appointed by the court to be the guardian ad litem for the child, or to perform substantially the same duties and functions as a guardian ad litem, shall be deemed to be guardian ad litem for all purposes and uses of this chapter.

             (7) "Guardian ad litem program" means a court-authorized volunteer program, which is or may be established by the superior court of the county in which such proceeding is filed, to manage all aspects of volunteer guardian ad litem representation for children alleged or found to be dependent. Such management shall include but is not limited to: Recruitment, screening, training, supervision, assignment, and discharge of volunteers.

             (8) "Judicial proceeding" means an action in which a party challenges a finding of the court.

             (9) "Out-of-home care" means placement in a foster family home or group care facility licensed pursuant to chapter 74.15 RCW or placement in a home, other than that of the child's parent, guardian, or legal custodian, not required to be licensed pursuant to chapter 74.15 RCW.

             (((9))) (10) "Preventive services" means preservation services, as defined in chapter 74.14C RCW, and other reasonably available services capable of preventing the need for out-of-home placement while protecting the child.


             Sec. 3. RCW 13.34.100 and 1996 c 249 s 13 are each amended to read as follows:

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

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

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

             (a) Level of formal education;

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

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

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

             (e) Criminal history, as defined in RCW 9.94A.030.

             The background information report shall be updated annually. As a condition of appointment, the guardian ad litem's background information record shall be made available to the court. If the appointed guardian ad litem is not a member of a guardian ad litem program the person shall provide the background information to the court.

             Upon appointment, the guardian ad litem, or guardian ad litem program, shall provide the parties or their attorneys with a statement containing his or her training relating to the duties as a guardian ad litem and criminal history as defined in RCW 9.94A.030 for the period covering ten years prior to the appointment. The background statement shall not include identifying information that may be used to harm a guardian ad litem, such as home addresses and home telephone numbers, and for volunteer guardians ad litem the court may allow the use of maiden names or pseudonyms as necessary for their safety.

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

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

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

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

             (8) When a court-appointed special advocate or volunteer guardian ad litem is requested on a case, the program shall give the court the name of the person it recommends and the appointment shall be effective immediately. The court shall appoint the person recommended by the program. If a party in a case reasonably believes the court-appointed special advocate or volunteer is inappropriate or unqualified, the party may request a review of the appointment by the program. The program must complete the review within five judicial days and remove any appointee for good cause. If the party seeking the review is not satisfied with the outcome of the review, the party may file a motion with the court for the removal of the court-appointed special advocate on the grounds the advocate or volunteer is inappropriate or unqualified.


             NEW SECTION. Sec. 4. 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 74.13.500, 13.34.030, and 13.34.100; and declaring an emergency."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to House Bill No. 1810 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 21, 1999

Mr. Speaker:


             The Senate insists on its position on the Senate amendment(s) to ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1006 and asks the House to concur in said amendment(s), and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1006 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1006 as amended by the Senate.


             Representatives Ballasiotes and O'Brien spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1006, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Engrossed Second Substitute House Bill No. 1006, as amended by the Senate, having received the constitutional majority, was declared passed.


MESSAGE FROM THE SENATE

April 21, 1999

Mr. Speaker:


             The Senate insists on its position on the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1376 and asks the House to concur in said amendments, and the same are herewith transmitted.


Brad Hendrickson, Deputy Secretary


             There being no objection, the House insisted on its position regarding the Senate Amendment(s) to House Bill No. 1376 and again asked the Senate to recede therefrom.


MESSAGE FROM THE SENATE

April 21, 1999

Mr. Speaker:


             The Senate insists on its position on the Senate amendment(s) to HOUSE BILL NO. 1378 and asks the House to concur in said amendment(s), and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


             There being no objection, the House insisted on its position regarding the Senate Amendment(s) to House Bill No. 1378 and again asked the Senate to recede therefrom.


MESSAGE FROM THE SENATE

April 21, 1999

Mr. Speaker:


             The Senate insists on its position on the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1562 and asks the House to concur in said amendment(s), and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary


             There being no objection, the House insisted on its position regarding the Senate Amendment(s) to Engrossed Substitute House Bill No. 1562 and again asked the Senate to recede therefrom.


MESSAGE FROM THE SENATE

April 21, 1999

Mr. Speaker:


             The Senate refuses to concur in the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 5988 and asks the House to recede therefrom, and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


             There being no objection, the rules were suspended and Engrossed Substitute Senate Bill No. 5988 was returned to second reading for purpose of amendments.


SECOND READING


             Representative Lambert moved the adoption of amendment (243):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 28A.225.020 and 1996 c 134 s 2 are each amended to read as follows:

             (1) If a child required to attend school under RCW 28A.225.010 fails to attend school without valid justification, the public school in which the child is enrolled shall:

             (a) Inform the child's custodial parent, parents, or guardian by a notice in writing or by telephone whenever the child has failed to attend school after one unexcused absence within any month during the current school year. School officials shall inform the parent of the potential consequences of additional unexcused absences;

             (b) Schedule a conference or conferences with the custodial parent, parents, or guardian and child at a time reasonably convenient for all persons included for the purpose of analyzing the causes of the child's absences after two unexcused absences within any month during the current school year. If a regularly scheduled parent-teacher conference day is to take place within thirty days of the second unexcused absence, then the school district may schedule this conference on that day; and

             (c) Take steps to eliminate or reduce the child's absences. These steps shall include, where appropriate, adjusting the child's school program or school or course assignment, providing more individualized or remedial instruction, providing appropriate vocational courses or work experience, referring the child to a community truancy board, if available, requiring the child to attend an alternative school or program, or assisting the parent or child to obtain supplementary services that might eliminate or ameliorate the cause or causes for the absence from school. If the child's parent does not attend the scheduled conference, the conference may be conducted with the student and school official. However, the parent shall be notified of the steps to be taken to eliminate or reduce the child's absence.

             (2) For purposes of this chapter, an "unexcused absence" means that a child:

             (a) Has failed to attend the majority of hours or periods in an average school day or has failed to comply with a more restrictive school district policy; and

             (b) Has failed to meet the school district's policy for excused absences.

             (3) If a child transfers from one school district to another during the school year, the receiving school or school district shall include the unexcused absences accumulated at the previous school or from the previous school district for purposes of this section, RCW 28A.225.030, and section 6 of this act.


             Sec. 2. RCW 28A.225.030 and 1996 c 134 s 3 are each amended to read as follows:

             (1) If a child is required to attend school under RCW 28A.225.010 and if the actions taken by a school district under RCW 28A.225.020 are not successful in substantially reducing an enrolled student's absences from public school, not later than the seventh unexcused absence by a child within any month during the current school year or not later than the tenth unexcused absence during the current school year the school district shall file a petition and supporting affidavit for a civil action with the juvenile court alleging a violation of RCW 28A.225.010: (a) By the parent; (b) by the child; or (c) by the parent and the child. Except as provided in this subsection, no additional documents need be filed with the petition.

             (2) The district shall not later than the fifth unexcused absence in a month:

             (a) Enter into an agreement with a student and parent that establishes school attendance requirements;

             (b) Refer a student to a community truancy board, if available, as defined in RCW 28A.225.025. The community truancy board shall enter into an agreement with the student and parent that establishes school attendance requirements and take other appropriate actions to reduce the child's absences; or

             (c) File a petition under subsection (1) of this section.

             (3) The petition may be filed by a school district employee who is not an attorney.

             (4) If the school district fails to file a petition under this section, the parent of a child with five or more unexcused absences in any month during the current school year or upon the tenth unexcused absence during the current school year may file a petition with the juvenile court alleging a violation of RCW 28A.225.010.

             (5) Petitions filed under this section may be served by certified mail, return receipt requested. If such service is unsuccessful, or the return receipt is not signed by the addressee, personal service is required.


             Sec. 3. RCW 28A.225.035 and 1997 c 68 s 1 are each amended to read as follows:

             (1) A petition for a civil action under RCW 28A.225.030 or section 6 of this act shall consist of a written notification to the court alleging that:

             (a) The child has unexcused absences during the current school year;

             (b) Actions taken by the school district have not been successful in substantially reducing the child's absences from school; and

             (c) Court intervention and supervision are necessary to assist the school district or parent to reduce the child's absences from school.

             (2) The petition shall set forth the name, age, school, and residence of the child and the names and residence of the child's parents.

             (3) The petition shall set forth facts that support the allegations in this section and shall generally request relief available under this chapter and provide information about what the court might order under RCW 28A.225.090.

             (4) When a petition is filed under RCW 28A.225.030 or section 6 of this act, the juvenile court shall schedule a hearing at which the court shall consider the petition((. However)), or if the court determines that a referral to an available community truancy board would substantially reduce the child's unexcused absences, the court may refer the case to a community truancy board under the jurisdiction of the juvenile court.

             (5) If a referral is made to a community truancy board, the truancy board must meet with the child, a parent, and the school district representative and enter into an agreement with the petitioner and respondent regarding expectations and any actions necessary to address the child's truancy within thirty days of the referral. If the petition is based on section 6 of this act, the child shall not be required to attend and the agreement under this subsection shall be between the truancy board, the school district, and the child's parent. The agreement shall be presented to the juvenile court for its approval. 

             (6) The court shall approve the agreement by order or schedule a hearing. The court may, if the school district and community truancy board agree, permit the truancy board to provide continued supervision over the student, or parent if the petition is based on section 6 of this act, and report on compliance with the order.

             (7) If the truancy board fails to reach an agreement, the truancy board shall return the case to the juvenile court for a hearing.

             (8) Notwithstanding the provisions in subsection (4) of this section, a hearing shall not be required if other actions by the court would substantially reduce the child's unexcused absences. When a juvenile court hearing is held, the court shall:

             (a) Separately notify the child, the parent of the child, and the school district of the hearing;

             (b) Notify the parent and the child of their rights to present evidence at the hearing; and

             (c) Notify the parent and the child of the options and rights available under chapter 13.32A RCW.

             (((5))) (9) The court may require the attendance of ((both)) the child ((and)) if eight years old or older, the parents, and the school district at any hearing on a petition filed under RCW 28A.225.030.

             (((6))) (10) A school district is responsible for determining who shall represent the school district at hearings on a petition filed under RCW 28A.225.030 or section 6 of this act.

