FIRST SPECIAL LEGISLATIVE SESSION

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TWENTY SEVENTH DAY

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House Chamber, Olympia, Monday, May 21, 2001

The House was called to order at 10:00 a.m. by the Speaker (Representative Ogden presiding). The Clerk called the roll and a quorum was present.

The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Cynthia Kaiser and Erin Herlihy. The Speaker (Representative Ogden presiding) led the Chamber in the Pledge of Allegiance. Prayer was offered by Representative Sam Hunt.

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

INTRODUCTIONS AND FIRST READING

HB 2259 by Representatives Rockefeller, Eickmeyer, Lantz, Jackley and Haigh

AN ACT Relating to clarifying that a court may not suspend more than one-half of a fine that is imposed on violators of disabled parking or disabled parking permits; and amending RCW 46.16.381.

Held on 1st Reading.

HB 2260 by Representatives Cairnes, Morris, Kessler, Linville, McMorris, Doumit, Anderson, Hatfield, Poulsen, Crouse, Veloria, Benson, DeBolt, Reardon, Ericksen, Armstrong, Dunshee, Mastin and Delvin

AN ACT Relating to the taxation of grocery distribution cooperatives; amending RCW 82.04.270; adding a new section to chapter 82.04 RCW; creating a new section; providing an effective date; and declaring an emergency.

HB 2261 by Representatives Van Luven, Edwards, Cairnes, Cody and Campbell

AN ACT Relating to the taxation of organ procurement and transplanting activities; amending RCW 82.04.324; creating a new section; and declaring an emergency.

Held on 1st Reading.

HB 2262 by Representatives Lambert, Sommers, Talcott and Kessler

AN ACT Relating to sexual misconduct with a minor; amending RCW 9A.44.093 and 9A.44.096; and prescribing penalties.

HB 2263 by Representatives Schual-Berke, Doumit, Haigh, Kenney, McIntire, Tokuda, Fisher, Fromhold, Hurst, Veloria, Hunt, Edmonds, Wood, Kagi and Quall

AN ACT Relating to funding for traffic safety education; amending RCW 46.20.055 and 46.68.041; and reenacting and amending RCW 46.20.120.

Held on First Reading.

HB 2264 by Representatives Cody, Alexander, Romero, Skinner, Schual-Berke and Ballasiotes

AN ACT Relating to mental health service performance measures; adding new sections to chapter 71.24 RCW; and creating a new section.

Held on First Reading.

HB 2265 by Representatives Ogden and Talcott

AN ACT Relating to an open private choice primary; amending RCW 29.01.090, 29.04.180, 29.27.020, 29.27.030, 29.30.005, 29.30.025, 29.30.095, 29.30.101, 29.33.320, 29.36.045, 29.42.010, 29.42.050, 29.42.070, and 42.17.020; adding a new section to chapter 29.07 RCW; adding new sections to chapter 29.30 RCW; adding new sections to chapter 29.15 RCW; adding a new section to chapter 29.42 RCW; adding a new section to chapter 29.81A RCW; adding a new chapter to Title 29 RCW; creating new sections; repealing RCW 29.18.010, 29.18.120, 29.18.150, 29.18.160, 29.18.200, and 29.30.040; providing an expiration date; and declaring an emergency.

Held on First Reading.

ESSB 5937 by Senate Committee on Ways & Means (originally sponsored by Senators Shin, Rasmussen, Jacobsen, Winsley, Kohl-Welles and McAuliffe; by request of Governor Locke and Superintendent of Public Instruction)

AN ACT Relating to postretirement employment for teachers' retirement system, public employees' retirement system, and school employees' retirement system retirees; amending RCW 28A.405.900, 41.32.570, 41.40.037, 41.32.802, 41.32.860, 41.32.862, 41.35.060, 41.40.037, and 41.40.750; adding a new section to chapter 41.40 RCW; creating new sections; providing effective dates; providing expiration dates; and declaring an emergency.

There being no objection, House Bill No. 2260 was read the first time, the rules were suspended and the bill was placed on the Second Reading calendar.

There being no objection, House Bill No. 2262 was read the first time, the rules were suspended and the bill was placed on the Second Reading calendar.

