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FIFTY SEVENTH LEGISLATURE - REGULAR SESSION

___________________________________________________________________________________________


FIFTY SEVENTH DAY

___________________________________________________________________________________________


House Chamber, Olympia, Monday, March 11, 2002


             The House was called to order at 9:00 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 Daniel Roman-Brown and Katy Fritz. The Speaker (Representative Ogden) led the Chamber in the Pledge of Allegiance. Prayer was offered by Dr. Dennis Magnuson, United Methodist Church, Bainbridge Island.


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


MESSAGES FROM THE SENATE

March 7, 2002

Mr. Speaker:


             The President has signed:

SUBSTITUTE SENATE BILL NO. 5400,

SENATE BILL NO. 5513,

SENATE BILL NO. 5594,

SENATE BILL NO. 6698,

and the same are herewith transmitted.

Tony M. Cook, Secretary


March 9, 2002

Mr. Speaker:


             The President has signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6060,

SENATE BILL NO. 6292,

SUBSTITUTE SENATE BILL NO. 6342,

SENATE BILL NO. 6379,

SENATE BILL NO. 6381,

SENATE BILL NO. 6416,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6464,

ENGROSSED SENATE BILL NO. 6675,

ENGROSSED SENATE BILL NO. 6713,

and the same are herewith transmitted.

Tony M. Cook, Secretary


March 9, 2002

Mr. Speaker:


             The President has signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1005,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1144,

HOUSE BILL NO. 1196,

HOUSE BILL NO. 1460,

SECOND SUBSTITUTE HOUSE BILL NO. 1477,

HOUSE BILL NO. 2284,

HOUSE BILL NO. 2285,

SUBSTITUTE HOUSE BILL NO. 2315,

HOUSE BILL NO. 2317,

HOUSE BILL NO. 2320,

HOUSE BILL NO. 2345,

HOUSE BILL NO. 2365,

HOUSE BILL NO. 2397,

HOUSE BILL NO. 2435,

HOUSE BILL NO. 2526,

HOUSE BILL NO. 2527,

HOUSE BILL NO. 2639,

SUBSTITUTE HOUSE BILL NO. 2648,

SUBSTITUTE HOUSE BILL NO. 2834,

HOUSE JOINT RESOLUTION NO. 4220,

and the same are herewith transmitted.

Tony M. Cook, Secretary


March 9, 2002

Mr. Speaker:


             The Senate has passed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6387,

SENATE BILL NO. 6828,

and the same are herewith transmitted.

Tony M. Cook, Secretary


March 9, 2002

Mr. Speaker:


             The President has signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6588,

SUBSTITUTE SENATE BILL NO. 6658,

and the same are herewith transmitted.

Tony M. Cook, Secretary


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


INTRODUCTION & FIRST READING


HCR 4427         by Representative Kessler


             Making exceptions to cutoff dates.


             There being no objection, House Concurrent Resolution No. 4427 was read the first time, the rules were suspended and the concurrent resolution was placed on the second reading calendar.


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


SECOND READING


             HOUSE CONCURRENT RESOLUTION NO. 4427, by Representative Kessler


             Making exceptions to cutoff dates.


             The concurrent resolution was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the concurrent resolution was placed on final adoption.


             Representative Kessler spoke in favor of adoption of the concurrent resolution.


             The Speaker stated the question before the House to be the adoption of House Concurrent Resolution No. 4427.


             House Concurrent Resolution No. 4427 was declared adopted.


SENATE AMENDMENTS TO HOUSE BILL

March 6, 2002

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2380, with the following amendments:


             On page 2, after line 34, insert the following:


             "Sec. 2. RCW 13.40.040 and 1999 c 167 s 2 are each amended to read as follows:

             (1) A juvenile may be taken into custody:

             (a) Pursuant to a court order if a complaint is filed with the court alleging, and the court finds probable cause to believe, that the juvenile has committed an offense or has violated terms of a disposition order or release order; or

             (b) Without a court order, by a law enforcement officer if grounds exist for the arrest of an adult in identical circumstances. Admission to, and continued custody in, a court detention facility shall be governed by subsection (2) of this section; or

             (c) Pursuant to a court order that the juvenile be held as a material witness; or

             (d) Where the secretary or the secretary's designee has suspended the parole of a juvenile offender.

             (2) A juvenile may not be held in detention unless there is probable cause to believe that:

             (a) The juvenile has committed an offense or has violated the terms of a disposition order; and

             (i) The juvenile will likely fail to appear for further proceedings; or

             (ii) Detention is required to protect the juvenile from himself or herself; or

             (iii) The juvenile is a threat to community safety; or

             (iv) The juvenile will intimidate witnesses or otherwise unlawfully interfere with the administration of justice; or

             (v) The juvenile has committed a crime while another case was pending; or

             (b) The juvenile is a fugitive from justice; or

             (c) The juvenile's parole has been suspended or modified; or

             (d) The juvenile is a material witness.

             (3) Notwithstanding subsection (2) of this section, and within available funds, a juvenile who has been found guilty of one of the following offenses shall be detained pending disposition: Rape in the first or second degree (RCW 9A.44.040 and 9A.44.050); rape of a child in the first, second, or third degree (RCW 9A.44.073, 9A.44.076, and 9A.44.079); or child molestation in the first, second, or third degree (RCW 9A.44.083, 9A.44.086, and 9A.44.089).

             (4) Upon a finding that members of the community have threatened the health of a juvenile taken into custody, at the juvenile's request the court may order continued detention pending further order of the court.

             (((4))) (5) Except as provided in RCW 9.41.280, a juvenile detained under this section may be released upon posting a probation bond set by the court. The juvenile's parent or guardian may sign for the probation bond. A court authorizing such a release shall issue an order containing a statement of conditions imposed upon the juvenile and shall set the date of his or her next court appearance. The court shall advise the juvenile of any conditions specified in the order and may at any time amend such an order in order to impose additional or different conditions of release upon the juvenile or to return the juvenile to custody for failing to conform to the conditions imposed. In addition to requiring the juvenile to appear at the next court date, the court may condition the probation bond on the juvenile's compliance with conditions of release. The juvenile's parent or guardian may notify the court that the juvenile has failed to conform to the conditions of release or the provisions in the probation bond. If the parent notifies the court of the juvenile's failure to comply with the probation bond, the court shall notify the surety. As provided in the terms of the bond, the surety shall provide notice to the court of the offender's noncompliance. A juvenile may be released only to a responsible adult or the department of social and health services. Failure to appear on the date scheduled by the court pursuant to this section shall constitute the crime of bail jumping."


             Renumber the remaining section consecutively.


             On page 1, line 1 of the title, after "to" strike all material through "72.01.410;" on line 2, and insert "children offenders; amending RCW 72.01.410 and 13.40.040;"


             There being no objection, the House refused to concur in the Senate Amendment to House Bill No. 2380 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1411, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 70.105D.010 and 1994 c 254 s 1 are each amended to read as follows:

             (1) Each person has a fundamental and inalienable right to a healthful environment, and each person has a responsibility to preserve and enhance that right. The beneficial stewardship of the land, air, and waters of the state is a solemn obligation of the present generation for the benefit of future generations.

             (2) A healthful environment is now threatened by the irresponsible use and disposal of hazardous substances. There are hundreds of hazardous waste sites in this state, and more will be created if current waste practices continue. Hazardous waste sites threaten the state's water resources, including those used for public drinking water. Many of our municipal landfills are current or potential hazardous waste sites and present serious threats to human health and environment. The costs of eliminating these threats in many cases are beyond the financial means of our local governments and ratepayers. The main purpose of chapter 2, Laws of 1989 is to raise sufficient funds to clean up all hazardous waste sites and to prevent the creation of future hazards due to improper disposal of toxic wastes into the state's land and waters.

             (3) Many farmers and small business owners who have followed the law with respect to their uses of pesticides and other chemicals nonetheless may face devastating economic consequences because their uses have contaminated the environment or the water supplies of their neighbors. With a source of funds, the state may assist these farmers and business owners, as well as those persons who sustain damages, such as the loss of their drinking water supplies, as a result of the contamination.