             (11) The court may permit the first hearing to be held without requiring that either party be represented by legal counsel, and to be held without a guardian ad litem for the child under RCW 4.08.050. At the request of the school district, the court ((may)) shall permit a school district representative who is not an attorney to represent the school district at any future hearings.

             (((7))) (12) If the allegations in the petition are established by a preponderance of the evidence, the court shall grant the petition and enter an order assuming jurisdiction to intervene for the period of time determined by the court, after considering the facts alleged in the petition and the circumstances of the juvenile, to most likely cause the juvenile to return to and remain in school while the juvenile is subject to this chapter. In no case may the order expire before the end of the school year in which it is entered.

             (((8))) (13) If the court assumes jurisdiction, the school district shall regularly report to the court any additional unexcused absences by the child.

             (((9))) (14) Community truancy boards and the courts shall coordinate, to the extent possible, proceedings and actions pertaining to children who are subject to truancy petitions and at-risk youth petitions in RCW 13.32A.191 or child in need of services petitions in RCW 13.32A.140.

             (15) If after a juvenile court assumes jurisdiction in one county the child relocates to another county, the juvenile court in the receiving county shall, upon the request of a school district or parent, assume jurisdiction of the petition filed in the previous county.


             Sec. 4. RCW 28A.225.090 and 1998 c 296 s 39 are each amended to read as follows:

             (1) A court may order a child subject to a petition under RCW 28A.225.035 to:

             (a) Attend the child's current school;

             (b) If there is space available and the program can provide educational services appropriate for the child, order the child to attend another public school, an alternative education program, center, a skill center, dropout prevention program, or another public educational program;

             (c) Attend a private nonsectarian school or program including an education center. Before ordering a child to attend an approved or certified private nonsectarian school or program, the court shall: (i) Consider the public and private programs available; (ii) find that placement is in the best interest of the child; and (iii) find that the private school or program is willing to accept the child and will not charge any fees in addition to those established by contract with the student's school district. If the court orders the child to enroll in a private school or program, the child's school district shall contract with the school or program to provide educational services for the child. The school district shall not be required to contract for a weekly rate that exceeds the state general apportionment dollars calculated on a weekly basis generated by the child and received by the district. A school district shall not be required to enter into a contract that is longer than the remainder of the school year. A school district shall not be required to enter into or continue a contract if the child is no longer enrolled in the district;

             (d) Be referred to a community truancy board, if available; or

             (e) Submit to testing for the use of controlled substances or alcohol based on a determination that such testing is appropriate to the circumstances and behavior of the child and will facilitate the child's compliance with the mandatory attendance law.

             (2) If the child fails to comply with the court order, the court may order the child to be ((punished by)) subject to detention, as provided in RCW 7.21.030(2)(e), or may impose alternatives to detention such as community service. Failure by a child to comply with an order issued under this subsection shall not be ((punishable by)) subject to detention for a period greater than that permitted pursuant to a civil contempt proceeding against a child under chapter 13.32A RCW.

             (3) Any parent violating any of the provisions of either RCW 28A.225.010, section 6 of this act, or 28A.225.080 shall be fined not more than twenty-five dollars for each day of unexcused absence from school. It shall be a defense for a parent charged with violating RCW 28A.225.010 to show that he or she exercised reasonable diligence in attempting to cause a child in his or her custody to attend school or that the child's school did not perform its duties as required in RCW 28A.225.020. The court may order the parent to provide community service instead of imposing a fine. Any fine imposed pursuant to this section may be suspended upon the condition that a parent charged with violating RCW 28A.225.010 shall participate with the school and the child in a supervised plan for the child's attendance at school or upon condition that the parent attend a conference or conferences scheduled by a school for the purpose of analyzing the causes of a child's absence.

             (4) If a child continues to be truant after entering into a court-approved order with the truancy board under RCW 28A.225.035, the juvenile court shall find the child in contempt, and the court may order the child to be subject to detention, as provided in RCW 7.21.030(2)(e), or may impose alternatives to detention such as meaningful community service. Failure by a child to comply with an order issued under this subsection may not subject a child to detention for a period greater than that permitted under a civil contempt proceeding against a child under chapter 13.32A RCW.

             (5) Subsections (1),(2), and (4) of this section shall not apply to a six or seven year-old child required to attend public school under section 6 of this act.


             Sec. 5. RCW 28A.225.025 and 1996 c 134 s 9 are each amended to read as follows:

             For purposes of this chapter, "community truancy board" means a board composed of members of the local community in which the child attends school. ((The local school district boards of directors)) Juvenile courts may establish and operate community truancy boards. If the juvenile court and the school district agree, a school district may establish and operate a community truancy board under the jurisdiction of the juvenile court. Juvenile courts may create a community truancy board or may use other ((boards)) entities that exist or are created, such as diversion ((boards)) units. However, a diversion unit or other existing ((board)) entity must agree before it is used as a truancy board. ((Members of the board shall be selected from representatives of the community.)) Duties of a community truancy board shall include, but not be limited to, recommending methods for improving school attendance such as assisting the parent or the child to obtain supplementary services that might eliminate or ameliorate the causes for the absences or suggesting to the school district that the child enroll in another school, an alternative education program, an education center, a skill center, a dropout prevention program, or another public or private educational program.


             NEW SECTION. Sec. 6. A new section is added to chapter 28A.225 RCW to read as follows:

             (1) If a parent enrolls a child who is six or seven years of age in a public school, the child is required to attend and that parent has the responsibility to ensure the child attends for the full time that school is in session. An exception shall be made to this requirement for children whose parents formally remove them from enrollment if the child is less than eight years old and a petition has not been filed against the parent under subsection (3) of this section. The requirement to attend school under this subsection does not apply to a child enrolled in a public school part-time for the purpose of receiving ancillary services. A child required to attend school under this subsection may be temporarily excused upon the request of his or her parent for purposes agreed upon by the school district and parent.

             (2) If a six or seven year-old child is required to attend public school under subsection (1) of this section and that child has unexcused absences, the public school in which the child is enrolled shall:

             (a) Inform the child's custodial parent, parents, or guardian by a notice in writing or by telephone whenever the child has failed to attend school after one unexcused absence within any month during the current school year;

             (b) Request a conference or conferences with the custodial parent, parents, or guardian and child at a time reasonably convenient for all persons included for the purpose of analyzing the causes of the child's absences after two unexcused absences within any month during the current school year. If a regularly scheduled parent-teacher conference day is to take place within thirty days of the second unexcused absence, then the school district may schedule this conference on that day; and

             (c) Take steps to eliminate or reduce the child's absences. These steps shall include, where appropriate, adjusting the child's school program or school or course assignment, providing more individualized or remedial instruction, offering assistance in enrolling the child in available alternative schools or programs, or assisting the parent or child to obtain supplementary services that may help eliminate or ameliorate the cause or causes for the absence from school.

             (3) If a child required to attend public school under subsection (1) of this section has seven unexcused absences in a month or ten unexcused absences in a school year, the school district shall file a petition for civil action as provided in RCW 28A.225.035 against the parent of the child.

             (4) This section does not require a six or seven year old child to enroll in a public or private school or to receive home-based instruction. This section only applies to six or seven year old- children whose parents enroll them full time in public school and do not formally remove them from enrollment as provided in subsection (1) of this section.


             NEW SECTION. Sec. 7. A new section is added to chapter 28A.300 RCW to read as follows:

             The superintendent of public instruction shall provide, to the extent funds are appropriated, start-up grants for alternative programs and services that provide instruction and learning for truant, at-risk, and expelled students. Each grant application shall contain proposed performance indicators and an evaluation plan to measure the success of the program and its impact on improved student learning. Applications shall contain the applicant's plan for maintaining the program and services after the grant period.


             NEW SECTION. Sec. 8. If funds are appropriated by the legislature for this specific purpose, the superintendent of public instruction shall contract with the institute of public policy or a similar agency to: Evaluate the effectiveness of the petition process and community truancy boards in chapter 28A.225 RCW in reducing truancy; determine whether students who do return to school after being subject to court action create disruptions for other students in the school, establish patterns of improved attendance, and successfully complete their education program; and determine the costs imposed on school districts by the petition process and other truancy-related procedural requirements required by the legislature in 1992 and thereafter.

             The cost determination shall be submitted to the legislature by December 15, 1999. The evaluation shall be submitted to the appropriate committees of the legislature by December 15, 2000.

             This section expires December 31, 2000."


             Correct the title.


             Representatives Lambert and Rockefeller spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             There being no objection, the rules were suspended the second reading considered the third and the bill was placed on final passage.


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5988 as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5988 as amended by the House and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Engrossed Substitute Senate Bill No. 5988 as amendment by the House, having received the constitutional majority, was declared passed.


MESSAGE FROM THE SENATE

April 21, 1999

Mr. Speaker:


             The Senate refuses to concur in the House amendment(s) to SENATE BILL NO. 5862 and asks the House to recede therefrom, and the same is herewith transmitted.


Brad Hendrickson, Deputy Secretary


             There being no objection, the House insisted on its position regarding the House Amendment(s) to Senate Bill No. 5862 and again asked the Senate to concur therein.


MESSAGE FROM THE SENATE

April 23, 1999

Mr. Speaker:


             The President has signed:


SUBSTITUTE HOUSE BILL NO. 1015,

SUBSTITUTE HOUSE BILL NO. 1016,

SUBSTITUTE HOUSE BILL NO. 1024,

SUBSTITUTE HOUSE BILL NO. 1053,

SECOND SUBSTITUTE HOUSE BILL NO. 1132,

SUBSTITUTE HOUSE BILL NO. 1163,

HOUSE BILL NO. 1388,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1407,

HOUSE BILL NO. 1442,

HOUSE BILL NO. 1549,

SUBSTITUTE HOUSE BILL NO. 1569,

SUBSTITUTE HOUSE BILL NO. 1619,

HOUSE BILL NO. 1642,

SECOND SUBSTITUTE HOUSE BILL NO. 1716,

HOUSE BILL NO. 1761,

SUBSTITUTE HOUSE BILL NO. 1770,

SUBSTITUTE HOUSE BILL NO. 1811,

SUBSTITUTE HOUSE BILL NO. 1826,

SUBSTITUTE HOUSE BILL NO. 1969,

SUBSTITUTE HOUSE BILL NO. 1971,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2085,


and the same are herewith transmitted.