There being no objection, Engrossed Substitute Senate Bill No. 5937 was read the first time, the rules were suspended and the bill was placed on the Second Reading calendar.

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

There being no objection, the Committee on Finance was relieved of House Bill No. 2098, and the bill was placed on the Second Reading calendar.

There being no objection, the Rules Committee was relieved of Second Substitute House Bill No. 2025, and the bill was placed on the Third Reading calendar.

Speaker Chopp assumed the Chair.

SECOND READING

HOUSE BILL NO. 2098, By Representatives Edmonds, Pennington, McIntire, Jarrett, Morris, Cairnes, Santos and Conway; by request of Department of Revenue

Changing the property tax exemption for very low-income households.

The bill was read the second time.

Speaker Chopp announced that House Bill No. 2098 was co-prime sponsored by Representatives Edmonds and Pennington.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Edmonds and Pennington spoke in favor of passage of the bill.

MOTIONS

On motion of Representative Santos, Representatives Berkey, Edwards, Kessler, Linville, Miloscia, Poulsen, Quall, and Sommers were excused. On motion of Representative Schoesler, Representatives Boldt, DeBolt, and Mastin were excused.

Speaker Chopp stated the question before the House to be the final passage of House Bill No. 2098.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2098 and the bill passed the House by the following vote: Yeas - 87, Nays - 0, Absent - 0, Excused - 11.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballasiotes, Barlean, Benson, Buck, Bush, Cairnes, Campbell, Carrell, Casada, B. Chandler, G. Chandler, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Keiser, Kenney, Kirby, Lambert, Lantz, Lisk, Lovick, Marine, McDermott, McIntire, McMorris, Mielke, Mitchell, Morell, Morris, Mulliken, Murray, O'Brien, Ogden, Pearson, Pennington, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schmidt, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sump, Talcott, Tokuda, Van Luven, Veloria, Wood, Woods, Speaker Ballard, and Speaker Chopp - 87.

Excused: Representatives Berkey, Boldt, DeBolt, Edwards, Kessler, Linville, Mastin, Miloscia, Poulsen, Quall, and Sommers - 11.

House Bill No. 2098, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2262, By Representatives Lambert, Sommers, Talcott and Kessler

Changing sexual misconduct laws with regard to school employees.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Lambert and O'Brien spoke in favor of passage of the bill.

Speaker Chopp stated the question before the House to be the final passage of House Bill No. 2262.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2262 and the bill passed the House by the following vote: Yeas - 91, Nays - 0, Absent - 0, Excused - 7.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballasiotes, Barlean, Benson, Buck, Bush, Cairnes, Campbell, Carrell, Casada, B. Chandler, G. Chandler, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Keiser, Kenney, Kessler, Kirby, Lambert, Lantz, Lisk, Lovick, Marine, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, O'Brien, Ogden, Pearson, Pennington, Pflug, Quall, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schmidt, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sump, Talcott, Tokuda, Van Luven, Veloria, Wood, Woods, Speaker Ballard, and Speaker Chopp - 91.

Excused: Representatives Berkey, Boldt, DeBolt, Edwards, Linville, Mastin, and Poulsen - 7.

House Bill No. 2262, having received the necessary constitutional majority, was declared passed.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5937, By Senate Committee on Ways & Means (originally sponsored by Senators Shin, Rasmussen, Jacobsen, Winsley, Kohl-Welles and McAuliffe; by request of Governor Locke and Superintendent of Public Instruction)

Changing the limits on postretirement employment for teachers' retirement system plan 1 and public employees' retirement system plan 1 retirees. (REVISED FOR ENGROSSED: Changing postretirement employment restrictions for teachers' retirement system, public employees' retirement system, and school employees' retirement system retirees.)

The bill was read the second time.

Representative Cox moved the adoption of the following amendment (233):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The department of retirement systems, the office of the superintendent of public instruction, the department of personnel, and the health care authority shall jointly develop publications for use during the 2001-03 biennium to explain options for, and implications of, postretirement employment for members and retirees of the teachers' retirement system plan 1 and the public employees' retirement system plan 1.