             (4) It is in the public's interest to efficiently use our finite land base, to integrate our land use planning policies with our clean-up policies, and to clean up and reuse contaminated industrial properties in order to minimize industrial development pressures on undeveloped land and to make clean land available for future social use.

             (5) Because it is often difficult or impossible to allocate responsibility among persons liable for hazardous waste sites and because it is essential that sites be cleaned up well and expeditiously, each responsible person should be liable jointly and severally.

             (6) Because releases of hazardous substances can adversely affect the health and welfare of the public, the environment, and property values, it is in the public interest that affected communities be notified of where releases of hazardous substances have occurred and what is being done to clean them up.


              NEW SECTION. Sec. 2. A new section is added to chapter 70.105D RCW to read as follows:

             (1) Except as provided in subsection (5) of this section, any owner or operator of a facility that is actively transitioning from operating under a federal permit for treatment, storage, or disposal of hazardous waste issued under 42 U.S.C. Sec. 6925 to operating under the provisions of this chapter, who has information that a hazardous substance has been released to the environment at the owner or operator's facility that may be a threat to human health or the environment, shall issue a notice to the department within ninety days. The notice shall include a description of any remedial actions planned, completed, or underway.

             (2) The notice must be posted in a visible, publicly accessible location on the facility, to remain in place until all remedial actions except confirmational monitoring are complete.

             (3) After receiving the notice from the facility, the department must review the notice and mail a summary of its contents, along with any additional information deemed appropriate by the department, to:

             (a) Each residence and landowner of a residence whose property boundary is within three hundred feet of the boundary of the property where the release occurred or if the release occurred from a pipeline or other facility that does not have a property boundary, within three hundred feet of the actual release;

             (b) Each business and landowner of a business whose property boundary is within three hundred feet of the boundary of the property where the release occurred;

             (c) Each residence, landowner of a residence, and business with a property boundary within the area where hazardous substances have come to be located as a result of the release;

             (d) Neighborhood associations and community organizations representing an area within one mile of the facility and recognized by the city or county with jurisdiction within this area;

             (e) The city, county, and local health district with jurisdiction within the areas described in (a), (b), and (c) of this subsection; and

             (f) The department of health.

             (4) A notice produced by a facility shall provide the following information:

             (a) The common name of any hazardous substances released and, if available, the chemical abstract service registry number of these substances;

             (b) The address of the facility where the release occurred;

             (c) The date the release was discovered;

             (d) The cause and date of the release, if known;

             (e) The remedial actions being taken or planned to address the release;

             (f) The potential health and environmental effects of the hazardous substances released; and

             (g) The name, address, and telephone number of a contact person at the facility where the release occurred.

             (5) The following releases are exempt from the notification requirements in this section:

             (a) Application of pesticides and fertilizers for their intended purposes and according to label instructions;

             (b) The lawful and nonnegligent use of hazardous household substances by a natural person for personal or domestic purposes;

             (c) The discharge of hazardous substances in compliance with permits issued under chapter 70.94, 90.48, or 90.56 RCW;

             (d) De minimis amounts of any hazardous substance leaked or discharged onto the ground;

             (e) The discharge of hazardous substances to a permitted waste water treatment facility or from a permitted waste water collection system or treatment facility as allowed by a facility's discharge permit;

             (f) Any releases originating from a single-family or multifamily residence, including but not limited to the discharge of oil from a residential home heating oil tank with the capacity of five hundred gallons or less;

             (g) Any spill on a public road, street, or highway or to surface waters of the state that has previously been reported to the United States coast guard and the state division of emergency management under chapter 90.56 RCW;

             (h) Any release of hazardous substances to the air;

             (i) Any release that occurs on agricultural land, including land used to grow trees for the commercial production of wood or wood fiber, that is at least five acres in size, when the effects of the release do not come within three hundred feet of any property boundary. For the purposes of this subsection, agricultural land includes incidental uses that are compatible with agricultural or silvicultural purposes, including, but not limited to, land used for the housing of the owner, operator, or employees, structures used for the storage or repair of equipment, machinery, and chemicals, and any paths or roads on the land; and

             (j) Releases that, before the effective date of this section, have been previously reported to the department, or remediated in compliance with a settlement agreement under RCW 70.105D.040(4) or enforcement order or agreed order issued under this chapter or have been the subject of an opinion from the department under RCW 70.105D.030(1)(i) that no further remedial action is required.

             An exemption from the notification requirements of this section does not exempt the owner or operator of a facility from any other notification or reporting requirements, or imply a release from liability under this chapter.

             (6) If a significant segment of the community to be notified speaks a language other than English, an appropriate translation of the notice must also be posted and mailed to the department in accordance with the requirements of this section.

             (7) The facility where the release occurred is responsible for reimbursing the department within thirty days for the actual costs associated with the production and mailing of the notices under this section.


             Sec. 3. RCW 70.105D.030 and 2001 c 291 s 401 are each amended to read as follows:

             (1) The department may exercise the following powers in addition to any other powers granted by law:

             (a) Investigate, provide for investigating, or require potentially liable persons to investigate any releases or threatened releases of hazardous substances, including but not limited to inspecting, sampling, or testing to determine the nature or extent of any release or threatened release. If there is a reasonable basis to believe that a release or threatened release of a hazardous substance may exist, the department's authorized employees, agents, or contractors may enter upon any property and conduct investigations. The department shall give reasonable notice before entering property unless an emergency prevents such notice. The department may by subpoena require the attendance or testimony of witnesses and the production of documents or other information that the department deems necessary;

             (b) Conduct, provide for conducting, or require potentially liable persons to conduct remedial actions (including investigations under (a) of this subsection) to remedy releases or threatened releases of hazardous substances. In carrying out such powers, the department's authorized employees, agents, or contractors may enter upon property. The department shall give reasonable notice before entering property unless an emergency prevents such notice. In conducting, providing for, or requiring remedial action, the department shall give preference to permanent solutions to the maximum extent practicable and shall provide for or require adequate monitoring to ensure the effectiveness of the remedial action;

             (c) Indemnify contractors retained by the department for carrying out investigations and remedial actions, but not for any contractor's reckless or wilful misconduct;

             (d) Carry out all state programs authorized under the federal cleanup law and the federal resource, conservation, and recovery act, 42 U.S.C. Sec. 6901 et seq., as amended;

             (e) Classify substances as hazardous substances for purposes of RCW 70.105D.020(7) and classify substances and products as hazardous substances for purposes of RCW 82.21.020(1);

             (f) Issue orders or enter into consent decrees or agreed orders that include, or issue written opinions under (i) of this subsection that may be conditioned upon, deed restrictions where necessary to protect human health and the environment from a release or threatened release of a hazardous substance from a facility. Prior to establishing a deed restriction under this subsection, the department shall notify and seek comment from a city or county department with land use planning authority for real property subject to a deed restriction;

             (g) Enforce the application of permanent and effective institutional controls that are necessary for a remedial action to be protective of human health and the environment and the notification requirements established in section 2 of this act, and impose penalties for violations of that section consistent with RCW 70.105D.050;

             (h) Require holders to conduct remedial actions necessary to abate an imminent or substantial endangerment pursuant to RCW 70.105D.020(12)(b)(ii)(C);

             (i) Provide informal advice and assistance to persons regarding the administrative and technical requirements of this chapter. This may include site-specific advice to persons who are conducting or otherwise interested in independent remedial actions. Any such advice or assistance shall be advisory only, and shall not be binding on the department. As a part of providing this advice and assistance for independent remedial actions, the department may prepare written opinions regarding whether the independent remedial actions or proposals for those actions meet the substantive requirements of this chapter or whether the department believes further remedial action is necessary at the facility. The department may collect, from persons requesting advice and assistance, the costs incurred by the department in providing such advice and assistance; however, the department shall, where appropriate, waive collection of costs in order to provide an appropriate level of technical assistance in support of public participation. The state, the department, and officers and employees of the state are immune from all liability, and no cause of action of any nature may arise from any act or omission in providing, or failing to provide, informal advice and assistance; and

             (j) Take any other actions necessary to carry out the provisions of this chapter, including the power to adopt rules under chapter 34.05 RCW.