Tony M. Cook, Secretary


RESOLUTIONS


             HOUSE RESOLUTION NO. 99-4679, by Representatives Wensman, Ballasiotes and Esser


             WHEREAS, Newport High School, located in Bellevue, Washington, has a reputation for graduating students who have achieved strong academic and athletic records; and

             WHEREAS, As an example of such talent, eight students have been selected as semifinalists in the 1999 Merit Scholarship Competition; and

             WHEREAS, These exemplary students are: Cedric Dussud, Benjamin Juhn, Dong Kim, Peter Liang, Babak Nazer, Jonathan Royalty, Catherine Williams, and Michael Yu; and

             WHEREAS, The Newport High School Girls Cross Country Team won the state championship in 1998; and

             WHEREAS, These talented students, who were coached by Mindy Leffler, are: Crystal Lomax, Nicole Ricci, Leslie Howard, Robin Dixon, Jodee Adams Moore, Jeanne Knechtges, and Milena Basile; and

             WHEREAS, The Newport High School Girls Gymnastics Team won the state championship in 1999; and

             WHEREAS, These accomplished students are: Melissa Crounse, Tricia Chikuma, Karin Fenn, Laura Williamson, Leona Beutal, Tamara Diles, Trudy Baidoo, Jocelyn Diles, and Marisa Mannari; and

             WHEREAS, The State of Washington benefits greatly from the accomplishments of these gifted individuals, not only in their role as students, but also as citizens and role models for other young people of our state;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor and congratulate these fine young people for their exceptional academic achievements, leadership abilities, and athletic gifts; and

             BE IT FURTHER RESOLVED, That the families of these students be commended for the encouragement and support they have provided to these individuals; and

             BE IT FURTHER RESOLVED, That the principals, teachers, and classmates of these highly esteemed students be recognized for the important part they played in helping the students learn, contribute, lead, and excel; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Co-Chief Clerks of the House of Representatives to each of the Newport High School students listed above.


             There being no objection, House Resolution No. 99-4679 was adopted.


             HOUSE RESOLUTION NO. 99-4690, by Representatives Wensman, Ballasiotes and Esser


             WHEREAS, Bellevue High School, located in Bellevue, Washington, has a reputation for graduating students who have achieved strong academic and athletic records; and

             WHEREAS, As an example of such talent, the Bellevue High School Math Team won the state championship on February 6, 1999, in Blaine, Washington; and

             WHEREAS, The Math Team only missed one question in the whole competition; and

             WHEREAS, The Math Team was tested as a group in several areas including: Probability, geometry, advanced algebra, and mental math; and

             WHEREAS, Approximately sixty teams competed in the competition, including teams from Seattle, Spokane, Federal Way, Blaine, and Bellingham, thus creating an atmosphere of intense competition; and

             WHEREAS, Eric Chu, Steve Sun, Paul Yang, and Wendy Yip, members of the Math Team, are to be congratulated for their outstanding performance in the championship; and

             WHEREAS, Bellevue High School recently announced its National Merit Finalists who are: Alison Haddock, Evan Day, Candice Tewell, and Kelsey Ferguson; and

             WHEREAS, The Bellevue High School Boys Swim and Dive Team shall be honored for its outstanding season and for having recently won the state title, making it the fifth time this decade it has achieved this honor; and

             WHEREAS, The Bellevue High School Boys Swim and Dive Team has the following members, who have all contributed to the success of the team this year: Steve Brockett, Sam Chaya, Eric Chu, John Franck, Erik Gordon, Bobby Albrecht, Cam Cartier, Mathew Franck, Dan Heaton, Andrew Kang, Jensen Kerlee, Brett Leahy, David Trench, T.J. Stone, Brian Turner, Tyler Wilson, John Zook, Michael Dunlap, Tom Douglas, Ian Ferguson, Scott Green, Nick Harriott, Evan Kaseguma, Kevein Kirsch, Adam Ryznar, Kana Sevaaetasi, Zach Wilcox, Lennon Atteberry, Richard Franck, Zak Heaton, Arthur Jones, Roger Lee, Oscar Maria, and Justin Neiman; and

             WHEREAS, Coach Paul Von Destinon garnered the honor of being named State Coach of the Year for boys swim and dive teams in 1996 and 1997, and he was named State Coach of the Year for the girls swim and dive team in 1998; and

             WHEREAS, The season awards for the swim and dive teams recognized the following individuals: Erik Gordon, Captain and "Most Valuable" team member; Sam Chaya, Captain and "Most Inspirational" team member; Steve Brockett, "Most Improved" team member; and John Franck, Captain;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives recognize these outstanding young individuals for their many achievements.


             There being no objection, House Resolution No. 99-4690 was adopted.


             HOUSE RESOLUTION NO. 99-4693, by Representatives Ballasiotes and Wensman


             WHEREAS, The City of Mercer Island is known for having a first-rate public school system; and

             WHEREAS, Schools in the city are a galvanizing force, drawing volunteer involvement at every level, be it tutoring, attending school board meetings, assisting with athletics, and lending support and spirit at athletic events; and

             WHEREAS, Mercer Island has never failed to pass a school levy, and its students consistently have the highest test scores in the state. Ninety percent of the school district's high school graduates go to college; and

             WHEREAS, In sports, champions abound, such as United States Olympic gold medal swimmer Mary Wayte and Mercer Island High School coach Ed Pepple, who has won more basketball games than any coach in the state; and

             WHEREAS, This year, Mercer Island has built upon that success this year in numerous endeavors; and

             WHEREAS, As an example, Ryan Collins, David Hardisty, Raina Kim, Elliot Prasse-Freeman, Peter Tempest, and Timothy Wan were recently named National Merit Finalists from Mercer Island High School; and

             WHEREAS, Seventy-four students from the marketing department at Mercer Island High School competed at the Regional DECA conference. Twenty-four went on to compete at the state conference in Bellevue this past March. Nine students won awards from first place to seventh place and will compete at the national level in Orlando, Florida, April 23 through 29, 1999; and

             WHEREAS, The names of these outstanding students are: James Defty--first place; Mary Johnstone--second place; Kelly Lisbakken--second place; Sara Moyal--fourth place; Andrew Barnette--sixth place; Allison Rosenthal--second place; Chriss Cahoon--seventh place; and Daniel Bonjour--seventh place. The students were diligently instructed by Carol Wiseley, the DECA teacher; and

             WHEREAS, Cacky Calderon and Corey Polis will be attending the leadership academy in Orlando at the same time the DECA conference is being held; and

             WHEREAS, The Mercer Island Debaters are: Mayan Bomsztyk, Nathan Burstein, Morgan Cohen-Ross, Tom Geggel, Michelle Goodstein, Nicole Kelleher, Peter Leung, Jeslyn Miller, Dan Prince, and Sid Velamoor; and

             WHEREAS, The Mercer Island High School Boys Basketball Team head coach Ed Pepple; coaches Kyle Pebble, Lane Davenport, Bill Wiley, Paul Lagerstedt, and Omar Parker; trainer Vito Masinelli; team manager David Sanford; and team members Elliot Prasse-Freeman, Tyler Besecker, Josh Fisher, Taj Mathews, Justin McCullum, Justin Waldie, Blair Richards, Matt Logie, Willie Hutson, Gavin Cree, John Oliver, and Jason Edwards share in the Mercer Island High School Boys Basketball Team's success by combining outstanding coaching with outstanding performance;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington honor the 1999 Mercer Island students listed above; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Co-Chief Clerks of the House of Representatives to the Principal of Mercer Island High School.


             There being no objection, House Resolution No. 99-4693 was adopted.


             HOUSE RESOLUTION NO. 99-4694, by Representatives Ballard, Chopp, Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Quall, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, D. Schmidt, Schindler, K. Schmidt, Schoesler, Schual-Berke, Scott, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe and Wood


             WHEREAS, It is the policy of the House of Representatives to recognize excellence in all fields of endeavor; and

             WHEREAS, Ronald James Sanford exhibited the highest level of excellence in his long and distinguished career as a photographer; and

             WHEREAS, Ronald James Sanford was born in Aberdeen, Washington on June 7, 1934; and

             WHEREAS, Ronald James Sanford participated in the Boy Scouts throughout his school years, and achieved the rank of Eagle Scout; and

             WHEREAS, Ronald James Sanford graduated from Weatherwax High School in 1952 and went on to serve in the United States Navy, where he worked in the Armed Forces Radio Service; and

             WHEREAS, Ronald James Sanford, after leaving the Navy, worked at a number of television and radio stations, including eight years at KTNT TV in Tacoma and four years at KING TV in Seattle; and

             WHEREAS, Ronald James Sanford worked in a variety of positions, including announcer, producer, and news photographer; and

             WHEREAS, In 1972, Ronald James Sanford started his own freelance news-film agency in Olympia and for the next twenty-five years provided news footage of the Legislature and state government to television stations around the Pacific Northwest; and

             WHEREAS, Ronald James Sanford mastered the photographic standards and practices that make American photographic journalism the most respected in the world; and

             WHEREAS, Ronald James Sanford produced numerous documentaries and promotional videos, and was frequently recognized for his outstanding work; and

             WHEREAS, Ronald James Sanford was a familiar figure around the Capitol campus and the Legislative Building and a friend to generations of lawmakers, staff members, lobbyists, and journalists throughout his long and prodigious career; and

             WHEREAS, Ronald James Sanford was a beloved husband, father, grandfather, and great-grandfather; and

             WHEREAS, Ronald James Sanford exemplified the quiet dignity and dedication that inspires others to pursue excellence both in their craft and in their character; and

             WHEREAS, Ronald James Sanford performed his job with energy, humor, fairness, class, and a love of adventure; and

             WHEREAS, Ronald James Sanford, shortly after his retirement in 1997, was diagnosed with aggressive lymphoma and with typical courage and optimism, battled the disease for fifteen months; and

             WHEREAS, Ronald James Sanford died on November 6, 1998, at the University of Washington Medical Center, where he was undergoing a stem cell transplant; and

             WHEREAS, Ronald James Sanford was a source of great pride to the members of his profession, the Legislature, and the citizenry;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington honor Ronald James Sanford for the values, decency, and dedicated service that characterized his life's work, and for the outstanding example of dignity, diligence, and excellence he set for others; and

             BE IT FURTHER RESOLVED, That a copy of this Resolution be immediately transmitted by the Co-Chief Clerks of the House of Representatives to his beloved wife, Carole Sanford.