(2) The publications shall address such issues as: (a) Health insurance coverage upon reemployment; (b) health benefit options upon termination of postretirement employment; (c) sick leave, annual leave, and other compensation practices; (d) options for, and implications of, reentry into active retirement system membership; (e) hiring procedures for retirees; and (f) collective bargaining rights and responsibilities.

Sec. 2. RCW 28A.405.900 and 1990 c 33 s 404 are each amended to read as follows:

Certificated employees subject to the provisions of RCW 28A.310.250, 28A.405.010 through 28A.405.240, 28A.405.400 through 28A.405.410, 28A.415.250, and 28A.405.900 shall not include those certificated employees hired to replace certificated employees who have been granted sabbatical, regular, or other leave by school districts, and shall not include retirees hired for postretirement employment under the provisions of this act.

It is not the intention of the legislature that this section apply to any regularly hired certificated employee or that the legal or constitutional rights of such employee be limited, abridged, or abrogated.

Sec. 3. RCW 41.32.570 and 1999 c 387 s 1 are each amended to read as follows:

(1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every seven hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

(b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred forty hours per month. Any monthly benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

(2)((Any retired teacher or retired administrator who enters service in any public educational institution in Washington state and who has satisfied the break in employment requirement of subsection (1) of this section shall cease to receive pension payments while engaged in such service: PROVIDED, That service may be rendered up to five hundred twenty-five hours per school year without reduction of pension.

(3) In addition to the five hundred twenty-five hours of service permitted under subsection (2) of this section, a retired teacher or retired administrator may also serve only as a substitute teacher for up to an additional three hundred fifteen hours per school year without reduction of pension if:

(a) A school district, which is not a member of a multidistrict substitute cooperative, determines that it has exhausted or can reasonably anticipate that it will exhaust its list of qualified and available substitutes and the school board of the district adopts a resolution to make its substitute teachers who are retired teachers or retired administrators eligible for the extended service once the list of qualified and available substitutes has been exhausted. The resolution by the school district shall state that the services of retired teachers and retired administrators are necessary to address the shortage of qualified and available substitutes. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with a list of retired teachers and retired administrators who have been employed as substitute teachers to the department and may notify the retired teachers and retired administrators included on the list of their right to take advantage of the provisions of this subsection; or

(b) A multidistrict substitute cooperative determines that the school districts have exhausted or can reasonably anticipate that they will exhaust their list of qualified and available substitutes and each of the school boards adopts a resolution to make their substitute teachers who are retired teachers or retired administrators eligible for the extended service once the list of qualified and available substitutes has been exhausted. The resolutions by each of the school districts shall state that the services of retired teachers and retired administrators are necessary to address the shortage of qualified and available substitutes. The resolutions shall be valid only for the school year in which they are adopted. The cooperative shall forward a copy of the resolutions with a list of retired teachers and retired administrators who have been employed as substitute teachers to the department and may notify the retired teachers and retired administrators included on the list of their right to take advantage of the provisions of this subsection.

(4) In addition to the five hundred twenty-five hours of service permitted under subsection (2) of this section, a retired administrator or retired teacher may also serve as a substitute administrator up to an additional one hundred five hours per school year without reduction of pension if a school district board of directors adopts a resolution declaring that the services of a retired administrator or retired teacher are necessary because it cannot find a replacement administrator to fill a vacancy. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with the name of the retired administrator or retired teacher who has been employed as a substitute administrator to the department.

(5) In addition to the five hundred twenty-five hours of service permitted under subsection (2) of this section and the one hundred five hours permitted under subsection (4) of this section, a retired principal may also serve as a substitute principal up to an additional two hundred ten hours per school year without a reduction of pension if a school district board of directors adopts a resolution declaring that the services of a retired principal are necessary because it cannot find a replacement principal to fill a vacancy. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with the name of the retired principal who has been employed as a substitute principal to the department.

(6) Subsection (2) of this section shall apply to all persons governed by the provisions of plan 1, regardless of the date of their retirement, but shall apply only to benefits payable after June 11, 1986.

