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

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NINETY-NINTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Monday, April 19, 1999

      The Senate was called to order at 10:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Finkbeiner, Gardner, Hargrove, Loveland, Patterson, Rasmussen, Sellar, Snyder, Thibaudeau and Winsley. On motion of Senator Jacobsen, Senator Loveland was excused. On motion of Senator Honeyford, Senator Sellar was excused. On motion of Senator Eide, Senators Rasmussen and Patterson were excused.

      The Sergeant at Arms Color Guard consisting of Pages Katie Lutes and Andrew McKay, presented the Colors. Jim Erlandson of the Reorganized Church of Latter-Day Saints of Olympia, offered the prayer.


MOTION


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

MESSAGES FROM THE GOVERNOR

GUBERNATORIAL APPOINTMENTS

March 2, 1999

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

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

      Gregory Costello, reappointed March 2, 1999, for a term ending January 1, 2005, as a member of the Forest Practices Appeals Board.

Sincerely,

GARY LOCKE, Governor

      Referred to the Committee on Natural Resources, Parks and Recreation.


April 1, 1999

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

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

      Jay Reich, appointed April 1, 1999, for a term ending September 30, 2000, as a member of the Board of Trustees for Central Washington University.

Sincerely,

GARY LOCKE, Governor

      Referred to the Committee on Higher Education.


April 5, 1999

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

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

      Reverend Stephen V. Sundborg, S.J., appointed April 5, 1999, for a term ending March 26, 2000, as a member of the Higher Education Facilities Authority.

Sincerely,

GARY LOCKE, Governor

      Referred to the Committee on Higher Education.


MESSAGES FROM THE HOUSE

April 16, 1999

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5029, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

DEAN R. FOSTER, Co-Chief Clerk


April 16, 1999

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5371, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

DEAN R. FOSTER, Co-Chief Clerk


April 16, 1999

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE JOINT MEMORIAL NO. 8013, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

DEAN R. FOSTER, Co-Chief Clerk




April 17, 1999

MR. PRESIDENT:

      The Co-Speakers have signed ENGROSSED SUBSTITUTE SENATE BILL NO. 5909, and the same is herewith transmitted.

DEAN R. FOSTER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk



April 17, 1999

MR. PRESIDENT:

      The Co-Speakers have signed:

      HOUSE BILL NO. 1142,

      SUBSTITUTE HOUSE BILL NO. 1219,

      ENGROSSED HOUSE BILL NO. 1264,

      HOUSE BILL NO. 1322,

      HOUSE BILL NO. 1330,

      HOUSE BILL NO. 1561,

      SECOND SUBSTITUTE HOUSE BILL NO. 1661,

      HOUSE BILL NO. 1664,

      HOUSE BILL NO. 1703,

      SUBSTITUTE HOUSE BILL NO. 1718,

      HOUSE BILL NO. 2081,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2095,

      HOUSE BILL NO. 2261, and the same are herewith transmitted.

DEAN R. FOSTER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk


SIGNED BY THE PRESIDENT


      The President signed:

      SUBSTITUTE SENATE BILL NO. 5029,

      ENGROSSED SENATE BILL NO. 5371,

      ENGROSSED SENATE JOINT MEMORIAL NO. 8013.


SIGNED BY THE PRESIDENT


      The President signed:

      HOUSE BILL NO. 1142,

      SUBSTITUTE HOUSE BILL NO. 1219,

      ENGROSSED HOUSE BILL NO. 1264,

      HOUSE BILL NO. 1322,

      HOUSE BILL NO. 1330,

      HOUSE BILL NO. 1561,

      SECOND SUBSTITUTE HOUSE BILL NO. 1661,

      HOUSE BILL NO. 1664,

      HOUSE BILL NO. 1703,

      SUBSTITUTE HOUSE BILL NO. 1718,

      HOUSE BILL NO. 2081,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2095,

      HOUSE BILL NO. 2261.


SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENT


MOTION


      On motion of Senator Goings, Gubernatorial Appointment No. 9187, Charles Davis, as a member of the Board of Pilotage Commissioners, was confirmed.


APPOINTMENT OF CHARLES DAVIS


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 6; Excused, 4.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Prentice, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, West, Wojahn and Zarelli - 39.

     Absent: Senators Finkbeiner, Gardner, Hargrove, Snyder, Thibaudeau and Winsley - 6.

     Excused: Senators Loveland, Patterson, Rasmussen and Sellar - 4.

 

MOTION


      At 10:12 a.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.


      The Senate was called to order at 1:32 p.m. by President Owen.


MOTION


      On motion of Senator Honeyford, Senators Hale, McDonald, Stevens and West were excused.

 

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENT

 

MOTION


      On motion of Senator Goings, Gubernatorial Appointment No. 9198, Andrew Palmer, as a member of the Board of Pilotage Commissioners, was confirmed.


APPOINTMENT OF ANDREW PALMER


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 5; Excused, 5.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Loveland, McAuliffe, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Swecker, Thibaudeau, Wojahn and Zarelli - 39.

     Absent: Senators Finkbeiner, Hargrove, Long, McCaslin and Winsley - 5.

     Excused: Senators Hale, McDonald, Sellar, Stevens and West - 5.

 

MOTION


      At 1:36 p.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.


      The Senate was called to order at 2:16 p.m. by President Owen.


MOTION


      On motion of Senator Honeyford, Senator Finkbeiner was excused.

 

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENT


MOTION


      On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9020, Leslie Jones, as a member of the Board of Trustees for Central Washington University, was confirmed.


APPOINTMENT OF LESLIE JONES


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

     Excused: Senators Finkbeiner and Sellar - 2.


SECOND READING


      SUBSTITUTE HOUSE BILL NO. 1125 by House Committee on Transportation (originally sponsored by Representatives Fisher, K. Schmidt, Radcliff, O'Brien, Fortunato, Eickmeyer, Hankins, Cooper, Murray, Wood and Mitchell) (by request of Governor Locke)


      Funding transportation.


      The bill was read the second time.


MOTION


      Senator Haugen moved that the following Committee on Transportation striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. (1) The transportation budget of the state is hereby adopted and, subject to the provisions hereinafter set forth, the several amounts hereinafter specified, or as much thereof as may be necessary to accomplish the purposes designated, are hereby appropriated from the several accounts and funds hereinafter named to the designated state agencies and offices for employee compensation and other expenses, for capital projects, and for other specified purposes, including the payment of any final judgments arising out of such activities, for the period ending June 30, 2001.

       (2) Legislation with fiscal impacts enacted in the 1997 or 1998 legislative session not assumed in this act are not funded in the 1997-99 transportation budget.

       (3) Legislation with fiscal impacts enacted in the 1999 legislative session not assumed in this act are not funded in the 1999-01 transportation budget.

       (4) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this act.

       (a) "Fiscal year 2000" or "FY 2000" means the fiscal year ending June 30, 2000.

       (b) "Fiscal year 2001" or "FY 2001" means the fiscal year ending June 30, 2001.

       (c) "FTE" means full-time equivalent.

       (d) "Lapse" or "revert" means the amount shall return to an unappropriated status.

       (e) "Provided solely" means the specified amount may be spent only for the specified purpose.

       (f) "Performance-based budgeting" means a budget that bases resource needs on quantified outcomes and results expected from use of the total appropriation. "Performance-based budgeting" does not mean incremental budgeting that focuses on justifying changes from the historic budget or to line-item input-driven budgets.

       (g) "Goals" means the statements of purpose that identify a desired result or outcome. The statements shall be realistic, achievable, directive, assignable, evaluative, and logically linked to the agency's mission and statutory mandate.

       (h) "Strategic plan" means the strategies agencies create for investment choices in the future. All agency strategic plans shall present alternative investment strategies for providing services.

       (i) "Enacted in the form passed by the legislature" means the referenced bill, as identified by a four-digit number, was:

       (i) Passed by the legislature and enacted either with no provisions vetoed by the governor or with only ministerial or de minimus changes resulting from a partial veto; or

       (ii) Attached in full onto another bill as an amendment and the entire bill, including the amendment, was passed by the legislature and enacted either with no provisions vetoed by the governor or with only ministerial or de minimus changes resulting from a partial veto.

       NEW SECTION. Sec. 2. The legislature recognizes that the 1999 endangered species act listing or proposed listing of salmonid species throughout the state of Washington may require increased operational and capital expenditures for transportation. As the state's fiscal obligations pursuant to the listing or proposed listing become clearer over time, it may be necessary to revisit funding decisions reflected in this act in order to shift resources to meet those obligations. The department of transportation, the transportation improvement board, and the county road administration board shall report to the legislature on December 1, 1999, on capital project delay impacts due to the endangered species act listing or proposed listing.


PART I

GENERAL GOVERNMENT AGENCIES--OPERATING


       NEW SECTION. Sec. 101. FOR THE DEPARTMENT OF AGRICULTURE

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           327,000

       The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The entire appropriation is provided solely for costs associated with the motor fuel quality program.

       NEW SECTION. Sec. 102. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           900,000


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

       (1) $103,000 of the appropriation is provided solely for the local government finance reporting system project. This amount shall lapse unless $207,000 is appropriated for this project from the state general fund; and

       (2) $202,000 of the appropriation is provided solely for the transportation infrastructure needs data base project. This amount shall lapse unless $200,000 is appropriated for this project from the state general fund and $200,000 is appropriated for this project from the public works trust fund.

       (3) $325,000 of the appropriation is provided solely for contracting with the office of the state auditor for the collection of local government fiscal data associated with the local government finance reporting system. In implementing the reporting system, the legislative evaluation and accountability program shall work with the local government finance study technical advisory committee. The committee shall include, but not be limited to, one member from the senate and one member from the house of representatives. An alternate legislator shall also be picked for each designated legislator to serve in the event that the designated legislator is unable to fulfill his or her duties on the committee. This amount shall lapse unless the legislature appropriates $325,000 for the same purpose by June 30, 1999, in the omnibus appropriations act.

       NEW SECTION. Sec. 103. FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Grade Crossing Protective Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           222,000

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

       (1) The utilities and transportation commission shall develop a competitive rail grade crossing safety grant program which will fully fund selected safety projects to the extent allowable under chapter 81.53 RCW.

       (2) Beginning on the effective date of this act through May 1, 2000, the utilities and transportation commission may not grant any new certificates under chapter 81.88 RCW in any areas where a public transportation system has been formed.

       NEW SECTION. Sec. 104. FOR THE STATE PARKS AND RECREATION COMMISSION

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           931,000

                              The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: A report of actual expenditures and descriptions of the expenditures from the motor vehicle fund will be submitted to the legislature with the governor's 2001-2003 biennial budget request.

       NEW SECTION. Sec. 105. FOR THE GOVERNOR--FOR TRANSFER TO THE TORT CLAIMS REVOLVING FUND

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           500,000

Marine Operating Account--State Appropriation.. . . . . . . . . . . . . . . . .$                                                                                                                           500,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                        1,000,000

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

       (1) The amount of the transfers from the transportation account and the marine operating account are to be transferred into the tort claims revolving fund only as claims have been settled or adjudicated to final conclusion and are ready for payout. The appropriations contained in this section are to retire tort obligations that occurred before July 1, 1990.

       (2) If House Bill No. 2111 or Senate Bill No. 5904 is enacted in the form passed by the legislature by June 30, 1999, the funding provided in this section shall lapse.

GENERAL GOVERNMENT AGENCIES--CAPITAL


       NEW SECTION. Sec. 106. FOR WASHINGTON STATE PARKS AND RECREATION--CAPITAL PROJECTS

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        4,990,000

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

       (1) $900,000 is a reappropriation provided to complete the Cama Beach project and the Damon point project funded in section 110, chapter 457, Laws of 1997. The projects shall be completed by June 30, 2001. Upon completion of these projects any surplus funding may be used for the projects listed in subsection (2) of this section.

       (2) $4,090,000 is a one-time appropriation provided solely for the following projects, apportioned as follows:

       (a) St. Edwards State Park, $1,500,000;

       (b) Ike Kinswa State Park, $300,000;

       (c) Mt. Spokane State Park, $1,500,000;

       (d) Beacon Rock State Park, $300,000;

       (e) Cama Beach State Park, $90,000; and

       (f) Lake Sammamish State Park, $400,000.

       These projects shall be completed by June 30, 2001. Progress reports shall be submitted to the senate transportation committee and the house of representatives transportation committee in January 2000 and January 2001.

       (3) The agency shall prepare and present a project status report to the senate transportation committee and the house of representatives transportation committee by December 31, 2000.

PART II

TRANSPORTATION AGENCIES


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

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$                                                                                                                           627,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      9,038,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           950,000

School Zone Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      1,004,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      11,619,000

       NEW SECTION. Sec. 202. FOR THE BOARD OF PILOTAGE COMMISSIONERS

Pilotage Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         290,000

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

Rural Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                    72,510,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        6,546,000

Motor Vehicle Account--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         376,000

County Arterial Preservation Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      28,612,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    108,044,000


       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $5,000,000 of the motor vehicle account--state appropriation is provided solely for projects for freight and goods systems on county roads.

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

Urban Arterial Trust Account--State Appropriation. . . . . . . .. . . . . . . .$                                                                                                                    104,508,000

Transportation Improvement Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      99,414,000

Public Transportation Systems Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      33,496,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    237,418,000

       NEW SECTION. Sec. 205. FOR THE SENATE

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,378,000

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

       (1) The appropriation in this section is provided solely to fund the activities of the senate transportation committee.

       (2) The senate transportation committee shall work during the 1999 interim with members of the senate ways and means committee to assess funding options for aviation.

       (3) The senate transportation committee shall evaluate the transportation functions currently performed by the utilities and transportation commission including but not limited to those regarding the issuance of certificates of public convenience and necessity for auto transportation companies.

       (4) A legislative task force consisting of one member from each caucus of the senate and one member from each caucus of the house of representatives shall conduct a road jurisdiction study. The legislative task force shall appoint a technical advisory panel consisting of representatives of cities, counties, and the department of transportation. The study shall include but not be limited to an examination of the following issues:

       (a) Whether changed conditions merit redesignation of certain local roadways as state routes and the return of certain state routes to local jurisdictions;

       (b) Alternatives to current revenue distribution methodologies for funding roadway and highway needs;

       (c) Determine roadway responsibilities, authorities, and practices by jurisdictional level; and

       (d) Evaluate governance issues associated with road jurisdiction.

       (5) $400,000 of the appropriation is provided solely for program accountability reviews of department of transportation, department of licensing, and Washington state patrol programs selected by the senate transportation committee.

       NEW SECTION. Sec. 206. FOR THE HOUSE OF REPRESENTATIVES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,378,000

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

       (1) The appropriation in this section is provided solely to fund the activities of the house of representatives transportation committee.

       (2) The house of representatives transportation committee shall evaluate the transportation functions currently performed by the utilities and transportation commission including but not limited to those regarding the issuance of certificates of public convenience and necessity for auto transportation companies.

       NEW SECTION. Sec. 207. FOR THE BLUE RIBBON COMMISSION ON TRANSPORTATION

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,000,000

       The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The $1,000,000 motor vehicle account--state appropriation is provided solely for the purpose of enabling the blue ribbon commission on transportation to fulfill its mission. The funds are to be administered by the senate transportation committee and the house of representatives transportation committee on behalf of the blue ribbon commission on transportation.

       NEW SECTION. Sec. 208. FOR THE MARINE EMPLOYEES COMMISSION

Puget Sound Ferry Operations Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           475,000

       NEW SECTION. Sec. 209. FOR THE TRANSPORTATION COMMISSION

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           807,000

       NEW SECTION. Sec. 210. FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           600,000

       The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: When approving projects, the freight mobility strategic investment board shall:

       (1) Emphasize funding projects according to their order on the prioritization list developed by the board;

       (2) Not allow the program's share of total project cost to exceed sixty-five percent unless the board grants a special exception;

       (3) Set a $50,000,000 cap on the amount it will authorize for any one project; and

       (4) Give a project a higher priority designation if project partners increase their funding and the board deems the reprioritization is appropriate.

       NEW SECTION. Sec. 211. FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

State Patrol Highway Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                    153,054,000

State Patrol Highway Account--

       Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      5,703,000

State Patrol Highway Account--

       Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           169,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    158,926,000

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

       (1) The following amounts are provided solely for administration of the field operations group subprogram: $117,395,000 of the state patrol highway account--state appropriation; $2,429,000 of the state patrol highway account--federal appropriation; and $81,000 of the state patrol highway account--private/local appropriation.

       (2) The following amounts are provided solely for the administration of the commercial vehicle division subprogram: $26,603,000 of the state patrol highway account--state appropriation; $3,274,000 of the state patrol highway account--federal appropriation; and $88,000 of the state patrol highway account--private/local appropriation.

       (3) $8,263,000 of the state patrol highway account--state appropriation is provided solely for the administration of the traffic investigation division subprogram.

       (4) $793,000 of the state patrol highway account--state appropriation is provided to the field operations group subprogram to implement Senate Bill No. 5706 or House Bill No. 1789 enacted in the form passed by the legislature. If neither Senate Bill No. 5706 nor House Bill No. 1789 is enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       (5) $1,400,000 of the state patrol highway account--state appropriation is provided solely to the field operations group subprogram as a one-time appropriation to begin funding phase III of the Washington state patrol's upgrade to the state-wide emergency communication system. The Washington state patrol shall provide a full analysis of the costs, benefits, and requirements for completing all phases of the upgrade to the state-wide emergency communication system to the senate transportation committee and the house of representatives transportation committee by December 1, 1999.

       NEW SECTION. Sec. 212. FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

State Patrol Highway Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      67,981,000

State Patrol Highway Account--

       Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         104,000

State Patrol Highway Account--

       Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           743,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      68,828,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $877,000 of the state patrol highway account--state appropriation is provided solely to maintain pursuit vehicles and provide for replacement of the vehicles at 110,000 miles. The agency may purchase a total of 354 pursuit vehicles during the biennium ending June 30, 2001. The appropriation in this section reflects carry forward and new funding due to the consolidation of gasoline, maintenance, parts, and pursuit vehicles into the fleet section of the support services bureau.

       NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICES

Motorcycle Safety Education Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           118,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                           50,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$                                                                                                                        6,021,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        4,595,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           613,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      11,397,000

       NEW SECTION. Sec. 214. FOR THE DEPARTMENT OF LICENSING--INFORMATION SYSTEMS

Motorcycle Safety Education Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           102,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                           46,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$                                                                                                                        5,197,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        3,641,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           513,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                        9,499,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $745,000 of the highway safety fund--state appropriation is a reappropriation of funds originally appropriated for the document scanner project in the 1997-99 biennium.

       NEW SECTION. Sec. 215. FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

Marine Fuel Tax Refund Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                             26,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         556,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      56,212,000

DOL Services Account--State Appropriation. . . .. . . . . . . . . . . . . . . . .$                                                                                                                        2,907,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      59,701,000

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

       (1) $81,138 of the motor vehicle account--state appropriation is provided solely to implement Senate Bill No. 5000 enacted in the form passed by the legislature. If Senate Bill No. 5000 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       (2) $272,000 of the motor vehicle account--state appropriation is provided solely to implement Senate Bill No. 5280 enacted in the form passed by the legislature. If Senate Bill No. 5280 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       (3) $82,000 of the motor vehicle account--state appropriation is provided solely to implement Senate Bill No. 5641 enacted in the form passed by the legislature. If Senate Bill No. 5641 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       (4) $300,000 of the motor vehicle account--state appropriation is provided solely to implement Senate Bill No. 6009 enacted in the form passed by the legislature. If Senate Bill No. 6009 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       NEW SECTION. Sec. 216. FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Motorcycle Safety Education Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,960,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$                                                                                                                      77,765,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      79,725,000

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

       (1) $2,880,000 of the highway safety account--state appropriation is provided solely for the department to enter into a contract for the implementation of an improved state driver's license and identicard. The contract with the vendor providing the improved license and identicard shall state that the license and the identicard shall not contain: (a) The driver's social security number in either visible or machine readable form; or (b) the driver's fingerprint or thumbprint. Consistent with RCW 42.17.260(9) the department shall not sell or otherwise make available any information that it gathers from citizens of the state of Washington in administering the driver's licensing program except as already authorized by RCW 46.20.118.

       (2) $5,140,000 of the highway safety account--state appropriation shall lapse if neither Senate Bill No. 6068 nor House Bill No. 2259 is enacted in the form passed by the legislature by June 30, 1999.

       (3) In September of 1999 the department of licensing shall report to the senate transportation committee and the house of representatives transportation committee on:

       (a) The controls implemented by the department to ensure the integrity and credibility of the written driver's license test administered by the department; and

       (b) The policies and procedures implemented by the department to ensure that the driver's manuals produced and distributed by the department contain correct data based on current federal, state, and local statutes, ordinances, and rules.

       (4) $610,000 of the highway safety fund--state appropriation is provided solely to implement House Bill No. 1147 enacted in the form passed by the legislature. If House Bill No. 1147 is not enacted in the form passed by the legislature by June 30, 1999, the amount provided in this subsection shall lapse.

       (5) $15,000 of the highway safety fund--state appropriation is provided solely to implement Senate Bill No. 6068 enacted in the form passed by the legislature. If Senate Bill No. 6068 is not enacted in the form passed by the legislature the amount referenced in this subsection shall lapse.

       (6) $17,000 of the highway safety fund--state appropriation is provided solely to implement House Bill No. 1774 enacted in the form passed by the legislature. If House Bill No. 1774 is not enacted in the form passed by the legislature the amount referenced in this subsection shall lapse.

       (7) $77,000 of the highway safety fund--state appropriation is provided solely to implement House Bill No. 2259 or Senate Bill No. 5373 enacted in the form passed by the legislature. If neither House Bill No. 2259 nor Senate Bill No. 5373 is enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       (8) $3,000 of the highway safety fund--state appropriation is provided solely to implement House Bill No. 1212 enacted in the form passed by the legislature. If House Bill No. 1212 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

       (9) $28,000 of the highway safety fund--state appropriation is provided solely to implement Senate Bill No. 5260 enacted in the form passed by the legislature. If Senate Bill No. 5260 is not enacted in the form passed by the legislature the amount referenced in this subsection shall lapse.

       (10) $34,000 of the highway safety fund--state appropriation is provided solely to implement Senate Bill No. 5374 enacted in the form passed by the legislature. If Senate Bill No. 5374 is not enacted in the form passed by the legislature the amount referenced in this subsection shall lapse.

       (11) If Senate Bill No. 6009 is enacted in the form passed by the legislature $335,000 of the highway safety fund--state appropriation shall lapse.

       NEW SECTION. Sec. 217. FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        5,140,000

       The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section shall lapse if Senate Bill No. 6068 or House Bill No. 2259 is enacted in the form passed by the legislature by June 30, 1999.

       NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      44,508,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                           400,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      44,908,000

       NEW SECTION. Sec. 219. FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

Aeronautics Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        4,010,000

Aircraft Search and Rescue Safety and

       Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           159,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           247,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                        4,416,000

       NEW SECTION. Sec. 220. FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    585,563,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                    234,939,000

Motor Vehicle Account--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                    43,344,000

High Capacity Transportation Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         110,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                    55,220,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    182,284,000

Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                      56,808,000

Puyallup Tribal Settlement Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        8,662,000

Transportation Infrastructure Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      1,750,000

Transportation Infrastructure Account--

       Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,750,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 1,170,430,000

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

       (1) The special category C account--state appropriation of $55,220,000 includes $40,500,000 in proceeds from the sale of bonds authorized by Senate Bill No. 5060 or House Bill No. 1203 enacted in the form passed by the legislature. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (2) The motor vehicle account--state appropriation includes $1,285,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1) for match on federal demonstration projects. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (3) The department shall report December 1st and June 1st of each year to the senate transportation committee and the house of representatives transportation committee and the office of financial management on the timing and the scope of work being performed for the regional transit authority known as sound transit. This report shall provide a description of all department activities related to the regional transit authority including investments in state-owned infrastructure.