             (2) The department shall immediately implement all provisions of this chapter to the maximum extent practicable, including investigative and remedial actions where appropriate. The department shall adopt, and thereafter enforce, rules under chapter 34.05 RCW to:

             (a) Provide for public participation, including at least (i) public notice of the development of investigative plans or remedial plans for releases or threatened releases and (ii) concurrent public notice of all compliance orders, agreed orders, enforcement orders, or notices of violation;

             (b) Establish a hazard ranking system for hazardous waste sites;

             (c) Provide for requiring the reporting by an owner or operator of releases of hazardous substances to the environment that may be a threat to human health or the environment within ninety days of discovery, including such exemptions from reporting as the department deems appropriate, however this requirement shall not modify any existing requirements provided for under other laws;

             (d) Establish reasonable deadlines not to exceed ninety days for initiating an investigation of a hazardous waste site after the department receives notice or otherwise receives information that the site may pose a threat to human health or the environment and other reasonable deadlines for remedying releases or threatened releases at the site;

             (e) Publish and periodically update minimum cleanup standards for remedial actions at least as stringent as the cleanup standards under section 121 of the federal cleanup law, 42 U.S.C. Sec. 9621, and at least as stringent as all applicable state and federal laws, including health-based standards under state and federal law; and

             (f) Apply industrial clean-up standards at industrial properties. Rules adopted under this subsection shall ensure that industrial properties cleaned up to industrial standards cannot be converted to nonindustrial uses without approval from the department. The department may require that a property cleaned up to industrial standards is cleaned up to a more stringent applicable standard as a condition of conversion to a nonindustrial use. Industrial clean-up standards may not be applied to industrial properties where hazardous substances remaining at the property after remedial action pose a threat to human health or the environment in adjacent nonindustrial areas.

             (3) Before November 1st of each even-numbered year, the department shall develop, with public notice and hearing, and submit to the ways and means and appropriate standing environmental committees of the senate and house of representatives a ranked list of projects and expenditures recommended for appropriation from both the state and local toxics control accounts. The department shall also provide the legislature and the public each year with an accounting of the department's activities supported by appropriations from the state toxics control account, including a list of known hazardous waste sites and their hazard rankings, actions taken and planned at each site, how the department is meeting its top two management priorities under RCW 70.105.150, and all funds expended under this chapter.

             (4) The department shall establish a scientific advisory board to render advice to the department with respect to the hazard ranking system, cleanup standards, remedial actions, deadlines for remedial actions, monitoring, the classification of substances as hazardous substances for purposes of RCW 70.105D.020(7) and the classification of substances or products as hazardous substances for purposes of RCW 82.21.020(1). The board shall consist of five independent members to serve staggered three-year terms. No members may be employees of the department. Members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

             (5) The department shall establish a program to identify potential hazardous waste sites and to encourage persons to provide information about hazardous waste sites.


             Sec. 4. RCW 70.105D.050 and 1994 c 257 s 12 are each amended to read as follows:

             (1) With respect to any release, or threatened release, for which the department does not conduct or contract for conducting remedial action and for which the department believes remedial action is in the public interest, the director shall issue orders or agreed orders requiring potentially liable persons to provide the remedial action. Any liable person who refuses, without sufficient cause, to comply with an order or agreed order of the director is liable in an action brought by the attorney general for:

             (a) Up to three times the amount of any costs incurred by the state as a result of the party's refusal to comply; and

             (b) A civil penalty of up to twenty-five thousand dollars for each day the party refuses to comply.

The treble damages and civil penalty under this subsection apply to all recovery actions filed on or after March 1, 1989.

             (2) Any person who incurs costs complying with an order issued under subsection (1) of this section may petition the department for reimbursement of those costs. If the department refuses to grant reimbursement, the person may within thirty days thereafter file suit and recover costs by proving that he or she was not a liable person under RCW 70.105D.040 and that the costs incurred were reasonable.

             (3) The attorney general shall seek, by filing an action if necessary, to recover the amounts spent by the department for investigative and remedial actions and orders, and agreed orders, including amounts spent prior to March 1, 1989.

             (4) The attorney general may bring an action to secure such relief as is necessary to protect human health and the environment under this chapter.

             (5)(a) Any person may commence a civil action to compel the department to perform any nondiscretionary duty under this chapter. At least thirty days before commencing the action, the person must give notice of intent to sue, unless a substantial endangerment exists. The court may award attorneys' fees and other costs to the prevailing party in the action.

             (b) Civil actions under this section and RCW 70.105D.060 may be brought in the superior court of Thurston county or of the county in which the release or threatened release exists.

             (6) Any person who fails to provide notification of releases consistent with section 2 of this act or who submits false information is liable in an action brought by the attorney general for a civil penalty of up to five thousand dollars per day for each day the party refuses to comply.


             NEW SECTION. Sec. 5. 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. 6. Sections 2 through 4 of this act take effect January 1, 2003."


             On page 1, line 2 of the title, after "substances;" strike the remainder of the title and insert "amending RCW 70.105D.010, 70.105D.030, and 70.105D.050; adding a new section to chapter 70.105D RCW; and providing an effective date."


and the same are herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed Substitute House Bill No. 1411 and advanced the bill as amended by the Senate to final passage.


MOTIONS


             On motion of Representative Santos, Representatives Edwards, Morris and Quall were excused. On motion of Representative Woods, Representatives Schmidt and Lisk were excused.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1411 as amended by the Senate and the bill passed the House by the following vote: Yeas - 93, Nays - 0, Absent - 0, Excused - 5.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 93.

             Excused: Representatives Edwards, Lisk, Morris, Quall and Schmidt - 5.

  

             Engrossed Substitute House Bill No. 1411 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed Substitute House Bill No. 1411.

JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1938, with the following amendment:


             On page 4, beginning on line 28, after "(m)" strike all material through "enterprise." on line 32, and insert "The offense was committed with the intent to obstruct or impair human or animal health care or agricultural or forestry research or commercial production."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Second Substitute House Bill No. 1938 and advanced the bill as amended by the Senate to final passage.


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


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute House Bill No. 1938 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall and Schmidt - 4.

  

             Second Substitute House Bill No. 1938 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Second Substitute House Bill No. 1938.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2224, with the following amendment:


             On page 1, beginning on line 6, strike all of subsection (1) and insert the following:

             "(1) "Communications equipment" means handsets, pagers, personal digital assistants, portable computers, automatic answering devices, batteries, and their accessories or other devices used to originate or receive communications signals or service approved for coverage by rule of the commissioner, and also includes services related to the use of the devices."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed Substitute House Bill No. 2224 and advanced the bill as amended by the Senate to final passage.


             Representative Cooper spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2224 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall and Schmidt - 4.

  

             Engrossed Substitute House Bill No. 2224 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed Substitute House Bill No. 2224.

JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2305, with the following amendment:


             On page 1, line 19, after "chapter" insert ", and shall not affect any other authority of local governments"


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed Substitute House Bill No. 2305 and advanced the bill as amended by the Senate to final passage.


             Representatives Hatfield, Mulliken and Dunshee spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2305 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall and Schmidt - 4.

  

             Engrossed Substitute House Bill No. 2305 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed Substitute House Bill No. 2305.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 2346, with the following amendment:


             Strike everything after the enacting clause and insert the following:


"ARTICLE 1

GENERAL PROVISIONS


             NEW SECTION. Sec. 101. SHORT TITLE. This act may be known and cited as the uniform parentage act.


             NEW SECTION. Sec. 102. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

             (1) "Acknowledged father" means a man who has established a father-child relationship under sections 301 through 316 of this act.

             (2) "Adjudicated father" means a man who has been adjudicated by a court of competent jurisdiction to be the father of a child.

             (3) "Alleged father" means a man who alleges himself to be, or is alleged to be, the genetic father or a possible genetic father of a child, but whose paternity has not been determined. The term does not include:

             (a) A presumed father;

             (b) A man whose parental rights have been terminated or declared not to exist; or

             (c) A male donor.

             (4) "Assisted reproduction" means a method of causing pregnancy other than sexual intercourse. The term includes:

             (a) Intrauterine insemination;

             (b) Donation of eggs;

             (c) Donation of embryos;

             (d) In vitro fertilization and transfer of embryos; and

             (e) Intracytoplasmic sperm injection.