(7) Subsection (3) of this section shall apply to all persons governed by the provisions of plan 1, regardless of the date of their retirement, but shall only apply to benefits payable after September 1, 1994.)) When any retired member first enters service in any public educational institution in Washington state and has satisfied the break in employment requirement of subsection (1) of this section, the member must irrevocably choose for the duration of the fiscal year to:

(a) Render service for up to eight hundred sixty-seven hours without a reduction in benefit. After eight hundred sixty-seven hours, the following month's benefit shall be reduced five percent for every seven hours worked; or

(b) Render service under contract for up to one thousand five hundred hours and receive ninety percent of the member's benefit, after which time the member's benefit shall be suspended. To receive a benefit under this subsection (2)(b):

(i) The member's employer must have agreed to make the applicable employer contribution for the duration of the member's employment; and

(ii) The member must have either been retired for one hundred twenty days before beginning employment, or given the employer notice of intent to retire by July 1, 2001, for the 2001-02 school year and by the May 15th preceding every school year thereafter.

(3) The department shall collect and provide the state actuary with information relevant to the use of this section for the joint committee on pension policy.

(4) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five hundred twenty-five hours per year without a reduction of his or her pension.

Sec. 4. RCW 41.40.037 and 1997 c 254 s 14 are each amended to read as follows:

(1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

(b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred sixty hours per month. Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

(2) ((A retiree)) (a) When any retired member of plan 1 first enters service in an eligible position with an employer and has satisfied the break in employment requirement of subsection (1) of this section, the member must irrevocably choose for the duration of the calendar year to:

(i) Render service for up to eight hundred sixty-seven hours without a reduction in benefit. After eight hundred sixty-seven hours, the following month's benefit shall be reduced five percent for every eight hours worked; or

(ii) Render service for up to one thousand five hundred hours and receive ninety percent of the member's benefit, after which time the member's benefit shall be suspended. To receive a benefit under this subsection (2)(a)(ii):

(A) The member's employer must have agreed to make the applicable employer contribution for the duration of the member's employment; and

(B) The member must have either been retired for one hundred twenty days before beginning employment, or given the employer notice of intent to retire sixty days prior to retirement.

(b) A retiree from plan 2 or plan 3 who has satisfied the break in employment requirement of subsection (1) of this section((,)) may work up to ((five months per)) eight hundred sixty-seven hours in a calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030, without suspension of his or her benefit.

(3) If the retiree opts to reestablish membership under RCW 41.40.023(12), he or she terminates his or her retirement status and becomes a member. Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with RCW 41.40.180. However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

(4) The department shall collect and provide the state actuary with information relevant to the use of this section for the joint committee on pension policy.

(5) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five months in a calendar year without a reduction of his or her pension.

NEW SECTION. Sec. 5. Sections 2 and 3 of this act expire June 30, 2004.

NEW SECTION. Sec. 6. Section 4 of this act expires December 31, 2004.

NEW SECTION. Sec. 7. The office of the state actuary shall review the actuarial impact of the temporary expansion of the postretirement employment limitations provided by sections 3 and 4 of this act. No later than July 1, 2003, the state actuary shall prepare a report for the joint committee on pension policy regarding the fiscal and policy impacts of this act. The joint committee shall solicit information from the superintendent of public instruction, the department of personnel, the office of financial management, the department of retirement systems, and the health care authority regarding the program impacts of this act and shall report to the legislative fiscal committees no later than October 1, 2003, on any proposed changes or improvements to this act. If the state actuary determines the expansion of postretirement options under sections 3 and 4 of this act has resulted in increased costs for the state retirement funds, the joint committee report shall include a proposal for a process to charge those employers who employ retirees pursuant to an extension of sections 3 and 4 of this act for the costs incurred by the retirement funds under the extension.

Sec. 8. RCW 41.32.802 and 1997 c 254 s 8 are each amended to read as follows:

(b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred forty hours per month. Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

(2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section, may work up to ((five months)) eight hundred sixty-seven hours per calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030, without suspension of his or her benefit.

(3) If the retiree opts to reestablish membership under RCW 41.32.044, he or she terminates his or her retirement status and immediately becomes a member. Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible.

Sec. 9. RCW 41.32.860 and 1997 c 254 s 7 are each amended to read as follows:

(1) Except under RCW 41.32.862, no retiree shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 ((or)), 41.32.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030.