       (4) The motor vehicle account--federal appropriation in this section is transferrable to the transportation account to ensure efficient funds management and program delivery.

       (5) The north Sumner interchange project shall be funded entirely from the motor vehicle account appropriation. The project shall no longer receive a portion of its funding from the economic development account.

       (6) $34,920,000 of the motor vehicle account--state appropriation is provided solely for the state program share of freight mobility projects as identified by the freight mobility strategic investment board. The amount provided in this subsection can only be expended upon authorization from the freight mobility strategic investment board.

       (7) The motor vehicle account--state appropriation includes $417,717,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (8) $500,000 of the motor vehicle account--state appropriation is provided solely for analysis of congestion solutions at the interchange between Mercer street and Interstate 5 in Seattle. The department's authority to expend the amount referenced in this subsection is contingent on the city of Seattle appropriating $500,000 or more toward the project.

       NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION ECONOMIC PARTNERSHIPS--PROGRAM K

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,362,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      10,162,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      11,524,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The motor vehicle fund--state appropriation includes $10,162,000 in proceeds from the sale of bonds authorized in RCW 47.10.834 for all forms of cash contributions, or the payment of other costs incident to the location, development, design, right of way, and construction of the Tacoma narrows bridge improvements under the public-private transportation initiative program authorized under chapter 47.46 RCW; and for support costs of the public-private transportation initiatives program.

       NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    251,827,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                           486,000

Motor Vehicle Account--Private/Local Appropriation. . . . . .. . . . . . . .$                                                                                                                        3,417,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    255,730,000

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

       (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations will be requested to restore state funding for ongoing maintenance activities.

       (2) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle fund--state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.

       NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    318,691,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                    284,587,000

Motor Vehicle Account--Private/Local Appropriation. . . . . .. . . . . . . .$                                                                                                                        3,117,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           121,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    605,516,000

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

       (1) The motor vehicle fund--state appropriation includes $6,650,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (2) The motor vehicle account--federal appropriation in this section is transferrable to the transportation account to ensure efficient funds management and program delivery.

       NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q

State Patrol Highway Account--State Appropriation. . . . . . .. . . . . . . .$                                                                                                                           221,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      37,085,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                        1,662,000

Motor Vehicle Account--Private/Local Appropriation. . . . . .. . . . . . . .$                                                                                                                           122,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      39,090,000

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

       (1) The motor vehicle account--state appropriation includes $4,324,000 for state matching funds for federally selected competitive grant or congressional earmark projects other than commercial vehicle information system and network (CVISN). These moneys shall be placed into reserve status until such time as federal funds are secured and a state match is required. If matching federal funds are not obtained by September 30, 2000, the amount provided in this subsection shall lapse.

       (2) The motor vehicle account--state appropriation includes $600,000 for a two-year pilot program for contracted roving service patrols. The department shall provide a progress report on this pilot program to the office of financial management, the senate transportation committee, and the house of representatives transportation committee on December 1, 2000. The pilot program will be evaluated with future direction and funding to be determined by the documented results and benefits of the pilot program.

       NEW SECTION. Sec. 225. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Puget Sound Capital Construction Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        4,464,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      98,450,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                           125,000

Puget Sound Ferry Operations Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        6,308,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,517,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    110,864,000

       The appropriations in this section are subject to the following conditions and limitations and the specified amount is provided solely for that activity: $586,000 of the motor vehicle account--state appropriation is provided solely to enable the secretary of transportation to implement a leadership training program at the department of transportation. The program shall include a mentoring component. The department shall develop performance measures to evaluate the effectiveness of the program, including but not limited to a performance measure to determine the effect of the program on employee retention. The department shall provide a progress report on the training program to the office of financial management, the senate transportation committee, and the house of representatives transportation committee by December 1, 2000.

       NEW SECTION. Sec. 226. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      12,609,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                      17,000,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,371,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      30,980,000

       NEW SECTION. Sec. 227. FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

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

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,595,000

Puget Sound Ferry Operations--State Appropriation. . . . . . . . . . . . . . .$                                                                                                                        1,155,000

       (2) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITOR

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           907,000

       (3) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        3,743,000

       (4) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNEL

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,240,000

       (5) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATION

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      12,039,000

       (6) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATION

Motor Vehicle Fund--Puget Sound Ferry Operations Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        3,462,000

       (7) FOR PAYMENT OF COSTS OF OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           315,000

       (8) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF GENERAL ADMINISTRATION STATE PARKING SERVICES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                             90,000

       (9) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION CAPITAL PROJECTS SURCHARGE

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,100,000

       (10) FOR ARCHIVES AND RECORDS MANAGEMENT

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           392,000

       NEW SECTION. Sec. 228. FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION--PROGRAM V

High Capacity Transportation Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        8,601,000

Air Pollution Control Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      5,253,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        6,687,000

Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                        2,445,000

Transportation Account--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         105,000

Public Transportation Systems Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,050,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                      25,141,000

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

       (1) Up to $1,000,000 of the transportation account--state appropriation is provided solely for grants and activities relating to coordinating special needs transportation among state and local providers. When selecting grant recipients, the agency council on coordinated transportation shall give priority to projects and programs that can be accomplished in the 1999-2001 biennium.

       (2) $50,000 of the public transportation systems account--state appropriation is provided solely to continue and enhance an existing pilot project between a public transit provider and a school district expanding public transit service to high school students in order to reduce the use of single occupancy vehicles.

       (3) The department shall assess its commute trip reduction program. The assessment shall include an evaluation of tax credits or other incentives to employers who reduce commute trips to their work sites by encouraging employees to telecommute. Up to $50,000 of the air pollution control account--state appropriation is provided for a pilot project implementing telecommuting as part of the commute trip reduction program. The pilot project may include use of tax credits or other financial incentives.

       (4) In evaluating applications for rural mobility grants to public transportation agencies, the department shall give added weight to projects that improve connectivity among transit providers and across jurisdictional boundaries.

       NEW SECTION. Sec. 229. FOR THE DEPARTMENT OF TRANSPORTATION--WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

Puget Sound Capital Construction Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                    140,135,000

Puget Sound Capital Construction Account--

       Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                    29,575,000

Passenger Ferry Account--State Appropriation. . . . . . . . . . . . . . . . . . .$                                                                                                                           789,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    116,221,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    286,720,000

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

       (1) The appropriations in this section, unless otherwise specified, are provided to carry out only the projects in the Washington state ferries capital program plan - version 3. The department shall reconcile the 1997-99 capital expenditures within ninety days of the end of the biennium and submit a final report to the senate transportation committee, the house of representatives transportation committee, and the office of financial management.

       (2) The Puget Sound capital construction account--state appropriation includes $27,000,000 in proceeds from the sale of bonds authorized by RCW 47.60.800 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries. The transportation commission may authorize the use of current revenues available to the Puget Sound capital construction account in lieu of bond proceeds for any part of the state appropriation.

       (3) $1,500,000 of the motor vehicle account--state appropriation is provided solely for preliminary engineering activities to develop a new class of auto/passenger ferries. The design specifications for the vessels shall require that the vessels deliver optimal performance in terms of vessel speed, safety, reliability, and minimization of environmental impacts including damage on the shoreline from the wake of the vessels. The vessels are intended to ensure Washington state ferries compliance with applicable international and domestic vessel safety standards and the Americans with disabilities act on identified routes. This class of ferries should have a single adaptable design able to operate efficiently and effectively on different ferry routes, each of which has specific vessel capacity and handling requirements.

       (a) Washington state ferries shall prepare:

       (i) A conceptual design outlining the owner's functional requirements;

       (ii) A design report that includes a budget estimate and outline of specifications and plans;

       (iii) Specific contractual requirements and specifications;

       (iv) An evaluation of using the request for proposals process in accordance with RCW 47.56.030;

       (v) A request for interest to provide a propulsion system for this vessel class; and

       (vi) An exploration of a public private partnership between Washington state ferries, shipbuilders, and their supporting engineering firms for design and construction of the vessel or vessels.

       (b) Washington state ferries shall report to the legislature by December 1, 1999, on the conceptual design criteria and budget estimates for preferred hull design and propulsion system/engine alternatives. The report shall include recommended statutory changes that the legislature would need to enact in order to proceed with acquisition of this class of vessels.

       (4) The motor vehicle account--state appropriation includes $96,721,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       NEW SECTION. Sec. 230. FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Marine Operating Account--State Appropriation.. . . . . . . . . . . . . . . . .$                                                                                                                    303,158,000

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

       (1) The appropriation is based on the budgeted expenditure of $29,104,000 for vessel operating fuel in the 1999-2001 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

       (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 1999-2001 biennium may not exceed $205,759,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $341.75 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for the respective fiscal year, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 1999-2001 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

       The prescribed salary and insurance benefit increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 1999, and thereafter, as established in the 1999-2001 general fund operating budget.

       (3) Up to $2,770,000 of the marine operating account--state appropriation may be used for leasing and operating an appropriate passenger only ferry vessel for the purpose of supporting existing, or testing new, passenger only service while testing alternative vessel technologies.

       NEW SECTION. Sec. 231. FOR THE DEPARTMENT OF TRANSPORTATION-- RAIL--PROGRAM Y

Essential Rail Assistance Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                             85,000

High Capacity Transportation Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        9,094,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    110,715,000

Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                        5,000,000

Public Transportation Systems Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        5,000,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    129,894,000

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

       (1) No appropriation in this section may be used to fund rail passenger service south of Portland, Oregon.

       (2) $5,000,000 of the transportation account--state appropriation and $2,000,000 of the high capacity transportation account--state appropriation are provided solely for the freight rail assistance program to provide grants and loans for light density rail lines.

       (3) $4,000,000 of the transportation account--state appropriation is provided solely for acquisition of an additional advanced technology train set for delivery in the 2001-2003 biennium. The purchase of the train set is predicated on the condition that the manufacturer of the train set has the obligation of establishing or maintaining a corporate office in Washington state. The manufacturer is also obligated to spend a minimum of twenty-five percent of the total purchase price of the train set on the assembly and manufacture of parts of the train set in Washington state.

       (4) $6,298,000 of the high capacity transportation account--state appropriation is provided to fund the operation of a second train set providing additional roundtrip service from Seattle to Vancouver, British Columbia. The department's authority to expend the appropriation referenced in this subsection for service north of Blaine is conditioned upon Canada, the province of British Columbia, and/or private sources undertaking the capital expenditures necessary to make the rail capital improvements required to facilitate improved round trip rail service between Seattle and Vancouver, B.C.

       (5) $15,000,000 of the transportation account--state appropriation is provided solely for the King street maintenance facility to be built in partnership with Amtrak. The amount referenced in this subsection is conditioned on the execution of agreements between the department of transportation, Amtrak, sound transit, and other participating parties which will assure that the maintenance and operation of the maintenance facility will not require state funding, except for billings for maintenance of state owned passenger trains.

       (6) To the greatest extent practicable, expenditure of funds shall maximize funds from partnerships and coordinate with other agencies investing in track improvements.

       NEW SECTION. Sec. 232. FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                    134,886,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . .$                                                                                                                        8,040,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      10,767,000

Transportation Infrastructure Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      3,250,000

Transportation Infrastructure Account--

       Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,750,000

High Capacity Transportation Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         150,000

Highway Infrastructure Account--Federal

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      1,500,000

Highway Infrastructure Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         234,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    160,577,000

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

       (1) $300,000 of the transportation account--state appropriation is provided solely to establish alternatives for flood management and flood hazard reduction projects in the Chehalis basin.

       (a) The department of transportation shall convene a technical committee to develop watershed-based solutions to flooding within the Chehalis basin. The technical committee shall be comprised of representatives of the department of transportation, department of ecology, department of fish and wildlife, the department of community, trade, and economic development, the military department's emergency management division, and affected counties and tribes. The department of transportation shall also seek the participation of the United States army corps of engineers, federal emergency management administration, the United States geological survey, the United States fish and wildlife service, the United States environmental protection agency, and other entities with critical knowledge related to the structural or nonstructural flood hazard reduction projects in the Chehalis basin. Funds shall be distributed by the department of transportation for alternative analysis, mapping, and model testing projects as recommended by the technical committee. The solutions considered by the technical committee shall be consistent with fish and habitat recovery efforts and avoid additional flood hazard to downstream communities. The department of transportation shall present a report to the senate transportation committee and the house of representatives transportation committee by December 1, 1999, regarding findings and progress made by funded projects.

       (b) If the federal government makes funds available to accomplish the project described in (a) of this subsection, the department of transportation shall place the appropriation identified in this section in reserve.

       (2) $85,121,000 of the motor vehicle account--state appropriation is provided solely for the state program share of freight mobility projects as identified by the freight mobility strategic investment board. The amount provided in this subsection can only be expended upon authorization from the freight mobility strategic investment board.

       (3) $400,000 of the transportation account--state appropriation is provided solely for a study by the senate transportation committee and the house or representatives transportation committee in cooperation with the port of Benton developing a strategic corridor feasibility and master site plan for the port of Benton. If the port of Benton does not provide at least $200,000 to fund the plan development, the transportation fund--state appropriation referenced in this subsection shall lapse and this subsection shall be null and void.

       (4) The motor vehicle account--state appropriation includes $121,288,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (5) $10,000,000 of the transportation account--state appropriation is provided solely to fund a cooperative project with the state of Oregon to dredge the Columbia river. The department shall not expend the appropriation in this section without first reaching an agreement with affected stakeholders on where the dredge spoils will be deposited. The amount provided in this subsection shall lapse unless the state of Oregon appropriates a dollar-for-dollar match to fund its share of the project.

       (6) The motor vehicle account--state appropriation includes $1,167,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1). The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (7) $5,000,000 of the motor vehicle account--state appropriation is provided solely for a small city pavement preservation program, to be administered by the department's TransAid division. The department, in consultation with stakeholders, shall establish program guidelines. The guidelines should include but not be limited to a provision limiting program eligibility to cities with a population of 2,500.

       (8) $30,000,000 of the motor vehicle account--state appropriation is provided solely for a corridor congestion relief program, to be administered by the department's TransAid division. The purpose of the program is to provide funding for congested urban corridors, as defined and selected by the department of transportation in consultation with cities, counties, regional transportation planning organizations, and the transportation improvement board. At a minimum, project selection criteria should include: Consistency with regional transportation plans; measurable improvements in mobility; cost effectiveness; systemic corridor mobility improvements rather than isolated "spot" improvements; and optimal timing for construction.

       (9) $5,000,000 of the motor vehicle account--state appropriation is provided solely for improving traffic and pedestrian safety near schools. The TransAid division within the department of transportation shall administer this program. Funds should be used for traffic and pedestrian improvements near schools, including roadway channelization and signalization.

       (10) The TransAid division within the department of transportation shall develop a prequalification procedure for potential bidders on projects administered or approved by the board. The board shall work with other interested parties including but not limited to associations representing general contractors and the office of minority and women's business enterprises. The prequalification procedure's goal is to ascertain that bidders are qualified by experience, financing, equipment, and organization to do the work called for in the contract documents. The prequalification procedure may require a bidder to (1) satisfy threshold requirements established by the board prior to being furnished a proposal form on any contract; or (2) complete a preaward survey of the bidder's qualification prior to award.

       (11) Up to $100,000 of the motor vehicle account--state appropriation is provided solely for audits of city and county transportation funding to determine whether any city or county has supplanted its local transportation funding with state funding provided under sections 408 and 409 of this act. The department shall report the results of this audit to the senate transportation committee, the house of representatives transportation committee, and the office of financial management by December 31, 2000.

PART III

TRANSPORTATION AGENCIES CAPITAL FACILITIES


       NEW SECTION. Sec. 301. FOR THE WASHINGTON STATE PATROL

Appropriation:

       State Patrol Highway Account--State Appropriation. . . . . . . . . . . . $                                                                                                                      2,328,000

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

       (1) $508,000 of the state patrol highway account--state appropriation funds minor works which include communication tower maintenance, Spokane district headquarters HVAC, Morton HVAC replacement, emergency repairs, and Anacortes scale repairs.

       (2) $500,000 of the state patrol highway account--state appropriation is provided for the Naselle detachment office.

       (3) $615,000 of the state patrol highway account--state appropriation is provided for repaving the academy drive course.

       (4) $275,000 of the state patrol highway account--state appropriation is provided for the squawk mountain communication tower.

       (5) $380,000 of the state patrol highway account--state appropriation is provided for the replacement of two traffic control aircraft.

       (6) $50,000 of the state patrol highway account--state appropriation is provided for the ridgefield expansion design and the academy hookup fee for waste treatment.

       NEW SECTION. Sec. 302. The Washington state patrol is authorized to continue with the exchange of the Olympia, Washington Martin Way property for a light industrial land complex to be used to consolidate existing separately located state activities and functions. The agency will work with the office of financial management, department of general administration, the senate transportation committee, and the house of representatives transportation committee in the exchange and approval processes.

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                      25,312,000

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

       (1) Before any funds are expended for the transportation facility to be located in Tumwater, Washington, the director of general administration shall conduct an evaluation of the planned facility design and budget using life-cycle cost analysis, value-engineering, and other techniques to maximize the long-term effectiveness and efficiency of the facility or improvement as required under RCW 43.82.010(10). Furthermore, the director shall present the findings of the evaluation to the fiscal committees of the house of representatives and the senate by December 31, 1999.

       (2) Up to $100,000 of the motor vehicle account--state appropriation may be expended by the department of general administration to conduct an analysis of future transportation-related facility office space needs in Thurston county, by agency, for the next ten years. The analysis shall consult with state agencies, private developers, and building owners to determine the inventory of space available and planned over the next ten years in government and nongovernment buildings, and the impact on current office space. The predesign must be completed by January 31, 2000.


PART IV

TRANSFERS AND DISTRIBUTIONS


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

Highway Bond Retirement Account Appropriation. . . . . . . .. . . . . . . . . . . . . . . . .$                                                                                                  213,600,000

Ferry Bond Retirement Account Appropriation. .. . . . . . . . . . . . . . . . .$                                                                                                                      53,353,000

Transportation Improvement Board Bond Retirement

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      35,158,000

Puget Sound Capital Construction Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         270,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        6,543,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         405,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                    309,329,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity. If Senate Bill No. 5283 or House Bill No. 1304 is enacted in the form passed by the legislature by June 30, 1999, then $35,158,000 of the highway bond retirement account appropriation shall lapse. If neither Senate Bill No. 5283 nor House Bill No. 1304 is enacted in the form passed by the legislature by June 30, 1999, then the appropriation for the transportation improvement board bond retirement account shall lapse.

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

Motor Vehicle Fund--Puget Sound Capital Construction

       Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                             36,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                           811,000

Special Category C Account Appropriation. . . . .. . . . . . . . . . . . . . . . .$                                                                                                                             53,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                           900,000

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

Motor Vehicle Fund Appropriation for

       motor vehicle fuel tax and overload

       penalties distribution.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                    492,721,000

Transportation Fund Appropriation for

       motor vehicle excise tax distribution. . . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                    491,606,000

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

       Motor Vehicle Fund--State Patrol Highway Account:

For transfer to the Department of

       Retirement Systems Expense Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         171,000

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

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

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

       (1) RV Account--State Appropriation:

For transfer to the Motor Vehicle Fund--State. . .. . . . . . . . . . . . . . . . .$                                                                                                                        1,590,000

       (2) Transportation Account--State Appropriation:

For transfer to the Transportation Infrastructure

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

       NEW SECTION. Sec. 408. FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

Motor Vehicle Fund--State Appropriation

       for distribution to the cities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      12,500,000

Motor Vehicle Fund--State Appropriation

       for distribution to the counties. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      12,500,000

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

       (1) The motor vehicle fund--state appropriation for distribution to cities is provided solely to be distributed to cities with a population of over two thousand five hundred in a manner consistent with RCW 46.68.110(4) in one distribution on March 1, 2000.

       (2) The motor vehicle fund--state appropriation for distribution to the counties is provided solely to be distributed in a manner consistent with RCW 46.68.122 in one distribution on March 1, 2000.

       (3) The amounts provided in this section may not be used to supplant any existing local government funding for transportation projects or programs. Any local government in violation of this requirement shall immediately forfeit its eligibility for future distributions provided under this section.

       NEW SECTION. Sec. 409. FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

Motor Vehicle Fund--State Appropriation

       for distribution to the cities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      12,500,000

Motor Vehicle Fund--State Appropriation

       for distribution to the counties. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      12,500,000

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

       (1) The motor vehicle fund--state appropriation for distribution to cities is provided solely to be distributed to cities with a population of over two thousand five hundred in a manner consistent with RCW 46.68.110(4) in one distribution on March 1, 2001.

       (2) The motor vehicle fund--state appropriation for distribution to the counties is provided solely to be distributed in a manner consistent with RCW 46.68.122 in one distribution on March 1, 2001.

       (3) The amounts provided in this section may not be used to supplant any existing local government funding for transportation projects or programs. Any local government in violation of this requirement shall immediately forfeit its eligibility for future distributions provided under this section.

       NEW SECTION. Sec. 410. The office of the state treasurer is authorized to transfer any transportation improvement account and urban arterial trust account balances available in the highway bond retirement account into the transportation improvement board bond retirement account following a cooperative agreement by the department of transportation and the transportation improvement board on the exact amount of the transfer.

       NEW SECTION. Sec. 411. The motor vehicle account revenues are received at a relatively even flow throughout the year. Expenditures may exceed the revenue during the accelerated summer and fall highway construction season, creating a negative cash balance during the heavy construction season. Negative cash balances also may result from the use of state funds to finance federal advance construction projects prior to conversion to federal funding. The governor and the legislature recognize that the department of transportation may require interfund loans or other short-term financing to meet temporary seasonal cash requirements and additional cash requirements to fund federal advance construction projects.

       NEW SECTION. Sec. 412. In addition to such other appropriations as are made by this act, there is appropriated to the department of transportation from legally available bond proceeds in the respective transportation funds and accounts such amounts as are necessary to pay the expenses incurred by the state finance committee in the issuance and sale of the subject bonds.

       NEW SECTION. Sec. 413. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS. The department of transportation shall make the following transfers contingent on passage of the bills referenced in each proviso as identified by bill number in the form passed by the legislature:

       (1) If Senate Bill No. 5615 or House Bill No. 1588 is enacted in the form passed by the legislature the department of transportation shall transfer:

       (a) The balances remaining at the close of the 1997-99 biennium in the economic development account and the transportation capital facilities account to the motor vehicle account--state; and

       (b) The balance remaining at the close of fiscal year 2000 in the marine operating account to the Puget Sound ferry operations account.

       (2) If neither Senate Bill No. 5615 nor House Bill No. 1588 is enacted in the form passed by the legislature the department of transportation is authorized to transfer any balances available in the highway construction stabilization account to the motor vehicle account to fund the appropriations contained in this act.

       NEW SECTION. Sec.414. FOR THE TRANSPORTATION IMPROVEMENT BOARD--TRANSFERS. The transportation improvement board shall make the following transfers contingent on passage of the bills referenced in each proviso as enacted in the form passed by the legislature:

       (1) If Senate Bill No. 5360 or House Bill No. 1053 is enacted in the form passed by the legislature the transportation improvement board shall transfer the balances remaining at the close of the 1997-99 biennium in the small city account and the city hardship assistance account to the urban arterial trust account.

       (2) If Senate Bill No. 5615 or House Bill No. 1588 is enacted in the form passed by the legislature the transportation improvement board shall transfer:

       (a) The balances remaining at the close of the 1997-99 biennium in the small city account and the city hardship assistance account to the urban arterial trust account; and

       (b) The balance remaining at the close of the 1997-99 biennium in the central Puget Sound public transportation systems account to the public transportation systems account.

       (3) If Senate Bill No. 5283 is enacted in the form passed by the legislature the transportation improvement board shall agree upon what amount of the balance remaining in the highway bond retirement account at the close of the 1997-99 biennium is apportioned to the transportation improvement board. That amount shall be transferred from the highway bond retirement account to the transportation improvement board bond retirement account.