             (5) "Child" means an individual of any age whose parentage may be determined under this chapter.

             (6) "Commence" means to file the petition seeking an adjudication of parentage in a superior court of this state or to serve a summons and the petition.

             (7) "Determination of parentage" means the establishment of the parent-child relationship by the signing of a valid acknowledgment of paternity under sections 301 through 316 of this act or adjudication by the court.

             (8) "Donor" means an individual who produces eggs or sperm used for assisted reproduction, whether or not for consideration. The term does not include:

             (a) A husband who provides sperm, or a wife who provides eggs, to be used for assisted reproduction by the wife; or

             (b) A woman who gives birth to a child by means of assisted reproduction, except as otherwise provided in RCW 26.26.210 through 26.26.260 or section 608 of this act.

             (9) "Ethnic or racial group" means, for purposes of genetic testing, a recognized group that an individual identifies as all or part of his or her ancestry or that is so identified by other information.

             (10) "Genetic testing" means an analysis of genetic markers only to exclude or identify a man as the father or a woman as the mother of a child. The term includes an analysis of one or a combination of the following:

             (a) Deoxyribonucleic acid; and

             (b) Blood-group antigens, red-cell antigens, human-leukocyte antigens, serum enzymes, serum proteins, or red-cell enzymes.

             (11) "Man" means a male individual of any age.

             (12) "Parent" means an individual who has established a parent-child relationship under section 201 of this act.

             (13) "Parent-child relationship" means the legal relationship between a child and a parent of the child. The term includes the mother-child relationship and the father-child relationship.

             (14) "Paternity index" means the likelihood of paternity calculated by computing the ratio between:

             (a) The likelihood that the tested man is the father, based on the genetic markers of the tested man, mother, and child, conditioned on the hypothesis that the tested man is the father of the child; and

             (b) The likelihood that the tested man is not the father, based on the genetic markers of the tested man, mother, and child, conditioned on the hypothesis that the tested man is not the father of the child and that the father is from the same ethnic or racial group as the tested man.

             (15) "Presumed father" means a man who, under section 204 of this act, is recognized to be the father of a child until that status is rebutted or confirmed in a judicial proceeding.

             (16) "Probability of paternity" means the measure, for the ethnic or racial group to which the alleged father belongs, of the probability that the individual in question is the father of the child, compared with a random, unrelated man of the same ethnic or racial group, expressed as a percentage incorporating the paternity index and a prior probability.

             (17) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

             (18) "Signatory" means an individual who authenticates a record and is bound by its terms.

             (19) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, any territory or insular possession subject to the jurisdiction of the United States, or an Indian tribe or band, or Alaskan native village, that is recognized by federal law or formally acknowledged by state law.

             (20) "Support enforcement agency" means a public official or agency authorized to seek:

             (a) Enforcement of support orders or laws relating to the duty of support;

             (b) Establishment or modification of child support;

             (c) Determination of parentage; or

             (d) Location of child support obligors and their income and assets.


             NEW SECTION. Sec. 103. SCOPE OF ACT--CHOICE OF LAW. (1) This chapter governs every determination of parentage in this state.

             (2) The court shall apply the law of this state to adjudicate the parent-child relationship. The applicable law does not depend on:

             (a) The place of birth of the child; or

             (b) The past or present residence of the child.

             (3) This chapter does not create, enlarge, or diminish parental rights or duties under other law of this state.

             (4) If a birth results under a surrogate parentage contract that is unenforceable under the law of this state, the parent-child relationship is determined as provided in sections 201 through 204 of this act.


             NEW SECTION. Sec. 104. COURT OF THIS STATE. The superior courts of this state are authorized to adjudicate parentage under this chapter.


             NEW SECTION. Sec. 105. PROTECTION OF PARTICIPANTS. Proceedings under this chapter are subject to other law of this state governing the health, safety, privacy, and liberty of a child or other individuals that could be jeopardized by disclosure of identifying information, including the address, telephone number, place of employment, social security number, and the child's day-care facility and school.


             NEW SECTION. Sec. 106. DETERMINATION OF MATERNITY. The provisions relating to determination of paternity may be applied to a determination of maternity.


ARTICLE 2

PARENT-CHILD RELATIONSHIP


             NEW SECTION. Sec. 201. ESTABLISHMENT OF PARENT-CHILD RELATIONSHIP. (1) The mother-child relationship is established between a child and a woman by:

             (a) The woman's having given birth to the child, except as otherwise provided in RCW 26.26.210 through 26.26.260;

             (b) An adjudication of the woman's maternity;

             (c) Adoption of the child by the woman;

             (d) A valid surrogate parentage contract, under which the mother is an intended parent of the child, as provided in RCW 26.26.210 through 26.26.260; or

             (e) An affidavit and physician's certificate in a form prescribed by the department of health wherein the donor of ovum or surrogate gestation carrier sets forth her intent to be legally bound as the parent of a child or children born through alternative reproductive medical technology by filing the affidavit and physician's certificate with the registrar of vital statistics within ten days after the date of the child's birth pursuant to section 608 of this act.

             (2) The father-child relationship is established between a child and a man by:

             (a) An unrebutted presumption of the man's paternity of the child under section 204 of this act;

             (b) The man's having signed an acknowledgment of paternity under sections 301 through 316 of this act, unless the acknowledgment has been rescinded or successfully challenged;

             (c) An adjudication of the man's paternity;

             (d) Adoption of the child by the man;

             (e) The man's having consented to assisted reproduction by his wife under sections 601 through 607 of this act that resulted in the birth of the child; or

             (f) A valid surrogate parentage contract, under which the father is an intended parent of the child, as provided in RCW 26.26.210 through 26.26.260.


             NEW SECTION. Sec. 202. NO DISCRIMINATION BASED ON MARITAL STATUS. A child born to parents who are not married to each other has the same rights under the law as a child born to parents who are married to each other.


             NEW SECTION. Sec. 203. CONSEQUENCES OF ESTABLISHMENT OF PARENTAGE. Unless parental rights are terminated, the parent-child relationship established under this chapter applies for all purposes, except as otherwise provided by other law of this state.


             NEW SECTION. Sec. 204. PRESUMPTION OF PATERNITY IN CONTEXT OF MARRIAGE. (1) A man is presumed to be the father of a child if:

             (a) He and the mother of the child are married to each other and the child is born during the marriage;

             (b) He and the mother of the child were married to each other and the child is born within three hundred days after the marriage is terminated by death, annulment, dissolution of marriage, legal separation, or declaration of invalidity;

             (c) Before the birth of the child, he and the mother of the child married each other in apparent compliance with law, even if the attempted marriage is, or could be, declared invalid and the child is born during the invalid marriage or within three hundred days after its termination by death, annulment, dissolution of marriage, legal separation, or declaration of invalidity; or

             (d) After the birth of the child, he and the mother of the child have married each other in apparent compliance with law, whether or not the marriage is, or could be declared invalid, and he voluntarily asserted his paternity of the child, and:

             (i) The assertion is in a record filed with the state registrar of vital statistics;

             (ii) Agreed to be and is named as the child's father on the child's birth certificate; or

             (iii) Promised in a record to support the child as his own.

             (2) A presumption of paternity established under this section may be rebutted only by an adjudication under sections 501 through 537 of this act.

 

ARTICLE 3

VOLUNTARY ACKNOWLEDGMENT OF PATERNITY


             NEW SECTION. Sec. 301. ACKNOWLEDGMENT OF PATERNITY. The mother of a child and a man claiming to be the father of the child conceived as the result of his sexual intercourse with the mother may sign an acknowledgment of paternity with intent to establish the man's paternity.


             NEW SECTION. Sec. 302. EXECUTION OF ACKNOWLEDGMENT OF PATERNITY. (1) An acknowledgment of paternity must:

             (a) Be in a record;

             (b) Be signed under penalty of perjury by the mother and by the man seeking to establish his paternity;

             (c) State that the child whose paternity is being acknowledged:

             (i) Does not have a presumed father, or has a presumed father whose full name is stated; and

             (ii) Does not have another acknowledged or adjudicated father;

             (d) State whether there has been genetic testing and, if so, that the acknowledging man's claim of paternity is consistent with the results of the testing; and

             (e) State that the signatories understand that the acknowledgment is the equivalent of a judicial adjudication of paternity of the child and that a challenge to the acknowledgment is permitted only under limited circumstances and is barred after two years.