             There being no objection, House Resolution No. 99-4694 was adopted. There being no objection, all the members' names were added to the resolution.


             There being no objection, the House reconsidered its position on Engrossed Substitute House Bill No. 1562


             There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 1562 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1562 as amended by the Senate.


             Representatives K. Schmidt and Fisher spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1562, as amended by the Senate and the bill passed the House by the following vote: Yeas - 89, Nays - 7, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, DeBolt, Delvin, Dickerson, Doumit, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 89.

             Voting nay: Representatives Benson, Crouse, Dunn, Koster, Pflug, Schindler and Van Luven - 7.

             Excused: Representatives Quall and Scott - 2.


             Engrossed Substitute House Bill No. 1562, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1176 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 40.14.060 and 1982 c 36 s 5 are each amended to read as follows:

             (1) Any destruction of official public records shall be pursuant to a schedule approved under RCW 40.14.050. Official public records shall not be destroyed unless:

             (a) Except as provided under RCW 40.14.070(2)(b), the records are six or more years old;

             (b) The department of origin of the records has made a satisfactory showing to the state records committee that the retention of the records for a minimum of six years is both unnecessary and uneconomical, particularly if lesser federal retention periods for records generated by the state under federal programs have been established; or

             (c) The originals of official public records less than six years old have been copied or reproduced by any photographic or other process approved by the state archivist which accurately reproduces or forms a durable medium for so reproducing the original.

             (2) Any lesser term of retention than six years must have the additional approval of the director of financial management, the state auditor and the attorney general, except when records have federal retention guidelines the state records committee may adjust the retention period accordingly. An automatic reduction of retention periods from seven to six years for official public records on record retention schedules existing on June 10, 1982, shall not be made, but the same shall be reviewed individually by the state records committee for approval or disapproval of the change to a retention period of six years.

             Recommendations for the destruction or disposition of office files and memoranda shall be submitted to the records committee upon approved forms prepared by the records officer of the agency concerned and the archivist. The committee shall determine the period of time that any office file or memorandum shall be preserved and may authorize the division of archives and records management to arrange for its destruction or disposition.


             Sec. 2. RCW 40.14.070 and 1995 c 301 s 71 are each amended to read as follows:

             (1)(a) County, municipal, and other local government agencies may request authority to destroy noncurrent public records having no further administrative or legal value by submitting to the division of archives and records management lists of such records on forms prepared by the division. The archivist, a representative appointed by the state auditor, and a representative appointed by the attorney general shall constitute a committee, known as the local records committee, which shall review such lists and which may veto the destruction of any or all items contained therein.

             (b) A local government agency, as an alternative to submitting lists, may elect to establish a records control program based on recurring disposition schedules recommended by the agency to the local records committee. The schedules are to be submitted on forms provided by the division of archives and records management to the local records committee, which may either veto, approve, or amend the schedule. Approval of such schedule or amended schedule shall be by unanimous vote of the local records committee. Upon such approval, the schedule shall constitute authority for the local government agency to destroy the records listed thereon, after the required retention period, on a recurring basis until the schedule is either amended or revised by the committee.

             (2)(a) Except as otherwise provided by law, no public records shall be destroyed until approved for destruction by the local records committee. Official public records shall not be destroyed unless:

             (((1))) (i) The records are six or more years old;

             (((2))) (ii) The department of origin of the records has made a satisfactory showing to the state records committee that the retention of the records for a minimum of six years is both unnecessary and uneconomical, particularly where lesser federal retention periods for records generated by the state under federal programs have been established; or

             (((3))) (iii) The originals of official public records less than six years old have been copied or reproduced by any photographic, photostatic, microfilm, miniature photographic, or other process approved by the state archivist which accurately reproduces or forms a durable medium for so reproducing the original.

             An automatic reduction of retention periods from seven to six years for official public records on record retention schedules existing on June 10, 1982, shall not be made, but the same shall be reviewed individually by the local records committee for approval or disapproval of the change to a retention period of six years.

             The state archivist may furnish appropriate information, suggestions, and guidelines to local government agencies for their assistance in the preparation of lists and schedules or any other matter relating to the retention, preservation, or destruction of records under this chapter. The local records committee may adopt appropriate regulations establishing procedures to be followed in such matters.

             Records of county, municipal, or other local government agencies, designated by the archivist as of primarily historical interest, may be transferred to a recognized depository agency.

             (b) Records of investigative reports prepared by any state, county, municipal, or other law enforcement agency pertaining to sex offenders contained in chapter 9A.44 RCW or sexually violent offenses as defined in RCW 71.09.020 that are not required in the current operation of the law enforcement agency or for pending judicial proceedings shall, following the expiration of the applicable schedule of the law enforcement agency's retention of the records, be transferred to the Washington association of sheriffs and police chiefs for permanent electronic retention and retrieval. Upon electronic retention of any document, the association shall be permitted to destroy the paper copy of the document.

             (c) Any record transferred to the Washington association of sheriffs and police chiefs pursuant to (b) of this subsection shall be deemed to no longer constitute a public record pursuant to RCW 42.17.020 and shall be exempt from public disclosure. Such records shall be disseminated only to criminal justice agencies as defined in RCW 10.97.030 for the purpose of determining if a sex offender met the criteria of a sexually violent predator as defined in chapter 71.09 RCW.


             Sec. 3. RCW 42.17.310 and 1998 c 69 s 1 are each amended to read as follows:

             (1) The following are exempt from public inspection and copying:

             (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

             (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

             (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 84.08.210, 82.32.330, 84.40.020, or 84.40.340 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

             (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

             (e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

             (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

             (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

             (h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

             (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

             (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

             (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

             (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

             (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (i) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (ii) highway construction or improvement as required by RCW 47.28.070.

             (n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

             (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW, and by persons pertaining to export projects pursuant to RCW 43.23.035.

             (p) Financial disclosures filed by private vocational schools under chapters 28B.85 and 28C.10 RCW.

             (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

             (r) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency.

             (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

             (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

             (u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

             (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers, except that this information may be released to the division of child support or the agency or firm providing child support enforcement for another state under Title IV-D of the federal social security act, for the establishment, enforcement, or modification of a support order.

             (w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.140 maintained in the files of the department shall automatically be withheld from public inspection and copying unless the provider specifically requests the information be released, and except as provided for under RCW 42.17.260(9).

             (x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

             (y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

             (z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

             (aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

             (bb) Financial and valuable trade information under RCW 51.36.120.

             (cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or 70.123.075 or a rape crisis center as defined in RCW 70.125.030.

             (dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

             (ee) Investigative records compiled by an employing agency conducting a current investigation of a possible unfair practice under chapter 49.60 RCW or of a possible violation of other federal, state, or local laws prohibiting discrimination in employment.

             (ff) Business related information protected from public inspection and copying under RCW 15.86.110.

             (gg) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW.

             (hh) Information and documents created specifically for, and collected and maintained by a quality improvement committee pursuant to RCW 43.70.510, regardless of which agency is in possession of the information and documents.

             (ii) Personal information in files maintained in a data base created under RCW 43.07.360.

             (jj) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010.

             (kk) Names of individuals residing in emergency or transitional housing that are furnished to the department of revenue or a county assessor in order to substantiate a claim for property tax exemption under RCW 84.36.043.

             (ll) The names, residential addresses, residential telephone numbers, and other individually identifiable records held by an agency in relation to a vanpool, carpool, or other ride-sharing program or service. However, these records may be disclosed to other persons who apply for ride-matching services and who need that information in order to identify potential riders or drivers with whom to share rides.

             (mm) Proprietary financial and commercial information that the submitting entity, with review by the department of health, specifically identifies at the time it is submitted and that is provided to or obtained by the department of health in connection with an application for, or the supervision of, an antitrust exemption sought by the submitting entity under RCW 43.72.310. If a request for such information is received, the submitting entity must be notified of the request. Within ten business days of receipt of the notice, the submitting entity shall provide a written statement of the continuing need for confidentiality, which shall be provided to the requester. Upon receipt of such notice, the department of health shall continue to treat information designated under this section as exempt from disclosure. If the requester initiates an action to compel disclosure under this chapter, the submitting entity must be joined as a party to demonstrate the continuing need for confidentiality.

             (nn) Records maintained by the board of industrial insurance appeals that are related to appeals of crime victims' compensation claims filed with the board under RCW 7.68.110.

             (oo) Financial and commercial information supplied by or on behalf of a person, firm, corporation, or entity under chapter 28B.95 RCW relating to the purchase or sale of tuition units and contracts for the purchase of multiple tuition units.

             (pp) Any records of investigative reports prepared by any state, county, municipal, or other law enforcement agency pertaining to sex offenses contained in chapter 9A.44 RCW or sexually violent offenses as defined in RCW 71.09.020, which have been transferred to the Washington association of sheriffs and police chiefs for permanent electronic retention and retrieval pursuant to RCW 40.14.070(2)(b).

             (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

             (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

             (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.


             NEW SECTION. Sec. 4. A new section is added to chapter 10.97 RCW to read as follows:

             Nothing in RCW 40.14.060, 40.14.070, or 42.17.310 precludes dissemination of criminal history record information, including nonconviction data, for the purposes of this chapter."


             On page 1, line 2 of the title, after "offenses;" strike the remainder of the title and insert "amending RCW 40.14.060, 40.14.070, and 42.17.310; and adding a new section to chapter 10.97 RCW."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Second Substitute House Bill No. 1176 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Second Substitute House Bill No. 1176 as amended by the Senate.


             Representatives O'Brien and Ballasiotes spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute House Bill No. 1176, as amended by the Senate and the bill passed the House by the following vote: Yeas - 76, Nays - 20, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Bush, Cairnes, Campbell, Carlson, Carrell, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Lovick, McDonald, McIntire, Miloscia, Mitchell, Morris, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, D. Schmidt, K. Schmidt, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 76.

