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FOURTH DAY, SECOND SPECIAL SESSION

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MORNING SESSION

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Senate Chamber, Olympia, Thursday, April 27, 2000

The Senate was called to order at 9:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Morton, Rossi and Sellar. On motion of Senator Honeyford, Senators Rossi and Sellar were excused. The Sergeant at Arms Color Guard, consisting of Pages Sarah Fisher and Heather Christianson, presented the Colors. Senator Bob Oke 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.

INTRODUCTION AND FIRST READING

SB 6876 by Senators Loveland and Snyder

Transferring earnings from the emergency reserve fund to the multimodal transportation account.

SB 6877 by Senators Morton and Honeyford

Modifying water rights application processing.

Referred to Committee on Environmental Quality and Water Resources.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended, Senate Bill No. 6876 was advanced to second reading and placed on the second reading calendar.

MOTION

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

SENATE RESOLUTION 2000-8792

By Senators Thibaudeau and Deccio

WHEREAS, The Washington State Senate finds that, across the nation, state legislatures are considering whether the state has an interest in a health care service contractor's and a health maintenance organization's conversion of corporate status from nonprofit to for-profit; and

WHEREAS, Various states have determined state action is appropriate; and

WHEREAS, Advance preparation and study of this issue and its application given the unique laws of this state are needed to properly consider the appropriateness of any measures or requests brought before this legislative body; and

WHEREAS, The Washington State Senate through its Committee on Health and Long-Term Care intends to evaluate this state's interest in a health care service contractor's and a health maintenance organization's conversion to a for-profit status from a nonprofit status;

NOW, THEREFORE, BE IT RESOLVED, That during the 2000 interim the Senate Committee on Health and Long-Term Care shall consider public interests, hear from various interest groups, and evaluate the need for legislation regarding the conversion of nonprofit health care service contractors and health maintenance organizations to for-profit status.

Senators Thibaudeau and Deccio spoke to Senate Resolution 2000-8792.

MOTION

At 9:10 a.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

The Senate was called to order at 10:44 a.m. by President Owen.

MOTION

On motion of Senator Betti Sheldon, the Senate reverted to the sixth order of business

SECOND READING

SENATE BILL NO. 6876, by Senators Loveland and Snyder

Transferring earnings from the emergency reserve fund to the multimodal transportation account.

The bill was read the second time.

MOTION

On motion of Senator Haugen, the rules were suspended, Senate Bill No. 6876 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6876.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 6876 and the bill passed the Senate by the following vote: Yeas, 30; Nays, 16; Absent, 1; Excused, 2.

Voting yea: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hargrove, Haugen, Heavey, Horn, Jacobsen, Kline, Kohl-Welles, Long, Loveland, McAuliffe, Oke, Patterson, Prentice, Rasmussen, Sheldon, B., Shin, Snyder, Spanel, Thibaudeau, Winsley and Wojahn - 30.

Voting nay: Senators Benton, Deccio, Finkbeiner, Hale, Hochstatter, Honeyford, Johnson, McCaslin, McDonald, Roach, Sheahan, Sheldon, T., Stevens, Swecker, West and Zarelli - 16.

Absent: Senator Morton - 1.

Excused: Senators Rossi and Sellar - 2.

SENATE BILL NO. 6876, 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 Honeyford, Senator Morton was excused.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the seventh order of business.

THIRD READING

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6856, by Senate Committee on Transportation (originally sponsored by Senators Goings, Gardner, Haugen, Prentice and Jacobsen)

Revising transportation funding.

MOTIONS

On motion of Senator Haugen, the rules were suspended, Engrossed Second Substitute Senate Bill No. 6856 was returned to second reading and read the second time.

Senator Haugen moved that the following striking amendment by Senators Haugen, Gardner and Horn be adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 82.08.020 and 1998 c 321 s 36 (Referendum Bill No. 49) are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited ((and distributed in the same manner as motor vehicle excise tax revenue collected under RCW 82.44.020(1))) in the multimodal transportation account created in section 2 of this act.

(3) The taxes imposed under this chapter shall apply to successive retail sales of the same property.

(4) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

NEW SECTION. Sec. 2. A new section is added to chapter 47.66 RCW to read as follows:

The multimodal transportation account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for transportation purposes.

Sec. 3. RCW 43.84.092 and 1999 c 380 s 8, 1999 c 309 s 928, 1999 c 268 s 4, and 1999 c 94 s 2 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system plan 2 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal ((account)) fund, the volunteer fire fighters' ((relief)) and ((pension)) reserve officers' administrative ((account)) fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 4. RCW 43.84.092 and 2000 c 79 s 38 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system plan 2 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 5. RCW 43.84.092 and 2000 c 79 s 39 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 6. RCW 43.84.092 and 2000 2nd sp.s. c . . . s 5 (section 5 of this act) and 2000 c 247 s 702 are each reenacted to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 7. RCW 43.89.010 and 1993 sp.s. c 23 s 63 are each amended to read as follows:

The chief of the Washington state patrol is hereby authorized to establish a ((teletypewriter)) communications network which will inter-connect the law enforcement agencies of the state and its political subdivisions into a unified written communications system. The chief of the Washington state patrol is authorized to lease or purchase such facilities and equipment as may be necessary to establish and maintain ((such teletypewriter)) the communications network.

(1) The communications network shall be used exclusively for the official business of the state, and the official business of any city, county, city and county, or other public agency.

(2) This section does not prohibit the occasional use of the state's communications network by any other state or public agency thereof when the messages transmitted relate to the enforcement of the criminal laws of the state.

(3) The chief of the Washington state patrol shall fix the monthly operational charge to be paid by any department or agency of state government, or any city, county, city and county, or other public agency participating in the communications network: PROVIDED, That in computing charges to be made against a city, county, or city and county the state shall bear at least fifty percent of the costs of such service as its share in providing a modern unified communications network to the law enforcement agencies of the state. Of the fees collected pursuant to this section, one-half shall be deposited in the motor vehicle fund and one-half shall be deposited in the ((transportation fund)) state patrol highway account.

(4) The chief of the Washington state patrol is authorized to arrange for the connection of the communications network with the law enforcement communications system of any adjacent state, or the Province of British Columbia, Canada.

Sec. 8. RCW 46.68.035 and 1993 c 102 s 7 are each amended to read as follows:

All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:

(1) The sum of two dollars for each vehicle shall be deposited into the ((highway safety fund)) multimodal transportation account, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of two dollars shall be credited to the current county expense fund.

(2) The remainder shall be distributed as follows:

(a) ((23.677 percent shall be deposited into the state patrol highway account of the motor vehicle fund;

(b))) 1.521 percent shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund; and

(((c))) (b) The remaining proceeds shall be deposited into the motor vehicle fund.

Sec. 9. RCW 82.36.380 and 1995 c 287 s 2 are each amended to read as follows:

(1) It is unlawful for a person or corporation to evade a tax or fee imposed under this chapter.

(2) Evasion of taxes or fees under this chapter is a class C felony under chapter 9A.20 RCW. In addition to other penalties and remedies provided by law, the court shall order a person or corporation found guilty of violating subsection (1) of this section to:

(a) Pay the tax or fee evaded plus interest, commencing at the date the tax or fee was first due, at the rate of twelve percent per year, compounded monthly; and

(b) Pay a penalty of one hundred percent of the tax evaded, to the multimodal transportation ((fund)) account of the state.

Sec. 10. RCW 82.38.270 and 1995 c 287 s 4 are each amended to read as follows:

(1) It is unlawful for a person or corporation to evade a tax or fee imposed under this chapter.

(a) Pay the tax or fee evaded plus interest, commencing at the date the tax or fee was first due, at the rate of twelve percent per year, compounded monthly; and

(b) Pay a penalty of one hundred percent of the tax evaded, to the multimodal transportation ((fund)) account of the state.

Sec. 11. RCW 43.88.020 and 1996 c 288 s 23 are each amended to read as follows:

(1) "Budget" means a proposed plan of expenditures for a given period or purpose and the proposed means for financing these expenditures.

(2) "Budget document" means a formal statement, either written or provided on any electronic media or both, offered by the governor to the legislature, as provided in RCW 43.88.030.

(3) "Director of financial management" means the official appointed by the governor to serve at the governor's pleasure and to whom the governor may delegate necessary authority to carry out the governor's duties as provided in this chapter. The director of financial management shall be head of the office of financial management which shall be in the office of the governor.

(4) "Agency" means and includes every state office, officer, each institution, whether educational, correctional, or other, and every department, division, board, and commission, except as otherwise provided in this chapter.

(5) "Public funds", for purposes of this chapter, means all moneys, including cash, checks, bills, notes, drafts, stocks, and bonds, whether held in trust, for operating purposes, or for capital purposes, and collected or disbursed under law, whether or not such funds are otherwise subject to legislative appropriation, including funds maintained outside the state treasury.

(6) "Regulations" means the policies, standards, and requirements, stated in writing, designed to carry out the purposes of this chapter, as issued by the governor or the governor's designated agent, and which shall have the force and effect of law.

(7) "Ensuing biennium" means the fiscal biennium beginning on July 1st of the same year in which a regular session of the legislature is held during an odd-numbered year pursuant to Article II, section 12 of the Constitution and which biennium next succeeds the current biennium.

(8) "Dedicated fund" means a fund in the state treasury, or a separate account or fund in the general fund in the state treasury, that by law is dedicated, appropriated, or set aside for a limited object or purpose; but "dedicated fund" does not include a revolving fund or a trust fund.

(9) "Revolving fund" means a fund in the state treasury, established by law, from which is paid the cost of goods or services furnished to or by a state agency, and which is replenished through charges made for such goods or services or through transfers from other accounts or funds.

(10) "Trust fund" means a fund in the state treasury in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise, or bequest that limits the use of the fund to designated objects or purposes.

(11) "Administrative expenses" means expenditures for: (a) Salaries, wages, and related costs of personnel and (b) operations and maintenance including but not limited to costs of supplies, materials, services, and equipment.

(12) "Fiscal year" means the year beginning July 1st and ending the following June 30th.

(13) "Lapse" means the termination of authority to expend an appropriation.

(14) "Legislative fiscal committees" means the joint legislative audit and review committee, the legislative evaluation and accountability program committee, the ways and means and transportation committees of the senate and house of representatives, and, where appropriate, the legislative transportation committee.

(15) "Fiscal period" means the period for which an appropriation is made as specified within the act making the appropriation.

(16) "Primary budget driver" means the primary determinant of a budget level, other than a price variable, which causes or is associated with the major expenditure of an agency or budget unit within an agency, such as a caseload, enrollment, workload, or population statistic.

(17) "State tax revenue limit" means the limitation created by chapter 43.135 RCW.

(18) "General state revenues" means the revenues defined by Article VIII, section 1(c) of the state Constitution.

(19) "Annual growth rate in real personal income" means the estimated percentage growth in personal income for the state during the current fiscal year, expressed in constant value dollars, as published by the office of financial management or its successor agency.

(20) "Estimated revenues" means estimates of revenue in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast including estimates of revenues to support financial plans under RCW 44.40.070, that are prepared by the office of financial management in consultation with the ((interagency task force)) transportation revenue forecast council.

(21) "Estimated receipts" means the estimated receipt of cash in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast.

(22) "State budgeting, accounting, and reporting system" means a system that gathers, maintains, and communicates fiscal information. The system links fiscal information beginning with development of agency budget requests through adoption of legislative appropriations to tracking actual receipts and expenditures against approved plans.

(23) "Allotment of appropriation" means the agency's statement of proposed expenditures, the director of financial management's review of that statement, and the placement of the approved statement into the state budgeting, accounting, and reporting system.

(24) "Statement of proposed expenditures" means a plan prepared by each agency that breaks each appropriation out into monthly detail representing the best estimate of how the appropriation will be expended.

(25) "Undesignated fund balance (or deficit)" means unreserved and undesignated current assets or other resources available for expenditure over and above any current liabilities which are expected to be incurred by the close of the fiscal period.

(26) "Internal audit" means an independent appraisal activity within an agency for the review of operations as a service to management, including a systematic examination of accounting and fiscal controls to assure that human and material resources are guarded against waste, loss, or misuse; and that reliable data are gathered, maintained, and fairly disclosed in a written report of the audit findings.

(27) "Performance verification" means an analysis that (a) verifies the accuracy of data used by state agencies in quantifying intended results and measuring performance toward those results, and (b) verifies whether or not the reported results were achieved.

(28) "Performance audit" has the same meaning as it is defined in RCW 44.28.005.