(2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused the suspension of benefits. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

Sec. 10. RCW 41.32.862 and 1997 c 254 s 9 are each amended to read as follows:

Sec. 11. RCW 41.35.060 and 1998 c 341 s 7 are each amended to read as follows:

(1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

(2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section may work up to ((five months)) eight hundred sixty-seven hours per calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030, without suspension of his or her benefit.

(3) If the retiree opts to reestablish membership under RCW 41.35.030, he or she terminates his or her retirement status and becomes a member. Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with RCW 41.35.420 or 41.35.680. However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

Sec. 12. RCW 41.40.037 and 1997 c 254 s 14 are each amended to read as follows:

(1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

Sec. 13. RCW 41.40.750 and 1998 c 341 s 113 are each amended to read as follows:

(1) Effective September 1, 2000, the membership of all plan 2 members currently employed in eligible positions in a school district or educational service district and all plan 2 service credit for such members, is transferred to the Washington school employees' retirement system plan 2. Plan 2 members who have withdrawn their member contributions for prior plan 2 service may restore contributions and service credit to the Washington school employees' retirement system plan 2 as provided under RCW 41.40.740.

(2)(a) The membership and previous service credit of a plan 2 member not employed in an eligible position on September 1, 2000, will be transferred to the Washington school employees' retirement system plan 2 when he or she becomes employed in an eligible position. Plan 2 members not employed in an eligible position on September 1, 2000, who have withdrawn their member contributions for prior plan 2 service may restore contributions and service credit to the Washington school employees' retirement system plan 2 as provided under RCW 41.40.740.

(b) The membership and previous service credit of a plan 2 member last employed by a school district or educational service district and retired prior to September 1, 2000, will be transferred to the Washington school employees' retirement system plan 2 if the member opts to reestablish membership.

(3) Members who restore contributions and service credit under subsection (1) or (2) of this section shall have their contributions and service credit transferred to the Washington school employees' retirement system.

NEW SECTION. Sec. 14. Except for section 12 of this act which takes effect December 31, 2004, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2001."

On page 1, line 3 of the title, after "retirees;" strike the remainder of the title and insert "amending RCW 28A.405.900, 41.32.570, 41.40.037, 41.32.802, 41.32.860, 41.32.862, 41.35.060, 41.40.037, and 41.40.750; creating new sections; providing effective dates; providing expiration dates; and declaring an emergency."

Representatives Cox and Fromhold spoke in favor of adoption of the amendment.

The amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the bill as amended by the House was placed on final passage.

Representative Fromhold spoke in favor of passage of the bill.

Speaker Chopp stated the question before the House to be the final passage of Engrossed Substitute Senate Bill No. 5937 as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5937 as amended by the House and the bill passed the House by the following vote: Yeas - 92, Nays - 0, Absent - 0, Excused - 6.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballasiotes, Barlean, Benson, Buck, Bush, Cairnes, Campbell, Carrell, Casada, B. Chandler, G. Chandler, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Keiser, Kenney, Kessler, Kirby, Lambert, Lantz, Lisk, Lovick, Marine, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, O'Brien, Ogden, Pearson, Pennington, Pflug, Poulsen, Quall, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schmidt, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sump, Talcott, Tokuda, Van Luven, Veloria, Wood, Woods, Speaker Ballard, and Speaker Chopp - 92.

Excused: Representatives Berkey, Boldt, DeBolt, Edwards, Linville, and Mastin - 6.

Engrossed Substitute Senate Bill No. 5937 as amended by the House, having received the necessary constitutional majority, was declared passed.

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

THIRD READING

SECOND SUBSTITUTE HOUSE BILL NO. 2025, By House Committee on Appropriations (originally sponsored by Representatives Santos, Talcott, Quall, Keiser, Ogden, Tokuda, Schual-Berke and Kenney)

Changing transitional bilingual instruction program provisions.

There being no objection, the rules were suspended and Second Substitute House Bill No. 2025 was returned to Second Reading for purpose of amendments.

There being no objection, the House reverted to the sixth order of business.

SECOND READING

Representative Santos moved the adoption of the following amendment (231):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The superintendent of public instruction shall review:

(a) The criteria used to determine the point at which limited English proficient students are required to take the Washington assessment of student learning. The review shall be used to determine if the criteria are developmentally appropriate and in the best interest of the students.