PART V

1997-99 SUPPLEMENTAL APPROPRIATIONS

General Government Agencies--Capital


       Sec. 501. 1997 c 457 s 110 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE PARKS AND RECREATION--CAPITAL PROJECTS

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                        3,500,000

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

       (1) The entire appropriation is for the repaving of roadways in the following state parks in the 1997-99 biennium:

       (a) Moran state park, $1,800,000;

       (b) Cama Beach state park, $300,000;

       (c) Riverside state park, $640,000;

       (d) Steamboat Rock state park, $225,000;

       (e) Damon Point state park, $485,000; and

       (f) Deception Pass state park, $50,000.

       (2) ((This is a one time appropriation with the repaving efforts to be completed in the parks by June 30, 1999.)) The repaving contracts will be awarded by competitive bid using department of transportation standards. Progress reports will be prepared and presented to the legislative transportation committees in January 1999. Upon completion of the contracts for the parks listed in subsection (1)(a), (c), (d), and (f) of this section, unspent moneys from those contracts may be used for design of paving projects on the agency's 1999-01 biennium pavement project list.

       (3) If any of the parks listed in subsection (1) of this section are closed during the 1997-99 biennium, the amount provided for the park under subsection (1)(a) through (f) of this section shall lapse and return to the motor vehicle fund.


Transportation Agencies


       Sec. 502. 1997 c 457 s 204 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Motor Vehicle Fund--Urban Arterial Trust

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      57,159,000

Motor Vehicle Fund--Transportation Improvement

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                    122,014,000

Motor Vehicle Fund--City Hardship Assistance

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,649,000

Motor Vehicle Fund--Small City Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                   ((7,921,000))

9,921,000

Central Puget Sound Public Transportation

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      27,360,000

Public Transportation Systems Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        3,928,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                               ((221,031,000))

223,031,000

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

       Sec. 503. 1998 c 348 s 203 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

Motor Vehicle Fund--State Patrol Highway

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                               ((163,789,000))

166,035,000

Motor Vehicle Fund--State Patrol Highway

       Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                   ((4,374,000))

4,688,000

Motor Vehicle Fund--State Patrol Highway

       Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           170,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                        4,522,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                               ((172,855,000))

175,415,000

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

       (1) The Washington state patrol is authorized to use the federal community oriented policing program (COPS) for 54 troopers with 18 COPS troopers to begin in July 1998 and 36 COPS troopers to begin in January 1999.

       (2) $4,463,000 of the transportation fund--state appropriation and $3,737,000 of the motor vehicle fund--state patrol highway account--state appropriation are provided for an equalization salary adjustment of three percent on July 1, 1997, and six percent on July 1, 1998, for commissioned officers (entry level trooper through captain), commercial vehicle enforcement officers, and communication officers of the Washington state patrol. The salary adjustments are intended to bring the existing salary levels into the fiftieth percentile of other Washington state law enforcement compensation plans. This is in addition to the salary increase contained in the omnibus appropriation bill or bills. The total of the two increases, in the transportation budget and omnibus appropriation bill or bills, may not exceed twelve percent.

       (3) The Washington state patrol will develop a vehicle replacement plan for the next six years. The plan will include an analysis of the current 100,000 miles replacement policy and agency assignment policy. Projected future budget requirements will include forecasts of vehicle replacement costs, vehicle equipment costs, and estimated surplus vehicle values when sold at auction.

       (4) The Washington state patrol vessel and terminal security (VATS) program will be funded by the state patrol highway fund beginning July 1, 1997, and into future biennia.

       (5) A personnel data base will be maintained of the 801 commissioned traffic law enforcement officers, with a reconciliation at all times to the patrol allocation model and a vehicle assignment and replacement plan.

       (6) $150,000 of the state patrol highway account appropriation is to fund the Washington state patrol's portion of the drug recognition expert training program previously funded by the traffic safety commission.

       (7) The Washington state patrol with legislative transportation committee staff will perform an interim study of the Washington state patrol's commercial vehicle enforcement program with a report to be presented to the legislature and office of financial management in January 1998 with a developed business plan and program recommendations which includes, but is not limited to, weigh in motion technologies.

       (8)(a) The Washington state patrol, in consultation with the Washington traffic safety commission, shall conduct an analysis of the most effective safety devices for preventing accidents while delivery trucks are operating in reverse gear. The analysis shall focus on trucks equipped with cube-style, walk-in cargo boxes, up to eighteen feet long, that are most commonly used in the commercial delivery of goods and services.

       (b) The state patrol shall incorporate research and analysis currently being conducted by the national highway traffic safety administration.

       (c) Upon completion of the analysis, the state patrol shall forward its recommendations to the legislative transportation committee and office of financial management.

       (9) $381,000 of the transportation fund--state appropriation is provided for the following traditional general fund purposes: The governor's air travel, the license fraud program, and the special services unit. This transportation fund--state appropriation is not a permanent funding source for these purposes.

       (10) $461,000 of the state patrol highway account appropriation is provided solely for monitoring and stopping fuel tax evasion. The Washington state patrol will report on December 1, 1998, to the legislative transportation committee on the activities and revenue collected associated with fuel tax evasion.

       (11) $289,000 of the state patrol highway account appropriation is provided solely for vehicle license fraud investigation. A report will be presented each session to the legislature on the activities and revenue collected by the vehicle license fraud unit.

       (12) $268,000 of the motor vehicle fund--state patrol highway account is provided solely to cover the employer's share of medicare premiums for commissioned officers hired prior to 1986. If a referendum of these officers does not receive majority support this appropriation shall not be expended by the state patrol.

       (13) $105,000 of the motor vehicle fund--state patrol highway account--state appropriation and $314,000 of the motor vehicle fund--state patrol highway account--federal appropriation are provided solely for laptop personal computers, peripheral equipment, and necessary software for existing community oriented policing program (COPS) troopers.

       (14) $2,300,000 of the motor vehicle fund--state patrol highway account--state appropriation is provided solely to purchase 100 equipped pursuit vehicles. If the transportation fund--state appropriation reduction described in section 504(9) of this act does not take place, the amount provided in this subsection shall lapse. If the state patrol does not purchase the vehicles prior to June 30, 1999, the amount provided in this subsection shall lapse.

       Sec. 504. 1998 c 348 s 205 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

Motor Vehicle Fund--State Patrol Highway

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      52,926,000

Motor Vehicle Fund--State Patrol Highway

       Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           104,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                   ((2,513,000))

214,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((55,543,000))

53,244,000

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

       (1) $1,017,000 for the state patrol highway account--state appropriation is provided solely for year 2000 conversions of transportation automated systems. For purposes of this subsection, transportation automated systems does not include WASIS and WACIS.

       (2) $50,000 of the state patrol highway account--state appropriation is provided solely for a feasibility study to assess the effect of mobile computers on trooper productivity by type of service and measurement of the productivity gains achieved through reduction in administrative time and paperwork processing. The agency shall submit a copy of the proposed study workplan to the office of financial management, the department of information services, and the legislative transportation committee no later than October 1, 1997. A final report shall be submitted to the legislative transportation committee, the office of financial management, and the department of information services no later than January 31, 1998. This project is subject to the provisions of section 502 of this act.

       (3) $50,000 of the state patrol highway account--state appropriation is provided solely for a review of the feasibility of improving the patrol's computer-aided dispatch system to permit tracking of trooper availability and response time to calls for service. The agency shall submit a copy of the proposed study workplan to the office of financial management, the department of information services, and the legislative transportation committee no later than October 1, 1997. A final report shall be submitted to the legislative transportation committee, the office of financial management, and the department of information services no later than January 31, 1998. This project is subject to the provisions of section 502 of this act.

       (4) These appropriations maintain current level funding for the Washington state patrol service center and have no budget savings included for a consolidation of service centers based on the study conducted by the technology management group. During the 1997 interim, the costs for current level will be reviewed by the office of financial management and department of information services with a formal data center recommendation, that has been approved by the information services board, to the legislature in January 1998. Current level funding will be split between fiscal year 1998 and fiscal year 1999 with consideration of funding adjustments based on the review and the formal policy and budget recommendations.

       (5) $2,513,000 of the transportation fund--state appropriation is for the following traditional general fund purposes: The executive protection unit, revolving fund charges, budget and fiscal services, computer services, personnel, human resources, administrative services, and property management. This appropriation is not a permanent funding source for these purposes.

       (6) $22,000 of the motor vehicle fund--state patrol highway account appropriation is provided solely to cover the employer's share of medicare premiums for commissioned officers hired prior to 1986. If a referendum of these officers does not receive majority support this appropriation shall not be expended by the state patrol.

       (7) The 1998 Washington state patrol interim working group shall review the data center, electronic services division, communications division, and strategic planning and shall provide recommendations on increasing the effectiveness and efficiencies of the programs under review and audit.

       (8) $1,580,000 of the state patrol highway account--state appropriation is provided solely for the transition of the Washington state patrol mainframe data processing functions to the Washington state department of information services data center in Olympia, Washington. The Washington state patrol and the department of information services shall work cooperatively to ensure the transition to the department of information services is completed successfully.

       (9) The transportation fund--state appropriation is reduced by $2,299,000 to correct a double appropriation.

       Sec. 505. 1998 c 348 s 207 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--INFORMATION SYSTEMS

Highway Safety Fund--Motorcycle Safety Education

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                             94,000

General Fund--Wildlife Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                           42,000

Highway Safety Fund--State Appropriation. . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((10,732,000))

8,218,000

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                   ((5,610,000))

4,735,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                           441,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((16,919,000))

13,530,000

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

       Sec. 506. 1998 c 348 s 208 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

General Fund--Marine Fuel Tax Refund Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                             26,000

General Fund--Wildlife Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         549,000

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((49,630,000))

49,615,000

Department of Licensing Services Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,944,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((53,149,000))

53,134,000

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

       (1) $600,000 of the licensing service account--state appropriation is provided for replacement of printers for county auditors and subagents.

       (2) The department of licensing, in cooperation with the fuel tax advisory committee, shall prepare and submit a report to the legislative transportation committee containing recommendations for special fuel and motor vehicle fuel recordkeeping and reporting requirements, including but not limited to recommendations regarding the form and manner in which records and tax reports must be maintained and made available to the department; which persons engaged in the business of selling, purchasing, distributing, storing, transporting, or delivering fuel should be required to submit periodic reports regarding the disposition of such fuel; and the feasibility of implementing an automated fuel tracking system. The report is due no later than October 31, 1997.

       (3) The department of licensing, in cooperation with representatives of local governments and the department of revenue shall analyze the collection of the local option fuel tax under RCW 82.80.010. Based on that analysis the department of licensing shall offer recommendations regarding the appropriate government entity to collect the local option fuel tax and the best method to accomplish that collection. The department of licensing shall report its findings and recommendations to the legislative transportation committee and the office of financial management by December 1, 1998.

       (4) The department of licensing, in conjunction with the interagency commission on outdoor recreation, the department of transportation, and other affected entities, shall conduct a study and make recommendations regarding:

       (a) Whether the study required by RCW 43.99.030 to determine what portion of the motor vehicle fuel tax collected is tax on marine fuel is an effective and efficient mechanism for determining what portion of fuel tax revenues should be refunded to the marine fuel tax refund account;

       (b) Other possible methodologies for determining the appropriate amount of tax revenue to refund from the motor vehicle fund to the marine tax refund account; and

       (c) Whether the tax on fuel used by illegally nonregistered boats should be refunded to the marine tax refund account.

       The department of licensing shall make a report of its findings and recommendations to the legislative transportation committee and the office of financial management by December 1, 1998.

       (5) $382,000 of the motor vehicle fund--state appropriation is provided solely to implement Substitute House Bill No. 2659. If Substitute House Bill No. 2659 is not enacted by June 30, 1998, this amount shall lapse.

       Sec. 507. 1998 c 348 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Highway Safety Fund--Motorcycle Safety Education

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,411,000

Highway Safety Fund--State Appropriation. . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((61,087,000))

59,869,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                        4,985,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((64,112,000))

66,265,000

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

       (1) $225,000 of the highway safety account--state appropriation is provided solely to implement Substitute House Bill No. 2442 or Senate Bill No. 6190. If neither bill is enacted by June 30, 1998, this amount shall lapse.

       (2) $480,000 of the highway safety account--state appropriation is provided solely to implement Senate Bill No. 6165. If Senate Bill No. 6165 is not enacted by June 30, 1998, this amount shall lapse.

       (((6))) (3) $1,000,000 of the highway safety account--state appropriation is provided solely to implement 1998 legislation that changes statutes relating to driving under the influence. If legislation changing the DUI statutes is not enacted by June 30, 1998, this amount shall lapse.

       Sec. 508. 1997 c 457 s 215 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D--OPERATING

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

24,436,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                           400,000

Motor Vehicle Fund--Transportation Capital

       Facilities Account--State Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                 ((24,338,000))

24,330,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((49,441,000))

49,166,000

       Sec. 509. 1998 c 348 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

Motor Vehicle Fund--Economic Development Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        2,434,000

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                               ((163,275,000))

123,575,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                    155,485,000

Motor Vehicle Fund--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                    40,000,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                               ((73,271,000))

65,471,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                               ((230,546,000))

225,546,000

Puyallup Tribal Settlement Account--State

        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      5,000,000

Puyallup Tribal Settlement Account--Private/Local

        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         200,000

High Capacity Transportation Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      1,401,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                               ((671,612,000))

619,112,000

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

       (1) The special category C account--state appropriation of (($73,271,000)) $65,471,000 includes $26,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812 through 47.10.817 ((and includes $12,000,000 in proceeds from the sale of bonds authorized by House Bill No. 1012)). The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. ((If House Bill No. 1012 is not enacted by June 30, 1998, $7,800,000 of the special category C account--state appropriation shall lapse.))

       (2) The motor vehicle fund--state appropriation includes $2,685,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1) for match on federal demonstration projects. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (3) The department shall report annually to the legislative transportation committee on the status of the projects funded by the special category C appropriations contained in this section. The report shall be submitted by January 1 of each year.

       (4) The motor vehicle fund--state appropriation in this section includes $600,000 solely for a rest area and information facility in the Nisqually gateway area to Mt. Rainier, provided that at least forty percent of the total project costs are provided from federal, local, or private sources. The contributions from the nonstate sources may be in the form of in-kind contributions including, but not limited to, donations of property and services.

       (5) The appropriations in this section contain $118,247,000 reappropriation from the 1995-97 biennium.

       (6) The motor vehicle fund--state appropriation in this section includes $250,000 to establish a wetland mitigation pilot project. This appropriation may only be expended if the department of transportation establishes a technical committee to better implement the department's strategic plan. The technical committee shall include, but is not limited to, cities, counties, environmental groups, business groups, tribes, the Puget Sound action team, and the state departments of ecology, fish and wildlife, and community, trade, and economic development, and appropriate federal agencies. The committee shall assist the department in implementing its wetland strategic plan, including working to eliminate barriers to improved wetland and watershed management. To this end, the technical committee shall: (a) Work to facilitate sharing of agency environmental data, including evaluation of off-site and out-of-kind mitigation options; (b) develop agreed-upon guidance that will enable the preservation of wetlands that are under imminent threat from development for use as an acceptable mitigation option; (c) develop strategies that will facilitate the implementation of mitigation banking, including developing mechanisms for valuing and transferring credits; (d) provide input in the development of wetland functions assessment protocols related to transportation projects; (e) develop incentives for interagency participation in joint mitigation projects within watersheds; and (f) explore options for funding environmental mitigation strategies. The department shall prepare an annual report to the legislative transportation committee and legislative natural resources committees on recommendations developed by the technical committee.

       (7) The department shall report January 1st and July 1st of each year, to the legislative transportation committee and the office of financial management of the timing and the scope of work being performed for the regional transit authority. This report shall provide a description of all department activities related to the regional transit authority including investments in state-owned infrastructure.

       (8) The translake study funded in this section shall include recommendations to address methods for mitigating traffic noise in the study area.

       (9) Funding for the SR 509 project extending south and east from south 188th street in King county is contingent on the development of a proposal linking the project to other freight corridors and a funding plan with participation from partners of the state that are agreed to by the legislative transportation committee and the governor.

       (10) The motor vehicle account--federal appropriation in this section is transferrable to the transportation account to ensure efficient funds management and program delivery.

       (11) $2,000,000 of the motor vehicle fund--state appropriation is provided solely for transfer to the advanced environmental mitigation revolving account--state.

       (((14))) (12) $13,000,000 of the motor vehicle fund--state appropriation and $12,000,000 of the transportation fund--state appropriation are provided solely for preliminary engineering and purchase of right of way for highway construction.

       (((15) $35,000,000 of the motor vehicle fund--state appropriation is conditioned upon voter approval of a referendum on a state-wide ballot that provides funding for transportation purposes. If the voters approve such a referendum, $35,000,000 of the motor vehicle fund--state appropriation is put in reserve solely to be used for the purposes of preliminary engineering and purchase of right of way for highway construction. These moneys may only be expended upon approval of both the legislative transportation committee and the office of financial management.))

       (13) The department may advertise and award certain specified projects prior to June 30, 1999. This authority extends to the 10 projects listed in the transportation executive information system document titled "1999 Supplemental Budget — Spring Start Projects (Rev.)" dated March 13, 1999.

       Sec. 510. 1998 c 348 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION ECONOMIC PARTNERSHIPS--PROGRAM K

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                   ((1,280,000))

1,255,000

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                      16,235,000

       TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                 ((17,515,000))

17,490,000

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

       (1) The motor vehicle fund--state appropriation includes $16,235,000 in proceeds from the sale of bonds authorized in RCW 47.10.834 for all forms of cash contributions, or the payment of other costs incident to the location, development, design, right of way, and construction of only the SR 16 corridor improvements and park and ride projects selected under the public-private transportation initiative program authorized under chapter 47.46 RCW; and support costs of the public-private transportation initiatives program.

       (2) The appropriations in this section contain $16,235,000 reappropriated from the 1995-97 biennium.

       Sec. 511. 1998 c 348 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                               ((239,200,000))

237,013,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                           465,000

Motor Vehicle Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      3,335,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                               ((243,000,000))

240,813,000

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

       (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations will be requested to restore state funding for ongoing maintenance activities.

       (2) The department shall deliver the highway maintenance program according to the plans for each major maintenance group to the extent practical. However, snow and ice expenditures are highly variable depending on actual weather conditions encountered. If extraordinary winter needs result in increased winter maintenance expenditures, the department shall, after prior consultation with the transportation commission, the office of financial management, and the legislative transportation committee adopt one or both of the following courses of action: (a) Reduce planned maintenance activities in other groups to offset the necessary increases for snow and ice control; or (b) continue delivery as planned within other major maintenance groups and request a supplemental appropriation in the following legislative session to fund the additional snow and ice control expenditures.

       (3) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle fund--state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.

       (4) Funding appropriated for local storm water charges assessed under RCW 90.03.525, which is allocated for, but not paid to, a local storm water utility because the utility did not meet the conditions provided under RCW 90.03.525, may be transferred by the department to program Z of the department to be distributed as grants under the storm water grant program.

       Sec. 512. 1998 c 348 s 214 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                               ((288,720,000))

285,220,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                    274,259,000

Motor Vehicle Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      2,400,000

       TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                               ((568,379,000))

561,879,000

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

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

       (2) The appropriations in this section contain $27,552,000 reappropriated from the 1995-97 biennium.

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

       (((6))) (4) $630,000 of the motor vehicle fund--state appropriation is provided for slope stabilization along state route 166 in the Ross Point vicinity. This amount is intended to fund preliminary engineering, right of way acquisition, and to begin construction.

       Sec. 513. 1998 c 348 s 215 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q

State Patrol Highway Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         153,000

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((30,412,000))

29,982,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,000,000

Motor Vehicle Fund--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         275,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((31,840,000))

31,410,000

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

       (1) The department, in cooperation with the Washington state patrol and the tow truck industry, shall develop and submit to the legislative transportation committee by October 31, 1997, a recommendation for implementing new tow truck services during peak hours on the Puget Sound freeway system.

       (2) The department, in cooperation with the Washington state patrol, the department of licensing, the state of Oregon, and the United States department of transportation, shall install and operate the commercial vehicle information systems and network (CVISN) at a selected pilot site. If the state department of transportation receives additional federal funding for this project that is eligible to supplant state funding, the appropriation in this section shall be reduced by the amount of the state funds supplanted.

       Sec. 514. 1998 c 348 s 216 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Motor Vehicle Fund--Puget Sound Capital

       Construction Account--State Appropriation.. . . . . . . . . . . . . . . . .$                                                                                                                           777,000

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((70,032,000))

69,685,000

Motor Vehicle Fund--Puget Sound Ferry Operations

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,093,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                        1,158,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((73,060,000))

72,713,000

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

       (1)(a) The motor vehicle fund--state appropriation includes $14,300,000 provided solely for programming activities and other efforts needed to bring the department's information systems, and devices with computers built into them, into compliance with the year 2000 requirements of the department of information services. The department is directed to expend the moneys internally reallocated for this purpose before spending from this appropriation. The department is directed to provide quarterly reports on this effort to the legislative transportation committee and the office of financial management beginning October 1, 1997.

       (b) Up to $2,900,000 of the amount provided in (a) of this subsection may be expended for testing and required modifications to electronic devices and other equipment and specialized software that are essential for department operations to ensure they are year 2000 compliant. Before expending any of this amount for these purposes, the department shall consult with the legislative transportation committee and the office of financial management.

       (2) The legislative transportation committee shall review and analyze freight mobility issues affecting eastern and southeastern Washington as recommended by the freight mobility advisory committee and report back to the legislature by November 1, 1997. $500,000 of the motor vehicle fund--state appropriation is provided for this review and analysis. The funding conditioned in this subsection shall be from revenues provided for interjurisdictional studies.

       (3) In order to increase visibility for decision making, the department shall review its budgeting and accounting methods for management information systems. The review shall include, but not be limited to, the cost-benefit analysis of existing processes and evaluation of less complex alternatives such as direct appropriations. The results of the review shall be reported to the legislative transportation committee and the office of financial management by July 1, 1998.

       Sec. 515. 1997 c 457 s 223 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((16,098,000))

15,884,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                      10,466,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                   ((1,384,000))

1,379,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((27,948,000))

27,729,000

       The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: Up to $2,400,000 of the motor vehicle fund--state appropriation is provided for regional transportation planning organizations, with allocations for participating counties maintained at the 1995-1997 biennium levels for those counties not having metropolitan planning organizations within their boundaries.

       Sec. 516. 1998 c 348 s 217 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

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

((Motor Vehicle Fund--State Appropriation         . . . . . . . . . . . . . . . . .$                                                                                                                     2,515,000))

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                        3,715,000

       (2) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITOR

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                           840,000

       (3) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICES

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                        3,391,000

       (4) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNEL

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                   ((2,240,000))

2,140,000

       (5) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATION

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                      12,535,000

       (6) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATION

Motor Vehicle Fund--Puget Sound Ferry Operations

                              Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      2,928,000

       (7) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                           536,000

       (8) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF GENERAL ADMINISTRATION STATE PARKING SERVICES

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                             90,000

       (9) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION CAPITAL PROJECTS SURCHARGE

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                           735,000

       (10) FOR ARCHIVES AND RECORDS MANAGEMENT

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                           355,000

       Sec. 517. 1998 c 348 s 218 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

Motor Vehicle Fund--Puget Sound Capital

       Construction Account--State Appropriation.. . . . . . . . . . . . . . . . .$                                                                                                               ((209,886,000))

192,886,000

Motor Vehicle Fund--Puget Sound Capital

       Construction Account--Federal

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                    30,165,000

Motor Vehicle Fund--Puget Sound Capital

       Construction Account--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         765,000

Transportation Fund--Passenger Ferry Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           640,000

                                           TOTAL APPROPRIATION. . . . . . . . . . . .$                                                                                                               ((241,456,000))

224,456,000

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

       (1) The appropriations in this section are provided to carry out only the projects (version ((3)) 2) adjusted by the legislature for the 1997-99 budget. The department shall reconcile the 1995-97 capital expenditures within ninety days of the end of the biennium and submit a final report to the legislative transportation committee and office of financial management.