Sec. 12. RCW 43.88.030 and 1998 c 346 s 910 are each amended to read as follows:

(1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The director shall provide agencies and committees that are required under RCW 44.40.070 to develop comprehensive six-year program and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues and caseloads as approved by the economic and revenue forecast council and caseload forecast council or upon the estimated revenues and caseloads of the office of financial management for those funds, accounts, sources, and programs for which the forecast councils do not prepare an official forecast, including those revenues anticipated to support the six-year programs and financial plans under RCW 44.40.070. In estimating revenues to support financial plans under RCW 44.40.070, the office of financial management shall rely on information and advice from the ((interagency)) transportation revenue ((task force)) forecast council. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues and caseloads for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue and caseload estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues and caseloads must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.

Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year program and financial plans under RCW 44.40.070. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.

The budget document or documents shall also contain:

(a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, those anticipated for the ensuing biennium, and those anticipated for the ensuing six-year period to support the six-year programs and financial plans required under RCW 44.40.070;

(b) The undesignated fund balance or deficit, by fund;

(c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;

(d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

(e) Tabulations showing expenditures classified by fund, function, activity, and agency;

(f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury;

(g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.71 RCW, shown by agency and in total; and

(h) Tabulations showing each postretirement adjustment by retirement system established after fiscal year 1991, to include, but not be limited to, estimated total payments made to the end of the previous biennial period, estimated payments for the present biennium, and estimated payments for the ensuing biennium.

(2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:

(a) Interest, amortization and redemption charges on the state debt;

(b) Payments of all reliefs, judgments, and claims;

(d) Expenditures incident to the operation for each agency;

(e) Revenues derived from agency operations;

(f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium, as well as those required to support the six-year programs and financial plans required under RCW 44.40.070;

(g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;

(h) Common school expenditures on a fiscal-year basis;

(i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods; and

(j) A showing and explanation of anticipated amounts of general fund and other funds required to amortize the unfunded actuarial accrued liability of the retirement system specified under chapter 41.45 RCW, and the contributions to meet such amortization, stated in total dollars and as a level percentage of total compensation.

(3) A separate capital budget document or schedule shall be submitted that will contain the following:

(a) A statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;

(b) A capital program consisting of proposed capital projects for the next biennium and the two biennia succeeding the next biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program shall reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;

(d) A strategic plan for reducing backlogs of maintenance and repair projects. The plan shall include a prioritized list of specific facility deficiencies and capital projects to address the deficiencies for each agency, cost estimates for each project, a schedule for completing projects over a reasonable period of time, and identification of normal maintenance activities to reduce future backlogs;

(e) A statement of the reason or purpose for a project;

(f) Verification that a project is consistent with the provisions set forth in chapter 36.70A RCW;

(g) A statement about the proposed site, size, and estimated life of the project, if applicable;

(h) Estimated total project cost;

(i) For major projects valued over five million dollars, estimated costs for the following project components: Acquisition, consultant services, construction, equipment, project management, and other costs included as part of the project. Project component costs shall be displayed in a standard format defined by the office of financial management to allow comparisons between projects;

(j) Estimated total project cost for each phase of the project as defined by the office of financial management;

(k) Estimated ensuing biennium costs;

(l) Estimated costs beyond the ensuing biennium;

(m) Estimated construction start and completion dates;

(n) Source and type of funds proposed;

(o) Estimated ongoing operating budget costs or savings resulting from the project, including staffing and maintenance costs;

(p) For any capital appropriation requested for a state agency for the acquisition of land or the capital improvement of land in which the primary purpose of the acquisition or improvement is recreation or wildlife habitat conservation, the capital budget document, or an omnibus list of recreation and habitat acquisitions provided with the governor's budget document, shall identify the projected costs of operation and maintenance for at least the two biennia succeeding the next biennium. Omnibus lists of habitat and recreation land acquisitions shall include individual project cost estimates for operation and maintenance as well as a total for all state projects included in the list. The document shall identify the source of funds from which the operation and maintenance costs are proposed to be funded;

(q) Such other information bearing upon capital projects as the governor deems to be useful;

(r) Standard terms, including a standard and uniform definition of normal maintenance, for all capital projects;

(s) Such other information as the legislature may direct by law or concurrent resolution.

For purposes of this subsection (3), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative transportation committee, legislative evaluation and accountability program committee, and office of financial management.

(4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.

Sec. 13. RCW 43.88.120 and 1991 c 358 s 3 are each amended to read as follows:

Each agency engaged in the collection of revenues shall prepare estimated revenues and estimated receipts for the current and ensuing biennium and shall submit the estimates to the director of financial management and the director of revenue at times and in the form specified by the directors, along with any other information which the directors may request. For those agencies required to develop six-year programs and financial plans under RCW 44.40.070, six-year revenue estimates shall be submitted to the director of financial management and the ((legislative)) transportation committees of the senate and the house of representatives unless the responsibility for reporting these revenue estimates is assumed elsewhere.

A copy of such revenue estimates shall be simultaneously submitted to the economic and revenue forecast work group when required by the office of the economic and revenue forecast council.

Sec. 14. RCW 43.88.122 and 1991 c 358 s 7 are each amended to read as follows:

Where there are variances of revenue forecasts between the office of financial management and the ((interagency)) transportation revenue ((task force)) forecast council, for those transportation agencies that are required to develop plans under RCW 44.40.070, the office of financial management shall submit (1) a reconciliation of the differences between the revenue forecasts and (2) the assumptions used by the office of financial management to the ((legislative)) transportation committees of the senate and the house of representatives.

Sec. 15. RCW 44.40.070 and 1998 c 245 s 87 are each amended to read as follows:

Prior to October 1st of each even-numbered year the transportation revenue forecast council, consisting of all state agencies whose major programs consist of transportation activities, including the department of transportation, the transportation improvement board, the Washington state patrol, the department of licensing, the traffic safety commission, the county road administration board, and the board of pilotage commissioners, shall adopt or revise, after consultation with the ((legislative)) transportation committees of the senate and house of representatives, a comprehensive six-year program and financial plan for all transportation activities under each agency's jurisdiction.

The comprehensive six-year program and financial plan shall state the general objectives and needs of each agency's major transportation programs, including workload and performance estimates.

Sec. 16. RCW 82.14.045 and 1998 c 321 s 7 (Referendum Bill No. 49) are each amended to read as follows:

(1) The legislative body of any city pursuant to RCW 35.92.060, of any county which has created an unincorporated transportation benefit area pursuant to RCW 36.57.100 and 36.57.110, of any public transportation benefit area pursuant to RCW 36.57A.080 and 36.57A.090, of any county transportation authority established pursuant to chapter 36.57 RCW, and of any metropolitan municipal corporation within a county with a population of one million or more pursuant to chapter 35.58 RCW, may, by resolution or ordinance for the sole purpose of providing funds for the operation, maintenance, or capital needs of public transportation systems and in lieu of the excise taxes authorized by RCW 35.95.040, submit an authorizing proposition to the voters or include such authorization in a proposition to perform the function of public transportation and if approved by a majority of persons voting thereon, fix and impose a sales and use tax in accordance with the terms of this chapter: PROVIDED, That no such legislative body shall impose such a sales and use tax without submitting such an authorizing proposition to the voters and obtaining the approval of a majority of persons voting thereon: PROVIDED FURTHER, That where such a proposition is submitted by a county on behalf of an unincorporated transportation benefit area, it shall be voted upon by the voters residing within the boundaries of such unincorporated transportation benefit area and, if approved, the sales and use tax shall be imposed only within such area. Notwithstanding any provisions of this section to the contrary, any county in which a county public transportation plan has been adopted pursuant to RCW 36.57.070 and the voters of such county have authorized the imposition of a sales and use tax pursuant to the provisions of section 10, chapter 167, Laws of 1974 ex. sess., prior to July 1, 1975, shall be authorized to fix and impose a sales and use tax as provided in this section at not to exceed the rate so authorized without additional approval of the voters of such county as otherwise required by this section.

The tax authorized pursuant to this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such city, public transportation benefit area, county, or metropolitan municipal corporation as the case may be. The rate of such tax shall be one-tenth, two-tenths, three-tenths, four-tenths, five-tenths, ((or)) six-tenths, seven-tenths, eight-tenths, or nine-tenths of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The rate of such tax shall not exceed the rate authorized by the voters unless such increase shall be similarly approved.

(2)(a) In the event a metropolitan municipal corporation shall impose a sales and use tax pursuant to this chapter no city, county which has created an unincorporated transportation benefit area, public transportation benefit area authority, or county transportation authority wholly within such metropolitan municipal corporation shall be empowered to levy and/or collect taxes pursuant to RCW 35.58.273, 35.95.040, and/or 82.14.045, but nothing herein shall prevent such city or county from imposing sales and use taxes pursuant to any other authorization.

(b) In the event a county transportation authority shall impose a sales and use tax pursuant to this section, no city, county which has created an unincorporated transportation benefit area, public transportation benefit area, or metropolitan municipal corporation, located within the territory of the authority, shall be empowered to levy or collect taxes pursuant to RCW 35.58.273, 35.95.040, or 82.14.045.

(c) In the event a public transportation benefit area shall impose a sales and use tax pursuant to this section, no city, county which has created an unincorporated transportation benefit area, or metropolitan municipal corporation, located wholly or partly within the territory of the public transportation benefit area, shall be empowered to levy or collect taxes pursuant to RCW 35.58.273, 35.95.040, or 82.14.045.

(3) Any local sales and use tax revenue collected pursuant to this section by any city or by any county for transportation purposes pursuant to RCW 36.57.100 and 36.57.110 shall not be counted as locally generated tax revenues for the purposes of apportionment and distribution, in the manner prescribed by chapter 82.44 RCW, of the proceeds of the motor vehicle excise tax authorized pursuant to RCW 35.58.273, except that the local sales and use tax revenue collected under this section by a city with a population greater than sixty thousand that as of January 1, 1998, owns and operates a municipal public transportation system shall be counted as locally generated tax revenues for the purposes of apportionment and distribution, in the manner prescribed by chapter 82.44 RCW, of the proceeds of the motor vehicle excise tax authorized under RCW 35.58.273 as follows:

(a) For fiscal year 2000, revenues collected under this section shall be counted as locally generated tax revenues for up to 25 percent of the tax collected under RCW 35.58.273;

(b) For fiscal year 2001, revenues collected under this section shall be counted as locally generated tax revenues for up to 50 percent of the tax collected under RCW 35.58.273;

(c) For fiscal year 2002, revenues collected under this section shall be counted as locally generated tax revenues for up to 75 percent of the tax collected under RCW 35.58.273; and

(d) For fiscal year 2003 and thereafter, revenues collected under this section shall be counted as locally generated tax revenues for up to 100 percent of the tax collected under RCW 35.58.273.

NEW SECTION. Sec. 17. The legislature finds that additional funds or other benefits can be made available to Washington regional transit authorities by facilitating their entry into sale and leaseback, leaseout and leaseback, and similar transactions that provide to private parties, in consideration for the funds or other benefits obtained by the regional transit authorities, tax benefits that are not otherwise available to regional transit authorities. The legislature further finds that such transactions have been encouraged by agencies of the federal government as ways to provide additional funds for public facilities. To facilitate such transactions for regional transit authorities, the legislature has determined that while regional transit authorities may currently have the necessary statutory authority and may currently enjoy exemptions from Washington state taxes for such transactions, an explicit statement of statutory authority and exemption from Washington state taxes is necessary and helpful for the parties to such transactions. In recognition of the complexity of such transactions, the legislature desires that the authority and exemptions provided by sections 18 through 30 of this act be subject to certain limitations and be granted for a period as specified in section 30 of this act.

NEW SECTION. Sec. 18. A new section is added to chapter 81.112 RCW to read as follows:

(1) In order to enable regional transit authorities to acquire or finance equipment or facilities, or reduce the cost of equipment or facilities, regional transit authorities may enter into sale and leaseback, leaseout and leaseback, and other similar transactions with respect to equipment, facilities, and other real and personal property. In connection with any such transaction, a regional transit authority may execute, as it considers appropriate, contracts, agreements, notes, security agreements, conveyances, bills of sale, deeds, leases as lessee or lessor, and currency hedges, defeasance arrangements, interest rate, currency or other swap transactions, one or more payment undertaking agreements, and agreements relating to foreign and domestic currency. These agreements or instruments must have terms, maturities, durations, provisions as to governing laws, grants of security interests, and other provisions that are approved by the board of the regional transit authority.

(2) "Payment undertaking agreement" means one or more agreements, undertakings or arrangements under which all or a portion of the funds generated by a sale and leaseback, leaseout and leaseback, or other similar transaction are directed or paid over to a financial institution, insurance company or other entity that agrees to meet or fulfill, in consideration for the funds, some or all of the obligations of the regional transit authority, or any public corporation or other entity created under section 20 of this act, to make future rent, debt service, or purchase price installment payments in connection with the transaction.