(b) The criteria used to determine the point at which the results of the Washington assessment of student learning for students receiving instructional services in the state transitional bilingual instruction program should be included in a school district's and school's assessment results.

(2) In conducting the review, the superintendent shall consult with parents, teachers, principals, classroom instructional staff, recognized experts in second-language instruction, and statewide ethnic organizations that represent second-language learners.

(3) Preliminary results of the review shall be reported to the education and fiscal committees of the legislature by December 1, 2001. Final results of the review shall be reported to the education and fiscal committees of the legislature by December 1, 2002.

NEW SECTION. Sec. 2. A new section is added to chapter 28A.180 RCW to read as follows:

The superintendent of public instruction shall develop an evaluation system designed to measure increases in the English and academic proficiency of eligible pupils. When developing the system, the superintendent shall:

(1) Require school districts to assess potentially eligible pupils within ten days of registration using an English proficiency assessment or assessments as specified by the superintendent of public instruction. Results of these assessments shall be made available to both the superintendent of public instruction and the school district;

(2) Require school districts to annually assess all eligible pupils at the end of the school year using an English proficiency assessment or assessments as specified by the superintendent of public instruction. Results of these assessments shall be made available to both the superintendent of public instruction and the school district;

(3) Develop a system to evaluate increases in the English and academic proficiency of students who are, or were, eligible pupils. This evaluation shall include students when they are in the program and after they exit the program until they finish their K-12 career or transfer from the school district. The purpose of the evaluation system is to inform schools, school districts, parents, and the state of the effectiveness of the transitional bilingual programs in school and school districts in teaching these students English and other content areas, such as mathematics and writing; and

(4) Report to the education and fiscal committees of the legislature by November 1, 2002, regarding the development of the systems described in this section and a timeline for the full implementation of those systems.

Sec. 3. RCW 28A.180.030 and 1990 c 33 s 164 are each amended to read as follows:

As used ((in RCW 28A.180.010 through 28A.180.080)) throughout this chapter, unless the context ((thereof)) clearly indicates ((to the contrary)) otherwise:

(1) "Transitional bilingual instruction" means:

(a) A system of instruction which uses two languages, one of which is English, as a means of instruction to build upon and expand language skills to enable the pupil to achieve competency in English. Concepts and information are introduced in the primary language and reinforced in the second language: PROVIDED, That the program shall include testing in the subject matter in English; or

(b) In those cases in which the use of two languages is not practicable as established by the superintendent of public instruction and unless otherwise prohibited by law, an alternative system of instruction which may include English as a second language and is designed to enable the pupil to achieve competency in English.

(2) "Primary language" means the language most often used by the student for communication in his/her home.

(3) "Eligible pupil" means any enrollee of the school district whose primary language is other than English and whose English language skills are sufficiently deficient or absent to impair learning.

Sec. 4. RCW 28A.180.040 and 1984 c 124 s 3 are each amended to read as follows:

Every school district board of directors shall:

(1) Make available to each eligible pupil transitional bilingual instruction to achieve competency in English, in accord with rules of the superintendent of public instruction.

(2) Wherever feasible, ensure that communications to parents emanating from the schools shall be appropriately bilingual for those parents of pupils in the bilingual instruction program.

(3) Determine by administration of an English test approved by the superintendent of public instruction the number of eligible pupils enrolled in the school district at the beginning of a school year and thereafter during the year as necessary in individual cases. ((If, however, a preliminary interview indicates little or no English speaking ability, eligibility testing shall not be necessary.))

(4) Before the conclusion of each school year, measure each eligible pupil's improvement in learning the English language by means of a test approved by the superintendent of public instruction.

(5) Provide in-service training for teachers, counselors, and other staff, who are involved in the district's transitional bilingual program. Such training shall include appropriate instructional strategies for children of culturally different backgrounds, use of curriculum materials, and program models.

NEW SECTION. Sec. 5. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2001, in the omnibus appropriations act, this act is null and void."

Correct the title.

Representatives Santos and Talcott spoke in favor of adoption of the amendment.

The amendment was adopted.

The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Santos, Talcott and Benson spoke in favor of passage of the bill.