             (2) An acknowledgment of paternity is void if it:

             (a) States that another man is a presumed father, unless a denial of paternity signed by the presumed father is filed with the state registrar of vital statistics;

             (b) States that another man is an acknowledged or adjudicated father; or

             (c) Falsely denies the existence of a presumed, acknowledged, or adjudicated father of the child.

             (3) A presumed father may sign an acknowledgment of paternity.


             NEW SECTION. Sec. 303. DENIAL OF PATERNITY. A presumed father of a child may sign a denial of his paternity. The denial is valid only if:

             (1) An acknowledgment of paternity signed by another man is filed under section 305 of this act;

             (2) The denial is in a record, and signed under penalty of perjury; and

             (3) The presumed father has not previously:

             (a) Acknowledged his paternity, unless the previous acknowledgment has been rescinded under section 307 of this act or successfully challenged under section 308 of this act; or

             (b) Been adjudicated to be the father of the child.


             NEW SECTION. Sec. 304. RULES FOR ACKNOWLEDGMENT AND DENIAL OF PATERNITY. (1) An acknowledgment of paternity and a denial of paternity may be contained in a single document or may be signed in counterparts, and may be filed separately or simultaneously.

             (2) An acknowledgment of paternity or a denial of paternity may be signed before the birth of the child.

             (3) An acknowledgment and denial of paternity, if any, take effect on the birth of the child or the filing of the document with the state registrar of vital statistics, whichever occurs later.

             (4) An acknowledgment or denial of paternity signed by a minor is valid if otherwise in compliance with this chapter.


             NEW SECTION. Sec. 305. EFFECT OF ACKNOWLEDGMENT OR DENIAL OF PATERNITY. (1) Except as otherwise provided in sections 307 and 308 of this act, a valid acknowledgment of paternity filed with the state registrar of vital statistics is equivalent to an adjudication of paternity of a child and confers upon the acknowledged father all the rights and duties of a parent.

             (2) Except as otherwise provided in sections 307 and 308 of this act, a valid denial of paternity filed with the state registrar of vital statistics in conjunction with a valid acknowledgment of paternity is equivalent to an adjudication of the nonpaternity of the presumed father and discharges the presumed father from all of the rights and duties of a parent.


             NEW SECTION. Sec. 306. FILING FEE. The state registrar of vital statistics may charge a fee for filing an acknowledgment or denial of paternity.


             NEW SECTION. Sec. 307. PROCEEDING FOR RESCISSION. A signatory may rescind an acknowledgment or denial of paternity by commencing a court proceeding to rescind before the earlier of:

             (1) Sixty days after the effective date of the filing of the acknowledgment or denial, as provided in section 304 of this act; or

             (2) The date of the first hearing in a proceeding to which the signatory is a party before a court to adjudicate an issue relating to the child, including a proceeding that establishes support.


             NEW SECTION. Sec. 308. CHALLENGE AFTER EXPIRATION OF TIME FOR RESCISSION. (1) After the period for rescission under section 307 of this act has elapsed, a signatory of an acknowledgment or denial of paternity may commence a proceeding to challenge the acknowledgment or denial only:

             (a) On the basis of fraud, duress, or material mistake of fact; and

             (b) Within two years after the acknowledgment or denial is filed with the state registrar of vital statistics.

             (2) A party challenging an acknowledgment or denial of paternity has the burden of proof.


             NEW SECTION. Sec. 309. PROCEDURE FOR RESCISSION OR CHALLENGE. (1) Every signatory to an acknowledgment or denial of paternity must be made a party to a proceeding to rescind or challenge the acknowledgment or denial.

             (2) For the purpose of rescission of, or challenge to, an acknowledgment or denial of paternity, a signatory submits to personal jurisdiction of this state by signing the acknowledgment or denial, effective upon the filing of the document with the state registrar of vital statistics.

             (3) Except for good cause shown, during the pendency of a proceeding to rescind or challenge an acknowledgment or denial of paternity, the court may not suspend the legal responsibilities of a signatory arising from an acknowledgment, including the duty to pay child support.

             (4) A proceeding to rescind or to challenge an acknowledgment or denial of paternity must be conducted in the same manner as a proceeding to adjudicate parentage under sections 501 through 537 of this act.

             (5) At the conclusion of a proceeding to rescind or challenge an acknowledgment or denial of paternity, the court shall order the state registrar of vital statistics to amend the birth record of the child, if appropriate.


             NEW SECTION. Sec. 310. RATIFICATION BARRED. A court or administrative agency conducting a judicial or administrative proceeding is not required or permitted to ratify an unchallenged acknowledgment of paternity.


             NEW SECTION. Sec. 311. FULL FAITH AND CREDIT. A court of this state shall give full faith and credit to an acknowledgment or denial of paternity effective in another state if the acknowledgment or denial has been signed and is otherwise in compliance with the law of the other state.


             NEW SECTION. Sec. 312. FORMS FOR ACKNOWLEDGMENT AND DENIAL OF PATERNITY. (1) To facilitate compliance with sections 301 through 311 of this act, the state registrar of vital statistics shall prescribe forms for the acknowledgment and the denial of paternity. The acknowledgment of paternity shall state, in prominent lettering, that signing the acknowledgment of paternity is equivalent to an adjudication of paternity and confers upon the acknowledged father all the rights and duties of a parent, such as the payment of child support, if the acknowledgment is not challenged or rescinded as prescribed under sections 303 through 309 of this act. The form shall include copies of the provisions in sections 303 through 309 of this act.

             (2) A valid acknowledgment or denial of paternity is not affected by a later modification of the prescribed form.


             NEW SECTION. Sec. 313. RELEASE OF INFORMATION. The state registrar of vital statistics may release information relating to the acknowledgment or denial of paternity, not expressly sealed under a court order, to: (1) A signatory of the acknowledgment or denial or their attorneys of record; (2) the courts of this or any other state; (3) the agencies of this or any other state operating a child support program under Title IV-D of the social security act; or (4) the agencies of this or any other state involved in a dependency determination for a child named in the acknowledgment or denial of paternity.


             NEW SECTION. Sec. 314. ADOPTION OF RULES. The state registrar of vital statistics may adopt rules to implement sections 301 through 316 of this act.


             NEW SECTION. Sec. 315. (1) Sections 301 through 316 of this act apply to all acknowledgments of paternity executed on or after July 1, 1997.

             (2) A man who executed an acknowledgment of paternity before July 1, 1997, is rebuttably identified as the father of the child named therein. Any dispute of the parentage, custody, visitation, or support of the child named therein shall be determined in a proceeding to adjudicate the child's parentage commenced under sections 501 through 537 of this act.


             NEW SECTION. Sec. 316. (1) After the period for rescission of an acknowledgment of paternity provided in section 307 of this act has passed, a parent executing an acknowledgment of paternity of the child named therein may commence a judicial proceeding for:

             (a) Making residential provisions or a parenting plan with regard to the minor child on the same basis as provided in chapter 26.09 RCW; or

             (b) Establishing a child support obligation under chapter 26.19 RCW and maintaining health insurance coverage under RCW 26.09.105.

             (2) Pursuant to RCW 26.09.010(3), a proceeding authorized by this section shall be entitled "In re the parenting and support of...."

             (3) Before the period for a challenge to the acknowledgment or denial of paternity has elapsed under section 308 of this act, the petitioner must specifically allege under penalty of perjury, to the best of the petitioner's knowledge, that: (a) No man other than the man who executed the acknowledgment of paternity is the father of the child; (b) there is not currently pending a proceeding to adjudicate the parentage of the child or that another man is adjudicated the child's father; and (c) the petitioner has provided notice of the proceeding to any other men who have claimed parentage of the child. Should the respondent or any other person appearing in the action deny the allegations, a permanent parenting plan or residential schedule may not be entered for the child without the matter being converted to a proceeding to challenge the acknowledgment of paternity under sections 308 and 309 of this act. A copy of the acknowledgment of paternity must be filed with the petition or response. The court may convert the matter to a proceeding to challenge the acknowledgment on its own motion.