NEW SECTION. Sec. 19. A new section is added to chapter 81.112 RCW to read as follows:

Transactions undertaken under section 18 of this act are subject to the following conditions:

(1) The financial institution, insurance company, or other entity that enters into a payment undertaking agreement with the regional transit authority or public development corporation or entity created under section 20 of this act as a counterparty must have a rating from at least two nationally recognized credit rating agencies, as of the date of execution of the payment undertaking agreement, that is within the two highest long-term investment grade rating categories, without regard to subcategories, or the obligations of the counterparty must be guaranteed by a financial institution, insurance company, or other entity with that credit rating. The payment undertaking agreement must require that the obligations of the counterparty or the guarantor, as the case may be, must be collateralized by collateral of a type and in an amount specified by the governing body of the regional transit authority if the credit ratings of the counterparty or its guarantor fall below the level required by this subsection.

(2) The amount to be paid by the counterparties under payment undertaking agreements for a transaction under the terms of the agreements, when combined with the amount of securities, deposits, and investments set aside by the regional transit authority for payment in respect of the transactions, together with interest or other earnings on the securities, deposits, or investments, must be sufficient to pay when due all amounts required to be paid by the regional transit authority, or public corporation or entity created under section 20 of this act, as rent, debt service, or installments of purchase price, as the case may be, over the full term of the transaction plus any optional purchase price due under the transaction. A certification by an independent financial expert, banker, or certified public accountant, who is not an employee of the regional transit authority or public corporation or entity created under section 20 of this act, certifying compliance with this requirement is conclusive evidence that the arrangements, by their terms, comply with the requirement under this subsection on the sufficiency of the amount.

(3) The payment undertaking agreements, and all other basic and material agreements entered into in connection with the transactions, must specify that the parties to the agreements consent to the jurisdiction of state courts of Washington for disputes arising out of the agreements and agree not to contest venue before such courts. Regardless of the choice of law specified in the foregoing agreements, the agreements must acknowledge that the regional transit authority or public development corporation or entity created under section 20 of this act that is a party to the agreements is an entity created under the laws of the state of Washington whose power and authority and limitations and restrictions on the power and authority are governed by the laws of the state of Washington.

Payment undertaking agreements that meet the foregoing requirement must be treated for all relevant purposes as agreements under which future services are performed for a present payment and shall not be treated as payment agreements within the meaning of chapter 39.96 RCW.

NEW SECTION. Sec. 20. A new section is added to chapter 81.112 RCW to read as follows:

To accomplish any of the activities under section 18 of this act, a regional transit authority may create a public corporation, commission, or authority under RCW 35.21.730 through 35.21.755, and authorize the corporation, commission, or authority to provide any of the facilities and services that a regional transit authority may provide including any activities under section 18 of this act. A regional transit authority has all the powers, authorities, and rights granted to any city, town, or county or their agents under RCW 35.21.730 through 35.21.755 for the purposes of entering into and implementing transactions under section 18 of this act.

NEW SECTION. Sec. 21. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 does not apply to lease amounts paid by a seller/lessee to a lessor under a sale/leaseback agreement under section 18 of this act in respect to tangible personal property, used by the seller/lessee, or to the purchase amount paid by the lessee pursuant to an option to purchase at the end of the lease term, but only if the seller/lessee previously paid any tax otherwise due under this chapter or chapter 82.12 RCW at the time of acquisition of the tangible personal property.

NEW SECTION. Sec. 22. A new section is added to chapter 82.12 RCW to read as follows:

This chapter does not apply to the use of tangible personal property by a seller/lessee to a lessor under a sale/leaseback agreement under section 18 of this act in respect to tangible personal property used by the seller/lessee, or to the purchase amount paid by the lessee under an option to purchase at the end of the lease term, but only if the seller/lessee previously paid any tax otherwise due under this chapter or chapter 82.08 RCW at the time of acquisition of the tangible personal property.

Sec. 23. RCW 82.04.050 and 1998 c 332 s 2, 1998 c 315 s 1, 1998 c 308 s 1, and 1998 c 275 s 1 are each reenacted and amended to read as follows:

(1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who:

(a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person, but a purchase for the purpose of resale by a regional transit authority under section 18 of this act is not a sale for resale; or

(b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or

(c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or

(d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or

(e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. The term also means every sale of tangible personal property to persons engaged in any business which is taxable under RCW 82.04.280 (2) and (7) and 82.04.290.

(2) The term "sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:

(a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;

(b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;

(c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner;

(d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting;

(e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 RCW;

(f) The sale of and charge made for the furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same;

(g) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), and (f) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection.

(3) The term "sale at retail" or "retail sale" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities:

(a) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, ski lifts and tows, day trips for sightseeing purposes, and others, when provided to consumers;

(b) Abstract, title insurance, and escrow services;

(d) Automobile parking and storage garage services;

(e) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility;

(f) Service charges associated with tickets to professional sporting events; and

(g) The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services.

(4) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator.

(5) The term shall also include the providing of telephone service, as defined in RCW 82.04.065, to consumers.

(6) The term shall also include the sale of canned software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user, but shall not include custom software or the customization of canned software.

(7) The term shall not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.

(8) The term shall also not include sales of chemical sprays or washes to persons for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, nor shall it include sales of feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials to: (a) Persons who participate in the federal conservation reserve program, the environmental quality incentives program, the wetlands reserve program, and the wildlife habitat incentives program, or their successors administered by the United States department of agriculture; (b) farmers for the purpose of producing for sale any agricultural product; and (c) farmers acting under cooperative habitat development or access contracts with an organization exempt from federal income tax under 26 U.S.C. Sec. 501(c)(3) or the Washington state department of fish and wildlife to produce or improve wildlife habitat on land that the farmer owns or leases.

(9) The term shall not include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. Nor shall the term include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development.

(10) Until July 1, 2003, the term shall not include the sale of or charge made for labor and services rendered for environmental remedial action as defined in RCW 82.04.2635(2).

NEW SECTION. Sec. 24. A new section is added to chapter 82.04 RCW to read as follows:

This chapter does not apply to amounts received as lease payments paid by a seller/lessee to a lessor under a sale/leaseback agreement under section 18 of this act in respect to tangible personal property used by the seller/lessee, or to the purchase amount paid by the lessee under an option to purchase at the end of the lease term.

NEW SECTION. Sec. 25. A new section is added to chapter 82.29A RCW to read as follows:

All leasehold interests in property of a regional transit authority or public corporation created under section 20 of this act under an agreement under section 18 of this act are exempt from tax under this chapter.

Sec. 26. RCW 82.45.010 and 1999 c 209 s 2 are each amended to read as follows:

(1) As used in this chapter, the term "sale" shall have its ordinary meaning and shall include any conveyance, grant, assignment, quitclaim, or transfer of the ownership of or title to real property, including standing timber, or any estate or interest therein for a valuable consideration, and any contract for such conveyance, grant, assignment, quitclaim, or transfer, and any lease with an option to purchase real property, including standing timber, or any estate or interest therein or other contract under which possession of the property is given to the purchaser, or any other person at the purchaser's direction, and title to the property is retained by the vendor as security for the payment of the purchase price. The term also includes the grant, assignment, quitclaim, sale, or transfer of improvements constructed upon leased land.

(2) The term "sale" also includes the transfer or acquisition within any twelve-month period of a controlling interest in any entity with an interest in real property located in this state for a valuable consideration. For purposes of this subsection, all acquisitions of persons acting in concert shall be aggregated for purposes of determining whether a transfer or acquisition of a controlling interest has taken place. The department of revenue shall adopt standards by rule to determine when persons are acting in concert. In adopting a rule for this purpose, the department shall consider the following:

(a) Persons shall be treated as acting in concert when they have a relationship with each other such that one person influences or controls the actions of another through common ownership; and

(b) When persons are not commonly owned or controlled, they shall be treated as acting in concert only when the unity with which the purchasers have negotiated and will consummate the transfer of ownership interests supports a finding that they are acting as a single entity. If the acquisitions are completely independent, with each purchaser buying without regard to the identity of the other purchasers, then the acquisitions shall be considered separate acquisitions.

(3) The term "sale" shall not include:

(a) A transfer by gift, devise, or inheritance.

(b) A transfer of any leasehold interest other than of the type mentioned above.

(c) A cancellation or forfeiture of a vendee's interest in a contract for the sale of real property, whether or not such contract contains a forfeiture clause, or deed in lieu of foreclosure of a mortgage.

(d) The partition of property by tenants in common by agreement or as the result of a court decree.

(e) The assignment of property or interest in property from one spouse to the other in accordance with the terms of a decree of divorce or in fulfillment of a property settlement agreement.

(f) The assignment or other transfer of a vendor's interest in a contract for the sale of real property, even though accompanied by a conveyance of the vendor's interest in the real property involved.

(g) Transfers by appropriation or decree in condemnation proceedings brought by the United States, the state or any political subdivision thereof, or a municipal corporation.

(h) A mortgage or other transfer of an interest in real property merely to secure a debt, or the assignment thereof.

(i) Any transfer or conveyance made pursuant to a deed of trust or an order of sale by the court in any mortgage, deed of trust, or lien foreclosure proceeding or upon execution of a judgment, or deed in lieu of foreclosure to satisfy a mortgage or deed of trust.

(j) A conveyance to the federal housing administration or veterans administration by an authorized mortgagee made pursuant to a contract of insurance or guaranty with the federal housing administration or veterans administration.

(k) A transfer in compliance with the terms of any lease or contract upon which the tax as imposed by this chapter has been paid or where the lease or contract was entered into prior to the date this tax was first imposed.

(l) The sale of any grave or lot in an established cemetery.

(m) A sale by the United States, this state or any political subdivision thereof, or a municipal corporation of this state.

(n) A sale to a regional transit authority or public corporation under section 20 of this act under a sale/leaseback agreement under section 18 of this act.

(o) A transfer of real property, however effected, if it consists of a mere change in identity or form of ownership of an entity where there is no change in the beneficial ownership. These include transfers to a corporation or partnership which is wholly owned by the transferor and/or the transferor's spouse or children: PROVIDED, That if thereafter such transferee corporation or partnership voluntarily transfers such real property, or such transferor, spouse, or children voluntarily transfer stock in the transferee corporation or interest in the transferee partnership capital, as the case may be, to other than (1) the transferor and/or the transferor's spouse or children, (2) a trust having the transferor and/or the transferor's spouse or children as the only beneficiaries at the time of the transfer to the trust, or (3) a corporation or partnership wholly owned by the original transferor and/or the transferor's spouse or children, within three years of the original transfer to which this exemption applies, and the tax on the subsequent transfer has not been paid within sixty days of becoming due, excise taxes shall become due and payable on the original transfer as otherwise provided by law.

(((o))) (p)(i) A transfer that for federal income tax purposes does not involve the recognition of gain or loss for entity formation, liquidation or dissolution, and reorganization, including but not limited to nonrecognition of gain or loss because of application of section 332, 337, 351, 368(a)(1), 721, or 731 of the Internal Revenue Code of 1986, as amended.

(ii) However, the transfer described in (((o))) (p)(i) of this subsection cannot be preceded or followed within a twelve-month period by another transfer or series of transfers, that, when combined with the otherwise exempt transfer or transfers described in (((o))) (p)(i) of this subsection, results in the transfer of a controlling interest in the entity for valuable consideration, and in which one or more persons previously holding a controlling interest in the entity receive cash or property in exchange for any interest the person or persons acting in concert hold in the entity. This subsection (3)(((o))) (p)(ii) does not apply to that part of the transfer involving property received that is the real property interest that the person or persons originally contributed to the entity or when one or more persons who did not contribute real property or belong to the entity at a time when real property was purchased receive cash or personal property in exchange for that person or persons' interest in the entity. The real estate excise tax under this subsection (3)(((o))) (p)(ii) is imposed upon the person or persons who previously held a controlling interest in the entity.

NEW SECTION. Sec. 27. A new section is added to chapter 84.36 RCW to read as follows:

All real and personal property subject to a sale/leaseback agreement under section 18 of this act is exempt from taxation.

NEW SECTION. Sec. 28. A new section is added to chapter 35.21 RCW to read as follows:

A city or town may not impose taxes on amounts received as lease payments paid by a seller/lessee to a lessor under a sale/leaseback agreement under section 18 of this act in respect to tangible personal property used by the seller/lessee, or to the purchase amount paid by the lessee under an option to purchase at the end of the lease term.