             Voting nay: Representatives Boldt, Buck, B. Chandler, Cox, Crouse, DeBolt, Ericksen, Esser, Koster, Lambert, Lisk, Mastin, McMorris, Mielke, Mulliken, Pflug, Radcliff, Schindler, Schoesler and Sump - 20.

             Excused: Representatives Quall and Scott - 2.


             Second Substitute House Bill No. 1176, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 13, 1999

Mr. Speaker:


             The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1143 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 72.09.480 and 1998 c 261 s 2 are each amended to read as follows:

             (1) Unless the context clearly requires otherwise, the definitions in this section apply to this section.

             (a) "Cost of incarceration" means the cost of providing an inmate with shelter, food, clothing, transportation, supervision, and other services and supplies as may be necessary for the maintenance and support of the inmate while in the custody of the department, based on the average per inmate costs established by the department and the office of financial management.

             (b) "Minimum term of confinement" means the minimum amount of time an inmate will be confined in the custody of the department, considering the sentence imposed and adjusted for the total potential earned early release time available to the inmate.

             (c) "Program" means any series of courses or classes necessary to achieve a proficiency standard, certificate, or postsecondary degree.

             (2) When an inmate, except as provided in subsection (6) of this section, receives any funds in addition to his or her wages or gratuities, the additional funds shall be subject to the deductions in RCW 72.09.111(1)(a) and the priorities established in chapter 72.11 RCW.

             (3) The amount deducted from an inmate's funds under subsection (2) of this section shall not exceed the department's total cost of incarceration for the inmate incurred during the inmate's minimum or actual term of confinement, whichever is longer.

             (4) The deductions required under subsection (2) of this section shall not apply to funds received by the department on behalf of an offender for payment of one fee-based education or vocational program that is associated with an inmate's work program or a placement decision made by the department under RCW 72.09.460 to prepare an inmate for work upon release.

             An inmate may, prior to the completion of the fee-based education or vocational program authorized under this subsection, apply to a person designated by the secretary for permission to make a change in his or her program. The secretary, or his or her designee, may approve the application based solely on the following criteria: (a) The inmate has been transferred to another institution by the department for reasons unrelated to education or a change to a higher security classification and the offender's current program is unavailable in the offender's new placement; (b) the inmate entered an academic program as an undeclared major and wishes to declare a major. No inmate may apply for more than one change to his or her major and receive the exemption from deductions specified in this subsection; (c) the educational or vocational institution is terminating the inmate's current program; or (d) the offender's training or education has demonstrated that the current program is not the appropriate program to assist the offender to achieve a placement decision made by the department under RCW 72.09.460 to prepare the inmate for work upon release.

             (5) The deductions required under subsection (2) of this section shall not apply to any money received by the department, on behalf of an inmate, from family or other outside sources for the payment of postage expenses. Money received under this subsection may only be used for the payment of postage expenses and may not be transferred to any other account or purpose. Money that remains unused in the inmate's postage fund at the time of release shall be subject to the deductions outlined in subsection (2) of this section.

             (6) When an inmate sentenced to life imprisonment without possibility of release or parole, or to death under chapter 10.95 RCW, receives any funds in addition to his or her gratuities, the additional funds shall be subject to: Deductions of five percent to the public safety and education account for the purpose of crime victims' compensation and twenty percent to the department to contribute to the cost of incarceration.

             (7) The interest earned on an inmate savings account created as a result of the plan in section 4 of this act shall be exempt from the mandatory deductions under this section and RCW 72.09.111.


             Sec. 2. RCW 72.09.111 and 1994 sp.s. c 7 s 534 are each amended to read as follows:

             (1) The secretary shall deduct from the gross wages or gratuities of each inmate working in correctional industries work programs, taxes and legal financial obligations. The secretary shall develop a formula for the distribution of offender wages and gratuities.

             (a) The formula shall include the following minimum deductions from class I gross wages and from all others earning at least minimum wage:

             (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

             (ii) Ten percent to a department personal inmate savings account; and

             (iii) Twenty percent to the department to contribute to the cost of incarceration.

             (b) The formula shall include the following minimum deductions from class II gross gratuities:

             (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

             (ii) Ten percent to a department personal inmate savings account; and

             (iii) Fifteen percent to the department to contribute to the cost of incarceration.

             (c) The formula shall include the following minimum deduction from class IV gross gratuities: Five percent to the department to contribute to the cost of incarceration.

             (d) The formula shall include the following minimum deductions from class III gratuities: Five percent for the purpose of crime victims' compensation.

             Any person sentenced to life imprisonment without possibility of release or parole under chapter 10.95 RCW or sentenced to death shall be exempt from the requirement under (a)(ii) or (b)(ii) of this subsection.

             The department personal inmate savings account, together with any accrued interest, shall only be available to an inmate at the time of his or her release from confinement, unless the secretary determines that an emergency exists for the inmate, at which time the funds can be made available to the inmate in an amount determined by the secretary. The management of classes I, II, and IV correctional industries may establish an incentive payment for offender workers based on productivity criteria. This incentive shall be paid separately from the hourly wage/gratuity rate and shall not be subject to the specified deduction for cost of incarceration.

             In the event that the offender worker's wages or gratuity is subject to garnishment for support enforcement, the crime victims' compensation, savings, and cost of incarceration deductions shall be calculated on the net wages after taxes, legal financial obligations, and garnishment.

             (2) The department shall explore other methods of recovering a portion of the cost of the inmate's incarceration and for encouraging participation in work programs, including development of incentive programs that offer inmates benefits and amenities paid for only from wages earned while working in a correctional industries work program.

             (3) The department shall develop the necessary administrative structure to recover inmates' wages and keep records of the amount inmates pay for the costs of incarceration and amenities. All funds deducted from inmate wages under subsection (1) of this section for the purpose of contributions to the cost of incarceration shall be deposited in a dedicated fund with the department and shall be used only for the purpose of enhancing and maintaining correctional industries work programs ((until December 31, 2000, and thereafter all such funds shall be deposited in the general fund)).

             (4) The expansion of inmate employment in class I and class II correctional industries shall be implemented according to the following schedule:

             (a) Not later than June 30, 1995, the secretary shall achieve a net increase of at least two hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (b) Not later than June 30, 1996, the secretary shall achieve a net increase of at least four hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (c) Not later than June 30, 1997, the secretary shall achieve a net increase of at least six hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (d) Not later than June 30, 1998, the secretary shall achieve a net increase of at least nine hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (e) Not later than June 30, 1999, the secretary shall achieve a net increase of at least one thousand two hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (f) Not later than June 30, 2000, the secretary shall achieve a net increase of at least one thousand five hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994.

             (5) It shall be in the discretion of the secretary to apportion the inmates between class I and class II depending on available contracts and resources.


             NEW SECTION. Sec. 3. A new section is added to chapter 70.48 RCW to read as follows:

             A governing unit may require that each person who is booked at a city, county, or regional jail pay a fee of ten dollars to the sheriff's department of the county or police chief of the city in which the jail is located. The fee is payable immediately from any money then possessed by the person being booked, or any money deposited with the sheriff's department or city jail administration on the person's behalf. If the person has no funds at the time of booking or during the period of incarceration, the sheriff or police chief may notify the court in the county or city where the charges related to the booking are pending, and may request the assessment of the fee. Unless the person is held on other criminal matters, if the person is not charged, is acquitted, or if all charges are dismissed, the sheriff or police chief shall return the fee to the person at the last known address listed in the booking records.


             NEW SECTION. Sec. 4. The secretary of corrections shall prepare a plan for depositing inmate savings account funds into an interest bearing account. The plan shall assume that the funds shall be deposited into a commingled account for all inmates and that the interest shall be paid in a manner pro rata to the inmate's share of the total deposits. The secretary shall present the plan to the governor and the legislature not later than December 1, 1999. The plan shall minimize the costs of administering the account and the inmates shall receive interest at a rate not less than the passbook savings rate."


             On page 1, line 1 of the title, after "funds;" strike the remainder of the title and insert "amending RCW 72.09.480 and 72.09.111; adding a new section to chapter 70.48.RCW; and creating a new section."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1143 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1143 as amended by the Senate.


             Representatives O'Brien and Ballasiotes spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1143, as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 2, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 94.

             Voting nay: Representatives Fisher and Murray - 2.

             Excused: Representatives Quall and Scott - 2.


             Engrossed Second Substitute House Bill No. 1143, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 14, 1999

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 1392 with the following amendment(s)


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 72.09.480 and 1998 c 261 s 2 are each amended to read as follows:

             (1) Unless the context clearly requires otherwise, the definitions in this section apply to this section.

             (a) "Cost of incarceration" means the cost of providing an inmate with shelter, food, clothing, transportation, supervision, and other services and supplies as may be necessary for the maintenance and support of the inmate while in the custody of the department, based on the average per inmate costs established by the department and the office of financial management.

             (b) "Minimum term of confinement" means the minimum amount of time an inmate will be confined in the custody of the department, considering the sentence imposed and adjusted for the total potential earned early release time available to the inmate.

             (c) "Program" means any series of courses or classes necessary to achieve a proficiency standard, certificate, or postsecondary degree.

             (2) When an inmate, except as provided in subsection (6) of this section, receives any funds in addition to his or her wages or gratuities, the additional funds shall be subject to the deductions in RCW 72.09.111(1)(a) and the priorities established in chapter 72.11 RCW.

             (3) The amount deducted from an inmate's funds under subsection (2) of this section shall not exceed the department's total cost of incarceration for the inmate incurred during the inmate's minimum or actual term of confinement, whichever is longer.

             (4) The deductions required under subsection (2) of this section shall not apply to funds received by the department on behalf of an offender for payment of one fee-based education or vocational program that is associated with an inmate's work program or a placement decision made by the department under RCW 72.09.460 to prepare an inmate for work upon release.

             An inmate may, prior to the completion of the fee-based education or vocational program authorized under this subsection, apply to a person designated by the secretary for permission to make a change in his or her program. The secretary, or his or her designee, may approve the application based solely on the following criteria: (a) The inmate has been transferred to another institution by the department for reasons unrelated to education or a change to a higher security classification and the offender's current program is unavailable in the offender's new placement; (b) the inmate entered an academic program as an undeclared major and wishes to declare a major. No inmate may apply for more than one change to his or her major and receive the exemption from deductions specified in this subsection; (c) the educational or vocational institution is terminating the inmate's current program; or (d) the offender's training or education has demonstrated that the current program is not the appropriate program to assist the offender to achieve a placement decision made by the department under RCW 72.09.460 to prepare the inmate for work upon release.