 

ARTICLE 4

GENETIC TESTING


             NEW SECTION. Sec. 401. SCOPE. Sections 402 through 411 of this act govern genetic testing of an individual only to determine parentage, whether the individual:

             (1) Voluntarily submits to testing; or

             (2) Is tested pursuant to an order of the court or a support enforcement agency.


             NEW SECTION. Sec. 402. ORDER FOR TESTING. (1) Except as otherwise provided in this section and sections 403 through 537 of this act, the court shall order the child and other designated individuals to submit to genetic testing if the request for testing is supported by the sworn statement of a party to the proceeding:

             (a) Alleging paternity and stating facts establishing a reasonable probability of the requisite sexual contact between the individuals; or

             (b) Denying paternity and stating facts establishing a possibility that sexual contact between the individuals, if any, did not result in the conception of the child.

             (2) A support enforcement agency may order genetic testing only if there is no presumed, acknowledged, or adjudicated father.

             (3) If a request for genetic testing of a child is made before birth, the court or support enforcement agency may not order in utero testing.

             (4) If two or more men are subject to court-ordered genetic testing, the testing may be ordered concurrently or sequentially.


             NEW SECTION. Sec. 403. REQUIREMENTS FOR GENETIC TESTING. (1) Genetic testing must be of a type reasonably relied upon by experts in the field of genetic testing and performed in a testing laboratory accredited by:

             (a) The American association of blood banks, or a successor to its functions;

             (b) The American society for histocompatibility and immunogenetics, or a successor to its functions; or

             (c) An accrediting body designated by the United States secretary of health and human services.

             (2) A specimen used in genetic testing may consist of one or more samples or a combination of samples of blood, buccal cells, bone, hair, or other body tissue or fluid. The specimen used in the testing need not be of the same kind for each individual undergoing genetic testing.

             (3) Based on the ethnic or racial group of an individual, the testing laboratory shall determine the data bases from which to select frequencies for use in the calculations. If there is disagreement as to the testing laboratory's choice, the following rules apply:

             (a) The individual objecting may require the testing laboratory, within thirty days after receipt of the report of the test, to recalculate the probability of paternity using an ethnic or racial group different from that used by the laboratory.

             (b) The individual objecting to the testing laboratory's initial choice shall:

             (i) If the frequencies are not available to the testing laboratory for the ethnic or racial group requested, provide the requested frequencies compiled in a manner recognized by accrediting bodies; or

             (ii) Engage another testing laboratory to perform the calculations.

             (c) The testing laboratory may use its own statistical estimate if there is a question regarding which ethnic or racial group is appropriate. If available, the testing laboratory shall calculate the frequencies using statistics for any other ethnic or racial group requested.

             (4) If, after recalculation using a different ethnic or racial group, genetic testing does not rebuttably identify a man as the father of a child under section 405 of this act, an individual who has been tested may be required to submit to additional genetic testing.


             NEW SECTION. Sec. 404. REPORT OF GENETIC TESTING. (1) The report of genetic testing must be in a record and signed under penalty of perjury by a designee of the testing laboratory. A report made under the requirements of this section is self-authenticating.

             (2) Documentation from the testing laboratory of the following information is sufficient to establish a reliable chain of custody that allows the results of genetic testing to be admissible without testimony:

             (a) The names and photographs of the individuals whose specimens have been taken;

             (b) The names of the individuals who collected the specimens;

             (c) The places and dates the specimens were collected;

             (d) The names of the individuals who received the specimens in the testing laboratory; and

             (e) The dates the specimens were received.


             NEW SECTION. Sec. 405. GENETIC TESTING RESULTS--REBUTTAL. (1) Under this chapter, a man is rebuttably identified as the father of a child if the genetic testing complies with this section and sections 401 through 404 and 406 through 411 of this act and the results disclose that:

             (a) The man has at least a ninety-nine percent probability of paternity, using a prior probability of 0.50, as calculated by using the combined paternity index obtained in the testing; and

             (b) A combined paternity index of at least one hundred to one.

             (2) A man identified under subsection (1) of this section as the father of the child may rebut the genetic testing results only by other genetic testing satisfying the requirements of this section and sections 401 through 404 and 406 through 411 of this act which:

             (a) Excludes the man as a genetic father of the child; or

             (b) Identifies another man as the father of the child.

             (3) Except as otherwise provided in section 410 of this act, if more than one man is identified by genetic testing as the possible father of the child, the court shall order them to submit to further genetic testing to identify the genetic father.


             NEW SECTION. Sec. 406. COSTS OF GENETIC TESTING. (1) Subject to assessment of costs under sections 501 through 537 of this act, the cost of initial genetic testing must be advanced:

             (a) By a support enforcement agency in a proceeding in which the support enforcement agency is providing services;

             (b) By the individual who made the request;

             (c) As agreed by the parties; or

             (d) As ordered by the court.

             (2) In cases in which the cost is advanced by the support enforcement agency, the agency may seek reimbursement from a man who is rebuttably identified as the father.


             NEW SECTION. Sec. 407. ADDITIONAL GENETIC TESTING. The court or the support enforcement agency shall order additional genetic testing upon the request of a party who contests the result of the original testing. If the previous genetic testing identified a man as the father of the child under section 405 of this act, the court or agency may not order additional testing unless the party provides advance payment for the testing.


             NEW SECTION. Sec. 408. GENETIC TESTING WHEN SPECIMEN NOT AVAILABLE. (1) If a genetic testing specimen is not available from a man who may be the father of a child, for good cause and under circumstances the court considers to be just, a court may order the following individuals to submit specimens for genetic testing:

             (a) The parents of the man;

             (b) Brothers and sisters of the man;

             (c) Other children of the man and their mothers; and

             (d) Other relatives of the man necessary to complete genetic testing.

             (2) If a specimen from the mother of a child is not available for genetic testing, the court may order genetic testing to proceed without a specimen from the mother.

             (3) Issuance of an order under this section requires a finding that a need for genetic testing outweighs the legitimate interests of the individual sought to be tested.


             NEW SECTION. Sec. 409. DECEASED INDIVIDUAL. For good cause shown, the court may order genetic testing of a deceased individual.


             NEW SECTION. Sec. 410. IDENTICAL BROTHERS. (1) The court may order genetic testing of a brother of a man identified as the father of a child if the man is commonly believed to have an identical brother and evidence suggests that the brother may be the genetic father of the child.

             (2) If genetic testing excludes none of the brothers as the genetic father, and each brother satisfies the requirements as the identified father of the child under section 405 of this act without consideration of another identical brother being identified as the father of the child, the court may rely on nongenetic evidence to adjudicate which brother is the father of the child.


             NEW SECTION. Sec. 411. CONFIDENTIALITY OF GENETIC TESTING. (1) Release of the report of genetic testing for parentage is controlled by chapter 70.02 RCW.

             (2) An individual commits a gross misdemeanor punishable under RCW 9.92.020 if the individual intentionally releases an identifiable specimen of another individual for any purpose other than that relevant to the proceeding regarding parentage without a court order or the written permission of the individual who furnished the specimen.

 

ARTICLE 5

PROCEEDING TO ADJUDICATE PARENTAGE

 

PART 1

NATURE OF PROCEEDING


             NEW SECTION. Sec. 501. PROCEEDING AUTHORIZED. A civil proceeding may be maintained to adjudicate the parentage of a child. The proceeding is governed by the rules of civil procedure.


             NEW SECTION. Sec. 502. STANDING TO MAINTAIN PROCEEDING. Subject to sections 301 through 316, 507, and 509 of this act, a proceeding to adjudicate parentage may be maintained by:

             (1) The child;

             (2) The mother of the child;

             (3) A man whose paternity of the child is to be adjudicated;

             (4) The division of child support;

             (5) An authorized adoption agency or licensed child-placing agency;

             (6) A representative authorized by law to act for an individual who would otherwise be entitled to maintain a proceeding but who is deceased, incapacitated, or a minor; or

             (7) An intended parent under a surrogate parentage contract, as provided in RCW 26.26.210 through 26.26.260.


             NEW SECTION. Sec. 503. PARTIES TO PROCEEDING. The following individuals must be joined as parties in a proceeding to adjudicate parentage:

             (1) The mother of the child;

             (2) A man whose paternity of the child is to be adjudicated; and

             (3) An intended parent under a surrogate parentage contract, as provided in RCW 26.26.210 through 26.26.260.