Sec. 29. RCW 35.21.755 and 1999 c 266 s 1 are each amended to read as follows:

(1) A public corporation, commission, or authority created pursuant to RCW 35.21.730 ((or)), 35.21.660, or section 20 of this act shall receive the same immunity or exemption from taxation as that of the city, town, or county creating the same: PROVIDED, That, except for (a) any property within a special review district established by ordinance prior to January 1, 1976, or listed on or which is within a district listed on any federal or state register of historical sites or (b) any property owned, operated, or controlled by a public corporation that is used primarily for low-income housing, or that is used as a convention center, performing arts center, public assembly hall, public meeting place, public esplanade, street, public way, public open space, park, public utility corridor, or view corridor for the general public or (c) any blighted property owned, operated, or controlled by a public corporation that was acquired for the purpose of remediation and redevelopment of the property in accordance with an agreement or plan approved by the city, town, or county in which the property is located, or (d) any property owned, operated, or controlled by a public corporation created under section 20 of this act, any such public corporation, commission, or authority shall pay to the county treasurer an annual excise tax equal to the amounts which would be paid upon real property and personal property devoted to the purposes of such public corporation, commission, or authority were it in private ownership, and such real property and personal property is acquired and/or operated under RCW 35.21.730 through 35.21.755, and the proceeds of such excise tax shall be allocated by the county treasurer to the various taxing authorities in which such property is situated, in the same manner as though the property were in private ownership: PROVIDED FURTHER, That the provisions of chapter 82.29A RCW shall not apply to property within a special review district established by ordinance prior to January 1, 1976, or listed on or which is within a district listed on any federal or state register of historical sites and which is controlled by a public corporation, commission, or authority created pursuant to RCW 35.21.730 or 35.21.660, which was in existence prior to January 1, 1987: AND PROVIDED FURTHER, That property within a special review district established by ordinance prior to January 1, 1976, or property which is listed on any federal or state register of historical sites and controlled by a public corporation, commission, or authority created pursuant to RCW 35.21.730 or 35.21.660, which was in existence prior to January 1, 1976, shall receive the same immunity or exemption from taxation as if such property had been within a district listed on any such federal or state register of historical sites as of January 1, 1976, and controlled by a public corporation, commission, or authority created pursuant to RCW 35.21.730 or 35.21.660 which was in existence prior to January 1, 1976.

(2) As used in this section:

(a) "Low-income" means a total annual income, adjusted for family size, not exceeding fifty percent of the area median income.

(b) "Area median income" means:

(i) For an area within a standard metropolitan statistical area, the area median income reported by the United States department of housing and urban development for that standard metropolitan statistical area; or

(ii) For an area not within a standard metropolitan statistical area, the county median income reported by the department of community, trade, and economic development.

(c) "Blighted property" means property that is contaminated with hazardous substances as defined under RCW 70.105D.020(7).

NEW SECTION. Sec. 30. A new section is added to chapter 81.112 RCW to read as follows:

(1) Except as provided in subsection (3) of this section, no regional transit authority may initiate a transaction authorized under section 18 of this act after June 30, 2007.

(2) The termination of authority to enter into transactions after June 30, 2007, does not affect the validity of any transactions entered into under section 18 of this act.

(3) A regional transit authority may enter into a transaction in accordance with section 18 of this act after June 30, 2007, to replace or refinance a transaction that relates to specific obligations entered into on or before that date and that has terminated, or is, under the terms of the replacement or refinance, to terminate, before the final stated term of that transaction. The exemptions from taxes provided by sections 21, 22, 24, 25, 27, and 28 of this act and RCW 82.04.050, 82.45.010, and 35.21.755 apply to the replacement or refinance transactions.

(4) A regional transit authority, or public corporation or entity created under section 20 of this act, that undertakes a transaction authorized by section 18 of this act, shall provide to the state finance committee, or its financial advisor, at the state finance committee's discretion, a copy of all material agreements executed in connection with the transaction within three months of the closing of the transaction and shall make a report to the state finance committee, the president of the senate, and the speaker of the house of representatives on transactions authorized by section 18 of this act. The report must include the amount of the transactions, the expected savings or losses resulting from the transactions, the transaction costs, including fees and detailed pricing information, the risks associated with the transaction, and any other information the regional transit authority determines relevant. The report must be submitted within six months of the closing of each transaction.

NEW SECTION. Sec. 31. The authority granted by sections 18 through 30 of this act is in addition and supplemental to any authority previously granted and does not limit nor is limited by any other powers or authority previously granted to regional transit authorities or any public corporation, or restrictions on such powers or authority. Nothing in sections 18 through 30 of this act limits other statutory authority previously granted to regional transit authorities or public corporations or other tax exemptions granted to regional transit authorities or public corporations. Nothing in sections 18 through 30 of this act limits the authority of the state, any political subdivision thereof, or any other public or municipal corporation to undertake the activities described in sections 18 through 30 of this act as expressly or impliedly authorized by other provisions of law. Nothing in sections 18 through 30 of this act is an authorization to provide indemnification to the extent the indemnification is prohibited or restricted by other provisions of law or the Constitution of the state of Washington.

Sec. 32. RCW 81.112.060 and 1992 c 101 s 6 are each amended to read as follows:

An authority shall have the following powers:

(1) To establish offices, departments, boards, and commissions that are necessary to carry out the purposes of the authority, and to prescribe the functions, powers, and duties thereof.

(2) To appoint or provide for the appointment of, and to remove or to provide for the removal of, all officers and employees of the authority.

(3) To fix the salaries, wages, and other compensation of all officers and employees of the authority.

(4) To employ such engineering, legal, financial, or other specialized personnel as may be necessary to accomplish the purposes of the authority.

(5) To determine risks, hazards, and liabilities in order to obtain insurance consistent with these determinations. This insurance may include any types of insurance covering, and for the benefit of, one or more parties with whom the authority contracts for any purpose, and insurance for the benefit of its board members, authority officers, and employees to insure against liability for acts or omissions while performing or in good faith purporting to perform their official duties. All insurance obtained for construction of authority projects with a total project cost exceeding one hundred million dollars may be acquired by bid or by negotiation through December 31, 2006. In order to allow the authority flexibility to secure appropriate insurance by negotiation, the authority is exempt from RCW 48.30.270.

Sec. 33. RCW 48.30.270 and 1983 2nd ex.s. c 1 s 6 are each amended to read as follows:

(1) No officer or employee of this state, or of any public agency, public authority or public corporation except a public corporation or public authority created pursuant to agreement or compact with another state, and no person acting or purporting to act on behalf of such officer or employee, or public agency or public authority or public corporation, shall, with respect to any public building or construction contract which is about to be, or which has been competitively bid, require the bidder to make application to, or to furnish financial data to, or to obtain or procure, any of the surety bonds or contracts of insurance specified in connection with such contract, or specified by any law, general, special or local, from a particular insurer or agent or broker.

(2) No such officer or employee or any person, acting or purporting to act on behalf of such officer or employee shall negotiate, make application for, obtain or procure any of such surety bonds or contracts of insurance, except contracts of insurance for builder's risk or owner's protective liability, which can be obtained or procured by the bidder, contractor or subcontractor.

(3) This section shall not be construed to prevent the exercise by such officer or employee on behalf of the state or such public agency, public authority, or public corporation of its right to approve the form, sufficiency or manner or execution of the surety bonds or contracts of insurance furnished by the insurer selected by the bidder to underwrite such bonds, or contracts of insurance.

(4) Any provisions in any invitation for bids, or in any of the contract documents, in conflict with this section are declared to be contrary to the public policy of this state.

(5) A violation of this section shall be subject to the penalties provided by RCW 48.01.080.

(6) This section shall not apply to:

(a) The public nonprofit corporation authorized under RCW 67.40.020; or

(b) A regional transit authority authorized under RCW 81.112.030.

NEW SECTION. Sec. 34. Section 1 of this act applies to taxes collected on and after December 31, 1999.

NEW SECTION. Sec. 35. Sections 1 through 3 and 20 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

NEW SECTION. Sec. 36. (1) Sections 4 and 7 through 10 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2000.

(2) Section 5 of this act takes effect September 1, 2000.

(3) Section 6 of this act takes effect March 1, 2002.

NEW SECTION. Sec. 37. Sections 3 and 4 of this act expire September 1, 2000."

Debate ensued.

The President declared the question before the Senate to be the adoption of the striking amendment by Senators Haugen, Gardner and Horn to Engrossed Second Substitute Senate Bill No. 6856.

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

MOTIONS

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

On line 1 of the title, after "funding;" strike the remainder of the title and insert "amending RCW 82.08.020, 43.84.092, 43.84.092, 43.89.010, 46.68.035, 82.36.380, 82.38.270, 43.88.020, 43.88.030, 43.88.120, 43.88.122, 44.40.070, 82.14.045, 82.45.010, 35.21.755, 81.112.060, and 48.30.270; reenacting and amending RCW 43.84.092 and 82.04.050; reenacting RCW 43.84.092; adding a new section to chapter 47.66 RCW; adding new sections to chapter 81.112 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.29A RCW; adding a new section to chapter 84.36 RCW; adding a new section to chapter 35.21 RCW; creating new sections; providing effective dates; providing an expiration date; and declaring an emergency."

On motion of Senator Haugen, the rules were suspended, Second Engrossed Second Substitute Senate Bill No. 6856, under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Second Engrossed Second Substitute Senate Bill No. 6856, under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Second Engrossed Second Substitute Senate Bill No. 6856, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 15; Absent, 0; Excused, 3.

Voting nay: Senators Benton, Deccio, Finkbeiner, Hale, Hochstatter, Honeyford, Johnson, McCaslin, McDonald, Roach, Sheahan, Sheldon, T., Stevens, West and Zarelli - 15.

Excused: Senators Morton, Rossi and Sellar - 3.

SECOND ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6856, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Snyder, Senate Bill No. 6876 and Second Engrossed Second Substitute Senate Bill No. 6856 were immediately transmitted to the House of Representatives.

THIRD READING

SECOND SUBSTITUTE SENATE BILL NO. 6499, by Senate Committee on Transportation (originally sponsored by Senators Haugen, Goings, Gardner and Patterson) (by request of Governor Locke)

Funding transportation.

MOTIONS

On motion of Senator Haugen, the rules were suspended, Second Substitute Senate Bill No. 6499 was returned to second reading and read the second time.

Senator Haugen moved that the following striking amendment by Senators Haugen, Gardner, Benton and Horn be adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. 1999 sp.s. c 1 s 1 (uncodified) is amended to read as follows:

(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.

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

(e) "Provided solely" means the specified amount may be spent only for the specified purpose. Unless otherwise specifically authorized in this act, any portion of an amount provided solely for a specified purpose which is unnecessary to fulfill the specified purpose shall lapse.

(f) "Provided for" means the agency may apportion the specified amount among identified uses as the director or secretary deems most prudent.

(g) "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))) (h) "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))) (i) "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.

(j) "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.

PART I

GENERAL GOVERNMENT AGENCIES--OPERATING

Sec. 101. 1999 sp.s. c 1 s 101 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

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

311,000

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.

Sec. 102. 1999 sp.s. c 1 s 102 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM

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

887,000

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 $405,000 is appropriated for this project in the omnibus operations appropriations act.

(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.

(4) To the extent possible, the appropriation in subsections (1) through (3) of this section shall utilize funds allocated under RCW 46.68.110(2).

Sec. 103. 1999 sp.s. c 1 s 103 (uncodified) is amended to read as follows:

FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Grade Crossing Protective Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((111,000))

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.

(((3) The appropriation in this section is for the fiscal year ending June 30, 2000.))

(2) To the extent possible under current program guidelines, the utilities and transportation commission's small projects program and grade crossing protection program shall give preference to those projects that enhance safety at railroad lines that operate high speed trains and are located within city limits.

Sec. 104. 1999 sp.s. c 1 s 104 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

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

859,000

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.

GENERAL GOVERNMENT AGENCIES--CAPITAL

Sec. 105. 1999 sp.s. c 1 s 105 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE PARKS AND RECREATION--CAPITAL PROJECTS

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ 2,690,000

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) $1,790,000 is a one-time appropriation provided solely for the following projects, apportioned as follows:

(a) Ike Kinswa State Park, $100,000 to commission a hydrology and geology study for the park road drainage system and a traffic study of the intersection of the park entrance roads with SR 122;

(b) Mt. Spokane State Park, $1,300,000;

(d) Cama Beach State Park, $90,000.

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

(3) A legislative subcommittee shall be established to address the issue of funding for state parks' capital roadway projects and determine the funding source. The membership of this subcommittee shall be comprised as follows: Two members from the house transportation committee; two members from the house capital budget committee; two members from the senate transportation committee; and two members from the senate ways and means capital budget subcommittee. Findings and recommendations must be submitted to the senate and house of representatives transportation committees, the house of representatives capital budget committee and the senate ways and means committee by December 1, 2000.