             (5) The deductions required under subsection (2) of this section shall not apply to any money received by the department, on behalf of an inmate, from family or other outside sources for the payment of postage expenses. Money received under this subsection may only be used for the payment of postage expenses and may not be transferred to any other account or purpose. Money that remains unused in the inmate's postage fund at the time of release shall be subject to the deductions outlined in subsection (2) of this section.

             (6) When an inmate sentenced to life imprisonment without possibility of release or parole, or to death under chapter 10.95 RCW, receives any funds in addition to his or her gratuities, the additional funds shall be subject to: Deductions of five percent to the public safety and education account for the purpose of crime victims' compensation and twenty percent to the department to contribute to the cost of incarceration.

             (7) The interest earned on an inmate savings account created as a result of the plan in section 4 of this act shall be exempt from the mandatory deductions under this section and RCW 72.09.111.


             Sec. 2. RCW 72.09.111 and 1994 sp.s. c 7 s 534 are each amended to read as follows:

             (1) The secretary shall deduct from the gross wages or gratuities of each inmate working in correctional industries work programs, taxes and legal financial obligations. The secretary shall develop a formula for the distribution of offender wages and gratuities.

             (a) The formula shall include the following minimum deductions from class I gross wages and from all others earning at least minimum wage:

             (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

             (ii) Ten percent to a department personal inmate savings account; and

             (iii) Twenty percent to the department to contribute to the cost of incarceration.

             (b) The formula shall include the following minimum deductions from class II gross gratuities:

             (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

             (ii) Ten percent to a department personal inmate savings account; and

             (iii) Fifteen percent to the department to contribute to the cost of incarceration.

             (c) The formula shall include the following minimum deduction from class IV gross gratuities: Five percent to the department to contribute to the cost of incarceration.

             (d) The formula shall include the following minimum deductions from class III gratuities: Five percent for the purpose of crime victims' compensation.

             Any person sentenced to life imprisonment without possibility of release or parole under chapter 10.95 RCW or sentenced to death shall be exempt from the requirement under (a)(ii) or (b)(ii) of this subsection.

             The department personal inmate savings account, together with any accrued interest, shall only be available to an inmate at the time of his or her release from confinement, unless the secretary determines that an emergency exists for the inmate, at which time the funds can be made available to the inmate in an amount determined by the secretary. The management of classes I, II, and IV correctional industries may establish an incentive payment for offender workers based on productivity criteria. This incentive shall be paid separately from the hourly wage/gratuity rate and shall not be subject to the specified deduction for cost of incarceration.

             In the event that the offender worker's wages or gratuity is subject to garnishment for support enforcement, the crime victims' compensation, savings, and cost of incarceration deductions shall be calculated on the net wages after taxes, legal financial obligations, and garnishment.

             (2) The department shall explore other methods of recovering a portion of the cost of the inmate's incarceration and for encouraging participation in work programs, including development of incentive programs that offer inmates benefits and amenities paid for only from wages earned while working in a correctional industries work program.

             (3) The department shall develop the necessary administrative structure to recover inmates' wages and keep records of the amount inmates pay for the costs of incarceration and amenities. All funds deducted from inmate wages under subsection (1) of this section for the purpose of contributions to the cost of incarceration shall be deposited in a dedicated fund with the department and shall be used only for the purpose of enhancing and maintaining correctional industries work programs ((until December 31, 2000, and thereafter all such funds shall be deposited in the general fund)).

             (4) The expansion of inmate employment in class I and class II correctional industries shall be implemented according to the following schedule:

             (a) Not later than June 30, 1995, the secretary shall achieve a net increase of at least two hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (b) Not later than June 30, 1996, the secretary shall achieve a net increase of at least four hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (c) Not later than June 30, 1997, the secretary shall achieve a net increase of at least six hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (d) Not later than June 30, 1998, the secretary shall achieve a net increase of at least nine hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (e) Not later than June 30, 1999, the secretary shall achieve a net increase of at least one thousand two hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994;

             (f) Not later than June 30, 2000, the secretary shall achieve a net increase of at least one thousand five hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 1994.

             (5) It shall be in the discretion of the secretary to apportion the inmates between class I and class II depending on available contracts and resources.


             NEW SECTION. Sec. 3. A new section is added to chapter 70.48 RCW to read as follows:

             A governing unit may require that each person who is booked at a city, county, or regional jail pay a fee of ten dollars to the sheriff's department of the county or police chief of the city in which the jail is located. The fee is payable immediately from any money then possessed by the person being booked, or any money deposited with the sheriff's department or city jail administration on the person's behalf. If the person has no funds at the time of booking or during the period of incarceration, the sheriff or police chief may notify the court in the county or city where the charges related to the booking are pending, and may request the assessment of the fee. Unless the person is held on other criminal matters, if the person is not charged, is acquitted, or if all charges are dismissed, the sheriff or police chief shall return the fee to the person at the last known address listed in the booking records.


             NEW SECTION. Sec. 4. The secretary of corrections shall prepare a plan for depositing inmate savings account funds into an interest bearing account. The plan shall assume that the funds shall be deposited into a commingled account for all inmates and that the interest shall be paid in a manner pro rata to the inmate's share of the total deposits. The secretary shall present the plan to the governor and the legislature not later than December 1, 1999. The plan shall minimize the costs of administering the account and the inmates shall receive interest at a rate not less than the passbook savings rate."


             On page 1, line 1 of the title, after "funds;" strike the remainder of the title and insert "amending RCW 72.09.480 and 72.09.111; adding a new section to chapter 70.48.RCW; and creating a new section."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House refused to concur in the Senate Amendment(s) to House Bill No. 1392 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

April 21, 1999

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 1663 with the following amendment(s):


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The legislature recognizes the increasing incidence of concurrent involvement of family members in multiple areas of the justice system. Analysis shows significant case overlap in the case types of juvenile offender, juvenile dependency, at-risk youth, child in need of services, truancy, domestic violence, and domestic relations. Also recognized is the increased complexity of the problems facing family members and the increased complexity of the laws affecting families. It is believed that in such situations, an efficient and effective response is through the creation of a unified court system centered around the family that: Provides a dedicated, trained, and informed judiciary; incorporates case management practices based on a family's judicial system needs; enables multiple case type resolution by one judicial officer or judicial team; provides coordinated legal and social services; and considers and evaluates the needs of the family as a whole.


             NEW SECTION. Sec. 2. The administrator for the courts shall conduct a unified family court pilot program.

             (1) Pilot program sites shall be selected through a request for proposal process, and shall be established in no more than three superior court judicial districts.

             (2) To be eligible for consideration as a pilot project site, judicial districts must have a statutorily authorized judicial complement of at least five judges.

             (3) The administrator for the courts shall develop criteria for the unified family court pilot program. The pilot program shall include:       (a) All case types under Title 13 RCW, chapters 26.09, 26.10, 26.12, 26.18, 26.19, 26.20, 26.26, 26.50, 26.27, and 28A.225 RCW;

             (b) Unified family court judicial officers, who volunteer for the program, and meet training requirements established by local court rule;

             (c) Case management practices that provide a flexible response to the diverse court-related needs of families involved in multiple areas of the justice system. Case management practices should result in a reduction in process redundancies and an efficient use of time and resources, and create a system enabling multiple case type resolution by one judicial officer or judicial team;

             (d) A court facilitator to provide assistance to parties with matters before the unified family court; and

             (e) An emphasis on providing nonadversarial methods of dispute resolution such as a settlement conference, evaluative mediation by attorney mediators, and facilitative mediation by nonattorney mediators.

             (4) The office of the administrator for the courts shall publish and disseminate a state-approved listing of definitions of nonadversarial methods of dispute resolution so that court officials, practitioners, and users can choose the most appropriate process for the matter at hand.

             (5) The office of the administrator for the courts shall provide to the judicial districts selected for the pilot program the computer resources needed by each judicial district to implement the unified family court pilot program.

             (6) The office of the administrator for the courts shall conduct a study of the pilot program measuring improvements in the judicial system's response to family involvement in the judicial system. The administrator for the courts shall report preliminary findings and final results of the study to the governor, the chief justice of the supreme court, and the legislature on a biennial basis. The initial report is due by July 1, 2000, and the final report is due by December 1, 2004.


             NEW SECTION. Sec. 3. The judges of the superior court judicial districts with unified family court pilot programs shall adopt local court rules directing the program. The local court rules shall comply with the criteria established by the administrator for the courts and shall include:

             (1) A requirement that all judicial officers hearing cases in unified family court:

             (a) Complete an initial training program including the topic areas of childhood development, domestic violence, cultural awareness, child abuse and neglect, chemical dependency, and mental illness; and

             (b) Subsequent to the training in (a) of this subsection, annually attend a minimum of eight hours of continuing education of pertinence to the unified family court;

             (2) Case management that is based on the practice of one judge or judicial team handling all matters relating to a family;

             (3) An emphasis on coordinating or consolidating, to the extent possible, all cases before the unified family court relating to a family; and

             (4) Programs that provide for record confidentiality to protect the confidentiality of court records in accordance with the law. However law enforcement agencies shall have access to the records to the extent permissible under the law.


             Sec. 4. RCW 10.14.200 and 1995 c 246 s 35 are each amended to read as follows:

             Any order available under this chapter may be issued in actions under chapter 13.32A, 26.09, 26.10, or 26.26 RCW. An order available under this chapter that is issued under those chapters shall be fully enforceable and shall be enforced pursuant to the provisions of this chapter.