       (2) The Puget Sound capital construction account--state appropriation includes $100,000,000 in proceeds from the sale of bonds authorized by RCW 47.60.800 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries, including construction of new jumbo ferry vessels in accordance with the requirements of RCW 47.60.770 through 47.60.778. However, the department of transportation may use current revenues available to the Puget Sound capital construction account in lieu of bond proceeds for any part of the state appropriation.

       (3) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the capital program authorized in this section.

       (4) Washington state ferries is authorized to reimburse up to $3,000,000 from the Puget Sound capital construction account--state appropriation or Puget Sound capital construction account--federal appropriation to the city of Bremerton and the port of Bremerton for Washington state ferries' financial participation in the development of a Bremerton multimodal transportation terminal, port of Bremerton passenger-only terminal expansion, and ferry vehicular connections to downtown traffic circulation improvements. The reimbursement shall specifically support the construction of the following components: Appropriate passenger-only ferry terminal linkages to accommodate bow-loading catamaran type vessels and the needed transit connections; and the Washington state ferries' component of the Bremerton multimodal transportation terminal as part of the downtown Bremerton redevelopment project, including appropriate access to the new downtown traffic circulation road network.

       (5) The Puget Sound capital construction account--state appropriation includes funding for capital improvements on vessels to meet United States Coast Guard Subchapter W regulation revisions impacting SOLAS (safety of life at sea) requirements for ferry operations on the Anacortes to Sidney, B.C. ferry route.

       (6) The Puget Sound capital construction account--state appropriation, the Puget Sound capital construction account--federal appropriation, and the passenger ferry account--state appropriation include funding for the construction of one new passenger-only vessel and the department's exercise of the option to build a second passenger-only vessel. In accordance with chapter 166, Laws of 1998, Washington state ferries shall accelerate activities to ensure the acquisition of four additional passenger-only vessels and the construction of related terminal facilities, including maintenance facilities for the Southworth and Kingston to Seattle passenger-only ferry routes.

       (7) The Puget Sound capital construction account--state appropriation includes funding for the exploration and acquisition of a design for constructing a millennium class ferry vessel.

       (8) The Puget Sound capital construction account--state appropriation includes $90,000 for the purchase of defibrillators. At least one defibrillator shall be placed on each vessel in the ferry fleet.

       (9) The appropriations in this section contain $46,962,000 reappropriated from the 1995-97 biennium.

       Sec. 518. 1998 c 348 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Marine Operating Fund--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                               ((270,522,000))

270,473,000

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

       (1) The appropriation is based on the budgeted expenditure of (($28,696,000)) $27,076,000 for vessel operating fuel in the 1997-99 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

       (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 1997-99 biennium may not exceed (($179,095,000)) $180,715,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $313.95 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for the respective fiscal year, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 1997-99 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

       The prescribed salary and insurance benefit increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 1997, and thereafter, as established in the 1997-99 general fund operating budget.

       (3) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the operating program authorized in this section.

       (4) The appropriation in this section includes up to $1,566,000 for additional operating expenses required to comply with United States Coast Guard Subchapter W regulation revisions for vessels operating on the Anacortes to Sidney, B.C. ferry route. The department shall explore methods to minimize the cost of meeting United States Coast Guard requirements and shall report the results to the legislative transportation committee and office of financial management by September 1, 1997.

       (5) The department shall request a reduction of the costs associated with the use of the terminal leased from the Port of Anacortes and costs associated with use of the Sidney, British Columbia terminal.

       (6) Agreements between Washington state ferries and concessionaires for automatic teller machines on ferry terminals or vessels shall provide for and include banks and credit unions that primarily serve the west side of Puget Sound.

       (7) In the event federal funding is provided for one or more passenger-only ferry vessels for the purpose of transporting United States naval personnel, the department of transportation is authorized to acquire and construct such vessels in accordance with the authority provided in RCW 47.56.030, and the department shall establish a temporary advisory committee comprised of representatives of the Washington state ferries, transportation commission, legislative transportation committee, office of financial management, and the United States Navy to analyze and make recommendations on, at a minimum, vessel performance criteria, docking, vessel deployment, and operating issues.

       (8) The appropriation provides funding for House Bill No. 2165 (paying interest on retroactive raises for ferry workers).

       (9) The commission is authorized to increase Washington state ferry tariffs in excess of the fiscal growth factor, established under chapter 43.135 RCW, in fiscal year 1998 and fiscal year 1999.

       (10) Funding for Anacortes to Sidney advertising is contingent upon partners meeting their commitment. In no event may the state share exceed fifty percent of the cash contribution toward the project.

       (11) $1,370,000 of this appropriation is provided solely for the Hiyu operation for Southworth/Vashon 5 days per week for 16 hours per day. Prior to placing the Hiyu in permanent service on a route between Vashon and Southworth, the Washington state ferries shall conduct a study of the impact of additional service on Vashon and Southworth and report back to the legislative transportation committee by May 15, 1998.

       (12) $446,000 of this appropriation is provided solely to provide an additional crew member on Jumbo Mark 2 ferries as required by emergency evacuation regulations adopted by the United States Coast Guard. If the Coast Guard requirement can be met without the hiring of additional staff, the portion of this appropriation provided to meet that requirement shall not be expended.

       Sec. 519. 1998 c 348 s 220 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION AND RAIL--PROGRAM Y

Essential Rail Assistance Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         256,000

High Capacity Transportation Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                               ((13,225,000))

13,185,000

Air Pollution Control Account--State

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                      6,290,000

Transportation Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                 ((55,029,000))

46,858,000

Transportation Fund--Federal Appropriation. . . .. . . . . . . . . . . . . . . . .$                                                                                                                        3,947,000

Transportation Fund--Private/Local

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         105,000

Central Puget Sound Public Transportation

       Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                   ((4,250,000))

250,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((83,102,000))

70,891,000

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

       (1) Up to $46,180,000 of the transportation fund--state appropriation is provided for intercity rail passenger service including up to $8,000,000 for lease purchase of two advanced technology train sets with total purchase costs not to exceed $20,000,000; up to $1,000,000 for one spare advanced technology train power-car and other spare parts, subsidies for operating costs not to exceed $12,000,000, to maintain service of two state contracted round trips between Seattle and Portland and one state contracted round trip between Seattle and Vancouver, British Columbia, and capital projects necessary to provide Seattle-Vancouver, British Columbia, train operating times of under 4 hours.

       (2) Up to $3,000,000 of the transportation fund--state appropriation is provided for the rural mobility program administered by the department of transportation. Priority for grants provided from this account shall be given to projects and programs that can be accomplished in the 1997-99 biennium.

       (3) Up to $600,000 of the high capacity transportation account--state appropriation is provided for rail freight coordination, technical assistance, and planning.

       (4) The department shall provide biannual reports to the legislative transportation committee and office of financial management regarding the department's rail freight program. The department shall also notify the committee for project expenditures from all fund sources prior to making those expenditures. The department shall examine the ownership of grain cars and the potential for divestiture of those cars and other similar assets and report those findings to the committee prior to the 1998 legislative session.

       (5) Up to $750,000 of the transportation fund--state appropriation and up to $250,000 of the central Puget Sound public transportation account--state appropriation are provided to fund activities relating to coordinating special needs transportation among state and local providers. These activities may include demonstration projects, assessments of resources available versus needs, and identification of barriers to coordinating special needs transportation. The department will consult with the superintendent of public instruction, the secretary of the department of social and health services, the office of financial management, the fiscal committees of the house of representatives and senate, special needs consumers, and specialized transportation providers in meeting the goals of this subsection.

       (6) The appropriations in this section contain $4,599,000 reappropriated from the 1995-97 biennium.

       (7) The high capacity transportation account--state appropriation includes $75,000 for the department to develop a strategy and to identify how the agency would expend additional moneys to enhance the commute trip reduction program. The report would include recommendations for grant programs for employers and jurisdictions to reduce SOV usage and to provide transit incentives to meet future commute trip reduction requirements. The report is due to the legislative transportation committee by January 1, 1998.

       (8) In addition to the appropriations contained in this section, the office of financial management shall release the $2,000,000 transportation fund--state funds appropriated for the intercity rail passenger program in the 1995-97 biennium but held in reserve pursuant to section 502, chapter 165, Laws of 1996.

       (9) Up to $150,000 of the transportation fund--state appropriation is provided for the management and control of the transportation corridor known as the Milwaukee Road corridor owned by the state between Ellensburg and Lind, and to take actions necessary to allow the department to be in a position, with further legislative authorization, to begin to negotiate a franchise with a rail carrier to establish and maintain a rail line over portions of the corridor by July 1, 1999.

       (((11))) (10) $4,000,000 of the high capacity transportation account--state appropriation for passenger rail infrastructure improvement is provided solely for rail improvements to add rail passenger service north of Seattle. These funds are conditioned on match of at least equal amounts from both Burlington Northern Sante Fe and Amtrak for rail line improvements and upon Amtrak purchasing an additional train set for operation in the corridor. These funds shall not be expended until authorized by the legislative transportation committee and the office of financial management; and the participation of international partners in service provided in the corridor shall be considered in such a decision.

       Sec. 520. 1998 c 348 s 221 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z

Motor Vehicle Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . .$                                                                                                                   ((9,802,000))

9,862,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                      33,726,000

High Capacity Transportation Account--

       State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      ((650,000))

450,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$                                                                                                                        1,175,000

                              TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$                                                                                                                 ((45,353,000))

45,213,000

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

       (1) The motor vehicle fund--state appropriation includes $1,785,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1). The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

       (2) As a condition of receiving the full state subsidy in support of the Puget Island ferry, Wahkiakum county must, by December 31, 1997, increase ferry fares for passengers and vehicles by at least ten percent. If the fares are not increased to meet this requirement, the department, in determining the state subsidy after December 31, 1997, shall reduce the operating deficit by the amount that would have been generated if the ten percent fare increase had been implemented.

       (3) The appropriations in this section contain $1,750,000 reappropriated from the 1995-97 biennium.

       (4) Up to $500,000 of the high capacity transportation account--state appropriation is provided for implementation of the recommendations of the freight mobility advisory committee, and any legislation enacted resulting from those recommendations.

       (5) $175,000 of the transportation fund--state appropriation is provided solely to fund the freight mobility strategic investment board. If Second Substitute House Bill No. 2180 is not enacted by June 30, 1998, this amount shall lapse.

       (6) The transportation account--state appropriation includes $600,000 to establish alternatives for flood management and flood hazard reduction projects in the Chehalis Basin. A technical committee comprised of the department of transportation, department of ecology, the United States army corps of engineers, federal emergency management administration, United States geological survey, affected counties and tribes, and other entities with critical knowledge related to flood hazard reduction projects in the Chehalis Basin shall be formed. Funds shall be distributed to counties within the Chehalis Basin by the department of transportation for projects that further understanding of the causes of flooding and options for flood hazard reduction. Alternatives shall be consistent with fish and habitat recovery efforts. Projects funded shall be coordinated with the technical committee. The department of transportation shall present a report to the legislative transportation committee and other appropriate legislative committees regarding findings and/or progress made by funded projects by December 1, 1998.

       (((8))) (7) $750,000 of the motor vehicle fund--state appropriation is provided solely for a median barrier upon the Spokane street viaduct. Use of this funding is contingent upon a commitment of funding from other partners for the remainder of the project cost.

       (((9))) (8) Up to $150,000 of the high capacity transportation account--state appropriation is provided for the installation of active railroad crossing warning devices at the Sunnyside beach park entrance in Steilacoom.

       (((10))) (9) $400,000 of the transportation fund--state appropriation is provided solely for a study by the legislative transportation committee, in cooperation with the port of Benton, developing a strategic corridor feasibility and master site plan for the port of Benton. If the port of Benton does not provide at least $200,000 to fund the plan development, the transportation fund--state appropriation referenced in this subsection shall lapse and this subsection shall be null and void


.                                                                                        Transportation Agencies Capital Facilities


       Sec. 521. 1997 c 457 s 303 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

Motor Vehicle Fund--Transportation Capital

       Facilities Account--State Appropriation. . . . . . . . . . . . . . . . . . . . .$                                                                                                                 ((21,696,000))

                                                                                                                                                                                                                                         21,261,000

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

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

       (2) Construction of the Mount Rainier storage facility shall not commence until the department has secured an operational lease that would allow the placement of the facility on United States forest service lands near the entrance to the Mather memorial parkway.

       (3) The appropriation in this section contains $7,719,000 reappropriated from the 1995-97 biennium.


Transfers and Distributions


       Sec. 522. 1998 c 348 s 402 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

Motor Vehicle Fund--Puget Sound Capital

       Construction Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           500,000

Motor Vehicle Fund Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                           130,000

Transportation Improvement Account

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         200,000

Special Category C Account Appropriation. . . . .. . . . . . . . . . . . . . . . .$                                                                                                                           190,000

Transportation Capital Facilities Account

       Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                             1,000

Urban Arterial Account Appropriation. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                             5,000

                                           TOTAL APPROPRIATION. . . . . . . . . . . .$                                                                                                                   ((1,995,000))

1,026,000

       Sec. 523. 1998 c 348 s 404 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--TRANSFERS

       (1) R V Account--State Appropriation:

For transfer to the Motor Vehicle Fund--State. . .. . . . . . . . . . . . . . . . .$                                                                                                                        1,176,000

       (2) Motor Vehicle Fund--State Appropriation:

For transfer to the Transportation Capital

       Facilities Account--State. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                      42,569,000

       (3) ((Small City Account--State Appropriation:

For transfer to the Transportation Improvement

       Account--State. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                   7,500,000))

       Motor Vehicle Fund--State Appropriation:

For transfer to the Highway Infrastructure

       Account--State. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                         234,000

       Sec. 524. 1997 c 457 s 403 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

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

Motor Vehicle Fund Appropriation for motor

       vehicle fuel tax and overload penalties

       distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                                    471,937,000

Transportation Fund Appropriation for motor vehicle

       excise tax distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$                                                                                                 ((3,744,000))

118,747,000

                                           TOTAL APPROPRIATION. . . . . . . . . . . .$                                                                                                               ((475,881,000))

590,884,000


Miscellaneous


       NEW SECTION. Sec. 525. A new section is added to 1997 c 457 (uncodified) to read as follows:

       INFORMATION SYSTEMS PROJECTS. Agencies shall comply with the following requirements regarding information systems projects when specifically directed to do so by this act.

       (1) Agency planning and decisions concerning information technology shall be made in the context of its information technology portfolio. "Information technology portfolio" means a strategic management approach in which the relationships between agency missions and information technology investments can be seen and understood, such that: Technology efforts are linked to agency objectives and business plans; the impact of new investments on existing infrastructure and business functions are assessed and understood before implementation; and agency activities are consistent with the development of an integrated, nonduplicative state-wide infrastructure.

       (2) Agencies shall use their information technology portfolios in making decisions on matters related to the following:

       (a) System refurbishment, acquisitions, and development efforts;

       (b) Setting goals and objectives for using information technology in meeting legislatively-mandated missions and business needs;

       (c) Assessment of overall information processing performance, resources, and capabilities;

       (d) Ensuring appropriate transfer of technological expertise for the operation of any new systems developed using external resources; and

       (e) Progress toward enabling electronic access to public information.

       (3) The agency shall produce a feasibility study for information technology projects at the direction of the information services board and in accordance with published department of information services policies and guidelines. At a minimum, such studies shall include a statement of: (a) The purpose or impetus for change; (b) the business value to the agency, including an examination and evaluation of benefits, advantages, and cost; (c) a comprehensive risk assessment based on the proposed project's impact on both citizens and state operations, its visibility, and the consequences of doing nothing; (d) the impact on agency and state-wide information infrastructure; and (e) the impact of the proposed enhancements to an agency's information technology capabilities on meeting service delivery demands.

       (4) The agency shall produce a comprehensive management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan(s) shall include, but is not limited to, the following elements: A description of the problem or opportunity that the information technology project is intended to address; a statement of project objectives and assumptions; a definition and schedule of phases, tasks, and activities to be accomplished; and the estimated cost of each phase. The planning for the phased approach shall be such that the business case justification for a project needs to demonstrate how the project recovers cost or adds measurable value or positive cost benefit to the agency's business functions within each development cycle.

       (5) The agency shall produce quality assurance plans for information technology projects. Consistent with the direction of the information services board and the published policies and guidelines of the department of information services, the quality assurance plan shall address all factors critical to successful completion of the project and successful integration with the agency and state information technology infrastructure. At a minimum, quality assurance plans shall provide time and budget benchmarks against which project progress can be measured, a specification of quality assurance responsibilities, and a statement of reporting requirements. The quality assurance plans shall set out the functionality requirements for each phase of a project.

       (6) A copy of each feasibility study, project management plan, and quality assurance plan shall be provided to the department of information services, the office of financial management, and legislative fiscal committees. The plans and studies shall demonstrate a sound business case that justifies the investment of taxpayer funds on any new project, an assessment of the impact of the proposed system on the existing information technology infrastructure, the disciplined use of preventative measures to mitigate risk, and the leveraging of private-sector expertise as needed. Authority to expend any funds for individual information systems projects is conditioned on the approval of the relevant feasibility study, project management plan, and quality assurance plan by the department of information services and the office of financial management.

       (7) Quality assurance status reports shall be submitted to the department of information services, the office of financial management, and legislative fiscal committees at intervals specified in the project's quality assurance plan.

       NEW SECTION. Sec. 526. The following acts or parts of acts are each repealed:

       (1) 1997 c 457 s 502;

       (2) 1997 c 457 s 514; and

       (3) 1997 c 457 s 515.

PART VI

PROVISIONS NECESSARY TO IMPLEMENT APPROPRIATIONS


       NEW SECTION. Sec. 601. As a management tool to reduce costs and make more effective use of resources, while improving employee productivity and morale, agencies may offer voluntary separation and/or downshifting incentives and options according to procedures and guidelines established by the department of personnel and the department of retirement systems, in consultation with the office of financial management. The options may include, but are not limited to, financial incentives for: Voluntary resignation and retirement, voluntary leave-without-pay, voluntary workweek or work hour reduction, voluntary downward movement, and temporary separation for development purposes.

       Agency plans and offers shall be reviewed and monitored jointly by the department of personnel, office of financial management, and the department of retirement systems. The senate transportation committee and the house of representatives transportation committee shall also review and monitor the plans of agencies that receive funds appropriated under this act.

       NEW SECTION. Sec. 602. It is the intent of the legislature that agencies may implement a voluntary retirement incentive program that is cost neutral or results in cost savings provided that such program is approved by the director of financial management. Agencies participating in this authorization are required to submit a report by June 30, 2001, to the legislature and the office of financial management on the outcome of their approved retirement incentive program. The report should include information on the details of the program including resulting service delivery changes, agency efficiencies, the cost of the retirement incentive per participant, the total cost to the state and the projected or actual net dollar and staff savings over the 1999-2001 biennium.

       NEW SECTION. Sec. 603. PERFORMANCE BASED BUDGETING. (1) The department of licensing, the department of transportation, the Washington state patrol, and the Washington traffic safety commission, in cooperation with the office of financial management, the senate transportation committee, and the house of representatives transportation committee will continue the implementation of performance based budgeting. The performance based budgeting process will provide a measurable link between agency objectives, service levels, and budget. The agencies shall:

       (a) Continue to develop, enhance, validate, and test indicators of performance, stated in achieving the agencies' goals; and

       (b) Refine performance based budgeting and investment levels in the following programs:

       (i) Department of transportation: Maintenance program M, preservation program P, traffic operations program Q, and marine program X;

       (ii) Department of licensing: Driver's services and vehicle services;

       (iii) Washington state patrol: Field operations bureau; and

       (iv) Washington traffic safety commission; and

       (c) Submit and implement a plan to provide program managers with the training and technical assistance necessary to extend the practices of performance measurement and performance based budgeting throughout agency programs.

       (2) The transportation agencies shall submit a strategic plan and activity summary with their agency request budgets and tie the plan's strategies together with the 2001-2003 budget requests. The strategic plan must include a six-year outlook and define and clarify the agency mission and vision, provide the basis for budget development, and outline and prioritize the agency's goals and strategies. The agencies will continue to improve agency infrastructures to capture and report performance data for use by agency management, the office of financial management, the senate transportation committee, and the house of representatives transportation committee in the decision making process.

       (3)(a) The agencies shall input monthly their financial information and quarterly program performance measurements into the transportation executive information system and will utilize the transportation executive information system investment system in the development of their agency policy request budgets.

       (b) The department of licensing and the Washington state patrol shall submit budgets to the legislature at the subprogram level.

       NEW SECTION. Sec. 604. PROGRAM ACCOUNTABILITY REVIEWS. The senate transportation committee, the house of representatives transportation committee, the office of financial management, and the transportation agencies shall establish the means of conducting program accountability reviews of all transportation programs. The reviews shall include:

       (1) Review and analysis of existing programs to determine any program changes required to meet established criteria along with the list of programs to be reviewed as determined by the program accountability review steering committee made up of the senate transportation committee, the house of representatives transportation committee, the office of financial management, and agency personnel. Each review will have a plan with timelines, deliverables, and milestones to ensure it is completed on time with anticipated deliverables. Each review will have a review accountability report presented to the senate transportation committee and the house of representatives transportation committee with recommendations and implementation schedule agreed to by the reviewers and the agency program being reviewed.

       (2) A concentration on:

       (a) Appropriateness of service objectives used to determine service levels;

       (b) Effectiveness of current management systems;

       (c) Development or improvement of existing outcome, output, efficiency, and effectiveness performance measures;

       (d) The effectiveness of communication and decision making within the program;

       (e) Staffing levels and organizational structure, including changes to roles and responsibilities;

       (f) The existence and effectiveness of oversight and control measures within the program;

       (g) The process of distributing funds and staff among activities;

       (h) Methods for making trade off decisions within and between programs and activities;

       (i) Development of tools that assist policymakers and managers in using performance measures and investment tradeoff methods;

       (j) Development of long-term investment strategies; and

       (k) Other program items that would be beneficial to include in the program accountability review.

       (3) The recommendations will be considered in future biennium transportation budgets in determining whether to enhance, streamline, retain, reduce, or eliminate programs based on value and benefits provided to the state.

       NEW SECTION. Sec. 605. (1) Twenty-two percent of the funds available for flexible purposes provided under Sections 105(c)(2) and 133(d)(3)(A)(ii) of Title 23, United States Code are for transportation improvements necessary for rural economic development in counties with a population density of less than 100 persons per square mile, and in urban community empowerment zones. The community economic revitalization board will select eligible projects, with staff support, as appropriate, from the department of transportation to facilitate distribution of the funds. In the event that eligible economic development projects do not materialize by the time the funds must be obligated each year, the remaining funds will revert to eligible rural counties for other regional transportation needs. Project selection for reverted funds will be by the appropriate body in each county for selecting projects funded with regional surface transportation funds, typically the metropolitan planning organization or regional transportation planning organization.

       (2) Twenty-two percent of the funds available for flexible purposes provided under Sections 105(c)(2) and 133(d)(3)(A)(ii) of Title 23, United States Code are for the state-wide competitive program. The transportation improvement board will select projects under this program.

       (3) Twenty-two percent of the funds available for flexible purposes provided under Sections 105(c)(2) and 133(d)(3)(A)(ii) of Title 23, United States Code are for distribution by the appropriate body in each county that is responsible for selecting projects funded with regional surface transportation funds, typically the metropolitan planning organization or regional transportation planning organization.

       (4) Thirty-four percent of the funds available for flexible purposes provided under Sections 105(c)(2) and 133(d)(3)(A)(ii) of Title 23, United States Code are for the Washington state department of transportation.