PART II

TRANSPORTATION AGENCIES

Sec. 201. 1999 sp.s. c 1 s 201 (uncodified) is amended to read as follows:

FOR THE WASHINGTON TRAFFIC SAFETY COMMISSION

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$ 1,452,000

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

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

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ 11,494,000

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

(1) $25,000 of the highway safety account--state is provided as a one-time appropriation to implement the Cooper Jones act, chapter 165, Laws of 1998.

(2) The Washington traffic safety commission may oversee no more than four pilot projects regarding the use of traffic safety cameras at school zones and/or railroad crossings and no more than one pilot project regarding the use of traffic safety cameras at school zones, stoplights, and/or railroad crossings. The traffic safety commission shall use the following guidelines to administer the program:

(a) Traffic safety cameras may take pictures of the vehicle and vehicle license plate only;

(b) The law enforcement agency of the city or county government shall plainly mark the locations where the automated traffic enforcement system is used by placing signs on street locations that clearly indicate to a driver that he or she is entering a zone where traffic laws are enforced by an automated traffic enforcement system;

(c) Cities and counties using traffic safety cameras must provide periodic notice by mail to its citizens indicating the zones in which the traffic safety cameras will be used;

(d) Notices of infractions must be mailed to the registered owner of a vehicle within fourteen days of the infraction occurring;

(e) The owner of the vehicle is not responsible for the violation if the owner of the vehicle, within fifteen days after notification of the violation, furnishes the officials or agents of the municipality that issued the citation with:

(i) An affidavit made under oath, stating that the vehicle involved was, at the time, stolen or in the care, custody, or control of some person other than the registered owner; or

(ii) Testimony in open court under oath that the person was not the operator of the vehicle at the time of the alleged violation;

(f) Infractions detected through the use of traffic safety cameras are not part of the registered owner's driving record under RCW 46.52.101 and 46.52.120;

(g) By January 1, 2001, the traffic safety commission shall provide a report to the legislature regarding the use, public acceptance, outcomes, and other relevant issues regarding traffic safety cameras demonstrated by the pilot projects.

Sec. 202. 1999 sp.s. c 1 s 202 (uncodified) is amended to read as follows:

FOR THE BOARD OF PILOTAGE COMMISSIONERS

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

253,000

Sec. 203. 1999 sp.s. c 1 s 203 (uncodified) is amended to read as follows:

FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((72,510,000))

60,568,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((9,546,000))

1,661,000

Motor Vehicle Account--Private/Local

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

ounty Arterial Preservation Account--

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

28,542,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((111,044,000))

91,147,000

The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: (($8,000,000)) $240,000 of the motor vehicle account--state appropriation is provided solely for ((projects)) the completion of a study updating the legislature on the freight and goods road systems on county roads.

Sec. 204. 1999 sp.s. c 1 s 204 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Urban Arterial Trust Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((104,508,000))

104,433,000

Transportation Improvement Account--

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

148,814,000

Public Transportation Systems Account--

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

4,532,000

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,977,000

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

269,756,000

The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: ((To the extent practicable, the board shall give preference, for amounts which would otherwise be granted to cities, to those projects which complement projects funded under the county corridor congestion relief program contained in section 231(8) of this act.)) The transportation improvement account--state appropriation includes $60,000,000 in proceeds from the sale of bonds, $30,000,000 authorized by RCW 47.26.500, and $30,000,000 authorized by House Bill No. 2788. If House Bill No. 2788 is not enacted in the form passed by the legislature $30,000,000 of the amount provided in this subsection shall lapse.

Sec. 205. 1999 sp.s. c 1 s 205 (uncodified) is amended to read as follows:

FOR THE SENATE

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((2,586,000))

2,436,000

((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;

(d) Evaluate governance issues associated with road jurisdiction.

(5) The committee shall oversee program accountability reviews of department of transportation, department of licensing, and Washington state patrol programs selected by the senate transportation committee.))

Sec. 206. 1999 sp.s. c 1 s 206 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE TRANSPORTATION COMMITTEE

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((4,283,000))

3,633,000

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

(1) $2,467,000 of the motor vehicle account--state appropriation is provided for the operation of the house of representatives transportation committee. The appropriation includes $500,000 for personal service contracts and other activities as deemed necessary by the house of representatives transportation committee.

(2) ((The transportation committees of the legislature 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.

(3) 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;

(d) Evaluate governance issues associated with road jurisdiction.

(4) The transportation committees of the legislature shall oversee program accountability reviews of department of transportation, department of licensing, and Washington state patrol programs selected by the senate transportation committee)) To the extent possible, this appropriation shall utilize funds allocated under RCW 46.68.110(2).

Sec. 207. 1999 sp.s. c 1 s 207 (uncodified) is amended to read as follows:

FOR THE BLUE RIBBON COMMISSION ON TRANSPORTATION

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ 1,800,000

The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: (((1))) The $1,800,000 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. To the extent possible, this appropriation shall utilize funds allocated under RCW 46.68.110(2).

Sec. 208. 1999 sp.s. c 1 s 208 (uncodified) is amended to read as follows:

FOR THE MARINE EMPLOYEES COMMISSION

Puget Sound Ferry Operations Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((356,000))

322,000

Sec. 209. 1999 sp.s. c 1 s 209 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION COMMISSION

((Transportation Account--State Appropriation))

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((807,000))

767,000

Sec. 210. 1999 sp.s. c 1 s 210 (uncodified) is amended to read as follows:

FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

((Transportation)) Motor Vehicle Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((600,000))

540,000

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

(1) The freight mobility strategic investment board is authorized to revise the criteria for selecting and ranking freight mobility projects, to be applied during the next call for projects. The original portfolio of projects submitted by the board to the legislature in December of 1999 shall not be impacted by any revisions to the criteria.

(2) The legislature recognizes that the freight mobility strategic investment board has submitted projects meeting the geographic allocation requirements of RCW 47.06A.050, even though some of the projects ultimately will be funded with regionally-allocated federal funds.

Sec. 211. 1999 sp.s. c 1 s 211 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

State Patrol Highway Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((154,538,000))

154,314,000

State Patrol Highway Account--

Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,153,000

State Patrol Highway Account--

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

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((160,860,000))

160,636,000

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: $120,372,000 of the state patrol highway account--state appropriation; $2,854,000 of the state patrol highway account--federal appropriation; and $83,000 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: $26,367,000 of the state patrol highway account--state appropriation; $3,299,000 of the state patrol highway account--federal appropriation; and $86,000 of the state patrol highway account--private/local appropriation.

(3) $7,799,000 of the state patrol highway account--state appropriation is provided solely for the administration of the traffic investigation division subprogram.

(4) $1,137,000 of the state patrol highway account--state appropriation is provided solely for the license fraud task force to begin on July 1, 1999. Positions funded are one sergeant/detective, three Washington state patrol detectives, and one clerical support person, for administrative support for the task force as a whole. $115,400 of this amount is for reimbursement to the department of revenue and $228,315 of this amount is for reimbursement to the attorney general's office. If Senate Bill No. 5706 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse. Any funds provided in this subsection not used to implement Senate Bill No. 5706 as enacted by the legislature shall revert at the end of the 1999-01 biennium.

(5))) $1,435,000 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.

(((6))) (2) The Washington state patrol is authorized to use the federal community-oriented policing program (COPS) for 18 COPS troopers to begin in July 2000. The troopers must be used on the state's highways and up to six may be utilized in the Vancouver, Washington area.

Sec. 212. 1999 sp.s. c 1 s 212 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

State Patrol Highway Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((67,015,000))

65,621,000

State Patrol Highway Account--

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

State Patrol Highway Account--

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

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((67,862,000))

66,468,000

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.

Sec. 213. 1999 sp.s. c 1 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICES

Marine Fuel Tax Refund Account--State

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

Motorcycle Safety Education Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((118,000))

102,000

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

80,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$ ((6,578,000))

7,074,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((4,571,000))

3,998,000

DOL Services Account--State Appropriation. . . .. . . . . . . . . . . . . . . . .$

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((11,317,000))

11,380,000

Sec. 214. 1999 sp.s. c 1 s 214 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--INFORMATION SYSTEMS

Marine Fuel Tax Refund Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,000

Motorcycle Safety Education Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((102,000))

44,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$

32,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$ ((5,725,000))

5,953,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((3,651,000))

2,909,000

DOL Services Account--State Appropriation. . . .. . . . . . . . . . . . . . . . .$ $292,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((9,524,000))

9,232,000

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.

Sec. 215. 1999 sp.s. c 1 s 215 (uncodified) is amended to read as follows:

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. . . . . . . . . . . . . . . . . . . .$ ((56,137,000))

53,532,000

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

3,057,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((59,626,000))

57,171,000

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

(((4))) (1) $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.

(((5))) (2) $15,000 of the motor vehicle account--state appropriation is provided solely to implement House Bill No. 2201 enacted in the form passed by the legislature.

(3) $150,000 of the DOL services account--state appropriation is provided solely for the purchase and implementation of a revenue system to accompany the department's electronic commerce initiative.

Sec. 216. 1999 sp.s. c 1 s 216 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Motorcycle Safety Education Account--

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

2,210,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . .$ ((78,075,000))

77,971,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((80,035,000))

80,181,000

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

(1) By January 1, 2001, the department shall report to the transportation committees of the house of representatives and the senate on the progress of the driver history initiative project and make recommendations for implementing this project on a state-wide level.

(2) $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 in Title 46 RCW.

(((2))) (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) $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.

(5) $130,000 of the highway safety fund--state appropriation is provided solely to implement House Bill No. 2259 enacted in the form passed by the legislature. If House Bill No. 2259 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(((6) $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.

(8) $329,000 of the highway safety account--state appropriation is provided solely to implement Senate Bill No. 5399 enacted as passed by the legislature.))

Sec. 217. 1999 sp.s. c 1 s 217 (uncodified) is amended to read as follows:

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

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

45,236,000

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

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

45,636,000

Sec. 218. 1999 sp.s. c 1 s 218 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

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

5,047,000

Aircraft Search and Rescue Safety and

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

((Transportation Account--State Appropriation 247,000))

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

5,206,000

The appropriations in this section are subject to the following conditions and limitations: Grants awarded by the department of transportation shall emphasize safety-related activities.

Sec. 219. 1999 sp.s. c 1 s 219 (uncodified) is amended to read as follows:

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((630,010,000))

459,765,000

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

240,241,000

Motor Vehicle Account--Private/Local

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((43,344,000))

50,363,000

((High Capacity Transportation Account--State

Appropriation 110,000))

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

((Transportation Account--State Appropriation 197,284,000

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))

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,880,000

Multimodal Transportation Account--Federal

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,275,000

Multimodal Transportation Account--Private/Local

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,106,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((1,229,877,000))

821,512,000

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 or multimodal 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.)) $2,270,000 of the motor vehicle account--state appropriation is provided solely for the north Sumner interchange project. 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)) $4,880,000 of the multimodal transportation 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 (($469,779,000)) $147,000,000 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 and design of congestion solutions at the intersections of the South Lake Union/Mercer corridor with Interstate 5 and SR 99. The amount provided in this subsection shall be expended on the state's portion of the project. 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 design and analysis for the local street portion of the project.

(9) $10,000,000)) (a) $50,000,000 of the motor vehicle account--state appropriation ((and $40,000,000 of the transportation account--state appropriation are)) 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.

(b) The $50,000,000 provided in (a) of this subsection includes $5,527,000 in proceeds from the sale of bonds authorized in RCW 47.10.834 for all forms of cash contributions, or 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.

(((11))) (9) $5,800,000 of the motor vehicle account--state appropriation is provided solely for the completion of the weigh stations at Stanwood and Cle Elum along with weigh in motion at those sites ((an)) and weigh in motion at Fort Lewis Northbound. The Washington state patrol and department of transportation shall work cooperatively to complete these projects.

(((12))) (10) $485,000 of the motor vehicle account--state appropriation is a reappropriation provided solely to enable the translake committee to finalize and present its recommendations. Upon presentation of the recommendations, or upon the expenditure of the appropriation provided by this subsection, the department of transportation shall disband the committee.

(((13))) (11) $800,000 of the motor vehicle account--state appropriation ((is)) and $3,000,000 of the motor vehicle account--federal appropriation are provided solely to the Washington state department of transportation, office of urban mobility, to advance the recommendations of the translake Washington study committee. These funds shall be used to develop a scope of work for an environmental impact statement and related engineering work, including an environmental strategy, a decision process, a statement of purpose and need, and a formal notice of intent. None of the appropriation for the scope of work for the environmental impact statement shall be available to support any activities of the translake Washington study committee.