Speaker Chopp stated the question before the House to be the final passage of Engrossed Second Substitute House Bill No. 2025.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2025 and the bill passed the House by the following vote: Yeas - 92, Nays - 0, Absent - 0, Excused - 6.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballasiotes, Barlean, Benson, Buck, Bush, Cairnes, Campbell, Carrell, Casada, B. Chandler, G. Chandler, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Keiser, Kenney, Kessler, Kirby, Lambert, Lantz, Lisk, Lovick, Marine, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, O'Brien, Ogden, Pearson, Pennington, Pflug, Poulsen, Quall, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schmidt, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sump, Talcott, Tokuda, Van Luven, Veloria, Wood, and Woods, Speaker Ballard, and Speaker Chopp - 92.

Excused: Representatives Berkey, Boldt, DeBolt, Edwards, Linville, and Mastin - 6.

Engrossed Second Substitute House Bill No. 2025, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2260, By Representatives Cairnes, Morris, Kessler, Linville, McMorris, Doumit, Anderson, Hatfield, Poulsen, Crouse, Veloria, Benson, DeBolt, Reardon, Ericksen, Armstrong, Dunshee, Mastin and Delvin

Changing the tax treatment of grocery distribution cooperatives.

The bill was read the second time.

Speaker Chopp announced that House Bill No. 2260 was co-prime sponsored by Representatives Cairnes and Morris.

There being no objection, amendment (232) was withdrawn.

Representative Cairnes moved the adoption of the following amendment (234):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:

(1) The amount of tax with respect to a qualified grocery distribution cooperative's sales of groceries or related goods for resale, excluding items subject to tax under RCW 82.04.260(4), to customer-owners of the grocery distribution cooperative is equal to the gross proceeds of sales of the grocery distribution cooperative multiplied by the rate of one and one-half percent.

(2) A qualified grocery distribution cooperative is allowed a deduction from the gross proceeds of sales of groceries or related goods for resale, excluding items subject to tax under RCW 82.04.260(4), to customer-owners of the grocery distribution cooperative that is equal to the portion of the gross proceeds of sales for resale that represents the actual cost of the merchandise sold by the grocery distribution cooperative to customer-owners.

(3) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Grocery distribution cooperative" means an entity that sells groceries and related items to customer-owners of the grocery distribution cooperative and has customer-owners, in the aggregate, who own a majority of the outstanding ownership interests of the grocery distribution cooperative or of the entity controlling the grocery distribution cooperative. "Grocery distribution cooperative" includes an entity that controls a grocery distribution cooperative.

(b) "Qualified grocery distribution cooperative" means a grocery distribution cooperative that has been determined by a court of record of the state of Washington to be not engaged in wholesaling or making sales at wholesale, within the meaning of RCW 82.04.270 or any similar provision of a municipal ordinance that imposes a tax on gross receipts, gross proceeds of sales, or gross income, with respect to purchases made by customer-owners, and subsequently changes its form of doing business to make sales at wholesale of groceries or related items to its customer-owners.

(c) "Customer-owner" means a person who has an ownership interest in a grocery distribution cooperative and purchases groceries and related items at wholesale from that grocery distribution cooperative.

(d) "Controlling" means holding fifty percent or more of the voting interests of an entity and having at least equal power to direct or cause the direction of the management and policies of the entity, whether through the ownership of voting securities by contract, or otherwise.

Sec. 2. RCW 82.04.270 and 1999 c 358 s 1 are each amended to read as follows:

Upon every person except persons taxable under RCW 82.04.260(5) or section 1 of this act engaging within this state in the business of making sales at wholesale; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.484 percent.

Sec. 3. RCW 82.04.270 and 1999 c 358 s 2 are each amended to read as follows:

Upon every person except persons taxable under RCW 82.04.260(5), section 1 of this act, or 82.04.272 engaging within this state in the business of making sales at wholesale; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.484 percent.

Sec. 4. RCW 82.04.290 and 1998 c 331 s 2, 1998 c 312 s 8, and 1998 c 308 s 4 are each reenacted and amended to read as follows:

(1) Upon every person engaging within this state in the business of providing international investment management services, as to such persons, the amount of tax with respect to such business shall be equal to the gross income or gross proceeds of sales of the business multiplied by a rate of 0.275 percent.