             Sec. 5. RCW 13.04.021 and 1994 sp.s. c 7 s 538 are each amended to read as follows:

             (1) The juvenile court shall be a division of the superior court. In judicial districts having more than one judge of the superior court, the judges of such court shall annually assign one or more of their number to the juvenile court division. In any judicial district having a court commissioner, the court commissioner shall have the power, authority, and jurisdiction, concurrent with a juvenile court judge, to hear all cases under this chapter and to enter judgment and make orders with the same power, force, and effect as any judge of the juvenile court, subject to motion or demand by any party within ten days from the entry of the order or judgment by the court commissioner as provided in RCW 2.24.050. In any judicial district having a family law commissioner appointed pursuant to chapter 26.12 RCW, the family law commissioner shall have the power, authority, and jurisdiction, concurrent with a juvenile court judge, to hear cases ((under chapter 13.34 RCW or any other case)) under Title 13 RCW and chapter 28A.225 RCW as provided in RCW 26.12.010, and to enter judgment and make orders with the same power, force, and effect as any judge of the juvenile court, subject to motion or demand by any party within ten days from the entry of the order or judgment by the court commissioner as provided in RCW 2.24.050.

             (2) Cases in the juvenile court shall be tried without a jury.


             Sec. 6. RCW 26.12.010 and 1994 sp.s. c 7 s 537 are each amended to read as follows:

             (((1))) Each superior court shall exercise the jurisdiction conferred by this chapter and while sitting in the exercise of such jurisdiction shall be known and referred to as the "family court." A family ((law)) court proceeding under this chapter is: (1) Any proceeding under this title or any proceeding in which the family court is requested to adjudicate or enforce the rights of the parties or their children regarding the determination or modification of parenting plans, child custody, visitation, or support, or the distribution of property or obligations, or (2) concurrent with the juvenile court, any proceeding under Title 13 or chapter 28A.225 RCW.

             (((2) Superior court judges of a county may by majority vote, grant to the family court the power, authority, and jurisdiction, concurrent with the juvenile court, to hear and decide cases under Title 13 RCW.))


             Sec. 7. RCW 26.12.060 and 1993 c 289 s 3 are each amended to read as follows:

             The court commissioners shall: (1) Make appropriate referrals to county family court services program if the county has a family court services program or appoint a guardian ad litem pursuant to RCW 26.12.175; (2) order investigation and reporting of the facts upon which to base warrants, subpoenas, orders or directions in actions or proceedings under this chapter; (3) exercise all the powers and perform all the duties of court commissioners; (4) make written reports of all proceedings had which shall become a part of the record of the family court; (5) provide supervision over the exercise of its jurisdiction as the judge of the family court may order; (6) cause the orders and findings of the family court to be entered in the same manner as orders and findings are entered in cases in the superior court; (7) cause other reports to be made and records kept as will indicate the value and extent of reconciliation, mediation, investigation, and treatment services; and (8) conduct hearings under ((chapter 13.34 RCW)) Title 13 and chapter 28A.225 RCW, as provided in RCW 13.04.021.


             Sec. 8. RCW 36.18.016 and 1996 c 56 s 5 are each amended to read as follows:

             (1) Revenue collected under this section is not subject to division under RCW 36.18.025 or 27.24.070.

             (2) For the filing of a petition for modification of a decree of dissolution or paternity, within the same case as the original action, a fee of twenty dollars must be paid.

             (3)(a) The party making a demand for a jury of six in a civil action shall pay, at the time, a fee of ((fifty)) one hundred twenty-five dollars; if the demand is for a jury of twelve, a fee of ((one)) two hundred fifty dollars. If, after the party demands a jury of six and pays the required fee, any other party to the action requests a jury of twelve, an additional ((fifty-dollar)) one hundred twenty-five dollar fee will be required of the party demanding the increased number of jurors.

             (b) Upon conviction in criminal cases a jury demand charge of fifty dollars for a jury of six, or one hundred dollars for a jury of twelve may be imposed as costs under RCW 10.46.190.

             (4) For preparing, transcribing, or certifying an instrument on file or of record in the clerk's office, with or without seal, for the first page or portion of the first page, a fee of two dollars, and for each additional page or portion of a page, a fee of one dollar must be charged. For authenticating or exemplifying an instrument, a fee of one dollar for each additional seal affixed must be charged.

             (5) For executing a certificate, with or without a seal, a fee of two dollars must be charged.

             (6) For a garnishee defendant named in an affidavit for garnishment and for a writ of attachment, a fee of twenty dollars must be charged.

             (7) For approving a bond, including justification on the bond, in other than civil actions and probate proceedings, a fee of two dollars must be charged.

             (8) For the issuance of a certificate of qualification and a certified copy of letters of administration, letters testamentary, or letters of guardianship, there must be a fee of two dollars.

             (9) For the preparation of a passport application, the clerk may collect an execution fee as authorized by the federal government.

             (10) For clerk's special services such as processing ex parte orders by mail, performing historical searches, compiling statistical reports, and conducting exceptional record searches, the clerk may collect a fee not to exceed twenty dollars per hour or portion of an hour.

             (11) For duplicated recordings of court's proceedings there must be a fee of ten dollars for each audio tape and twenty-five dollars for each video tape.

             (12) For the filing of oaths and affirmations under chapter 5.28 RCW, a fee of twenty dollars must be charged.

             (13) For filing a disclaimer of interest under RCW 11.86.031(4), a fee of two dollars must be charged.

             (14) For registration of land titles, Torrens Act, under RCW 65.12.780, a fee of five dollars must be charged.

             (15) For the issuance of extension of judgment under RCW 6.17.020 and chapter 9.94A RCW, a fee of one hundred ten dollars must be charged.

             (16) A facilitator surcharge of ten dollars must be charged as authorized under RCW 26.12.240.

             (17) For filing a water rights statement under RCW 90.03.180, a fee of twenty-five dollars must be charged.

             (18) For filing a warrant for overpayment of state retirement systems benefits under chapter 41.50 RCW, a fee of five dollars shall be charged pursuant to RCW 41.50.136.

             (19) A service fee of three dollars for the first page and one dollar for each additional page must be charged for receiving faxed documents, pursuant to Washington state rules of court, general rule 17.

             (20) For preparation of clerk's papers under RAP 9.7, a fee of fifty cents per page must be charged.

             (21) For copies and reports produced at the local level as permitted by RCW 2.68.020 and supreme court policy, a variable fee must be charged.

             (22) Investment service charge and earnings under RCW 36.48.090 must be charged.

             (23) Costs for nonstatutory services rendered by clerk by authority of local ordinance or policy must be charged.

             (24) For filing a request for trial de novo of an arbitration award, a fee not to exceed two hundred fifty dollars as established by authority of local ordinance must be charged."


             On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "court operations; amending RCW 10.14.200, 13.04.021, 26.12.010, 26.12.060, and 36.18.016; and creating new sections."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1663 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Substitute House Bill No. 1663 as amended by the Senate.


             Representatives Lambert and Constantine spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 1663, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Substitute House Bill No. 1663, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

April 15, 1999

Mr. Speaker:


             The Senate has passed ENGROSSED HOUSE BILL NO. 2015 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 4.22 RCW to read as follows:

             (1) The definitions in this section apply throughout this section and sections 2 through 5 of this act.

             (a) "Agency" means any state or local government board, commission, bureau, committee, department, institution, division, or tribunal in the legislative, executive, or judicial branch, including elective and legislative offices, institutions of higher education created and supported by state government, counties, cities, towns, special purpose districts, local service districts, municipal corporations, quasi-municipal corporations, and political subdivisions of such agencies and corporations, and any officer, employee, or agent of these entities acting within the scope of the officer, employee, or agent's employment or duties. "Agency" does not include municipal electric or gas utilities formed under Title 35 RCW or electric public utility districts formed under Title 54 RCW.

             (b) "Electric cooperative utility" means any nonprofit, member-owned cooperative organized under chapter 23.86 RCW and engaged in the business of distributing electric energy in the state.

             (c) "Electric mutual utility" means any nonprofit, member-owned corporation or association organized under chapter 24.06 RCW and engaged in the business of distributing electric energy in the state.

             (d) "Electronic computing device" means any computer hardware or software, computer chip, embedded chip, process control equipment, or other information system used to capture, store, manipulate, or process data, or that controls, monitors, or assists in the operation of physical apparatus that is not primarily used as a computer, but that relies on automation or digital technology to function, including but not limited to vehicles, vessels, buildings, structures, facilities, elevators, medical equipment, traffic signals, factory machinery, and the like.

             (e) "Public service provider" means any municipal electric or gas utility formed under Title 35 RCW, electric public utility district formed under Title 54 RCW, electrical company, as defined in RCW 80.04.010, gas company, as defined in RCW 80.04.010, electric cooperative utility, and electric mutual utility.

             (f) "Year 2000 failure" means with respect to an electronic computing device, a computing failure that prevents such electronic computing device from accurately interpreting, producing, computing, generating, accounting for, processing, calculating, comparing, or sequencing date or time data from, into, or between the years 1999 and 2000, or with regard to leap year calculations.

             (2) In any action against an agency or public service provider, whether based in tort, contract, or otherwise, for damages caused in whole or in part by computational or interpretive errors generated by an electronic computing device in connection with a year 2000 failure:

             (a) Any liability shall be several, not joint, and the liability shall be determined as a percentage of fault in a manner consistent with RCW 4.22.070; and

             (b) Agencies as defined in this section shall have no liability for the first one hundred dollars of damages per claimant that would otherwise be owed by the agency.

             (3) This section shall not apply to any action for damages arising from bodily personal injury, or to wrongful death and survival actions under chapter 4.20 RCW or RCW 4.24.010.

             (4) This section does not apply to any claim or cause of action filed after December 31, 2003.

             (5) This section expires December 31, 2009.


             NEW SECTION. Sec. 2. A new section is added to chapter 4.24 RCW to read as follows:

             (1) A person has an affirmative defense to any claim or action, based on a contract, brought against the person if he or she establishes that:

             (a) The default, failure to pay, breach, omission, or other violation that is the basis of the claim against him or her was caused, in whole or in part, by a year 2000 failure associated with an electronic computing device;

             (b) The year 2000 failure being asserted was not proximately caused by a failure of the person to update an electronic computing device, that is under his or her dominion or control, to be year 2000 compliant; and

             (c) If it were not for the year 2000 failure, the person would have been able to satisfy the contractual obligation that was the basis of the claim.

             (2) If an affirmative defense as set forth in subsection (1) of this section is established, then the person or entity making the claim may not reassert the claim against which the affirmative defense was asserted for a period of thirty days from the date on which the court dismissed the case as a result of the affirmative defense. Any statute of limitations applicable to the claim shall be tolled for forty-five days upon the dismissal of the case under this section.