(((14) $500,000)) (12) $1,166,000 of the motor vehicle fund--state appropriation is provided solely for predesign of the northeast 44th street interchange on I-405. ((The department of transportation and the city of Renton shall develop a proposal that includes a funding plan for the interchange that specifies the partner's share of the cost. The department and the city shall report to the legislative transportation committees by December 1, 1999.)) This amount shall be placed into a reserve status until such time as a one-third contribution is made by the city of Renton and a one-third contribution is made by the project developer. If the city and developer contributions are not obtained by October 31, 2000, this amount shall lapse.

(13) The department's work force levels for highway construction for the 1999-2001 biennium shall be 2200 FTEs. Additional work force increases for highway construction are authorized and shall not exceed five percent of the authorized work force. The department shall report quarterly on program delivery and related work force adjustments.

(14) $1,250,000 of the motor vehicle 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.

Sec. 220. 1999 sp.s. c 1 s 220 (uncodified) is amended to read as follows:

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

((Transportation Account--State Appropriation 1,212,000))

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

5,847,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((11,374,000))

5,847,000

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

(1) The motor vehicle fund--state appropriation includes (($10,162,000)) $4,635,000 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.

(2) The department of transportation and the freight mobility strategic investment board must coordinate activities relating to relieving traffic congestion and promoting the movement of freight.

Sec. 221. 1999 sp.s. c 1 s 221 (uncodified) is amended to read as follows:

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((251,426,000))

239,927,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . .$ ((887,000))

486,000

Motor Vehicle Account--Private/Local

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,417,000

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

243,830,000

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.

(3) The department shall not close any highway rest areas but shall continue to operate and maintain all existing rest areas. The department shall convene a panel of stakeholders to evaluate innovative financing options and partnership opportunities at safety rest areas on state highways. At a minimum, the evaluation shall include: (a) A survey of relevant laws that impact the state's ability to create public-private partnerships or utilize innovative financing techniques for the maintenance and operation of safety rest areas; and (b) an identification of maintenance and operation activities necessary to ensure continuous operation of safety rest areas. By December 1, 2000, the stakeholder panel shall make recommendations to the house of representatives and senate transportation committees and the office of financial management on the feasibility of instituting a pilot project for public-private partnerships or innovative financing of safety rest areas.

Sec. 222. 1999 sp.s. c 1 s 222 (uncodified) is amended to read as follows:

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

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

103,569,000

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

386,087,000

Motor Vehicle Account--Private/Local

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,117,000))

4,117,000

((Transportation Account)) Multimodal

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

38,121,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((606,516,000))

531,894,000

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

(1) 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 or multimodal transportation account to ensure efficient funds management and program delivery.

(3) The department's work force levels for highway construction for the 1999-2001 biennium shall be 2200 FTEs. Additional work force increases for highway construction are authorized and shall not exceed five percent of the authorized work force. The department shall report quarterly on program delivery and related work force adjustments.

(4) The department of transportation is authorized to maximize the use of federal and state funds to implement the provisions of this section.

Sec. 223. 1999 sp.s. c 1 s 223 (uncodified) is amended to read as follows:

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))

33,793,000

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

Motor Vehicle Account--Private/Local

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 122,000

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

35,798,000

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.

(3) Projects selected by the department in this section must be selected using safety-related and congestion-related criteria.

Sec. 224. 1999 sp.s. c 1 s 224 (uncodified) is amended to read as follows:

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

Puget Sound Capital Construction Account--

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

2,989,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((98,390,000))

84,062,000

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

Puget Sound Ferry Operations Account--

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

6,353,000

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

115,000

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,402,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((110,804,000))

95,046,000

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

(1) (($586,000)) $75,000 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.

(2) Appropriation transfers from transportation management and support to the transportation equipment fund for management information services activities shall be permitted through fiscal year 2000. Effective July 1, 2000, expenditures for these activities shall be charged directly to transportation management and support.

NEW SECTION. Sec. 225. RCW 47.08.125 (Transfer of purchases to transportation equipment fund--Charge for computer services) and 1979 c 39 s 2 are each repealed.

Sec. 226. 1999 sp.s. c 1 s 225 (uncodified) is amended to read as follows:

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((12,109,000))

10,459,000

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

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

328,000

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,043,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((30,480,000))

28,830,000

Sec. 227. 1999 sp.s. c 1 s 226 (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

((Transportation Account--State Appropriation 2,595,000))

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ 2,913,000

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))

3,693,000

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

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

1,990,000

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

((Transportation Account))

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((12,039,000))

11,539,000

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

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

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

3,262,000

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ 158,000

(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))) (9) FOR ARCHIVES AND RECORDS MANAGEMENT

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

Sec. 228. 1999 sp.s. c 1 s 227 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION--PROGRAM V

High Capacity Transportation Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,701,000))

1,451,000

Air Pollution Control Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((6,253,000))

1,313,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((7,187,000))

2,046,000

Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . .$ ((7,345,000))

358,000

((Transportation Account--Private/Local

Appropriation 105,000

Public Transportation Systems Account--

State Appropriation 800,000))

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 7,189,000

Multimodal Transportation Account--Federal

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,987,000

Multimodal Transportation Account--

Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 105,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((24,391,000))

19,449,000

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

(1) Appropriations in this section shall initially be allotted as appropriated by this section. Subsequent allotment modifications shall not permit moneys that are provided solely for a specified purpose to be used for other than that purpose. After January 1, 2000, after approval by the director of financial management and unless specifically prohibited by this act, the department may transfer appropriations between the transportation account--state and the multimodal transportation account--state appropriations. However, the program shall not expend more than the total amount appropriated from these accounts.

(2) Up to $750,000 of the multimodal 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. ((The department may expend up to $250,000 without a matching appropriation. The department's authority to expend more than that amount is conditioned upon the legislature authorizing a matching appropriation equal to the total expenditure of the amount provided in this subsection.

(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.

(5) $4,900,000 of the multimodal transportation account--federal appropriation is provided solely for commute trip reduction programs administered by the department of transportation. These funds come from the TEA-21 congestion mitigation air quality program. ((The office of financial management shall place $1,000,000 of the air pollution control account--state appropriation in reserve status.))

Sec. 229. 1999 sp.s. c 1 s 228 (uncodified) is amended to read as follows:

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

Puget Sound Capital Construction Account--

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

119,535,000

Puget Sound Capital Construction Account--

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

42,466,000

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

215,000

((Motor Vehicle Account--State Appropriation 116,221,000))

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

162,216,000

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)) 1. 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.

(((4) The motor vehicle account--state appropriation includes $110,729,000 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) The department shall structure the request for proposal for the purchase of passenger-only ferries authorized under RCW 47.60.652 to include the purchase of a fifth back-up ferry to support maintenance schedules, emergency service needs, and provide continuity of service on all passenger-only ferry routes. The purchase of a fifth passenger-only ferry is subject to subsequent legislative appropriation.))

Sec. 230. 1999 sp.s. c 1 s 229 (uncodified) is amended to read as follows:

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

Marine Operating Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((303,014,000))

148,330,000

Puget Sound Ferry Operations Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 137,587,000

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,092,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ 291,009,000

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

(1) Appropriations in this section shall initially be allotted as appropriated by this section. Subsequent allotment modifications shall not permit moneys that are provided solely for a specified purpose to be used for other than that purpose. After May 1, 2000, after approval by the director of financial management and unless specifically prohibited by this act, the department may transfer appropriations between the marine operating account--state and the Puget Sound ferry operations account--state appropriations. However, the program shall not expend more than the total amount appropriated from these accounts.

(2) The appropriation is based on the budgeted expenditure of (($29,104,000)) $29,539,000 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))) (3) 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 (($205,640,000)) $195,690,000 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.))

(4) The department, when implementing ferry service reductions, shall, to the extent possible, maintain peak hour vehicle and passenger service capacity, summer tourist route capacity, and a fall/winter/spring presence on all auto ferry routes, while ensuring equitable treatment among routes.

(5) The joint task force on ferries is created.

(a) The joint task force on ferries is composed of:

(i) Eight members of the legislature selected as follows:

(A) Four members of the senate, two from each of the major caucuses, to be appointed by the president of the senate, who shall select one of the four senate members as cochair;

(B) Four members of the house of representatives, two from each of the major caucuses, to be appointed by the cospeaker of the respective caucus. The cospeakers shall jointly select one of the four house members as cochair; and

(C) The members appointed from each major caucus of the senate and the house of representatives must include one member from a legislative district that encompasses a terminus of a Washington state ferry route and one from a legislative district that does not include a terminus of a Washington state ferry route;

(ii) At least one person designated by the cochairs representing each of the following:

(A) Ferry advisory committees;

(B) Persons who do not use ferries;

(D) Washington State Ferries;

(E) Transit operators;

(F) The office of financial management; and

(G) Other groups as deemed appropriate by the cochairs of the task force.

(b) The transportation committees shall provide staff support as mutually agreed by the cochairs of the joint task force.

(d) The joint task force on ferries shall report to the full legislature at the beginning of the 2001 legislative session. The report must include, but not be limited to, analysis and recommendations on the following:

(i) Establishment of a long-term goal for recovery of operating costs from fare revenue;

(ii) Options for further cuts in ferry service or full or partial restoration of ferry service cuts;

(iii) Feasibility of full or partial privatization of the ferry system, public-private partnerships, or state and local partnerships; and

(iv) Establishing the short-term and long-term capital needs of the Washington state ferry system.

Sec. 231. 1999 sp.s. c 1 s 230 (uncodified) is amended to read as follows:

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

Essential Rail Assistance Account--

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

High Capacity Transportation Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((15,094,000))

10,794,000

Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((95,915,000))

7,030,000

Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . .$ ((10,000,000))

12,000

((Public Transportation Systems Account--

State Appropriation 5,000,000))

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 41,935,000

Multimodal Transportation Account--Federal

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,988,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((126,094,000))

69,844,000

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

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

(((2) $2,000,000 of the transportation account--state appropriation and $4,000,000 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) $3,000,000 of the high capacity transportation account--state appropriation is provided solely for acquisition of up to six rail passenger cars to add capacity to existing advanced technology train sets operating in Washington state.

(4))) (3) $6,298,000 of the ((high capacity)) multimodal 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) $10,000,000 of the transportation account--state appropriation and $5,000,000 of the public transportation systems account--state appropriation are 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))) (4) To the greatest extent practicable, expenditure of funds shall maximize funds from partnerships and coordinate with other agencies investing in track improvements.

(((7))) (5) $5,000,000 of the multimodal transportation account--federal appropriation is provided from TEA-21 surface transportation program enhancement funds is provided solely for restoration of and improvements to the King street station.

(6) $500,000 of the multimodal transportation account--state appropriation is provided solely for use towards implementation of a program to purchase refrigerated express railcars, to be known as the George Sellar express railcars, that may be leased for the purpose of hauling express shipments, including but not limited to Washington produce, to market.

(a) Subject to (b) of this subsection, the department is authorized to incur a federal railroad rehabilitation and improvement financing loan of up to $10,000,000 for program implementation, to be repaid with revenues generated from the program.

(b) As a precondition to purchasing refrigerated express railcars, the department shall conduct a feasibility study. If satisfied with the feasibility study results, the transportation commission may direct the department to proceed with a program for the purchase of refrigerated express railcars.

(c) Any revenues derived from the program must be placed in a separate account and used strictly for: The repayment of debt, including the risk insurance premium; ongoing maintenance of assets; and reserves for the express railcar program.

(d) The department shall make semiannual progress reports to the senate transportation committee, the house of representatives transportation committee, and the office of financial management until December 31, 2001, and annual progress reports thereafter.

(7) $100,000 of the multimodal transportation account--state appropriation is provided solely for the department of transportation in conjunction with the utilities and transportation commission and the Spokane regional transportation council to study and make recommendations on issues related to railroad rights of way in the Spokane valley. A status report shall be provided to the transportation committees of the house of representatives and the senate by December 1, 2000.

Sec. 232. 1999 sp.s. c 1 s 231 (uncodified) is amended to read as follows:

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . .$ ((129,886,000))

83,435,000

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

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

321,000

((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

Multimodal Transportation Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,381,000

Urban Arterial Trust Account--State

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

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . .$ ((155,577,000))

109,061,000

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.

(2) $85,121,000)) $40,692,000 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)) (2) $187,000 of the transportation account--state appropriation ((is)) and $213,000 of the multimodal transportation account--state appropriation are provided solely for a study by the senate transportation committee and the house of 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))) (3) The motor vehicle account--state appropriation includes (($105,121,000)) $30,000,000 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))) (4) $10,000,000 of the multimodal transportation account--state appropriation is provided solely to fund the first phase of a multiphase cooperative project with the state of Oregon to dredge the Columbia river. The department shall not expend the appropriation in this section unless agreement on ocean disposal sites has been reached which protects the state's commercial crab fishery. 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))) (5) 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))) (6) $5,000,000 of the ((motor vehicle)) urban arterial trust account--state appropriation is provided solely for a small city pavement preservation program, to be administered by the department's ((TransAid)) highways and local programs 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 or less.