             NEW SECTION. Sec. 504. PERSONAL JURISDICTION. (1) An individual may not be adjudicated to be a parent unless the court has personal jurisdiction over the individual.

             (2) A court of this state having jurisdiction to adjudicate parentage may exercise personal jurisdiction over a nonresident individual, or the guardian or conservator of the individual, if the conditions prescribed in RCW 26.21.075 are fulfilled.

             (3) Lack of jurisdiction over one individual does not preclude the court from making an adjudication of parentage binding on another individual over whom the court has personal jurisdiction.


             NEW SECTION. Sec. 505. VENUE. Venue for a proceeding to adjudicate parentage is in the county of this state in which:

             (1) The child resides or is found;

             (2) The respondent resides or is found if the child does not reside in this state; or

             (3) A proceeding for probate of the presumed or alleged father's estate has been commenced.


             NEW SECTION. Sec. 506. NO LIMITATION: CHILD HAVING NO PRESUMED, ACKNOWLEDGED, OR ADJUDICATED FATHER. A proceeding to adjudicate the parentage of a child having no presumed, acknowledged, or adjudicated father may be commenced at any time during the life of the child, even after:

             (1) The child becomes an adult; or

             (2) An earlier proceeding to adjudicate paternity has been dismissed based on the application of a statute of limitation then in effect.


             NEW SECTION. Sec. 507. LIMITATION: CHILD HAVING PRESUMED FATHER. (1) Except as otherwise provided in subsection (2) of this section, a proceeding brought by a presumed father, the mother, or another individual to adjudicate the parentage of a child having a presumed father must be commenced not later than two years after the birth of the child.

             (2) A proceeding seeking to disprove the father-child relationship between a child and the child's presumed father may be maintained at any time if the court determines that:

             (a) The presumed father and the mother of the child neither cohabited nor engaged in sexual intercourse with each other during the probable time of conception; and

             (b) The presumed father never openly treated the child as his own.


             NEW SECTION. Sec. 508. AUTHORITY TO DENY GENETIC TESTING. (1) In a proceeding to adjudicate parentage under circumstances described in section 507 of this act, a court may deny genetic testing of the mother, the child, and the presumed father if the court determines that:

             (a) The conduct of the mother or the presumed father estops that party from denying parentage; and

             (b) It would be inequitable to disprove the father-child relationship between the child and the presumed father.

             (2) In determining whether to deny genetic testing under this section, the court shall consider the best interest of the child, including the following factors:

             (a) The length of time between the proceeding to adjudicate parentage and the time that the presumed father was placed on notice that he might not be the genetic father;

             (b) The length of time during which the presumed father has assumed the role of father of the child;

             (c) The facts surrounding the presumed father's discovery of his possible nonpaternity;

             (d) The nature of the father-child relationship;

             (e) The age of the child;

             (f) The harm to the child which may result if presumed paternity is successfully disproved;

             (g) The relationship of the child to any alleged father;

             (h) The extent to which the passage of time reduces the chances of establishing the paternity of another man and a child support obligation in favor of the child; and

             (i) Other factors that may affect the equities arising from the disruption of the father-child relationship between the child and the presumed father or the chance of other harm to the child.

             (3) In a proceeding involving the application of this section, the child must be represented by a guardian ad litem.

             (4) A denial of genetic testing must be based on clear and convincing evidence.

             (5) If the court denies genetic testing, it shall issue an order adjudicating the presumed father to be the father of the child.


             NEW SECTION. Sec. 509. LIMITATION: CHILD HAVING ACKNOWLEDGED OR ADJUDICATED FATHER. (1) If a child has an acknowledged father, a signatory to the acknowledgment or denial of paternity must commence any proceeding seeking to rescind or challenge the paternity of that child only within the time allowed under section 307 or 308 of this act.

             (2) If a child has an acknowledged father or an adjudicated father, an individual, other than the child, who is neither a signatory to the acknowledgment nor a party to the adjudication and who seeks an adjudication of paternity of the child must commence a proceeding not later than two years after the effective date of the acknowledgment or adjudication.


             NEW SECTION. Sec. 510. JOINDER OF PROCEEDINGS. (1) Except as provided in subsection (2) of this section, a proceeding to adjudicate parentage may be joined with a proceeding for: Adoption or termination of parental rights under chapter 26.33 RCW; determination of a parenting plan, child support, annulment, dissolution of marriage, or legal separation under chapter 26.09 or 26.19 RCW; or probate or administration of an estate under chapter 11.48 or 11.54 RCW, or other appropriate proceeding.

             (2) A respondent may not join the proceedings described in subsection (1) of this section with a proceeding to adjudicate parentage brought under chapter 26.21 RCW.


             NEW SECTION. Sec. 511. PROCEEDING BEFORE BIRTH. Although a proceeding to determine parentage may be commenced before the birth of the child, the proceeding may not be concluded until after the birth of the child. The following actions may be taken before the birth of the child:

             (1) Service of process;

             (2) Discovery;

             (3) Except as prohibited by section 402 of this act, collection of specimens for genetic testing; and

             (4) Temporary orders authorized under section 524 of this act.


             NEW SECTION. Sec. 512. CHILD AS PARTY--REPRESENTATION. (1) A minor child is a permissible party, but is not a necessary party to a proceeding under sections 501 through 537 of this act.

             (2) If the child is a party, or if the court finds that the interests of a minor child or incapacitated child are not adequately represented, the court shall appoint a guardian ad litem to represent the child, subject to RCW 74.20.310 neither the child's mother or father may represent the child as guardian or otherwise.

 

PART 2

SPECIAL RULES FOR PROCEEDING TO ADJUDICATE PARENTAGE


             NEW SECTION. Sec. 521. ADMISSIBILITY OF RESULTS OF GENETIC TESTING--EXPENSES. (1) Except as otherwise provided in subsection (3) of this section, a record of a genetic testing expert is admissible as evidence of the truth of the facts asserted in the report unless a party objects to its admission within fourteen days after its receipt by the objecting party and cites specific grounds for exclusion. The admissibility of the report is not affected by whether the testing was performed:

             (a) Voluntarily or under an order of the court or a support enforcement agency; or

             (b) Before or after the commencement of the proceeding.

             (2) A party objecting to the results of genetic testing may call one or more genetic testing experts to testify in person or by telephone, videoconference, deposition, or another method approved by the court. Unless otherwise ordered by the court, the party offering the testimony bears the expense for the expert testifying.

             (3) If a child has a presumed, acknowledged, or adjudicated father, the results of genetic testing are inadmissible to adjudicate parentage unless performed:

             (a) With the consent of both the mother and the presumed, acknowledged, or adjudicated father; or

             (b) Under an order of the court under section 402 of this act.

             (4) Copies of bills for genetic testing and for prenatal and postnatal health care for the mother and child that are furnished to the adverse party not less than ten days before the date of a hearing are admissible to establish:

             (a) The amount of the charges billed; and

             (b) That the charges were reasonable, necessary, and customary.


             NEW SECTION. Sec. 522. CONSEQUENCES OF DECLINING GENETIC TESTING. (1) An order for genetic testing is enforceable by contempt.

             (2) If an individual whose paternity is being determined declines to submit to genetic testing as ordered by the court, the court may on that basis adjudicate parentage contrary to the position of that individual.

             (3) Genetic testing of the mother of a child is not a condition precedent to testing the child and a man whose paternity is being determined. If the mother is unavailable or declines to submit to genetic testing, the court may order the testing of the child and every man whose paternity is being adjudicated.


             NEW SECTION. Sec. 523. ADMISSION OF PATERNITY AUTHORIZED. (1) A respondent in a proceeding to adjudicate parentage may admit to the paternity of a child by filing a pleading to that effect or by admitting paternity under penalty of perjury when making an appearance or during a hearing.

             (2) If the court finds that the admission of paternity was made under this section and finds that there is no reason to question the admission, the court shall issue an order adjudicating the child to be the child of the man admitting paternity.


             NEW SECTION. Sec. 524. TEMPORARY ORDER. This section applies to any proceeding under sections 501 through 537 of this act.