       Sec. 606. RCW 43.19.1906 and 1995 c 269 s 1404 are each amended to read as follows:

       Insofar as practicable, all purchases and sales shall be based on competitive bids, and a formal sealed bid procedure shall be used as standard procedure for all purchases and contracts for purchases and sales executed by the state purchasing and material control director and under the powers granted by RCW 43.19.190 through 43.19.1939. This requirement also applies to purchases and contracts for purchases and sales executed by agencies, including educational institutions, under delegated authority granted in accordance with provisions of RCW 43.19.190 or under RCW 28B.10.029. However, formal sealed bidding is not necessary for:

       (1) Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or hinder the emergency from being met appropriately;

       (2) Purchases not exceeding thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management: PROVIDED, That the state director of general administration shall establish procedures to assure that purchases made by or on behalf of the various state agencies shall not be made so as to avoid the thirty-five thousand dollar bid limitation, or subsequent bid limitations as calculated by the office of financial management: PROVIDED FURTHER, That the state purchasing and material control director is authorized to reduce the formal sealed bid limits of thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, to a lower dollar amount for purchases by individual state agencies if considered necessary to maintain full disclosure of competitive procurement or otherwise to achieve overall state efficiency and economy in purchasing and material control. Quotations from four hundred dollars to thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both. The agency shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry. A record of competition for all such purchases from four hundred dollars to thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management, shall be documented for audit purposes. Purchases up to four hundred dollars may be made without competitive bids based on buyer experience and knowledge of the market in achieving maximum quality at minimum cost: PROVIDED, That this four hundred dollar direct buy limit without competitive bids may be increased incrementally as required to a maximum of eight hundred dollars, if warranted by increases in purchasing costs due to inflationary trends;

       (3) Purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation;

       (4) Purchases of insurance and bonds by the risk management office under RCW 43.19.1935;

       (5) Purchases and contracts for vocational rehabilitation clients of the department of social and health services: PROVIDED, That this exemption is effective only when the state purchasing and material control director, after consultation with the director of the division of vocational rehabilitation and appropriate department of social and health services procurement personnel, declares that such purchases may be best executed through direct negotiation with one or more suppliers in order to expeditiously meet the special needs of the state's vocational rehabilitation clients;

       (6) Purchases by universities for hospital operation or biomedical teaching or research purposes and by the state purchasing and material control director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, made by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations;

       (7) Purchases by institutions of higher education not exceeding thirty-five thousand dollars: PROVIDED, That for purchases between two thousand five hundred dollars and thirty-five thousand dollars quotations shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both. For purchases between two thousand five hundred dollars and thirty-five thousand dollars, each institution of higher education shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work. A record of competition for all such purchases made from two thousand five hundred to thirty-five thousand dollars shall be documented for audit purposes; and

       (8) Negotiation of a contract by the department of transportation, valid until June 30, 2001, with registered tow truck operators to provide roving service patrols in one or more Washington state patrol tow zones whereby those registered tow truck operators wishing to participate would cooperatively, with the department of transportation, develop a demonstration project upon terms and conditions negotiated by the parties.

       Beginning on July 1, 1995, and on July 1 of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows: The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest one hundred dollars.

       Sec. 607. RCW 88.16.090 and 1995 c 175 s 1 are each amended to read as follows:

       (1) A person may pilot any vessel subject to the provisions of this chapter on waters covered by this chapter only if appointed and licensed to pilot such vessels on said waters under and pursuant to the provisions of this chapter.

       (2) A person is eligible to be appointed a pilot if the person is a citizen of the United States, over the age of twenty-five years and under the age of seventy years, a resident of the state of Washington at the time of appointment and only if the pilot applicant holds as a minimum, a United States government license as a master of ocean or near coastal steam or motor vessels of not more than one thousand six hundred gross tons or as a master of inland steam or motor vessels of not more than one thousand six hundred gross tons, such license to have been held by the applicant for a period of at least two years prior to taking the Washington state pilotage examination and a first class United States endorsement without restrictions on that license to pilot in the pilotage districts for which the pilot applicant desires to be licensed, and if the pilot applicant meets such other qualifications as may be required by the board. A person applying for a license under this section shall not have been convicted of an offense involving drugs or the personal consumption of alcohol in the twelve months prior to the date of application. This restriction does not apply to license renewals under this section.

       (3) Pilots shall be licensed hereunder for a term of five years from and after the date of the issuance of their respective state licenses. Such licenses shall thereafter be renewed as of course, unless the board shall withhold same for good cause. Each pilot shall pay to the state treasurer an annual license fee as follows: For the period beginning July 1, 1995, through June 30, ((1999)) 2001, the fee shall be two thousand five hundred dollars; and for the period beginning July 1, ((1999)) 2001, the fee shall be three thousand dollars. The fees shall be deposited in the state treasury to the credit of the pilotage account. The board may assess partially active or inactive pilots a reduced fee.

       (4) Pilot applicants shall be required to pass a written and oral examination administered and graded by the board which shall test such applicants on this chapter, the rules of the board, local harbor ordinances, and such other matters as may be required to compliment the United States examinations and qualifications. The board shall hold examinations at such times as will, in the judgment of the board, ensure the maintenance of an efficient and competent pilotage service. An examination shall be scheduled for the Puget Sound pilotage district if there are three or fewer successful candidates from the previous examination who are waiting to become pilots in that district.

       (5) The board shall develop an examination and grading sheet for each pilotage district, for the testing and grading of pilot applicants. The examinations shall be administered to pilot applicants and shall be updated as required to reflect changes in law, rules, policies, or procedures. The board may appoint a special independent examination committee or may contract with a firm knowledgeable and experienced in the development of professional tests for development of said examinations. Active licensed state pilots may be consulted for the general development of examinations but shall have no knowledge of the specific questions. The pilot members of the board may participate in the grading of examinations. If the board does appoint a special examination development committee it is authorized to pay the members of said committee the same compensation and travel expenses as received by members of the board. When grading examinations the board shall carefully follow the grading sheet prepared for that examination. The board shall develop a "sample examination" which would tend to indicate to an applicant the general types of questions on pilot examinations, but such sample questions shall not appear on any actual examinations. Any person who willfully gives advance knowledge of information contained on a pilot examination is guilty of a gross misdemeanor.

       (6) All pilots and applicants are subject to an annual physical examination by a physician chosen by the board. The physician shall examine the applicant's heart, blood pressure, circulatory system, lungs and respiratory system, eyesight, hearing, and such other items as may be prescribed by the board. After consultation with a physician and the United States coast guard, the board shall establish minimum health standards to ensure that pilots licensed by the state are able to perform their duties. Within ninety days of the date of each annual physical examination, and after review of the physician's report, the board shall make a determination of whether the pilot or candidate is fully able to carry out the duties of a pilot under this chapter. The board may in its discretion check with the appropriate authority for any convictions of offenses involving drugs or the personal consumption of alcohol in the prior twelve months.

       (7) The board shall prescribe, pursuant to chapter 34.05 RCW, a number of familiarization trips, between a minimum number of twenty-five and a maximum of one hundred, which pilot applicants must make in the pilotage district for which they desire to be licensed. Familiarization trips any particular applicant must make are to be based upon the applicant's vessel handling experience.

       (8) The board may require vessel simulator training for a pilot applicant and shall require vessel simulator training for a pilot subject to RCW 88.16.105. The board shall also require vessel simulator training in the first year of active duty for a new pilot and at least once every five years for all active pilots.

       (9) The board shall prescribe, pursuant to chapter 34.05 RCW, such reporting requirements and review procedures as may be necessary to assure the accuracy and validity of license and service claims, and records of familiarization trips of pilot candidates. Willful misrepresentation of such required information by a pilot candidate shall result in disqualification of the candidate.

       (10) The board shall adopt rules to establish time periods and procedures for additional training trips and retesting as necessary for pilots who at the time of their licensing are unable to become active pilots.

       Sec. 608. RCW 36.78.070 and 1993 c 65 s 3 are each amended to read as follows:

       The county road administration board shall:

       (1) Establish by rule, standards of good practice for the administration of county roads and the efficient movement of people and goods over county roads;

       (2) Establish reporting requirements for counties with respect to the standards of good practice adopted by the board;

       (3) Receive and review reports from counties and reports from its executive director to determine compliance with legislative directives and the standards of good practice adopted by the board;

       (4) Advise counties on issues relating to county roads and the safe and efficient movement of people and goods over county roads and assist counties in developing uniform and efficient transportation-related information technology resources;

       (5) Report annually before the fifteenth day of January, and throughout the year as appropriate, to the state department of transportation and to the chairs of the legislative transportation committee and the house and senate transportation committees, and to other entities as appropriate on the status of county road administration in each county, including one copy to the staff of each of the committees. The annual report shall contain recommendations for improving administration of the county road programs;

       (6) Administer the rural arterial program established by chapter 36.79 RCW and the program funded by the county arterial preservation ((program)) account established by RCW ((46.68.095)) 46.68.090, as well as any other programs provided for in law.

       Sec. 609. RCW 46.68.090 and 1994 c 225 s 2 and 1994 c 179 s 3 are each reenacted and amended to read as follows:

       (1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for ((the following)) purposes((:)) enumerated in (a) and (b) of this subsection. The remaining net tax amount shall be distributed monthly by the state treasurer in the proportions set forth in (c) through (l) of this subsection.

       (a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;

       (b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly;

       (c) ((From April 1, 1992, through March 31, 1996, for distribution to the transfer relief account, hereby created in the motor vehicle fund, an amount not to exceed three hundred twenty-five one-thousandths of one percent;

       (d) For distribution to the rural arterial trust account in the motor vehicle fund, an amount as provided in RCW 82.36.025(2) and 46.68.095(3);

       (e) For distribution to the urban arterial trust account in the motor vehicle fund, an amount as provided in RCW 46.68.100(4) and 82.36.025(3);

       (f) For distribution to the transportation improvement account in the motor vehicle fund, an amount as provided in RCW 46.68.095(1);

       (g) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount as provided in RCW 46.68.095(2);

       (h) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund, an amount as provided in RCW 46.68.095(4);

       (i) For distribution to the motor vehicle fund to be allocated to cities and towns as provided in RCW 46.68.110, an amount as provided in RCW 46.68.095(5);

       (j) For distribution to the motor vehicle fund to be allocated to counties as provided in RCW 46.68.120, an amount as provided in RCW 46.68.095(6);

       (k) For expenditure for highway purposes of the state as defined in RCW 46.68.130, an amount as provided in RCW 82.36.025(4) and 46.68.095(7);

       (l) From July 1, 1994, through June 30, 1995, for distribution to the gasohol exemption holding account, hereby created in the motor vehicle fund, an amount equal to five and thirty-four one-hundredths of one percent of the amount available prior to distributions provided under (a) through (k) of this subsection, to be used only for highway construction;

       (m) For distribution to the small city account, hereby created in the motor vehicle fund, an amount as provided for in RCW 46.68.095(1), 46.68.100(9), and 82.36.025(3).

       (2) The amount accruing to the motor vehicle fund by virtue of the motor vehicle fuel tax and the special fuel tax and remaining after payments, distributions, and expenditures as provided in this section shall, for the purposes of this chapter, be referred to as the "net tax amount.")) For distribution to the motor vehicle fund an amount equal to 44.387 percent to be expended for highway purposes of the state as defined in RCW 46.68.130;

       (d) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.

       The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:

       (i) Accident experience;

       (ii) Fatal accident experience;

       (iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and

       (iv) Continuity of development of the highway transportation network.

       Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection (1)(d);

       (e) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;

       (f) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;

       (g) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent;

       (h) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent and expended in accordance with RCW 47.26.086;

       (i) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent in accordance with RCW 46.68.110;

       (j) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent: (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

       (k) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;

       (l) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent and expended in accordance with RCW 36.79.020.

       (2) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

       Sec. 610. RCW 46.68.110 and 1996 c 94 s 1 are each amended to read as follows:

       Funds credited to the incorporated cities and towns of the state as set forth in RCW ((46.68.100(1))) 46.68.090(1)(i) shall be subject to deduction and distribution as follows:

       (1) One and one-half percent of such sums shall be deducted monthly as such sums are credited and set aside for the use of the department of transportation for the supervision of work and expenditures of such incorporated cities and towns on the city and town streets thereof, including the supervision and administration of federal-aid programs for which the department of transportation has responsibility: PROVIDED, That any moneys so retained and not expended shall be credited in the succeeding biennium to the incorporated cities and towns in proportion to deductions herein made;

       (2) Thirty-three one-hundredths of one percent of such funds shall be deducted monthly, as such funds accrue, and set aside for the use of the department of transportation for the purpose of funding the cities' share of the costs of highway jurisdiction studies and other studies. Any funds so retained and not expended shall be credited in the succeeding biennium to the cities in proportion to the deductions made;

       (3) One percent of such funds shall be deducted monthly, as such funds accrue, to be deposited in the ((city hardship assistance)) urban arterial trust account, ((hereby created in the motor vehicle fund,)) to implement the city hardship assistance program, as provided in RCW 47.26.164. However, any moneys so retained and not required to carry out the program as of ((July 1, 1996, and)) July 1st of each odd-numbered year thereafter, shall be provided within sixty days to the treasurer and distributed in the manner prescribed in subsection (((4))) (5) of this section;

       (4) 31.86 percent of the fuel tax distributed to the cities and towns in RCW 46.68.090(1)(i) shall be allocated to the incorporated cities and towns in the manner set forth in subsection (5) of this section and subject to deductions in subsections (1), (2), and (3) of this section, subject to RCW 35.76.050, to be used exclusively for: The construction, improvement, chip sealing, seal-coating, and repair for arterial highways and city streets as those terms are defined in RCW 46.04.030 and 46.04.120; the maintenance of arterial highways and city streets for those cities with a population of less than fifteen thousand; or the payment of any municipal indebtedness which may be incurred in the construction, improvement, chip sealing, seal-coating, and repair of arterial highways and city streets; and

       (5) The balance remaining to the credit of incorporated cities and towns after such deduction shall be apportioned monthly as such funds accrue among the several cities and towns within the state ratably on the basis of the population last determined by the office of financial management.

       Sec. 611. RCW 46.68.130 and 1981 c 342 s 11 are each amended to read as follows:

       The ((net)) tax amount distributed to the state in the manner provided by RCW ((46.68.100)) 46.68.090, and all moneys accruing to the motor vehicle fund from any other source, less such sums as are properly appropriated and reappropriated for expenditure for costs of collection and administration thereof, shall be expended, subject to proper appropriation and reappropriation, solely for highway purposes of the state, including the purposes of RCW 47.30.030. For the purposes of this section, the term "highway purposes of the state" does not include those expenditures of the Washington state patrol heretofore appropriated or reappropriated from the motor vehicle fund. Nothing in this section or in RCW 46.68.090 may be construed so as to violate terms or conditions contained in highway construction bond issues authorized by statute as of the effective date of this section or thereafter and whose payment is, by the statute, pledged to be paid from excise taxes on motor vehicle fuel and special fuels.

       Sec. 612. RCW 47.26.405 and 1977 ex.s. c 317 s 17 are each amended to read as follows:

       Any funds required to repay such bonds, or the interest thereon when due shall be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state under the provisions of RCW ((46.68.100(6) as now or hereafter amended)) 46.68.090(1)(c) for construction of state highways in urban areas, and shall never constitute a charge against any allocations of any other such funds to the state, counties, cities, and towns unless and until the amount of the motor vehicle fund arising from the excise taxes on motor vehicle and special fuels and available to the state for construction of state highways in urban areas proves insufficient to meet the requirements for bond retirement or interest on any such bonds.

       Sec. 613. RCW 47.26.425 and 1994 c 179 s 22 are each amended to read as follows:

       Any funds required to repay the first authorization of two hundred million dollars of bonds authorized by RCW 47.26.420, as amended by section 18, chapter 317, Laws of 1977 ex. sess. or the interest thereon when due, shall be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the urban arterial trust account in the motor vehicle fund ((and the certain sums received by the small city account in the motor vehicle fund imposed by)) pursuant to RCW ((82.36.025(3) and 46.68.100(9))) 46.68.090(1)(g), and shall never constitute a charge against any allocations of any other such funds in the motor vehicle fund to the state, counties, cities, and towns unless and until the amount of the motor vehicle fund arising from the excise tax on motor vehicle and special fuels and distributed to the urban arterial trust account ((and the small city account)) proves insufficient to meet the requirements for bond retirement or interest on any such bonds.

       Sec. 614. RCW 47.26.4252 and 1995 c 274 s 12 are each amended to read as follows:

       Any funds required to repay the authorization of series II bonds authorized by RCW 47.26.420, as reenacted by section 3, chapter 5, Laws of 1979, or the interest thereon when due, shall first be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW and which is distributed to the urban arterial trust account in the motor vehicle fund ((and the certain sums received by the small city account in the motor vehicle fund imposed by)) pursuant to RCW ((82.36.025(3) and 46.68.100(9))) 46.68.090(1)(g), subject, however, to the prior lien of the first authorization of bonds authorized by RCW 47.26.420, as reenacted by section 3, chapter 5, Laws of 1979. If the moneys distributed to the urban arterial trust account ((and the small city account)) shall ever be insufficient to repay the first authorization bonds together with interest thereon, and the series II bonds or the interest thereon when due, the amount required to make such payments on such bonds or interest thereon shall next be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state, counties, cities, and towns pursuant to RCW ((46.68.100 as now existing or hereafter amended)) 46.68.090. Any payments on such bonds or interest thereon taken from motor vehicle or special fuel tax revenues which are distributable to the state, counties, cities, and towns, shall be repaid from the first moneys distributed to the urban arterial trust account not required for redemption of the first authorization bonds or series II and series III bonds or interest on those bond issues.

       Sec. 615. RCW 47.26.4254 and 1995 c 274 s 13 are each amended to read as follows:

       (1) Any funds required to repay series III bonds authorized by RCW 47.26.420, or the interest thereon, when due shall first be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW and that is distributed to the urban arterial trust account in the motor vehicle fund ((and the certain sums received by the small city account in the motor vehicle fund imposed by)) pursuant to RCW ((82.36.025(3) and 46.68.100(9))) 46.68.090(1)(g), subject, however, to the prior lien of the first authorization of bonds authorized by RCW 47.26.420. If the moneys so distributed to the urban arterial trust account ((and the small city account)), after first being applied to administrative expenses of the transportation improvement board and to the requirements of bond retirement and payment of interest on first authorization bonds and series II bonds as provided in RCW 47.26.425 and 47.26.4252, are insufficient to meet the requirements for bond retirement or interest on any series III bonds, the amount required to make such payments on series III bonds or interest thereon shall next be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels and that is distributed to the state, counties, cities, and towns pursuant to RCW ((46.68.100)) 46.68.090, subject, however, to subsection (2) of this section.

       (2) To the extent that moneys so distributed to the urban arterial trust account ((and the small city account)) are insufficient to meet the requirements for bond retirement or interest on any series III bonds, sixty percent of the amount required to make such payments when due shall first be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels and that is distributed to the state. The remaining forty percent shall first be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels and that is distributed to the cities and towns pursuant to RCW ((46.68.100(1))) 46.68.090(1)(i) and to the counties pursuant to RCW ((46.68.100(3). Of the counties', cities', and towns' share of any additional amounts required in the fiscal year ending June 30, 1984, fifteen percent shall be taken from the counties' distributive share and eighty-five percent from the cities' and towns' distributive share)) 46.68.090(1)(j). Of the counties', cities', and towns' share of any additional amounts required in each fiscal year ((thereafter)), the percentage thereof to be taken from the counties' distributive share and from the cities' and towns' distributive share shall correspond to the percentage of funds authorized for specific county projects and for specific city and town projects, respectively, from the proceeds of series III bonds, for the period through the first eleven months of the prior fiscal year as determined by the chairman of the transportation improvement board and reported to the state finance committee and the state treasurer not later than the first working day of June.

       (3) Any payments on such bonds or interest thereon taken from motor vehicle or special fuel tax revenues that are distributable to the state, counties, cities, and towns shall be repaid from the first moneys distributed to the urban arterial trust account ((and the small city account)) not required for redemption of the first authorization bonds, series II bonds, or series III bonds or interest on these bonds.

       Sec. 616. RCW 47.26.505 and 1994 c 179 s 29 are each amended to read as follows:

       Any funds required to repay such bonds, or the interest thereon when due, shall be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the transportation improvement account in the motor vehicle fund ((and the sums received by the small city account in the motor vehicle fund)) under RCW ((46.68.095)) 46.68.090, and shall never constitute a charge against any allocations of any other such funds in the motor vehicle fund to the state, counties, cities, and towns unless and until the amount of the motor vehicle fund arising from the excise tax on motor vehicle and special fuels and distributed to the transportation improvement account proves insufficient to meet the requirements for bond retirement or interest on any such bonds.

       Sec. 617. RCW 47.30.030 and 1979 ex.s. c 121 s 1 are each amended to read as follows:

       Where an existing highway severs, or where the right of way of an existing highway accommodates a trail for pedestrians, equestrians, or bicyclists or where the separation of motor vehicle traffic from pedestrians, equestrians, or bicyclists will materially increase the motor vehicle safety, the provision of facilities for pedestrians, equestrians, or bicyclists which are a part of a comprehensive trail plan adopted by federal, state, or local governmental authority having jurisdiction over the trail is hereby authorized. The department of transportation, or the county or city having jurisdiction over the highway, road, or street, or facility is further authorized to expend reasonable amounts out of the funds made available to them, according to the provisions of RCW ((46.68.100)) 46.68.090, as necessary for the planning, accommodation, establishment, and maintenance of such facilities.

       Sec. 618. RCW 47.30.050 and 1979 ex.s. c 121 s 2 are each amended to read as follows:

       (1) The amount expended by a city, town, or county as authorized by RCW 47.30.030((, as now or hereafter amended,)) shall never in any one fiscal year be less than ((one-half of one)) 0.42 percent of the total amount of funds received from the motor vehicle fund according to ((the provisions of)) RCW ((46.68.100: PROVIDED, That)) 46.68.090. However, this section does not apply to a city or town in any year in which the ((one-half of one)) 0.42 percent equals five hundred dollars or less, or to a county in any year in which the ((one-half of one)) 0.42 percent equals three thousand dollars or less((: PROVIDED FURTHER, That)). Also, a city, town, or county in lieu of expending the funds each year may credit the funds to a financial reserve or special fund, to be held for not more than ten years, and to be expended for the purposes required or permitted by RCW 47.30.030.

       (2) In each fiscal year the department of transportation shall expend, as a minimum, for the purposes mentioned in RCW 47.30.030((, as now or hereafter amended,)) a sum equal to three-tenths of one percent of all funds, both state and federal, expended for the construction of state highways in such year, or in order to more efficiently program trail improvements the department may defer any part of such minimum trail or path expenditures for a fiscal year for a period not to exceed four years after the end of such fiscal year. Any fiscal year in which the department expends for trail or path purposes more than the minimum sum required by this subsection, the amount of such excess expenditure shall constitute a credit which may be carried forward and applied to the minimum trail and path expenditure requirements for any of the ensuing four fiscal years.

       (3) The department of transportation, a city, or a county in computing the amount expended for trails or paths under their respective jurisdictions may include the cost of improvements consistent with a comprehensive plan or master plan for bicycle trails or paths adopted by a state or local governmental authority either prior to such construction or prior to January 1, 1980.

       Sec. 619. RCW 47.56.725 and 1991 c 310 s 1 are each amended to read as follows:

       (1) The department is hereby authorized to enter into a continuing agreement with Pierce, Skagit, and Whatcom counties pursuant to which the department shall, from time to time, direct the distribution to each of the counties the amounts authorized in subsection (2) of this section in accordance with RCW ((46.68.100)) 46.68.090.