(((8) $20,000,000)) (7) $15,000,000 of the motor vehicle account--state appropriation is provided solely for a county corridor congestion relief program, to be administered by the department's ((TransAid)) highways and local programs division. Urban corridors must connect to urban or significant activity centers; begin or end at the intersection of another arterial, state highway, or limited access freeway system; and provide an alternate route to the limited access freeway system. 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 counties((,)) and 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)) systematic corridor mobility improvements rather than isolated "spot" improvements; and optimal timing for construction.

(((9))) (8) $5,000,000 of the motor vehicle account--state appropriation is provided solely for improving traffic and pedestrian safety near schools. The ((TransAid)) highways and local programs 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))) (9) The ((TransAid)) highways and local programs division within the department of transportation shall develop a prequalification procedure for potential bidders on projects administered or approved by the transportation improvement 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.

(12) $5,000,000)) (10) $2,000,000 of the motor vehicle account--state appropriation is provided solely for city fish passage barrier removal and habitat restoration. Funds should be used for eliminating fish passage barriers, including stormwater facilities, and providing for habitat restoration for salmonid species that are listed as threatened or endangered. The amount provided in this section may only be expended upon authorization from the department of transportation's environmental affairs office.

(11) $10,000,000 of the motor vehicle fund--state appropriation is provided solely for a city corridor congestion relief program, to be administered by the department's highways and local programs division. Urban corridors must connect to urban or significant activity centers, begin or end at the intersection of another arterial, state highway or limited access freeway system, and provide an alternate route to the limited access freeway system. 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 counties and regional transportation planning organizations. At a minimum, project selection criteria should include: Consistency with regional transportation plans; measurable improvements in mobility; cost effectiveness; systematic corridor mobility improvements rather than isolated "spot" improvements; and optimal timing for construction.

PART III

TRANSPORTATION AGENCIES CAPITAL FACILITIES

Sec. 301. 1999 sp.s. c 1 s 303 (uncodified) is amended to read as follows:

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

Motor Vehicle Account--State Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((26,147,000))

15,231,000

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. 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 analysis must be completed by January 31, 2000.

(2) The department of transportation is authorized to enter into a financing contract using certificate of participation in the amount of $14,500,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to acquire and remodel a regional complex in the department's southwest region.

PART IV

TRANSFERS AND DISTRIBUTIONS

Sec. 401. 1999 sp.s. c 1 s 401 (uncodified) is amended to read as follows:

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

Highway Bond Retirement Account Appropriation. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .$ ((184,810,000))

161,310,000

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

53,592,000

Transportation Improvement Board Bond Retirement

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

35,909,000

Puget Sound Capital Construction Account--State

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

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

1,960,000

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

Transportation Improvement Account--State

Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 600,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . . . . . . . . . . .$ ((280,539,000))

254,046,000

Sec. 402. 1999 sp.s. c 1 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((36,000))

61,000

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

443,000

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

91,000

Transportation Improvement

Account--State Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 135,000

TOTAL APPROPRIATION. .. . . . . . . . . . . . . . . . . . . . . . . . . .$ ((900,000))

730,000

Sec. 403. 1999 sp.s. c 1 s 403 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

(1) Motor Vehicle Fund Appropriation for

motor vehicle fuel tax and overload penalties

distribution. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((492,721,000))

483,325,000

(2) Transportation Fund Appropriation for

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

178,207,000

(3) Multimodal Transportation Account--State

Appropriation for motor vehicle excise tax

distribution. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 52,619,000

Sec. 404. 1999 sp.s. c 1 s 407 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--TRANSFERS

(1) RV Account--State Appropriation:

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

1,865,000

(2) ((Transportation Account--State Appropriation:

For transfer to the Transportation Infrastructure

Account--State 5,000,000))

State Patrol Highway Account--State

Appropriation: For transfer to the Motor Vehicle

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

(3) Highway Safety Fund--State Appropriation:

For transfer to the Multimodal Transportation

Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,220,000

(4) Puget Sound Ferry Operations Account--State

Appropriation: For transfer to the Marine

Operating Account--State.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,400,000

(5) Public Transportation Systems Account--

State Appropriation: For transfer to the

Multimodal Transportation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 23,182,000

(6) Transportation Fund--State

Appropriation: For transfer to the Multimodal

Transportation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 28,061,000

The department of transportation shall only transfer funds provided under ((this)) subsection (1) of this section on an as-needed basis.

NEW SECTION. Sec. 405. A new section is added to 1999 sp.s. c 1 (uncodified) to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS

Puget Sound Ferry Operations Account--State

Appropriation: For transfer to the Puget Sound

Capital Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 67,000,000

Motor Vehicle Fund--State Appropriation:

For transfer to the Advanced Environmental

Mitigation Revolving Account. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Motor Vehicle Fund--State Appropriation:

For transfer to Puget Sound Capital Construction

Account. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 18,272,000

Transportation Equipment Fund--State

Appropriation: For transfer to the Motor

Vehicle Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,500,000

High Capacity Transportation Account--State

Appropriation: For transfer to the Multimodal

Transportation Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,036,000

Passenger Ferry Account--State Appropriation:

For transfer to the Multimodal Transportation

Account. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 235,000

The department of transportation shall only transfer funds to the Puget Sound capital construction account--state as provided under this subsection on an as-needed basis.

NEW SECTION. Sec. 406. A new section is added to 1999 sp.s. c 1 (uncodified) to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS. The balance remaining on April 30, 2000 in the transportation account shall be transferred to the multimodal transportation account--state.

NEW SECTION. Sec. 407. A new section is added to 1999 sp.s. c 1 (uncodified) to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS. The balance remaining at the close of the 2000 fiscal year in the marine operating account--state shall be transferred to the Puget Sound ferry operations account--state.

PART VI

PROVISIONS NECESSARY TO IMPLEMENT APPROPRIATIONS

NEW SECTION. Sec. 601. A new section is added to 1999 sp.s. c 1 (uncodified) to read as follows:

DONATIONS OF EMPLOYEE LEAVE. During the 1999-2001 fiscal biennium, an employee of the Washington state department of transportation may, consistent with the provisions of RCW 41.04.665(3), donate leave to the existing leave balances of an employee of the Washington state department of transportation who dies in the line of duty between February 1, 2000, and June 30, 2000. The value of the donated leave will be included in the deceased employee's final compensation, but is not compensation earnable for the purposes of chapter 41.40 RCW. The agency head shall determine the total amount of leave, not to exceed 261 days, that may be donated under this section. The Washington personnel resources board may adopt rules, in consultation with the office of financial management, as it deems necessary for the implementation of this temporary benefit.

NEW SECTION. Sec. 602. The following bills, as identified by bill number, in the form passed by the legislature are necessary to implement portions of this act: House Bill No. 2788 and Senate Bill No. 6856.

NEW SECTION. Sec. 603. 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. 604. 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 Benton moved that the following amendment to the striking amendment by Senators Haugen, Gardner, Benton and Horn be adopted:

On page 11, after line 21, insert the following:

"As a pilot program for the biennium, the commission shall use this appropriation to open HOV lanes to general purpose single occupancy vehicle traffic for each weekend from 12:00 a.m. Saturday morning until 12:00 a.m. Monday morning."

Debate ensued.

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

Further debate ensued.

DEMAND FOR THE PREVIOUS QUESTION

Senators Snyder, Betti Sheldon and Haugen demanded the previous question and the demand was sustained.

The President declared the question before the Senate to be shall the main question be now put.

The demand for the previous question carried.

Senator Benton closed debate on the amendment to the striking amendment.

The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Benton on page 11, after line 21, to the striking amendment by Senators Haugen, Gardner, Benton and Horn to Second Substitute Senate Bill No. 6499.

ROLL CALL

The Secretary called the roll and the amendment to the striking amendment was not adopted by the following vote: Yeas, 20; Nays, 26; Absent, 0; Excused, 3.

Voting yea: Senators Benton, Deccio, Finkbeiner, Hale, Heavey, Hochstatter, Honeyford, Horn, Johnson, Long, McCaslin, McDonald, Oke, Roach, Sheahan, Sheldon, T., Stevens, West, Winsley and Zarelli - 20.

Voting nay: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hargrove, Haugen, Jacobsen, Kline, Kohl-Welles, Loveland, McAuliffe, Patterson, Prentice, Rasmussen, Sheldon, B., Shin, Snyder, Spanel, Swecker, Thibaudeau and Wojahn - 26.

Excused: Senators Morton, Rossi and Sellar - 3.

MOTION

Senator Heavey moved that the following amendments to the striking amendment be considered simultaneously and be adopted:

On page 31, line 29 of the striking amendment, strike "137,587,000" and insert "138,187,000" and adjust the totals accordingly

On page 32, line 8 of the striking amendment, strike "29,539,000" and insert "29,585,000"

On page 32, line 16 of the striking amendment, strike "195,690,000" and insert "196,140,000"

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendments by Senators Heavey on page 31, line 29, page 32, lines 8 and 16, to the striking amendment to Second Substitute Senate Bill No. 6499.

The motion by Senator Heavey failed and the amendments to the striking amendment were not adopted.

The President declared the question before the Senate to be the adoption of the striking amendment by Senators Haugen, Gardner, Benton and Horn to Second Substitute Senate Bill No. 6499.

The motion by Senator Haugen carried and the striking amendment 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 1999 sp.s. c 1 ss 1, 101, 102, 103, 104, 105, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 303, 401, 402, 403, and 407 (uncodified); adding new sections to 1999 sp.s. c 1 (uncodified); creating a new section; repealing RCW 47.08.125; making appropriations; and declaring an emergency."

On motion of Senator Haugen, the rules were suspended, Engrossed Second Substitute Senate Bill No. 6499, under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Engrossed Second Substitute Senate Bill No. 6499, under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 6499, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 1; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 45.

Voting nay: Senator Heavey - 1.

Excused: Senators Morton, Rossi and Sellar - 3.

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6499, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Snyder, Engrossed Second Substitute Senate Bill No. 6499 was immediately transmitted to the House of Representatives.

MOTION

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

MESSAGES FROM THE HOUSE

April 27, 2000

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 2487, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

April 27, 2000

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 2788, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

April 27, 2000

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 3169, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

EHB 2487 by Representative H. Sommers (by request of Governor Locke)

Making supplemental operating appropriations.

EHB 2788 by Representatives Fisher, Mitchell, Radcliff, Scott and Hurst (by request of Transportation Improvement Board)

Funding transportation projects.

EHB 3169 by Representatives Barlean, Doumit, Huff, H. Sommers, D. Schmidt, Ruderman, Hankins, Edmonds, Alexander, Kenney, Schindler, Miloscia, Tokuda, Quall, Lantz, Linville, Fortunato, Boldt, Fisher, Edwards, Constantine, Romero, Scott, Keiser, Schual-Berke, McIntire, Kastama, Hatfield, Carlson, McDonald, Kessler, Ogden, Dunshee, Cooper, Wood, Regala, O’Brien, Stensen, Anderson, Wolfe, Morris, Veloria, Benson, Hurst, Rockefeller, Sullivan, Woods, Lisk, Parlette, Campbell, Talcott, Ballasiotes and Thomas

Strengthening the state expenditure limit and providing for timely deposits to the education construction fund.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended, Engrossed House Bill No. 2487, Engrossed House Bill No. 2788 and Engrossed House Bill No. 3169 were advanced to second reading and placed on the second reading calendar.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

ENGROSSED HOUSE BILL NO. 3169, by Representatives Barlean, Doumit, Huff, H. Sommers, D. Schmidt, Ruderman, Hankins, Edmonds, Alexander, Kenney, Schindler, Miloscia, Tokuda, Quall, Lantz, Linville, Fortunato, Boldt, Fisher, Edwards, Constantine, Romero, Scott, Keiser, Schual-Berke, McIntire, Kastama, Hatfield, Carlson, McDonald, Kessler, Ogden, Dunshee, Cooper, Wood, Regala, O’Brien, Stensen, Anderson, Wolfe, Morris, Veloria, Benson, Hurst, Rockefeller, Sullivan, Woods, Lisk, Parlette, Campbell,Talcott, Ballasiotes and Thomas

Strengthening the state expenditure limit and providing for timely deposits to the education construction fund.

The bill was read the second time.

MOTION

On motion of Senator Loveland, the rules were suspended, Engrossed House Bill No. 3169 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 3169.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 3169 and the bill passed the Senate by the following vote: Yeas, 27; Nays, 18; Absent, 1; Excused, 3.

Voting yea: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hargrove, Haugen, Heavey, Jacobsen, Kline, Kohl-Welles, Loveland, McAuliffe, Patterson, Prentice, Rasmussen, Sheldon, B., Shin, Snyder, Spanel, Thibaudeau, Winsley and Wojahn - 27.