             (3) The dismissal of an action as the result of the affirmative defense under this section does not impair, extinguish, discharge, satisfy, or otherwise affect the underlying obligation that is the basis of the claim against which the affirmative defense was asserted. However, the ability of a party to bring the claim based upon the obligation is delayed as set forth in subsection (2) of this section.

             (4) A person who has established an affirmative defense as set forth in subsection (1) of this section may dispute directly with a credit reporting agency operating in this state any item of information in the person's consumer file relating to the subject of the affirmative defense. The dispute shall be filed in accordance with RCW 19.182.090(6). If requested by the person under this subsection (4), the credit reporting agency shall furnish a statement, made in accordance with RCW 19.182.090(7), to the person and include the statement in the person's consumer file. The credit reporting agency may not charge the person a fee for the inclusion of this statement in the person's consumer file.

             (5)(a) The definitions in section 1 of this act apply to this section unless the context clearly requires otherwise.

             (b) As used in this section, unless the context clearly requires otherwise, "person" means a natural person or a small business as defined in RCW 19.85.020.

             (6) This section does not affect those transactions upon which a default has occurred before any disruption of financial or data transfer operations attributable to a year 2000 failure.

             (7) This section does not apply to or affect any contract that specifically provides for a year 2000 failure.

             (8) This section does not apply to any claim or cause of action filed after December 31, 2003.

             (9) This section expires December 31, 2006.


             NEW SECTION. Sec. 3. A new section is added to chapter 48.18 RCW to read as follows:

             (1) An insurer shall reinstate back to the effective date of cancellation, with no penalties or interest, any personal lines insurance policy, subject to this chapter, that was canceled for nonpayment of premium, if the named insured:

             (a) Provides notice to the insurer, no later than ten days after the effective date of cancellation, that the failure to pay the premium due for the insurance policy is caused by a year 2000 failure associated with an electronic computing device that is not under the named insured's dominion or control;

             (b) Establishes that a year 2000 failure occurred and that if it were not for the year 2000 failure, the named insured would have been able to pay the premium due in a timely manner;

             (c) Makes a premium payment to bring the insurance policy current as soon as possible, but no later than ten days after the year 2000 failure has been corrected or reasonably should have been corrected.

             (2) If the named insured fails to pay the premium due within ten days after the year 2000 failure has been corrected or reasonably should have been corrected, the insurer's previous notice of cancellation for nonpayment of premium remains effective.

             (3)(a) The definitions in section 1 of this act apply to this section unless the context clearly requires otherwise.

             (b) As used in this section, unless the context clearly requires otherwise, "named insurer" means a natural person or a small business as defined in RCW 19.85.020.

             (4) This section does not effect the cancellation of any insurance policy that is unrelated to a year 2000 failure, or occurs before any disruption of financial or data transfer operations attributable to the year 2000 failure.

             (5) This section does not apply to any claim or cause of action filed after December 31, 2003.

             (6) This section expires December 31, 2006.


             NEW SECTION. Sec. 4. A new section is added to chapter 51.04 RCW to read as follows:

             (1) No interest or penalties shall be imposed on any employer because of the failure to pay any premium required by this title to be made to the state treasury for the accident fund, the medical aid fund, the supplemental pension fund, or any other fund created under this title if the employer establishes that:

             (a) The failure to pay was caused, in whole or in part, by a year 2000 failure associated with an electronic computing device;

             (b) The year 2000 failure being asserted was not proximately caused by a failure of the employer to update an electronic computing device, that is under his or her dominion or control, to be year 2000 compliant; and

             (c) If it were not for the year 2000 failure, the employer would have been able to satisfy the payment of premiums in a timely manner.

             Payment of such premiums shall be made within thirty days after the year 2000 failure has been corrected or reasonably should have been corrected.

             (2)(a) The definitions in section 1 of this act apply to this section unless the context clearly requires otherwise.

             (b) As used in this section, unless the context clearly requires otherwise, "employer" means a natural person or a small business as defined in RCW 19.85.020.

             (3) This section does not affect those transactions upon which a default has occurred before any disruption of financial or data transfer operations attributable to a year 2000 failure.

             (4) This section does not apply to any claim or cause of action filed after December 31, 2003.

             (5) This section expires December 31, 2006.


             NEW SECTION. Sec. 5. A new section is added to chapter 82.32 RCW to read as follows:

             (1) Notwithstanding any other provision in this chapter, no interest or penalties may be imposed on any person because of the failure to pay excise taxes on or before the date due for payment if the person establishes that:

             (a) The failure to pay was caused, in whole or in part, by a year 2000 failure associated with an electronic computing device;

             (b) The year 2000 failure being asserted was not proximately caused by a failure of the person to update an electronic computing device, that is under his or her dominion or control, to be year 2000 compliant; and

             (c) If it were not for the year 2000 failure, the person would have been able to satisfy the payment of taxes in a timely manner.

             Payment of such taxes shall be made within thirty days after the year 2000 failure has been corrected or reasonably should have been corrected.

             (2)(a) The definitions in section 1 of this act apply to this section unless the context clearly requires otherwise.

             (b) As used in this section, unless the context clearly requires otherwise, "person" means a natural person or a small business as defined in RCW 19.85.020.

             (3) This section does not affect those transactions upon which a default has occurred before any disruption of financial or data transfer operations attributable to a year 2000 failure.

             (4) This section does not apply to any claim or cause of action filed after December 31, 2003.

             (5) This section expires December 31, 2006.


             NEW SECTION. Sec. 6. A new section is added to chapter 84.56 RCW to read as follows:

             (1) Notwithstanding any other provision in this chapter, no interest or penalties may be imposed on any person because of the failure to pay real or personal property taxes on or before the date due for payment if the person establishes that:

             (a) The failure to pay was caused, in whole or in part, by a year 2000 failure associated with an electronic computing device;

             (b) The year 2000 failure being asserted was not proximately caused by a failure of the person to update an electronic computing device, that is under his or her dominion or control, to be year 2000 compliant; and

             (c) If it were not for the year 2000 failure, the person would have been able to satisfy the payment of taxes in a timely manner.

             Payment of such taxes shall be made within thirty days after the year 2000 failure has been corrected or reasonably should have been corrected.

             (2)(a) The definitions in section 1 of this act apply to this section unless the context clearly requires otherwise.

             (b) As used in this section, unless the context clearly requires otherwise, "person" means a natural person or a small business as defined in RCW 19.85.020.

             (3) This section does not affect those transactions upon which a default has occurred before any disruption of financial or data transfer operations attributable to a year 2000 failure.

             (4) This section does not apply to any claim or cause of action filed after December 31, 2003.

             (5) This section expires December 31, 2006.


             NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


             On page 1, line 3 of the title, after "devices;" strike the remainder of the title and insert "adding a new section to chapter 4.22 RCW; adding a new section to chapter 4.24 RCW; adding a new section to chapter 48.18 RCW; adding a new section to chapter 51.04 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 84.56 RCW; providing expiration dates; and declaring an emergency."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment(s) to Engrossed House Bill No. 2015 and advanced the bill as amended by the Senate to final passage.


FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE


             The Speaker (Representative Ogden presiding) stated the question before the House to be final passage of Engrossed House Bill No. 2015 as amended by the Senate.


             Representatives Radcliff, Constantine, DeBolt and Carrell spoke in favor of passage of the bill as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 2015, as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

             Voting yea: Representatives Alexander, Anderson, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carlson, Carrell, B. Chandler, G. Chandler, Clements, Cody, Constantine, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Edwards, Eickmeyer, Ericksen, Esser, Fisher, Fortunato, Gombosky, Grant, Haigh, Hankins, Hatfield, Huff, Hurst, Kagi, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Lovick, Mastin, McDonald, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Pflug, Poulsen, Radcliff, Reardon, Regala, Rockefeller, Romero, Ruderman, Santos, Schindler, D. Schmidt, K. Schmidt, Schoesler, Schual-Berke, Skinner, D. Sommers, H. Sommers, Stensen, Sullivan, Sump, Talcott, Thomas, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Mr. Speaker Ballard and Mr. Speaker Chopp - 96.

             Excused: Representatives Quall and Scott - 2.


             Engrossed House Bill No. 2015, as amended by the Senate, having received the constitutional majority, was declared passed.


MESSAGES FROM THE SENATE

April 22, 1999

Mr. Speaker:


             The Senate refuses to concur in the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5626 and asks the House to recede therefrom, and the same is herewith transmitted.


Tony M. Cook, Secretary


             There being no objection, the House insisted on its position in its amendment(s) to Substitute Senate Bill No. 5626, and again asked the Senate to concur therein.


April 16, 1999

Mr. Speaker:


             The Senate refuses to concur in the House amendment(s) to ENGROSSED SENATE BILL NO. 5789 and asks the House to recede therefrom, and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the rules were suspended and Engrossed Senate Bill No. 5789 was returned to second reading for purpose of amendments.


SECOND READING


             Representative Mastin moved the adoption of amendment (242):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 43.105.020 and 1993 c 280 s 78 are each amended to read as follows:

             As used in this chapter, unless the context indicates otherwise, the following definitions shall apply:

             (1) "Department" means the department of information services;

             (2) "Board" means the information services board;

             (3) "Local governments" includes all municipal and quasi municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately;

             (4) "Director" means the director of the department;

             (5) "Purchased services" means services provided by a vendor to accomplish routine, continuing, and necessary functions. This term includes, but is not limited to, services acquired for equipment maintenance and repair, operation of a physical plant, security, computer hardware and software installation and maintenance, data entry, keypunch services, programming services, and computer time-sharing;

             (6) "Backbone network" means the shared high-density portions of the state's telecommunications transmission facilities. It includes specially conditioned high-speed communications carrier lines, multiplexors, switches associated with such communications lines, and any equipment and software components necessary for management and control of the backbone network;

             (7) "Telecommunications" means the transmission of information by wire, radio, optical cable, electromagnetic, or other means;

             (8) "Information processing" means the electronic capture, collection, storage, manipulation, transmission, retrieval, and presentation of information in the form of data, text, voice, or image and includes telecommunications and office automation functions;

             (9) "Information services" means data processing, telecommunications, and office automation;

  &