       (2) The department is authorized to include in each agreement a provision for the distribution of funds to each county to reimburse the county for fifty percent of the deficit incurred during each previous fiscal year in the operation and maintenance of the ferry system owned and operated by the county. The total amount to be reimbursed to Pierce, Skagit, and Whatcom counties collectively shall not exceed one million dollars in any biennium. Each county agreement shall contain a requirement that the county shall maintain tolls on its ferries at least equal to tolls in place on January 1, 1990.

       (3) The annual fiscal year operating and maintenance deficit, if any, shall be determined by Pierce, Skagit, and Whatcom counties subject to review and approval of the department. The annual fiscal year operating and maintenance deficit is defined as the total of operations and maintenance expenditures less the sum of ferry toll revenues and that portion of fuel tax revenue distributions which are attributable to the county ferry as determined by the department. Distribution of the amounts authorized by subsection (2) of this section by the state treasurer shall be directed by the department upon the receipt of properly executed vouchers from each county.

       (4) The county road administration board may evaluate requests by Pierce, Skagit, Wahkiakum, and Whatcom counties for county ferry capital improvement funds. The board shall evaluate the requests and, if approved by a majority of the board, submit the requests to the legislature for funding out of the amounts available under RCW ((46.68.100(3))) 46.68.090(1)(j). Any county making a request under this subsection shall first seek funding through the public works trust fund, or any other available revenue source, where appropriate.

       Sec. 620. RCW 47.56.750 and 1995 c 274 s 16 are each amended to read as follows:

       There is hereby created in the highway bond retirement fund in the state treasury a special account to be known as the Columbia river toll bridge account into which shall be deposited any capitalized interest from the proceeds of the bonds, and at least monthly all of the tolls and other revenues received from the operation of the toll bridge and from any interest which may be earned from the deposit or investment of these revenues after the payment of costs of operation, maintenance, management, and necessary repairs of the facility. The principal of and interest on the bonds shall be paid first from money deposited in the Columbia river toll bridge account in the highway bond retirement fund, and then, to the extent that money deposited in that account is insufficient to make any such payment when due, from the state excise taxes on motor vehicle and special fuels deposited in the highway bond retirement fund. There is hereby pledged the proceeds of state excise taxes on motor vehicle and special fuels imposed under chapters 82.36 and 82.38 RCW to pay the bonds and interest thereon, and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on the bonds if the money deposited in the Columbia river toll bridge account of the highway bond retirement fund is insufficient to make such payments. Not less than fifteen days prior to the date any interest or principal and interest payments are due, the state finance committee shall certify to the state treasurer such amount of additional moneys as may be required for debt service, and the treasurer shall thereupon transfer from the motor vehicle fund such amount from the proceeds of such excise taxes into the highway bond retirement fund. Any proceeds of such excise taxes required for these purposes shall first be taken from that portion of the motor vehicle fund which results from the imposition of the excise taxes on motor vehicle and special fuels and which is distributed to the state. If the proceeds from the excise taxes distributed to the state are ever insufficient to meet the required payments on principal or interest on the bonds when due, the amount required to make the payments on the principal or interest shall next be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state, counties, cities, and towns pursuant to RCW ((46.68.100 as now existing or hereafter amended)) 46.68.090. Any payments of the principal or interest taken from the motor vehicle or special fuel tax revenues which are distributable to the counties, cities, and towns shall be repaid from the first moneys distributed to the state not required for redemption of the bonds or interest thereon. The legislature covenants and pledges that it shall at all times provide sufficient revenues from the imposition of such excise taxes to pay the principal and interest due on the bonds.

       Sec. 621. RCW 47.56.771 and 1995 c 274 s 17 are each amended to read as follows:

       (1) The refunding bonds authorized under RCW 47.56.770 shall be general obligation bonds of the state of Washington and shall be issued in a total principal amount not to exceed fifteen million dollars. The exact amount of refunding bonds to be issued shall be determined by the state finance committee after calculating the amount of money deposited with the trustee for the bonds to be refunded which can be used to redeem or defease outstanding toll bridge authority, ferry, and Hood Canal bridge revenue bonds after the setting aside of sufficient money from that fund to pay the first interest installment on the refunding bonds. The refunding bonds shall be serial in form maturing at such time, in such amounts, having such denomination or denominations, redemption privileges, and having such terms and conditions as determined by the state finance committee. The last maturity date of the refunding bonds shall not be later than January 1, 2002.

       (2) The refunding bonds shall be signed by the governor and the state treasurer under the seal of the state, which signatures shall be made manually or in printed facsimile. The bonds shall be registered in the name of the owner in accordance with chapter 39.46 RCW. The refunding bonds shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state, and shall contain an unconditional promise to pay the principal thereof and the interest thereon when due. The refunding bonds shall be fully negotiable instruments.

       (3) The principal and interest on the refunding bonds shall be first payable in the manner provided in this section from the proceeds of state excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW.

       (4) The principal of and interest on the refunding bonds shall be paid first from the state excise taxes on motor vehicle and special fuels deposited in the ferry bond retirement fund. There is hereby pledged the proceeds of state excise taxes on motor vehicle and special fuels imposed under chapters 82.36 and 82.38 RCW to pay the refunding bonds and interest thereon, and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on the refunding bonds. Not less than fifteen days prior to the date any interest or principal and interest payments are due, the state finance committee shall certify to the state treasurer such amount of additional money as may be required for debt service, and the treasurer shall thereupon transfer from the motor vehicle fund such amount from the proceeds of such excise taxes into the ferry bond retirement fund. Any proceeds of such excise taxes required for these purposes shall first be taken from that portion of the motor vehicle fund which results from the imposition of the excise taxes on motor vehicle and special fuels and which is distributed to the Puget Sound capital construction account. If the proceeds from excise taxes distributed to the state are ever insufficient to meet the required payments on principal or interest on the refunding bonds when due, the amount required to make the payments on the principal or interest shall next be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state, counties, cities, and towns pursuant to RCW ((46.68.100 as now existing or hereafter amended)) 46.68.090. Any payments of the principal or interest taken from the motor vehicle or special fuel tax revenues which are distributable to the counties, cities, and towns shall be repaid from the first money distributed to the state not required for redemption of the refunding bonds or interest thereon. The legislature covenants that it shall at all times provide sufficient revenues from the imposition of such excise taxes to pay the principal and interest due on the refunding bonds.

       Sec. 622. RCW 47.60.420 and 1990 c 42 s 407 are each amended to read as follows:

       To the extent that all revenues from the Washington state ferry system available therefor are insufficient to provide for the payment of principal and interest on the bonds authorized and issued under RCW 47.60.400 through ((47.60.470)) 47.60.450 and for sinking fund requirements established with respect thereto and for payment into such reserves as the department has established with respect to the securing of the bonds, there is imposed a first and prior charge against the Puget Sound capital construction account of the motor vehicle fund created by RCW 47.60.505 and, to the extent required, against all revenues required by RCW ((46.68.100)) 46.68.090 to be deposited in the Puget Sound capital construction account.

       To the extent that the revenues from the Washington state ferry system available therefor are insufficient to meet required payments of principal and interest on bonds, sinking fund requirements, and payments into reserves, the department shall use moneys in the Puget Sound capital construction account for such purpose.

       Sec. 623. RCW 82.36.025 and 1994 c 179 s 30 are each amended to read as follows:

       ((The motor vehicle fuel tax rate shall be computed as the sum of the tax rate provided in subsection (1) of this section and the additional tax rates provided in subsections (2) through (5) of this section.

       (1))) A motor vehicle fuel tax rate of ((seventeen)) twenty-three cents per gallon shall apply to the sale, distribution, or use of motor vehicle fuel.

       (((2) An additional motor vehicle fuel tax rate of one-third cent per gallon shall apply to the sale, distribution, or use of motor vehicle fuel, and the proceeds from this additional tax rate, reduced by an amount equal to the sum of the payments under RCW 46.68.090(1) (a), (b), and (c) multiplied by the additional tax rate prescribed by this subsection divided by the motor vehicle fuel tax rate provided in this section, shall be deposited in the rural arterial trust account in the motor vehicle fund for expenditures under RCW 36.79.020.

       (3) An additional motor vehicle fuel tax rate of one-third cent per gallon shall apply to the sale, distribution, or use of motor vehicle fuel, and the proceeds from this additional tax rate, reduced by an amount equal to the sum of the payments under RCW 46.68.090(1) (a), (b), and (c) multiplied by the additional tax rate prescribed by this subsection divided by the motor vehicle fuel tax rate provided in this section, shall be deposited in the urban arterial trust account in the motor vehicle fund. After June 30, 1995, ninety-five percent of this revenue shall be deposited in the urban arterial trust account in the motor vehicle fund and five percent shall be deposited in the small city account in the motor vehicle fund.

       (4) An additional motor vehicle fuel tax rate of one-third cent per gallon shall be applied to the sale, distribution, or use of motor vehicle fuel, and the proceeds from this additional tax rate, reduced by an amount equal to the sum of the payments under RCW 46.68.090(1) (a), (b), and (c) multiplied by the additional tax rate prescribed by this subsection divided by the motor vehicle fuel tax rate provided in this section, shall be deposited in the motor vehicle fund to be expended for highway purposes of the state as defined in RCW 46.68.130.

       (5) An additional motor vehicle fuel tax rate of four cents per gallon from April 1, 1990, through March 31, 1991, and five cents per gallon from April 1, 1991, applies to the sale, distribution, or use of motor vehicle fuel. The proceeds from the additional tax rate under this subsection, reduced by an amount equal to the sum of the payments under RCW 46.68.090(1) (a), (b), and (c) multiplied by the additional tax rate prescribed by this subsection divided by the motor fuel tax rate provided in this section, shall be deposited in the motor vehicle fund and shall be distributed by the state treasurer according to RCW 46.68.095.))

       NEW SECTION. Sec. 624. The following acts or parts of acts are each repealed:

       (1) RCW 46.68.095 (Distribution of additional state-wide taxes) and 1994 c 179 s 4 & 1990 c 42 s 103;

       (2) RCW 46.68.100 (Allocation of net tax amount in motor vehicle fund) and 1994 c 179 s 5, 1991 c 310 s 2, 1986 c 66 s 1, 1984 c 7 s 73, 1977 ex.s. c 317 s 9, 1977 c 51 s 1, 1975-'76 2nd ex.s. c 57 s 1, 1973 1st ex.s. c 124 s 1, 1972 ex.s. c 24 s 2, 1970 ex.s. c 85 s 4, 1967 ex.s. c 145 s 79, 1967 ex.s. c 83 s 8, 1961 ex.s. c 7 s 6, & 1961 c 12 s 46.68.100;

       (3) RCW 46.68.115 (Allocation and use of amounts distributed to cities and towns) and 1987 c 234 s 1, 1983 c 43 s 1, & 1977 ex.s. c 317 s 10;

       (4) RCW 46.68.150 (Construction and improvements in urban areas--Expenditure of motor vehicle fuel taxes and bond proceeds) and 1984 c 7 s 74, 1977 ex.s. c 317 s 11, & 1967 ex.s. c 83 s 9;

       (5) RCW 47.26.060 (Apportionment of funds to regions--Manner and basis--Biennial adjustment) and 1981 c 315 s 1 & 1967 ex.s. c 83 s 12;

       (6) RCW 47.26.070 (Apportioned funds budgeted and expended for projects in urban areas--Priority programming--Long-range objectives) and 1984 c 7 s 154 & 1967 ex.s. c 83 s 13; and

       (7) RCW 47.26.410 (Expenditures from fuel taxes and bond proceeds for urban state highways in excess of amount apportionable to a region authorized) and 1984 c 7 s 162 & 1967 ex.s. c 83 s 44.

       NEW SECTION. Sec. 625. The following bills, as enacted in the form passed by the legislature, are necessary to implement portions of this act: House Bill Nos. 1053, 1147, 1304, 1466, 1588, 2201, 2245, and 2259 and Senate Bill Nos. 5060, 5283, 5360, 5605, 5615, 5955, 6030, and 6068.

       NEW SECTION. Sec. 626. 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. 627. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.”


MOTION


      Senator Betti Sheldon moved that the following amendments by Senators Betti Sheldon, Goings, Oke, Tim Sheldon, Benton, Winsley and Haugen to the Committee on Transportation striking amendment be considered simultaneously and be adopted:

       On page 14, line 28 of the amendment, after "$" strike "585,563,000" and insert "635,563,000"

       On page 15, line 8 of the amendment, after "$" strike "1,170,430,000" and insert "1,220,430,000"

       On page 16, line 12 of the amendment, before "in proceeds" strike "$417,717,000" and insert "$467,717,000"

       On page 16, after line 21 of the amendment, insert the following:

       "(9) $50,000,000 of the motor vehicle account--state appropriation is provided as a cash contribution for the development of the public private initiatives project at Tacoma Narrows. State funds shall be used initially for the acquisition of right of way and the forensic studies of the existing bridge including purchase of equipment necessary to conduct the studies. The balance of state funds not required for acquisition of right of way and forensic studies shall be placed with the designated bond trustee at the same time the privately secured debt proceeds are deposited."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendments by Senators Betti Sheldon, Goings, Oke, Tim Sheldon, Benton, Winsley and Haugen on page 14, line 28; page 15, line 8; page 16, lines 12 and 21; to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

      The motion by Senator Betti Sheldon carried and the amendments to the committee striking amendment were adopted.


MOTION


       On motion of Senator Haugen, the following amendments by Senators Haugen and Benton to the Committee on Transportation striking amendment were considered simultaneously and were adopted.

       On page 16, line 12, before "in proceeds" strike "$417,717,000" and insert "$416,432,000"

       On page 16, line 30, after "includes" strike "$10,162,000" and insert "$9,841,000"

       On page 25, line 19, after "$" strike "10,767,000" and insert "10,817,000"

       On page 25, line 30, after "$" strike "160,577,000" and insert "160,627,000"

       On page 27, line 2, before "in proceeds" strike $121,288,000" and insert "$120,121,000"


MOTION


      Senator Sheahan moved that the following amendment by Senators Sheahan, Morton, West, Benton and McCaslin to the Committee on Transportation striking amendment be adopted:

       On page 16, after line 21 of the amendment, insert the following:

       "(9) $175,000 of the motor vehicle account--state appropriation is provided solely for the relocation of gas distribution and electrical utilities as part of the right-of-way purchase for the north Spokane corridor."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senators Sheahan, Morton, West, Benton and McCaslin on page 16, after line 21, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

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


MOTION


      Senator Rossi moved that the following amendment by Senators Rossi and Patterson to the Committee on Transportation striking amendment be adopted:

       On page 16, after line 21 of the amendment, insert the following:

       "(9) Within available funds, the department shall ensure that all new highway construction is compatible with the use by single-occupant vehicles of HOV lanes during the nonpeak hours of 10:00 a.m. to 3:00 p.m. and 6:00 p.m. to 6:00 a.m. If new construction is linked with existing construction, then the existing construction must be improved to accommodate this nonpeak HOV lane use."

      Debate ensued.


POINT OF INQUIRY


      Senator Goings: “Senator Rossi, on line 8 of the amendment, it says, 'If a new construction is linked with existing construction, then the existing construction must be improved to accommodate this nonpeak HOV lane use.' So, if we are doing HOV improvements on 167, and the existing segment of 167 that we are not improving is currently HOV, does that mean that we have to go back and retrofit the existing portions, as well?”

      Senator Rossi: “The Department of Transportation actually has the option, as was pointed out by the Chair of the Transportation Committee, if they want to make it flow in this same manner, they can do that.”

      Further debate ensued.

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

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Rossi and Patterson on page 16, after line 21, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.


ROLL CALL


      The Secretary called the roll and the amendment to the committee striking amendment was not adopted by the following vote: Yeas, 23; Nays, 25; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Deccio, Hale, Hargrove, Hochstatter, Honeyford, Horn, Johnson, Long, McCaslin, McDonald, Morton, Oke, Patterson, Rasmussen, Roach, Rossi, Sellar, Sheahan, Stevens, Swecker, West and Zarelli - 23.

     Voting nay: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Haugen, Heavey, Jacobsen, Kline, Kohl-Welles, Loveland, McAuliffe, Prentice, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Thibaudeau, Winsley and Wojahn - 25.

     Excused: Senator Finkbeiner - 1.


MOTION


      Senator Eide moved that the following amendments by Senators Eide and Haugen to the Committee on Transportation striking amendment be considered simultaneously and be adopted:

       On page 20, line 17, after "$" strike "8,601,000" and insert "6,601,000"

       On page 20, line 20, after "$" strike "6,687,000" and insert "7,437,000"

       On page 20, line 25, after "$" strike "2,050,000" and insert "2,800,000"

       On page 20, line 26, after "$" strike "25,141,000" and insert "24,641,000"

      The President declared the question before the Senate to be the adoption of the amendments by Senators Eide and Haugen on page 20, lines 17, 20, 25, and 26, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

      Debate ensued.

      The motion by Senator Eide carried and the amendments to the committee striking amendment were adopted on a rising vote.


MOTION


      Senator Rossi moved that the following amendment by Senators Rossi and Johnson to the Committee on Transportation striking amendment be adopted:

       On page 21, after line 14 of the amendment, insert the following:

       "(5) Up to $200,000 of the high capacity transportation account--state appropriation is provided solely for the department to conduct a study of HOV lane use and report to the senate and house of representatives transportation committees by December 1, 1999."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senators Rossi and Johnson on page 21, after line 14, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

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


MOTION


      Senator Rossi moved that the following amendment by Senators Rossi and Johnson to the Committee on Transportation striking amendment be adopted:

       On page 21, after line 14 of the amendment, insert the following:

       "(5) As a pilot program, the department shall open all HOV lanes on I-405 to use by single-occupant vehicles during the nonpeak hours of 9:00 a.m. to 3:30 p.m. and 6:00 p.m. to 6:00 a.m. and report back to the senate and house of representatives transportation committees on traffic flow along I-405 under this pilot program by December 31, 1999."

      Debate ensued.

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

      Further debate ensued.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Rossi and Johnson on page 21, after line 14, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.


ROLL CALL


      The Secretary called the roll and the amendment to the committee striking amendment was not adopted by the following vote: Yeas, 22; Nays, 25; Absent, 1; Excused, 1. Voting yea: Senators Benton, Deccio, Hale, Hochstatter, Honeyford, Horn, Johnson, Long, McCaslin, McDonald, Morton, Oke, Patterson, Roach, Rossi, Sellar, Sheahan, Stevens, Swecker, West, Winsley and Zarelli - 22.

     Voting nay: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Haugen, Heavey, Jacobsen, Kline, Kohl-Welles, Loveland, McAuliffe, Prentice, Rasmussen, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Thibaudeau and Wojahn - 25.

     Absent: Senator Hargrove - 1.

     Excused: Senator Finkbeiner - 1.


MOTION


      Senator Benton moved that the following amendment to the Committee on Transportation striking amendment be adopted:

       On page 21, after line 14, of the amendment, insert the following:

       "(5) No funds provided in this section may be used to fund high capacity planning grants for a proposal in a county where that same proposal to impose a tax authorized under chapter 81.104 RCW has been defeated by the voters within the last five years."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Benton on page 21, after line 14, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

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


MOTION


      Senator Benton moved that the following amendment to the Committee on Transportation striking amendment be adopted:

      On page 21, after line 14 of the amendment, insert the following:

       "(5) During this biennium, the department shall issue an annual HOV lane use permit for $250 per vehicle that authorizes that vehicle to be used in the HOV lanes without restriction. All revenue generated by the sale of this permit shall be deposited into the state motor vehicle fund for highway improvement purposes to increase capacity."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Benton on page 21, after line 14, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

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


MOTION


      Senator Benton moved that the following amendment to the Committee on Transportation striking amendment be adopted:

       Beginning on page 24, line 33 of the amendment, strike all of subsection (4)

       Renumber the remaining subsections consecutively.

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Benton beginning on page 24, line 33, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

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


MOTION


      On motion of Senator Haugen, the following amendment by Senators Haugen and Benton to the Committee on Transportation striking amendment was adopted:

       On page 28, line 5, after "by the" insert "transportation improvement"


MOTION


      Senator Johnson moved that the following amendment to the Committee on Transportation striking amendment be adopted:

       On page 69, after line 31 of the amendment, insert the following:

       "NEW SECTION. Sec. 603. During the 1999-2001 biennium, for the purposes of projects funded in this act, the department of transportation shall contract with private sector businesses or consultants, if the department lacks the internal resources to start a project."

       Renumber the remaining sections consecutively and correct internal references accordingly.

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Johnson on page 69, after line 31, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.

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


MOTION


      Senator Rossi moved that the following amendment by Senators Rossi and Benton to the Committee on Transportation striking amendment be adopted:

       On page 16, after line 21 of the amendment, insert the following:

       "(9) Within available funds, the department shall ensure that all new highway construction is compatible with the use by single-occupant vehicles of HOV lanes during the nonpeak hours of 8:00 p.m. to 5:00 a.m."

      Debate ensued.


POINT OF ORDER


      Senator Heavey: “A point of order, Mr. President. Thank you, I believe the rules do not allow the use of another Senator's name.”


REPLY BY THE PRESIDENT


      President Owen: “Senator Heavey, if the President chooses to stop every speaker from mentioning the other Senator's name, we will be here until August.”

      Further debate ensued.

      Senator Finkbeiner demanded a roll call and the demand was sustained

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Rossi and Benton on page 16, after line 21, to the Committee on Transportation striking amendment to Substitute House Bill No. 1125.


ROLL CALL


      The Secretary called the roll and the amendment was not adopted by the following vote: Yeas, 24; Nays, 25; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Deccio, Finkbeiner, Hale, Hochstatter, Honeyford, Horn, Johnson, Long, McCaslin, McDonald, Morton, Oke, Patterson, Roach, Rossi, Sellar, Sheahan, Shin, Stevens, Swecker, West, Winsley and Zarelli - 24.

     Voting nay: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hargrove, Haugen, Heavey, Jacobsen, Kline, Kohl-Welles, Loveland, McAuliffe, Prentice, Rasmussen, Sheldon, B., Sheldon, T., Snyder, Spanel, Thibaudeau and Wojahn - 25.

      The President declared the question before the Senate to be the adoption of the Committee on Transportation striking amendment, as amended, to Substitute Senate Bill No. 1125.

      The committee striking amendment, as amended, was adopted.


MOTIONS


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

      On page 1, line 1 of the title, after "appropriations;" strike the remainder of the title and insert "amending RCW 43.19.1906, 88.16.090, 36.78.070, 46.68.110, 46.68.130, 47.26.405, 47.26.425, 47.26.4252, 47.26.4254, 47.26.505, 47.30.030, 47.30.050, 47.56.725, 47.56.750, 47.56.771, 47.60.420, and 82.36.025; amending 1997 c 457 ss 110, 204, 215, 223, 303, and 403 (uncodified); amending 1998 c 348 ss 203, 205, 207, 208, 209, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 402, and 404 (uncodified); reenacting and amending RCW 46.68.090; adding a new section to 1997 c 457 (uncodified); creating new sections; repealing RCW 46.68.095, 46.68.100, 46.68.115, 46.68.150, 47.26.060, 47.26.070, and 47.26.410; repealing 1997 c 457 s 502 (uncodified); repealing 1997 c 457 s 514 (uncodified); repealing 1997 c 457 s 515 (uncodified); making appropriations; and declaring an emergency."

      On motion of Senator Haugen, the rules were suspended, Substitute House Bill No. 1125, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1125, as amended by the Senate.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute House Bill No. 1125, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 2; Absent, 0; Excused, 0.

     Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sellar, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

     Voting nay: Senators Finkbeiner and Heavey - 2.