Voting nay: Senators Benton, Finkbeiner, Hale, Hochstatter, Honeyford, Horn, Johnson, Long, McCaslin, McDonald, Oke, Roach, Sheahan, Sheldon, T., Stevens, Swecker, West and Zarelli - 18.

Absent: Senator Deccio - 1.

Excused: Senators Morton, Rossi and Sellar - 3.

ENGROSSED HOUSE BILL NO. 3169, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED HOUSE BILL NO. 2487, by Representative H. Sommers (by request of Governor Locke)

Making supplemental operating appropriations.

The bill was read the second time.

MOTION

Senator Deccio moved that the following amendments be considered simultaneously and be adopted: On page 65, on line 3, increase the general fund--state appropriation for fiscal year 2001 by $1,000,000.

On page 65, on line 5, increase the general fund--federal appropriation by $1,000,000.

Adjust the totals accordingly.

On page 68, after line 26, insert the following:

"(j) Notwithstanding any other limitations in this section, the secretary shall transfer $1,000,000 of the general fund--state appropriation for fiscal year 2001 and $1,000,000 of the general fund--federal appropriation, or so much thereof as may be necessary, between subsections (1) and (2) of this section to implement the choice of service provisions in RCW 71A.16.010.

Debate ensued.

There being no objection, Senator Deccio withdrew the amendments on page 65, lines 3 and 5, and page 68 after line 26, to Engrossed House Bill No. 2487.

MOTION

Senator Deccio moved that the following amendment be adopted:

On page 87, line 12, increase the Health Services Account appropriation by $3,369,000. Adjust the total appropriation accordingly.

Debate ensued.

There being no objection, Senator Deccio withdrew the amendment on page 87, line 12, to Engrossed House Bill No. 2487.

MOTION

Senator Kohl-Welles moved that the following amendment be adopted:

On page 133, line 2, after "moth." insert "However, the amounts provided in this subsection may not be used for the aerial application of pesticides in the Ballard or Magnolia areas of Seattle unless the department finds evidence within such areas of an infestation of asian gypsy moth requiring such an aerial application beyondthe evidence available to the department on April 25, 2000.”

Debate ensued.

There being no objection, Senator Kohl-Welles withdrew the amendment on page 133, line 2, to Engrossed House Bill No. 2487.

MOTION

Senator Benton moved that the following amendments be considered simultaneously and be adopted:On page 144, line 8, strike "3,480,701,000" and insert "3,480,801,000"

On page 144, line 10, strike "6,987,997,000" and insert "6,988,097,000"

On page 149, at the beginning of line 34, strike "$10,598,000" and insert "$10,698,000"

On page 150, after line 7, insert the following:

"(d) $100,000 shall be expended for personnel and program and facility design in the Hockinson school district."

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendments by Senator Benton on page 144, lines 8 and 10, page 149, line 34, and page 150, after line 7, to Engrossed House Bill No. 2487.

The motion by Senator Benton failed and the amendments were not adopted.

MOTION

On motion of Senator Loveland, the rules were suspended, Engrossed House Bill No. 2487 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2487.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 2487 and the bill passed the Senate by the following vote: Yeas, 33; Nays, 13; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Horn, Jacobsen, Kline, Kohl-Welles, Long, Loveland, McAuliffe, Oke, Patterson, Prentice, Rasmussen, Sheldon, B., Shin, Snyder, Spanel, Swecker, Thibaudeau, Winsley and Wojahn - 33.

Voting nay: Senators Benton, Finkbeiner, Hochstatter, Honeyford, Johnson, McCaslin, McDonald, Roach, Sheahan, Sheldon, T., Stevens, West and Zarelli - 13.

Excused: Senators Morton, Rossi and Sellar - 3.

ENGROSSED HOUSE BILL NO. 2487, having received the constitutional majority, was declared passed. There being no objection, the title of he 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 27, 2000

MR. PRESIDENT:

The Co-Speakers have signed ENGROSSED HOUSE BILL NO. 3169, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED HOUSE BILL NO. 3169.

PERSONAL PRIVILEGE

Senator Thibaudeau: “A point of personal privilege, Mr. President. If the Senator from the Fourteenth District would not go very far, I would appreciate it--but he is not hearing me. On this wonderful SINE DIE day that we never thought would come, let me pay a very quick tribute to the Health and Long-Term Care Committee and staff and especially to the retiring Senator member--Senator Wojahn. I know we are not suppose to mention names, but I am going to do it anyway, and of course that ranking Republican, that relentless agitator, Senator Deccio, with whom I have gained respect and affection, during these many, many day, this year and last. I have learned much from him--sometimes to my despair--but always hopeful that some day I can repay the favor. So, I‘ll see you all next year. Yes, Senator Deccio, I have enjoyed working with you and I thank you. Thank you, Mr. President.”

Further debate ensued.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

ENGROSSED HOUSE BILL NO. 2788, by Representatives Fisher, Mitchell, Radcliff, Scott and Hurst (by request of Transportation Improvement Board) Senators

Funding transportation projects.

The bill was read the second time.

MOTION

Senator Heavey moved that the following amendment be adopted:

After Section 1, insert the following:

"NEW SECTION. Sec. 2. A new section is added to 1999 sp.s. c 1 (uncodified) is amended to read as follows:

"Puget Sound Ferry Operations Account--

State Appropriation....$600,000"

Renumber the sections consecutively and correct any internal references accordingly.

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senator Heavey adding a new section to Engrossed House Bill No. 2788.

The motion by Senator Heavey failed and the amendment was not adopted.

MOTION

On motion of Senator Haugen, the rules were suspended, Engrossed House Bill No. 2788 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2788.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 2788 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 1; Absent, 0; Excused, 3.

Voting nay: Senator Heavey - 1.

Excused: Senators Morton, Rossi and Sellar - 3.

ENGROSSED HOUSE BILL NO. 2788, 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 Goings, the Senate reverted to the fourth order of business.

MESSAGE FROM THE HOUSE

April 27, 2000

MR. PRESIDENT:

The House has passed:

SECOND ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6856,

SENATE BILL NO. 6876, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SECOND ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6856,

SENATE BILL NO. 6876.

MOTION

On motion of Senator Goings, the Senate advanced to the sixth order of business.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9229, Nobie Chan, as a member of the Board of Trustees for Seattle, South Seattle and North Seattle Community Colleges District No. 6, was confirmed.

APPOINTMENT OF NOBIE CHAN

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 3; Excused, 3.

Voting yea: Senators Bauer, Brown, Costa, Deccio, Eide, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 43.

Absent: Senators Benton, Fairley and Gardner - 3.

Excused: Senators Morton, Rossi and Sellar - 3.

PERSONAL PRIVILEGE

Senator Prentice: “I rise to a point of personal privilege, Mr. President. I would like to take this last chance to thank the members of the Senate and certainly everyone who was so helpful to me. I’m sure we have all forgotten it, but I started out this session in a wheel chair and received all of the assistance, frankly some of it coming out from nowhere. To the staff, the garage, security and the prayers from the fellowship group, I simply want you to know how much I truly appreciate it. To come here and have gone through this and received your encouragement--I hope none of you ever have to go through anything like that. It did make me conscious of how thoughtless we are towards those who are not able to perform every physical function. Anyway, I couldn’t have gone home without having thanked each one of you.”

MOTION

On motion of Senator Shin, Senator Thibaudeau was excused.

MOTION

On motion of Senator Sheahan, Senators Honeyford and Zarelli were excused.

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9230, Dr. Elizabeth Chen, as a member of the Board of Trustees for Highline Community College District No. 9, was confirmed.

APPOINTMENT OF DR. ELIZABETH CHEN

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 40; Nays, 0; Absent, 3; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Finkbeiner, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, West, Winsley and Wojahn - 40.

Absent: Senators Fairley, Franklin and Gardner - 3.

Excused: Senators Honeyford, Morton, Rossi, Sellar, Thibaudeau and Zarelli - 6.

MOTION

On motion of Senator Eide, Senators Fairley and Gardner were excused.

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9316, Jane Nishita, as a member of the State Board for Community and Technical Colleges, was confirmed.

APPOINTMENT OF JANE NISHITA

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 37; Nays, 0; Absent, 5; Excused, 7.

Voting yea: Senators Bauer, Benton, Costa, Eide, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Winsley and Wojahn - 37.

Absent: Senators Brown, Deccio, Finkbeiner, McDonald and West - 5.

Excused: Senators Fairley, Gardner, Morton, Rossi, Sellar, Thibaudeau and Zarelli - 7.

MOTION

On motion of Senator Honeyford, Senator Roach was excused.

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9136, Dr. Mark Kondo, as a member of the State Board for Community and Technical Colleges, was confirmed.

APPOINTMENT OF DR. MARK KONDO

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 35; Nays, 0; Absent, 7; Excused, 7.

Voting yea: Senators Bauer, Benton, Costa, Eide, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, Oke, Patterson, Prentice, Rasmussen, Sheahan, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, Winsley and Wojahn - 35.

Absent: Senators Brown, Deccio, Finkbeiner, McDonald, Snyder, Spanel and West - 7.

Excused: Senators Fairley, Morton, Roach, Rossi, Sellar, Thibaudeau and Zarelli - 7.

MOTION

On motion of Senator Honeyford, Senators Sheahan, West, Finkbeiner, Oke and McDonald were excused.

MOTION

On motion of Senator Eide, Senators Snyder and Spanel were excused.

MOTION

On motion of Senator Fraser, Gubernatorial Appointment No. 9269, Edward Mayeda, as a member of the Board of Trustees for South Puget Sound Community College District No. 24, was confirmed.

APPOINTMENT OF EDWARD MAYEDA

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 34; Nays, 0; Absent, 1; Excused, 14.

Voting yea: Senators Bauer, Benton, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, Prentice, Rasmussen, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, Winsley and Wojahn - 34.

Absent: Senator Patterson - 1.

Excused: Senators Deccio, Finkbeiner, McDonald, Morton, Oke, Roach, Rossi, Sellar, Sheahan, Snyder, Spanel, Thibaudeau, West and Zarelli - 14.

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

MESSAGES FROM THE HOUSE

April 27, 2000

MR. PRESIDENT:

The Co-Speakers have signed SECOND ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6856 and SENATE BILL NO. 6876, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

April 27, 2000

MR. PRESIDENT:

The Co-Speakers have signed ENGROSSED HOUSE BILL NO. 2487, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED HOUSE BILL NO. 2487.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING

SCR 8433 by Senator Snyder

Adjourning SINE DIE.

SJM 8031 by Senator Sheahan

Requesting the grant of immigrant visas and refugee status for the family of Elian Gonzalez.

Referred to Committee on State and Local Government.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended and Senate Concurrent Resolution No. 8433 was advanced to second reading and placed on the second reading calendar.

MOTION

At 1:40 p.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

The Senate was called to order at 1:51 p.m. by President Owen.

MOTION

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

MESSAGE FROM THE HOUSE

April 27, 2000

MR. PRESIDENT:

The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6499, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6499.

MOTION

At 1:55 p.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

The Senate was called to order at 2:10 p.m. by President Owen.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

SENATE CONCURRENT RESOLUTION NO. 8433, by Senator Snyder

Adjourning SINE DIE.

The concurrent resolution was read the second time.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended, Senate Concurrent Resolution No. 8433 was advanced to third reading, the second reading considered the third and the concurrent resolution was placed on final passage and adopted.

SENATE CONCURRENT RESOLUTION NO. 8433 was adopted by voice vote.

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

MESSAGES FROM THE HOUSE

April 27, 2000

MR. PRESIDENT:

The Co-Speakers have signed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6499, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

April 27, 2000

MR. PRESIDENT:

The Co-Speakers have signed ENGROSSED HOUSE BILL NO. 2788, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

April 27, 2000

MR. PRESIDENT:

The House has adopted SENATE CONCURRENT RESOLUTION NO. 8433, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED HOUSE BILL NO. 2788.

SIGNED BY THE PRESIDENT

The President signed:

SENATE CONCURRENT RESOLUTION NO. 8433.

MESSAGE FROM THE HOUSE

April 27, 2000

MR. PRESIDENT:

The Co-Speakers have signed SENATE CONCURRENT RESOLUTION NO. 8433, and the same is herewith transmitted.

. CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Betti Sheldon, the Senate Journal for the fourth day of the 2000 Second Special Session of the Fifty-sixth Legislature was approved.

MOTION

At 2:17 p.m., on motion of Senator Betti Sheldon, the Second Special Session of the Fifty-sixth Legislature adjourned SINE DIE.

BRAD OWEN, President of the Senate

TONY M. COOK. Secretary or the Senate