(2) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, section 1 of this act, 82.04.2905, 82.04.280, 82.04.2635, and 82.04.2907, and subsection (1) of this section; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 1.5 percent.

This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale." The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.

Sec. 5. RCW 82.04.290 and 1998 c 343 s 4, 1998 c 331 s 2, 1998 c 312 s 8, and 1998 c 308 s 4 are each reenacted and amended to read as follows:

(2) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, section 1 of this act, 82.04.2905, 82.04.280, 82.04.2635, 82.04.2907, and 82.04.272, and subsection (1) of this section; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 1.5 percent.

Sec. 6. RCW 82.04.290 and 1998 c 343 s 4, 1998 c 331 s 2, 1998 c 312 s 8, and 1998 c 308 s 5 are each reenacted and amended to read as follows:

(2) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, section 1 of this act, 82.04.2905, 82.04.280, 82.04.2907, and 82.04.272, and subsection (1) of this section; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 1.5 percent.

Sec. 7. RCW 82.19.050 and 2001 c 118 s 7 are each amended to read as follows:

The litter tax imposed in this chapter does not apply to:

(1) The manufacture or sale of products for use and consumption outside the state; ((or))

(2) The value of products or gross proceeds of the sales exempt from tax under RCW 82.04.330; or

(3) The sale of products for resale by a qualified grocery distribution cooperative to customer-owners of the grocery distribution cooperative. For the purposes of this section, "qualified grocery distribution cooperative" and "customer-owner" have the meanings given in section 1 of this act.

Sec. 8. RCW 82.19.050 and 1992 c 175 s 7 are each amended to read as follows:

The litter tax imposed in this chapter does not apply to:

(1) The manufacture or sale of products for use and consumption outside the state; ((or))

(2) The value of products or gross proceeds of the sales of any animal, bird, or insect or the milk, eggs, wool, fur, meat, honey, or other substance obtained therefrom, if the person performs only the growing or raising function of such animal, bird, or insect; or

NEW SECTION. Sec. 9. (1) Sections 1, 2, 4, and 8 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.

(2) Sections 3 and 5 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, 2001.

(3) Section 6 of this act takes effect July 1, 2003.

(4) Section 7 is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 22, 2001.

NEW SECTION. Sec. 10. (1) Sections 2 and 4 of this act expire July 1, 2001.

(2) Section 5 of this act expires July 1, 2003.

(3) Section 8 of this act expires July 22, 2001."

Correct the title.

Representatives Cairnes and Morris spoke in favor of adoption of the amendment.

The amendment was adopted.

The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Cairnes and Morris spoke in favor of passage of the bill.

Speaker Chopp stated the question before the House to be the final passage of Engrossed House Bill No. 2260.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed House Bill No. 2260 and the bill passed the House by the following vote: Yeas - 92, Nays - 0, Absent - 0, Excused - 6.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballasiotes, Barlean, Benson, Buck, Bush, Cairnes, Campbell, Carrell, Casada, B. Chandler, G. Chandler, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Doumit, Dunn, Dunshee, Edmonds, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Keiser, Kenney, Kessler, Kirby, Lambert, Lantz, Lisk, Lovick, Marine, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, O'Brien, Ogden, Pearson, Pennington, Pflug, Poulsen, Quall, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schmidt, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sump, Talcott, Tokuda, Van Luven, Veloria, Wood, Woods, Speaker Ballard, and Speaker Chopp - 92.

Excused: Representatives Berkey, Boldt, DeBolt, Edwards, Linville, and Mastin - 6.

Engrossed House Bill No. 2260, having received the necessary constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

May 16, 2001

Mr. Speakers:

The Senate refuses to concur in the House amendment ENGROSSED SENATE BILL NO. 6183, and asks the House to recede therefrom, and the same is herewith transmitted.

Tony M. Cook, Secretary

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

The House went at ease until 10:00 a.m. Tuesday May 22, 2001, the 28^th Legislative Day of the First Special Legislative Session.

CLYDE BALLARD, Speaker FRANK CHOPP, Speaker

TIMOTHY A. MARTIN, Chief Clerk CYNTHIA ZEHNDER, Chief Clerk