      SUBSTITUTE HOUSE BILL NO. 1125, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


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


MESSAGE FROM THE HOUSE

April 13, 1999

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5594 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

RURAL ECONOMIC DEVELOPMENT

Enhanced Flexibility for Use of Community Economic

Revitalization Board Funds


       Sec. 101. RCW 43.160.010 and 1996 c 51 s 1 are each amended to read as follows:

       (1) The legislature finds that it is the public policy of the state of Washington to direct financial resources toward the fostering of economic development through the stimulation of investment and job opportunities and the retention of sustainable existing employment for the general welfare of the inhabitants of the state. Reducing unemployment and reducing the time citizens remain jobless is important for the economic welfare of the state. A valuable means of fostering economic development is the construction of public facilities which contribute to the stability and growth of the state's economic base. Strengthening the economic base through issuance of industrial development bonds, whether single or umbrella, further serves to reduce unemployment. Consolidating issues of industrial development bonds when feasible to reduce costs additionally advances the state's purpose to improve economic vitality. Expenditures made for these purposes as authorized in this chapter are declared to be in the public interest, and constitute a proper use of public funds. A community economic revitalization board is needed which shall aid the development of economic opportunities. The general objectives of the board should include:

       (a) Strengthening the economies of areas of the state which have experienced or are expected to experience chronically high unemployment rates or below average growth in their economies;

       (b) Encouraging the diversification of the economies of the state and regions within the state in order to provide greater seasonal and cyclical stability of income and employment;

       (c) Encouraging wider access to financial resources for both large and small industrial development projects;

       (d) Encouraging new economic development or expansions to maximize employment;

       (e) Encouraging the retention of viable existing firms and employment; and

       (f) Providing incentives for expansion of employment opportunities for groups of state residents that have been less successful relative to other groups in efforts to gain permanent employment.

       (2) The legislature also finds that the state's economic development efforts can be enhanced by, in certain instances, providing funds to improve state highways ((in the vicinity of new)), county roads, or city streets for industries considering locating or expanding in this state ((or existing industries that are considering significant expansion)).

       (a) The legislature finds it desirable to provide a process whereby the need for diverse public works improvements necessitated by planned economic development can be addressed in a timely fashion and with coordination among all responsible governmental entities.

       (b) ((It is the intent of the legislature to create an economic development account within the motor vehicle fund from which expenditures can be made by the department of transportation for state highway improvements necessitated by planned economic development.)) All ((such)) transportation improvements on state highways must first be approved by the state transportation commission and the community economic revitalization board in accordance with the procedures established by RCW 43.160.074 and 47.01.280. ((It is further the intent of the legislature that such improvements not jeopardize any other planned highway construction projects. The improvements are intended to be of limited size and cost, and to include such items as additional turn lanes, signalization, illumination, and safety improvements.))

       (3) The legislature also finds that the state's economic development efforts can be enhanced by, in certain instances, providing funds to assist development of telecommunications infrastructure that supports business development, retention, and expansion in rural natural resources impact areas and rural counties of the state.

       (4) The legislature also finds that the state's economic development efforts can be enhanced by providing funds to improve markets for those recyclable materials representing a large fraction of the waste stream. The legislature finds that public facilities which result in private construction of processing or remanufacturing facilities for recyclable materials are eligible for consideration from the board.

       (((4))) (5) The legislature finds that sharing economic growth state-wide is important to the welfare of the state. Rural counties and rural natural resources impact areas do not share in the economic vitality of the Puget Sound region. The ability of these communities to pursue business and job retention, expansion, and development opportunities depends on their capacity to ready necessary economic development project plans, sites, permits, and infrastructure for private investments. Project-specific planning, predevelopment, and infrastructure ((is one of several)) are critical ingredients ((that are critical)) for economic development. Rural counties and rural natural resources impact areas generally lack ((the infrastructure)) these necessary tools and resources to diversify and revitalize their economies. It is, therefore, the intent of the legislature to increase the ((availability of funds to help provide infrastructure to rural natural resource impact areas)) amount of funding available through the community economic revitalization board for rural counties and rural natural resources impact areas, and to authorize flexibility for available resources in these areas to help fund planning, predevelopment, and construction costs of infrastructure and facilities and sites that foster economic vitality and diversification.

       Sec. 102. RCW 43.160.020 and 1997 c 367 s 8 are each amended to read as follows:

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

       (1) "Board" means the community economic revitalization board.

       (2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.

       (3) "Department" means the department of community, trade, and economic development.

       (4) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.

       (5) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.

       (6) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.

       (7) "Local government" or "political subdivision" means any port district, county, city, town, special purpose district, and any other municipal corporations or quasi-municipal corporations in the state providing for public facilities under this chapter.

       (8) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.

       (9) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.

       (10) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.

       (11) "Public facilities" means a project of a local government for the planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of bridges, roads, domestic and industrial water, flood control, earth stabilization, sanitary sewer, storm sewer, railroad, electricity, telecommunications, transportation, natural gas, buildings or structures, and port facilities, all for the purpose of job creation, job retention, or job expansion.

       (12) "Rural county" means a county with a population density of less than one hundred persons per square mile as determined by the office of financial management.

       (13) "Rural natural resources impact area" means:

       (a) A nonmetropolitan county, as defined by the 1990 decennial census, that meets three of the five criteria set forth in subsection (((13))) (14) of this section;

       (b) A nonmetropolitan county with a population of less than forty thousand in the 1990 decennial census, that meets two of the five criteria as set forth in subsection (((13))) (14) of this section; or

       (c) A nonurbanized area, as defined by the 1990 decennial census, that is located in a metropolitan county that meets three of the five criteria set forth in subsection (((13))) (14) of this section.

       (((13))) (14) For the purposes of designating rural natural resources impact areas, the following criteria shall be considered:

       (a) A lumber and wood products employment location quotient at or above the state average;

       (b) A commercial salmon fishing employment location quotient at or above the state average;

       (c) Projected or actual direct lumber and wood products job losses of one hundred positions or more;

       (d) Projected or actual direct commercial salmon fishing job losses of one hundred positions or more; and

       (e) An unemployment rate twenty percent or more above the state average. The counties that meet these criteria shall be determined by the employment security department for the most recent year for which data is available. For the purposes of administration of programs under this chapter, the United States post office five-digit zip code delivery areas will be used to determine residence status for eligibility purposes. For the purpose of this definition, a zip code delivery area of which any part is ten miles or more from an urbanized area is considered nonurbanized. A zip code totally surrounded by zip codes qualifying as nonurbanized under this definition is also considered nonurbanized. The office of financial management shall make available a zip code listing of the areas to all agencies and organizations providing services under this chapter.

       Sec. 103. RCW 43.160.060 and 1996 c 51 s 5 are each amended to read as follows:

       The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, project-specific environmental, capital facilities, land use, permitting, feasibility and marketing studies and plans; project design, site planning, and analysis; project debt and revenue impact analysis; as well as the construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision and the finding by the board that ((unique)) financial circumstances ((exist. The board shall not obligate more than twenty percent of its biennial appropriation as grants)) require grant assistance to enable the project to move forward.

       Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

       (1) The board shall not provide financial assistance:

       (a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

       (b) For any project that evidence exists would result in a development or expansion that would displace existing jobs in any other community in the state, except a project that would relocate a business from a nondistressed urban area to a rural county or rural natural resources impact area.

       (c) For the acquisition of real property, including buildings and other fixtures which are a part of real property.

       (d) For a construction project to any local government applicant that is not, at the time of application for financial assistance, in compliance with the provisions of chapter 36.70A RCW.

       (2) The board shall only provide financial assistance:

       (a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, advanced technology, research and development, and industrial distribution; (ii) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (iii) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; (iv) which support the relocation of businesses from nondistressed urban areas to ((distressed)) rural counties or rural natural resources impact areas; or (v) which substantially support the trading of goods or services outside of the state's borders.

       (b) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

       (c) When the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the public facility improvement is made.

       (3) The board shall prioritize each proposed project according to:

       (a) The relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located((. As long as there is more demand for financial assistance than there are funds available, the board is instructed to fund projects in order of their priority)); and

       (b) The rate of return of the state's investment, that includes the expected increase in state and local tax revenues associated with the project.

       (4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

       Before any financial assistance application is approved, the political subdivision seeking the assistance must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

       Sec. 104. RCW 43.160.070 and 1998 c 321 s 27 (Referendum Bill No. 49) are each amended to read as follows:

       Public facilities financial assistance, when authorized by the board, is subject to the following conditions:

       (1) The moneys in the public facilities construction loan revolving account and the distressed county public facilities construction loan account shall be used solely to fulfill commitments arising from financial assistance authorized in this chapter or, during the 1989-91 fiscal biennium, for economic development purposes as appropriated by the legislature. The total outstanding amount which the board shall dispense at any time pursuant to this section shall not exceed the moneys available from the accounts. The total amount of outstanding financial assistance in Pierce, King, and Snohomish counties shall never exceed sixty percent of the total amount of outstanding financial assistance disbursed by the board under this chapter without reference to financial assistance provided under RCW 43.160.220.

       (2) On contracts made for public facilities loans the board shall determine the interest rate which loans shall bear. The interest rate shall not exceed ten percent per annum. The board may provide reasonable terms and conditions for repayment for loans, including partial forgiveness of loan principal and interest payments on projects located in rural counties or rural natural resources impact areas, as the board determines. The loans shall not exceed twenty years in duration.

       (3) Repayments of loans made from the public facilities construction loan revolving account under the contracts for public facilities construction loans shall be paid into the public facilities construction loan revolving account. Repayments of loans made from the distressed county public facilities construction loan account under the contracts for public facilities construction loans shall be paid into the distressed county public facilities construction loan account. Repayments of loans from moneys from the new appropriation from the public works assistance account for the fiscal biennium ending June 30, 1999, shall be paid into the public works assistance account.

       (4) When every feasible effort has been made to provide loans and loans are not possible, the board may provide grants upon finding that unique circumstances exist.

       Sec. 105. RCW 43.160.076 and 1998 c 321 s 28 (Referendum Bill No. 49) and 1998 c 55 s 4 are each reenacted and amended to read as follows:

       (1) Except as authorized to the contrary under subsection (2) of this section, from all funds available to the board for financial assistance in a biennium under this chapter without reference to financial assistance provided under RCW 43.160.220, the board shall spend at least seventy-five percent for financial assistance for projects in ((distressed)) rural counties or rural natural resources impact areas. ((For purposes of this section, the term "distressed counties" includes any county, in which the average level of unemployment for the three years before the year in which an application for financial assistance is filed, exceeds the average state unemployment for those years by twenty percent.))

       (2) If at any time during the last six months of a biennium the board finds that the actual and anticipated applications for qualified projects in ((distressed)) rural counties or rural natural resources impact areas are clearly insufficient to use up the seventy-five percent allocation under subsection (1) of this section, then the board shall estimate the amount of the insufficiency and during the remainder of the biennium may use that amount of the allocation for financial assistance to projects not located in ((distressed)) rural counties or rural natural resources impact areas.

       (((3) This section expires June 30, 2000.))

       Sec. 106. RCW 43.160.900 and 1993 c 320 s 8 are each amended to read as follows:

       (1) The community economic revitalization board shall report to the appropriate standing committees of the legislature biennially on the implementation of this chapter. The report shall include information on the number of applications for community economic revitalization board assistance, the number and types of projects approved, the grant or loan amount awarded each project, the projected number of jobs created or retained by each project, the actual number of jobs created or retained by each project, the amount of state and local tax revenue generated by projects funded under this chapter, the number of delinquent loans, and the number of project terminations. The report may also include additional performance measures and recommendations for programmatic changes. The first report shall be submitted by December 1, 1994.

       (2) The joint legislative audit and review committee shall conduct performance reviews on the effectiveness of the program administered by the board under this chapter. The committee may contract for services to conduct the performance reviews. The costs for the performance reviews shall be paid from repayments of principal and interest on loans made under this chapter. The performance reviews shall be submitted to the appropriate committees of the legislature by December 1, 2000, December 1, 2004, and December 1, 2008.

       Sec. 107. RCW 43.160.200 and 1996 c 51 s 9 are each amended to read as follows:

       (1) The economic development account is created within the public facilities construction loan revolving fund under RCW 43.160.080. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of RCW 43.160.010(((3))) (5) and this section. The account is subject to allotment procedures under chapter 43.88 RCW.

       (2) Applications under this section for assistance from the economic development account are subject to all of the applicable criteria set forth under this chapter, as well as procedures and criteria established by the board, except as otherwise provided.

       (3) Eligible applicants under this section are limited to political subdivisions of the state in rural natural resources impact areas ((that demonstrate, to the satisfaction of the board, the local economy's dependence on the forest products and salmon fishing industries)) and rural counties.

       (4) Applicants must demonstrate that their request is part of an economic development plan consistent with applicable state planning requirements. Applicants must demonstrate that tourism projects have been approved by the local government. Industrial projects must be approved by the local government and the associate development organization.

       (5) Publicly owned projects may be financed under this section upon proof by the applicant that the public project is a necessary component of, or constitutes in whole, a tourism project.

       (6) Applications must demonstrate local match and participation. Such match may include: Land donation, other public or private funds or both, or other means of local commitment to the project.

       (7) Board financing for project-specific environmental, capital facilities, land use, permitting, feasibility and marketing studies and plans; project engineering, design, and site planning and analysis; and project debt and revenue impact analysis shall not exceed ((twenty-five)) fifty thousand dollars per study. Board funds for ((feasibility studies)) these purposes may be provided as a grant and require a ((dollar for dollar)) match ((with up to one-half in-kind match allowed)).

       (8) Board financing for tourism projects shall not exceed two hundred fifty thousand dollars. Other public facility construction projects under this section shall not exceed ((five hundred thousand)) one million dollars. Loans with flexible terms and conditions to meet the needs of the applicants shall be provided. Grants may also be authorized, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

       (9) The board shall develop guidelines for allowable local match and ((feasibility studies)) planning and predevelopment activities.

       (10) The board may allow de minimis general system improvements to be funded if they are critically linked to the viability of the economic development project assisted under this section.

       (11) Applications under this section need not demonstrate evidence that specific private development or expansion is ready to occur or will occur if funds are provided.

       (((11))) (12) The board shall establish guidelines for providing financial assistance under this section to ensure that the requirements of this chapter are complied with. The guidelines shall include:

       (a) A process to equitably compare and evaluate applications from competing communities.

       (b) Criteria to ensure that approved projects will have a high probability of success and are likely to provide long-term economic benefits to the community. The criteria shall include: (i) A minimum amount of local participation, determined by the board per application, to verify community support for the project; (ii) an analysis that establishes the project is feasible using standard economic principles; and (iii) an explanation from the applicant regarding how the project is consistent with the communities' economic strategy and goals.

       (c) A method of evaluating the impact of the financial assistance on the economy of the community and whether the financial assistance achieved its purpose.


PART II

HOUSING

Increasing the Housing Finance Commission's Debt Limit


       Sec. 201. RCW 43.180.160 and 1996 c 310 s 2 are each amended to read as follows:

       The total amount of outstanding indebtedness of the commission may not exceed ((two)) three billion dollars at any time. The calculation of outstanding indebtedness shall include the initial principal amount of an issue and shall not include interest that is either currently payable or that accrues as a part of the face amount of an issue payable at maturity or earlier redemption. Outstanding indebtedness shall not include notes or bonds as to which the obligation of the commission has been satisfied and discharged by refunding or for which payment has been provided by reserves or otherwise.

       NEW SECTION. Sec. 202. A new section is added to chapter 43.63A RCW to read as follows:

       The department shall establish and administer a "one-stop clearinghouse" to coordinate state assistance for growers and nonprofit organizations in developing housing for agricultural employees. Growers, housing authorities, and nonprofit organizations shall have direct access to the one-stop clearinghouse. The department one-stop clearinghouse shall provide assistance on planning and design, building codes, temporary worker housing regulations, financing options, and management to growers and nonprofit organizations interested in farmworker construction. The department one-stop clearinghouse shall also provide educational materials and services to local government authorities on Washington state law concerning farmworker housing.


PART III

DISTRESSED AREA TAX INCENTIVES

Distressed Area Sales and Use Tax Deferral


       Sec. 301. RCW 82.60.020 and 1996 c 290 s 4 are each amended to read as follows:

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

       (1) "Applicant" means a person applying for a tax deferral under this chapter.

       (2) "Department" means the department of revenue.

       (3) "Eligible area" means: (a) A ((county in which the average level of unemployment for the three years before the year in which an application is filed under this chapter exceeds the average state unemployment for those years by twenty percent; (b) a county that has a median household income that is less than seventy-five percent of the state median household income for the previous three years; (c) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent; (d) a designated community empowerment zone approved under RCW 43.63A.700 or a county containing such a community empowerment zone; (e) a town with a population of less than twelve hundred persons in those counties that are not covered under (a) of this subsection that are timber impact areas as defined in RCW 43.31.601; (f) a county designated by the governor as an eligible area under RCW 82.60.047; or (g) a county that is contiguous to a county that qualifies as an eligible area under (a) or (f) of this subsection)) county with fewer than one hundred persons per square mile as determined annually by the office of financial management and published by the department of revenue effective for the period July 1st through June 30th; or (b) an area within a county, which area: (i) Is composed of contiguous census tracts; (ii) has a minimum population of five thousand persons; (iii) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (iv) has an unemployment rate which is at least forty percent higher than the county's unemployment rate. For purposes of this definition, "families and unrelated individuals" has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development and neighborhood revitalization projects.

       (4)(a) "Eligible investment project" means((:

       (i))) an investment project in an eligible area as defined in subsection (3)(((a), (b), (c), (e), or (f))) of this section((; or

       (ii) That portion of an investment project in an eligible area as defined in subsection (3)(d) or (g) of this section which is directly utilized to create at least one new full-time qualified employment position for each three hundred thousand dollars of investment on which a deferral is requested in an application approved before July 1, 1994, and for each seven hundred fifty thousand dollars of investment on which a deferral is requested in an application approved after June 30, 1994)).

       (b) The lessor/owner of a qualified building is not eligible for a deferral unless the underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person, or unless the lessor by written contract agrees to pass the economic benefit of the deferral to the lessee in the form of reduced rent payments.

       (c) ((For purposes of (a)(ii) of this subsection:

       (i) The department shall consider the entire investment project, including any investment in machinery and equipment that otherwise qualifies for exemption under RCW 82.08.02565 or 82.12.02565, for purposes of determining the portion of the investment project that qualifies for deferral as an eligible investment project; and

       (ii) The number of new full-time qualified employment positions created by an investment project shall be deemed to be reduced by the number of full-time employment positions maintained by the recipient in any other community in this state that are displaced as a result of the investment project.

       (d))) "Eligible investment project" does not include any portion of an investment project undertaken by a light and power business as defined in RCW 82.16.010(5), other than that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part, or investment projects which have already received deferrals under this chapter.

       (5) "Investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction of the project.

       (6) "Manufacturing" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different, or useful substance or article of tangible personal property is produced for sale or commercial or industrial use and shall include the production or fabrication of specially made or custom made articles. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.

       (7) "Person" has the meaning given in RCW 82.04.030.

       (8) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity used for manufacturing and research and development activities, including plant offices and warehouses or other facilities for the storage of raw material or finished goods if such facilities are an essential or an integral part of a factory, mill, plant, or laboratory used for manufacturing or research and development. If a building is used partly for manufacturing or research and development and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.

       (9) (("Qualified employment position" means a permanent full-time employee employed in the eligible investment project during the entire tax year.

       (10))) "Qualified machinery and equipment" means all new industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a manufacturing or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.

       (((11))) (10) "Recipient" means a person receiving a tax deferral under this chapter.

       (((12))) (11) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.

       Sec. 302. RCW 82.60.040 and 1997 c 156 s 5 are each amended to read as follows:

       (1) The department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each eligible investment project that((:

       (a))) is located in an eligible area as defined in RCW 82.60.020(((3) (a), (b), (c), (e), or (f);

       (b) Is located in an eligible area as defined in RCW 82.60.020(3)(g) if seventy-five percent of the new qualified employment positions are to be filled by residents of a contiguous county that is an eligible area as defined in RCW 82.60.020(3) (a) or (f); or

       (c) Is located in an eligible area as defined in RCW 82.60.020(3)(d) if seventy-five percent of the new qualified employment positions are to be filled by residents of a designated community empowerment zone approved under RCW 43.63A.700 located within the county in which the eligible investment project is located)).

       (2) The department shall keep a running total of all deferrals granted under this chapter during each fiscal biennium.

       (3) This section expires July 1, 2004.

       Sec. 303. RCW 82.60.070 and 1995 1st sp.s. c 3 s 9 are each amended to read as follows:

       (1) ((Each recipient of a deferral granted under this chapter prior to July 1, 1994, shall submit a report to the department on December 31st of each year during the repayment period until the tax deferral is repaid.)) Each recipient of a deferral granted under this chapter after June 30, 1994, shall submit a report to the department on December 31st of the year in which the investment project is certified by the department as having been operationally completed, and on December 31st of each of the seven succeeding calendar years. The report shall contain information, as required by the department, from which the department may determine whether the recipient is meeting the requirements of this chapter. If the recipient fails to submit a report or submits an inadequate report, the department may declare the amount of deferred taxes outstanding to be immediately assessed and payable.

       (2) If, on the basis of a report under this section or other information, the department finds that an investment project is not eligible for tax deferral under this chapter ((for reasons other than failure to create the required number of qualified employment positions)), the amount of deferred taxes outstanding for the project shall be immediately due.

       (3) ((If, on the basis of a report under this section or other information, the department finds that an investment project for which a deferral has been granted under this chapter prior to July 1, 1994, has been operationally complete for three years and has failed to create the required number of qualified employment positions, the department shall assess interest, but not penalties, on the deferred taxes for the project. The interest shall be assessed at the rate provided for delinquent excise taxes, shall be assessed retroactively to the date of deferral, and shall accrue until the deferred taxes are repaid.

       (4) If, on the basis of a report under this section or other information, the department finds that an investment project for which a deferral has been granted under this chapter after June 30, 1994, has been operationally complete for three years and has failed to create the required number of qualified employment positions, the amount of taxes not eligible for deferral shall be immediately due. The department shall assess interest at the rate provided for delinquent excise taxes, but not penalties, retroactively to the date of deferral.

       (5) If, on the basis of a report under this section or other information, the department finds that an investment project qualifying for deferral under RCW 82.60.040(1) (b) or (c) has failed to comply with any requirement of RCW 82.60.045 for any calendar year for which reports are required under subsection (1) of this section, twelve and one-half percent of the amount of deferred taxes shall be immediately due. The department shall assess interest at the rate provided for delinquent excise taxes, but not penalties, retroactively to the date of deferral.

       (6))) Notwithstanding any other subsection of this section, deferred taxes need not be repaid on machinery and equipment for lumber and wood products industries, and sales of or charges made for labor and services, of the type which qualifies for exemption under RCW 82.08.02565 or 82.12.02565 to the extent the taxes have not been repaid before July 1, 1995.

       (((7))) (4) Notwithstanding any other subsection of this section, deferred taxes on the following need not be repaid:

       (a) Machinery and equipment, and sales of or charges made for labor and services, which at the time of purchase would have qualified for exemption under RCW 82.08.02565; and

       (b) Machinery and equipment which at the time of first use would have qualified for exemption under RCW 82.12.02565.

       NEW SECTION. Sec. 304. A new section is added to chapter 82.60 RCW to read as follows:

       (1) For the purposes of this section:

       (a) "Eligible area" also means a designated community empowerment zone approved under RCW 43.63A.700 or a county containing such a community empowerment zone.

       (b) "Eligible investment project" also means an investment project in an eligible area as defined in this section.

       (2) In addition to the provisions of RCW 82.60.040, the department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, on each eligible investment project that is located in an eligible area, if the applicant establishes that at the time the project is operationally complete:

       (a) The applicant will hire at least one qualified employment position for each two hundred fifty thousand dollars of investment on which a deferral is requested; and

       (b) The positions will be filled by persons who at the time of hire are residents of the community empowerment zone in which the project is located. As used in this subsection, "resident" means the person makes his or her home in the community empowerment zone. A mailing address alone is insufficient to establish that a person is a resident for the purposes of this section. The persons must be hired after the date the application is filed with the department.

       (3) All other provisions and eligibility requirements of this chapter apply to applicants eligible under this section.

       (4) If a person does not meet the requirements of this section by the end of the calendar year following the year in which the project is certified as operationally complete, all deferred taxes are immediately due.


Distressed Area Business and Occupation Tax Job Credit


       Sec. 305. RCW 82.62.010 and 1996 c 290 s 5 are each amended to read as follows:

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

       (1) "Applicant" means a person applying for a tax credit under this chapter.

       (2) "Department" means the department of revenue.

       (3) "Eligible area" means((: (a) A county in which the average level of unemployment for the three years before the year in which an application is filed under this chapter exceeds the average state unemployment for those years by twenty percent; (b) a county that has a median household income that is less than seventy-five percent of the state median household income for the previous three years; (c) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent; (d) a designated community empowerment zone approved under RCW 43.63A.700; or (e) subcounty areas in those counties that are not covered under (a) of this subsection that are timber impact areas as defined in RCW 43.31.601)) an area as defined in RCW 82.60.020.

       (4)(a) "Eligible business project" means manufacturing or research and development activities which are conducted by an applicant in an eligible area at a specific facility, provided the applicant's average full-time qualified employment positions at the specific facility will be at least fifteen percent greater in the year for which the credit is being sought than the applicant's average full-time qualified employment positions at the same facility in the immediately preceding year.

       (b) "Eligible business project" does not include any portion of a business project undertaken by a light and power business as defined in RCW 82.16.010(5) or that portion of a business project creating qualified full-time employment positions outside an eligible area or those recipients of a sales tax deferral under chapter 82.61 RCW.

       (5) "Manufacturing" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different, or useful substance or article of tangible personal property is produced for sale or commercial or industrial use and shall include the production or fabrication of specially made or custom made articles. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.

       (6) "Person" has the meaning given in RCW 82.04.030.

       (7) "Qualified employment position" means a permanent full-time employee employed in the eligible business project during the entire tax year.

       (8) "Tax year" means the calendar year in which taxes are due.

       (9) "Recipient" means a person receiving tax credits under this chapter.

       (10) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.

       Sec. 306. RCW 82.62.030 and 1997 c 366 s 5 are each amended to read as follows:

       (1) A person shall be allowed a credit against the tax due under chapter 82.04 RCW as provided in this section. ((For an application approved before January 1, 1996, the credit shall equal one thousand dollars for each qualified employment position directly created in an eligible business project. For an application approved on or after January 1, 1996, the credit shall equal two thousand dollars for each qualified employment position directly created in an eligible business project. For an application approved on or after July 1, 1997,)) The credit shall equal: (a) Four thousand dollars for each qualified employment position with wages and benefits greater than forty thousand dollars annually that is directly created in an eligible business((. For an application approved on or after July 1, 1997, the credit shall equal)) and (b) two thousand dollars for each qualified employment position with wages and benefits less than or equal to forty thousand dollars annually that is directly created in an eligible business.

       (2) The department shall keep a running total of all credits granted under this chapter during each fiscal year. The department shall not allow any credits which would cause the tabulation to exceed ((five million five hundred thousand dollars in fiscal year 1998 or 1999 or)) seven million five hundred thousand dollars in any fiscal year ((thereafter)). If all or part of an application for credit is disallowed under this subsection, the disallowed portion shall be carried over for approval the next fiscal year. However, the applicant's carryover into the next fiscal year is only permitted if the tabulation for the next fiscal year does not exceed the cap for that fiscal year as of the date on which the department has disallowed the application.

       (3) No recipient may use the tax credits to decertify a union or to displace existing jobs in any community in the state.

       (4) No recipient may receive a tax credit on taxes which have not been paid during the taxable year.

       NEW SECTION. Sec. 307. A new section is added to chapter 82.62 RCW to read as follows:

       (1) For the purposes of this section "eligible area" also means a designated community empowerment zone approved under RCW 43.63A.700 or a county containing such a community empowerment zone.

       (2) An eligible business project located within an eligible area as defined in this section qualifies for a credit under this chapter for those employees who at the time of hire are residents of the community empowerment zone in which the project is located, if the fifteen percent threshold is met. As used in this subsection, "resident" means the person makes his or her home in the community empowerment zone. A mailing address alone is insufficient to establish that a person is a resident for the purposes of this section.

       (3) All other provisions and eligibility requirements of this chapter apply to applicants eligible under this section.


PART IV

ECONOMIC VITALITY COMMITTEE


       NEW SECTION. Sec. 401. (1) The legislature shall establish an ad hoc economic development group to analyze potential economic development projects of state-wide significance and recommend appropriate administrative or legislative actions.

       (2) The group shall include one representative each from the department of community, trade, and economic development, the department of agriculture, and the department of revenue as well as two representatives from rural economic development councils appointed by the legislature.

       (3) The group shall promote economic development and business diversification throughout the state with special attention given to the economic difficulties of rural counties.

       (4) In order to expedite coordinated responses, the governor may direct the group to meet on an emergency basis when projects of state-wide significance arise.

       (5) The department of community, trade, and economic development shall establish criteria to determine whether a project meets the standards of a "project of state-wide significance." These criteria may include such economic indicators as local unemployment and personal income levels and project scope indicators such as the assessed value of the project in relation to the assessed value of the county.


PART V

RURAL WASHINGTON LOAN FUND


       NEW SECTION. Sec. 501. (1) The legislature finds that:

       (a) The economic health and well-being of the state is of substantial public concern, particularly in geographic areas of high unemployment, economic stagnation, and poverty;

       (b) The consequences of minimal economic activity and persistent unemployment and underemployment are serious threats to the safety, health, and welfare of residents of these geographic areas, decreasing the value of private investments and jeopardizing the sources of public revenue;

       (c) The economic and social interdependence of communities and the vitality of industrial and economic activity necessitates and partially depends upon preventing substantial dislocation of residents and rebuilding the diversification of the areas' economy;

       (d) The ability to remedy problems in stagnant areas of the state is beyond the power and control of the regulatory process and influence of the state, and the ordinary operations of private enterprise, without additional governmental assistance, are insufficient to adequately remedy the problems of poverty and unemployment; and

       (e) Revitalization of depressed communities requires stimulation of private investment, development of new business ventures, provision of capital to ventures sponsored by local organizations and capable of growth in the business markets, and assistance to viable, but underfinanced, small businesses in order to create and preserve jobs that are sustainable in the local economy.

       (2) Therefore, the legislature declares there to be a substantial public purpose in providing capital to promote economic development and job creation in areas of economic stagnation, unemployment, and poverty. To accomplish this purpose, the legislature hereby creates the rural Washington loan fund and vests in the department of community, trade, and economic development the authority to spend federal funds to stimulate the economy of distressed areas.

       NEW SECTION. Sec. 502. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

       (1) "Department" means the department of community, trade, and economic development.

       (2) "Director" means the director of community, trade, and economic development.

       (3) "Disabled person" means a person with a physical or mental impairment that substantially limits a major life activity. The impairment must be material and medically cognizable or diagnosable. The impairment must also be permanent in that it is seldom significantly corrected by medical replacement, therapy, or surgical means. Impairment does not include drug or alcohol addiction or any negative effects brought on by the use of drugs or alcohol.

       (4) "Distressed area" means: (a) A rural county; (b) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent; (c) an area within a county, which area: (i) Is composed of contiguous census tracts; (ii) has a minimum population of five thousand persons; (iii) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (iv) has an unemployment rate which is at least forty percent higher than the county's unemployment rate; or (d) a county designated as a rural natural resources impact area under RCW 43.31.601. For purposes of this subsection, "families and unrelated individuals" has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development and neighborhood revitalization projects.

       (5) "Fund" means the rural Washington loan fund.

       (6) "Local development organization" means a nonprofit organization which is organized to operate within an area, demonstrates a commitment to a long-standing effort for an economic development program, and makes a demonstrable effort to assist in the employment of unemployed or underemployed residents in an area.

       (7) "Project" means the establishment of a new or expanded business in an area, which business, when completed, will provide employment opportunities. "Project" also means the retention of an existing business in an area, which business, when completed, will provide employment opportunities.

       (8) "Rural county" means a county with a population density of fewer than one hundred persons per square mile, as determined by the office of financial management.

       NEW SECTION. Sec. 503. Subject to the restrictions contained in this chapter, the department is authorized to approve applications of local governments for federal community development block grant funds or other federal funds that the local governments would use to make loans to finance business projects within their jurisdictions. Applications approved by the department under this chapter must conform to applicable federal requirements.

       NEW SECTION. Sec. 504. (1) The department may approve an application providing a loan for a project only if the department finds that the project:

       (a) Will result in creation of employment opportunities, maintenance of threatened employment, or development or expansion of business ownership by disabled persons, minorities, and women;

       (b) Has been approved by the director as conforming to federal rules and regulations governing the spending of federal community development block grant funds or other applicable federal funds;

       (c) Will be of public benefit and for a public purpose, and that the benefits, including increased or maintained employment, improved standard of living, employment of disadvantaged workers, and development or expansion of business ownership by disabled persons, minorities, and women, will primarily accrue to residents of the area;

       (d) Will probably be successful; and

       (e) Would probably not be completed without the loan because other capital or financing at feasible terms is unavailable, or because the return on investment is inadequate.

       (2)(a) The department shall, subject to applicable federal funding criteria, give priority to applications that capitalize or recapitalize an existing or new local revolving loan fund based on criteria established by the department.

       (b) The department shall, subject to applicable federal funding criteria, give higher priority to economic development projects that contain provisions for child care.

       (3) The department may not approve an application that fails to provide for adequate reporting or disclosure of financial data to the department. The department may require an annual or other periodic audit of the project books.

       (4) The department may require that the project be managed in whole or in part by a local development organization and may prescribe a management fee to be paid to that organization by the recipient of the loan or grant.

       (5) The department shall fix the terms and rates pertaining to its loans.

       (6) If there is more demand for loans than funds available for lending, the department shall provide loans for those projects which will lead to the greatest amount of employment or benefit to a community. In determining the "greatest amount of employment or benefit," the department shall also consider the employment which would be saved by its loan and the benefit relative to the community, not just the total number of new jobs or jobs saved.

       (7) To the extent permitted under federal law, the department shall require applicants to provide for the transfer of all payments of principal and interest on loans to the rural Washington loan fund created under this chapter. Under circumstances where federal law does not permit the department to require the transfer, the department shall give priority to applicants who on their own volition make commitments to provide for the transfer.

       (8) The department may not approve any application to finance or help finance a shopping mall.

       (9) For loans not made to minority and women-owned businesses and businesses owned by disabled persons, the department shall make at least eighty percent of the appropriated funds available to projects located in distressed areas, and may make up to twenty percent available to projects located in areas not designated as distressed.

       (10) If an objection is raised to a project on the basis of unfair business competition, the department shall evaluate the potential impact of a project on similar businesses located in the local market area. The department may deny a grant if the department determines the proposed project is not likely to result in a net increase in employment within a local market area.

       (11) For loans to minority and women-owned businesses and businesses owned by disabled persons that do not meet the credit criteria, the department may consider nontraditional credit standards to offset past discrimination that has precluded full participation of minority or women-owned businesses or businesses owned by disabled persons in the economy. For applicants with high potential who do not meet the credit criteria, the department shall consider developing alternative borrowing methods. For applicants denied loans due to credit problems, the department shall provide financial counseling within available resources and provide referrals to credit rehabilitation services. In circumstances of competing applications, the department shall give priority to members of eligible groups which previously have been least served by this fund.

       NEW SECTION. Sec. 505. The department is encouraged to work with local development organizations to promote applications for loans by the fund. The department shall also provide assistance to local development organizations and local governments to identify viable projects for consideration by the department. The department shall provide technical assistance to organizations that administer local revolving loan funds regarding practices to establish sustainable operations. The department shall adopt such rules and regulations as are appropriate to carry out its authority under this chapter.

       NEW SECTION. Sec. 506. The department may receive and approve applications on a monthly basis but shall receive and approve applications on at least a quarterly basis for each fiscal year. The department shall make every effort to simplify the loan process for applicants. Department staff shall process and assist in the preparation of applications. Each application shall show in detail the nature of the project, the types and numbers of jobs to be created, wages to be paid to new employees, and methods of hiring unemployed persons from the local market area. Each application must contain a credit analysis of the business to receive the loan.

       NEW SECTION. Sec. 507. The department shall make available an amount of federal community development block grant funds equal to the amount of state funds transferred or appropriated to the department for purposes of supplementing the department's block grant funds.

       NEW SECTION. Sec. 508. The department may make grants of state funds to local governments that qualify as entitlement communities under the federal law authorizing community development block grants. These grants may be made only on condition that the entitlement community provide the department with assurances that the entitlement community will: (1) Spend the grant moneys for purposes and in a manner satisfying state constitutional requirements; (2) spend the grant moneys for purposes and in a manner satisfying federal requirements; and (3) spend at least the same amount of the grant for loans to businesses from the federal funds received by the entitlement community.

       NEW SECTION. Sec. 509. There is established the rural Washington loan fund, which shall be an account in the state treasury. The rural Washington loan fund shall include revenue from the sources established by this chapter, appropriations by the legislature, federal funds, private contributions, all loan payments of principal and interest that are transferred under section 504 of this act, and all other sources. Moneys in the account may be spent only after legislative appropriation for loans or grants under this chapter. Any expenditures of federal moneys must conform to applicable federal law.

       NEW SECTION. Sec. 510. (1) The department shall develop guidelines for rural Washington loan funds to be used to fund local economic development revolving loan funds. The department shall consider the selection process for grantees, loan quality criteria, legal and regulatory issues, and ways to minimize duplication between development loan funds and local economic development revolving loan funds.

       (2) The department may make loans or grants from the rural Washington loan fund to local governments to capitalize new, or to recapitalize existing, economic development revolving loan funds in distressed areas.

       NEW SECTION. Sec. 511. The department shall develop performance standards for judging the effectiveness of the program including, to the extent possible, examining the effectiveness of loans or grants with regard to:

       (1) Creation of jobs for individuals of low and moderate income;

       (2) Retention of existing employment;

       (3) Creation of new employment opportunities;

       (4) Diversification of the economic base of local communities;

       (5) Establishment of employee cooperatives;

       (6) Providing assistance in cases of employee buyouts of firms to prevent the loss of existing employment; and

       (7) The degree of risk assumed by the rural Washington loan fund, with emphasis on loans that did not receive financing from commercial lenders, but that are considered financially sound.

       NEW SECTION. Sec. 512. Any funds appropriated by the legislature to the rural Washington loan fund for purposes of the timber recovery act shall be used for development loans in rural natural resources impact areas as defined in RCW 43.31.601.

       NEW SECTION. Sec. 513. Subject to the restrictions contained in this chapter, the department is authorized to approve applications of minority and women-owned businesses for loans or loan guarantees from the fund. Applications approved by the department under this chapter must conform to applicable federal requirements. The department shall prioritize available funds for loan guarantees rather than loans when possible. The department may enter into agreements with other public or private lending institutions to develop a joint loan guarantee program for minority and women-owned businesses. If such a program is developed, the department may provide funds, in conjunction with the other organizations, to operate the program. This section does not preclude the department from making individual loan guarantees.

       To the maximum extent practicable, the department shall make available to minority and women-owned businesses, on an equal basis, funds available under this section. The department shall submit to the appropriate committees of the senate and house of representatives quarterly reports that detail the number of loans approved and the characteristics of the recipients by ethnic and gender groups.

       NEW SECTION. Sec. 514. The department may receive gifts, grants, or endowments from public or private sources that are made from time to time, in trust or otherwise, for the use and benefit of the purposes of this chapter, and the department may spend gifts, grants, or endowments or income from the public or private sources according to their terms, unless the receipt of the gifts, grants, or endowments violates RCW 42.17.710.


PART VI

REPEALED SECTIONS


       Sec. 601. RCW 43.131.386 and 1997 c 367 s 19 are each amended to read as follows:

       The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2001:

       (1) RCW 43.31.601 and 1997 c 367 s 1, 1995 c 226 s 1, 1992 c 21 s 2, & 1991 c 314 s 2;

       (2) RCW 43.31.641 and 1997 c 367 s 6, 1995 c 226 s 4, 1993 c 280 s 50, & 1991 c 314 s 7;

       (3) RCW 50.22.090 and ((1995 c 226 s 5, 1993 c 316 s 10, 1992 c 47 s 2, & 1991 c 315 s 4)) 1997 c 367 s 4;

       (4) ((RCW 43.160.212 and 1996 c 168 s 4, 1995 c 226 s 6, & 1993 c 316 s 5;

       (5))) RCW 43.63A.021 and 1997 c 367 s 5 & 1995 c 226 s 11;

       (((6))) (5) RCW 43.63A.600 and 1995 c 226 s 12, 1994 c 114 s 1, 1993 c 280 s 77, & 1991 c 315 s 23;

       (((7))) (6) RCW 43.63A.440 and 1997 c 367 s 7, 1995 c 226 s 13, 1993 c 280 s 74, & 1989 c 424 s 7;

       (((8) RCW 43.160.200 and 1995 c 226 s 16, 1993 c 320 s 7, 1993 c 316 s 4, & 1991 c 314 s 23;

       (9))) (7) RCW 28B.50.258 and 1995 c 226 s 18 & 1991 c 315 s 16;

       (((10))) (8) RCW 28B.50.262 and 1995 c 226 s 19 & 1994 c 282 s 3;

       (((11))) (9) RCW 28B.80.570 and 1997 c 367 s 14, 1995 c 226 s 20, 1992 c 21 s 6, & 1991 c 315 s 18;

       (((12))) (10) RCW 28B.80.575 and 1995 c 269 s 1001, 1995 c 226 s 21, & 1991 c 315 s 19;

       (((13))) (11) RCW 28B.80.580 and 1997 c 367 s 15, 1995 c 226 s 22, 1993 sp.s. c 18 s 34, 1992 c 231 s 31, & 1991 c 315 s 20;

       (((14))) (12) RCW 28B.80.585 and 1995 c 226 s 23 & 1991 c 315 s 21;

       (((15))) (13) RCW 43.17.065 and 1995 c 226 s 24, 1993 c 280 s 37, 1991 c 314 s 28, & 1990 1st ex.s. c 17 s 77;

       (((16))) (14) RCW 43.20A.750 and ((1995 c 226 s 25, 1993 c 280 s 38, 1992 c 21 s 4, & 1991 c 153 s 28)) 1997 c 367 s 16;

       (((17))) (15) RCW 43.168.140 and 1995 c 226 s 28 & 1991 c 314 s 20;

       (((18))) (16) RCW 50.12.270 and 1997 c 367 s 17, 1995 c 226 s 30, & 1991 c 315 s 3;

       (((19))) (17) RCW 50.70.010 and 1995 c 226 s 31, 1992 c 21 s 1, & 1991 c 315 s 5; and

       (((20))) (18) RCW 50.70.020 and 1995 c 226 s 32 & 1991 c 315 s 6.

       NEW SECTION. Sec. 602. RCW 43.160.212 (Rural natural resources impact areas--Loans for public works facilities) and 1996 c 168 s 4, 1995 c 226 s 6, 1993 c 316 s 5, 1992 c 21 s 8, & 1991 c 314 s 26 are each repealed.

       NEW SECTION. Sec. 603. 1997 c 367 s 11, 1995 c 226 s 8, 1993 c 316 s 7, & 1991 c 314 s 33 (uncodified) are each repealed.

       NEW SECTION. Sec. 604. The following acts or parts of acts are each repealed:

       (1) RCW 43.168.010 (Legislative findings and declaration) and 1985 c 164 s 1;

       (2) RCW 43.168.020 (Definitions) and 1996 c 290 s 3, 1995 c 226 s 27, 1993 c 280 s 56, 1991 c 314 s 19, 1988 c 42 s 18, 1987 c 461 s 2, & 1985 c 164 s 2;

       (3) RCW 43.168.031 (State development loan fund committee--Terminated June 30, 1994--Powers and duties transferred) and 1995 c 399 s 92 & 1988 c 186 s 7;

       (4) RCW 43.168.040 (Approval of applications for federal community development block grant funds for projects) and 1987 c 461 s 3 & 1985 c 164 s 4;

       (5) RCW 43.168.050 (Application approval--Conditions and limitations) and 1993 c 512 s 12, 1990 1st ex.s. c 17 s 74, 1989 c 430 s 9, 1987 c 461 s 4, 1986 c 204 s 2, & 1985 c 164 s 5;

       (6) RCW 43.168.060 (Staff support and other duties of department--Rules) and 1985 c 164 s 6;

       (7) RCW 43.168.070 (Processing of applications--Contents of applications) and 1993 c 512 s 14, 1987 c 461 s 5, & 1985 c 164 s 7;

       (8) RCW 43.168.090 (Availability of funds for committee use) and 1985 c 164 s 9;

       (9) RCW 43.168.100 (Entitlement community grants--Conditions) and 1993 c 512 s 15, 1986 c 204 s 1, & 1985 c 164 s 10;

       (10) RCW 43.168.110 (Washington state development loan fund) and 1992 c 235 s 11 & 1985 c 164 s 11;

       (11) RCW 43.168.120 (Guidelines for use of funds for existing economic development revolving loan funds--Grants to local governments to assist existing economic development revolving loan funds) and 1987 c 461 s 6;

       (12) RCW 43.168.130 (Development of performance standards) and 1998 c 245 s 52 & 1987 c 461 s 7;

       (13) RCW 43.168.140 (Rural natural resources impact areas) and 1995 c 226 s 28 & 1991 c 314 s 20;

       (14) RCW 43.168.150 (Minority and women-owned businesses--Application process--Joint loan guarantee program) and 1993 c 512 s 13; and

       (15) RCW 43.168.900 (Severability--1985 c 164) and 1985 c 164 s 15.


PART VII

MISCELLANEOUS


       NEW SECTION. Sec. 701. Part headings and subheadings used in this act are not any part of the law.

       NEW SECTION. Sec. 702. Sections 501 through 514 of this act constitute a new chapter in Title 43 RCW.

       NEW SECTION. Sec. 703. This act takes effect August 1, 1999.

       NEW SECTION. Sec. 704. Sections 301 through 303, 305, and 306 of this act do not affect any existing right acquired or liability or obligation under the sections amended or repealed in those sections or any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections.

       NEW SECTION. Sec. 705. 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 "vitality;" strike the remainder of the title and insert "amending RCW 43.160.010, 43.160.020, 43.160.060, 43.160.070, 43.160.900, 43.160.200, 43.180.160, 82.60.020, 82.60.040, 82.60.070, 82.62.010, 82.62.030, and 43.131.386; reenacting and amending RCW 43.160.076; adding a new section to chapter 43.63A RCW; adding a new section to chapter 82.60 RCW; adding a new section to chapter 82.62 RCW; adding a new chapter to Title 43 RCW; creating new sections; repealing RCW 43.160.212, 43.168.010, 43.168.020, 43.168.031, 43.168.040, 43.168.050, 43.168.060, 43.168.070, 43.168.090, 43.168.100, 43.168.110, 43.168.120, 43.168.130, 43.168.140, 43.168.150, and 43.168.900; repealing 1997 c 367 s 11, 1995 c 226 s 8, 1993 c 316 s 7, and 1991 c 314 s 33 (uncodified); providing an effective date; and providing an expiration date.", and the same are herewith transmitted.

DEAN R. FOSTER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk


MOTION


      On motion of Senator Tim Sheldon, the Senate refuses to concur in the House amendment(s) to Engrossed Second Substitute Senate Bill No. 5594 and asks the House to recede therefrom.


MOTION


      At 3:59 p.m., on motion of Senator Betti Sheldon, the Senate adjourned until 9:00 a.m., Tuesday, April 20, 1999.


BRAD OWEN, President of the Senate

TONY M. COOK, Secretary of the Senate