             (1) The court shall issue a temporary order for support of a child if the individual ordered to pay support:

             (a) Is a presumed father of the child;

             (b) Is petitioning to have his paternity adjudicated or has admitted paternity in pleadings filed with the court;

             (c) Is identified as the father through genetic testing under section 405 of this act;

             (d) Has declined to submit to genetic testing but is shown by clear and convincing evidence to be the father of the child; or

             (e) Is the mother of the child.

             (2) A temporary order may, on the same basis as provided in chapter 26.09 RCW, make residential provisions with regard to minor children of the parties, except that a parenting plan is not required unless requested by a parent.

             (3) Any party may request the court to issue a temporary restraining order or preliminary injunction, providing relief proper in the circumstances, and restraining or enjoining any party from:

             (a) Molesting or disturbing the peace of another party;

             (b) Going onto the grounds of or entering the home, workplace, or school of another party or the day care or school of any child;

             (c) Knowingly coming within, or knowingly remaining within, a specified distance from a specified location; and

             (d) Removing a child from the jurisdiction of the court.

             (4) Either party may request a domestic violence protection order under chapter 26.50 RCW or an antiharassment protection order under chapter 10.14 RCW on a temporary basis. The court may grant any of the relief provided in RCW 26.50.060 except relief pertaining to residential provisions for the children which provisions shall be provided for under this chapter, and any of the relief provided in RCW 10.14.080. Ex parte orders issued under this subsection shall be effective for a fixed period not to exceed fourteen days, or upon court order, not to exceed twenty-four days if necessary to ensure that all temporary motions in the case can be heard at the same time.

             (5) Restraining orders issued under this section restraining or enjoining the person from molesting or disturbing another party, or from going onto the grounds of or entering the home, workplace, or school of the other party or the day care or school of any child, or prohibiting the person from knowingly coming within, or knowingly remaining within, a specified distance of a location, shall prominently bear on the front page of the order the legend: VIOLATION OF THIS ORDER WITH ACTUAL NOTICE OF ITS TERMS IS A CRIMINAL OFFENSE UNDER CHAPTER 26.50 RCW AND WILL SUBJECT A VIOLATOR TO ARREST.

             (6) The court shall order that any temporary restraining order bearing a criminal offense legend, any domestic violence protection order, or any antiharassment protection order granted under this section be forwarded by the clerk of the court on or before the next judicial day to the appropriate law enforcement agency specified in the order. Upon receipt of the order, the law enforcement agency shall enter the order into any computer-based criminal intelligence information system available in this state used by law enforcement agencies to list outstanding warrants. The order is fully enforceable in any county in the state.

             (7) If a restraining order issued pursuant to this section is modified or terminated, the clerk of the court shall notify the law enforcement agency specified in the order on or before the next judicial day. Upon receipt of notice that an order has been terminated, the law enforcement agency shall remove the order from any computer-based criminal intelligence system.

             (8) The court may issue a temporary restraining order without requiring notice to the other party only if it finds on the basis of the moving affidavit or other evidence that irreparable injury could result if an order is not issued until the time for responding has elapsed.

             (9) The court may issue a temporary restraining order or preliminary injunction and an order for temporary support in such amounts and on such terms as are just and proper in the circumstances. In issuing the order, the court shall consider the provisions of RCW 9.41.800.

             (10) A temporary order, temporary restraining order, or preliminary injunction:

             (a) Does not prejudice the rights of a party or any child which are to be adjudicated at subsequent hearings in the proceeding;

             (b) May be revoked or modified;

             (c) Terminates when the final order is entered or when the petition is dismissed; and

             (d) May be entered in a proceeding for the modification of an existing order.

             (11) A support debt owed to the state for public assistance expenditures which has been charged against a party pursuant to RCW 74.20A.040 and/or 74.20A.055 shall not be merged in, or otherwise extinguished by, the final decree or order, unless the office of support enforcement has been given notice of the final proceeding and an opportunity to present its claim for the support debt to the court and has failed to file an affidavit as provided in this subsection. Notice of the proceeding shall be served upon the office of support enforcement personally, or by certified mail, and shall be given no fewer than thirty days prior to the date of the final proceeding. An original copy of the notice shall be filed with the court either before service or within a reasonable time thereafter. The office of support enforcement may present its claim, and thereby preserve the support debt, by filing an affidavit setting forth the amount of the debt with the court, and by mailing a copy of the affidavit to the parties or their attorney prior to the date of the final proceeding.

 

PART 3

HEARINGS AND ADJUDICATION


             NEW SECTION. Sec. 531. RULES FOR ADJUDICATION OF PATERNITY. The court shall apply the following rules to adjudicate the paternity of a child:

             (1) The paternity of a child having a presumed, acknowledged, or adjudicated father may be disproved only by admissible results of genetic testing excluding that man as the father of the child or identifying another man to be the father of the child.

             (2) Unless the results of genetic testing are admitted to rebut other results of genetic testing, the man identified as the father of the child under section 405 of this act must be adjudicated the father of the child.

             (3) If the court finds that genetic testing under section 405 of this act neither identifies nor excludes a man as the father of a child, the court may not dismiss the proceeding. In that event, the results of genetic testing, along with other evidence, are admissible to adjudicate the issue of paternity.

             (4) Unless the results of genetic testing are admitted to rebut other results of genetic testing, a man excluded as the father of a child by genetic testing must be adjudicated not to be the father of the child.


             NEW SECTION. Sec. 532. JURY PROHIBITED. The court, without a jury, shall adjudicate parentage of a child.


             NEW SECTION. Sec. 533. HEARINGS--INSPECTION OF RECORDS. (1) On request of a party and for good cause shown, the court may close a proceeding under this section and sections 501 through 532 and 534 through 537 of this act.

             (2) A final order in a proceeding under this section and sections 501 through 532 and 534 through 537 of this act is available for public inspection. Other papers and records are available only with the consent of the parties or on order of the court for good cause.


             NEW SECTION. Sec. 534. ORDER ON DEFAULT. The court shall issue an order adjudicating the paternity of a man who:

             (1) After service of process, is in default; and

             (2) Is found by the court to be the father of a child.


             NEW SECTION. Sec. 535. DISMISSAL FOR WANT OF PROSECUTION. The court may issue an order dismissing a proceeding commenced under this chapter for want of prosecution only without prejudice. An order of dismissal for want of prosecution with prejudice is void and may be challenged in another judicial or an administrative proceeding.


             NEW SECTION. Sec. 536. ORDER ADJUDICATING PARENTAGE. (1) The court shall issue an order adjudicating whether a man alleged or claiming to be the father is the parent of the child.

             (2) An order adjudicating parentage must identify the child by name and age.

             (3) Except as otherwise provided in subsection (4) of this section, the court may assess filing fees, reasonable attorneys' fees, fees for genetic testing, other costs, and necessary travel and other reasonable expenses incurred in a proceeding under this section and sections 501 through 535 and 537 of this act. The court may award attorneys' fees, which may be paid directly to the attorney, who may enforce the order in the attorney's own name.

             (4) The court may not assess fees, costs, or expenses against the support enforcement agency of this state or another state, except as provided by other law.

             (5) On request of a party and for good cause shown, the court may order that the name of the child be changed.

             (6) If the order of the court is at variance with the child's birth certificate, the court shall order the state registrar of vital statistics to issue an amended birth certificate.


             NEW SECTION. Sec. 537. BINDING EFFECT OF DETERMINATION OF PARENTAGE. (1) Except as otherwise provided in subsection (2) of this section, a determination of parentage is binding on:

             (a) All signatories to an acknowledgment or denial of paternity as provided in sections 301 through 316 of this act; and

             (b) All parties to an adjudication by a court acting under circumstances that satisfy the jurisdictional requirements of RCW 26.21.075.

             (2) A child is not bound by a determination of parentage under this chapter unless:

             (a) The acknowledgment of paternity is consistent with the results of the genetic testing;

             (b) The adjudication of parentage was based on a finding consistent with the results of genetic testing and the consistency is declared in the determination or is otherwise shown; or

             (c) The child was represented in the proceeding determining parentage by a guardian ad litem.

             (3) In a proceeding to dissolve a marriage, the court is deemed to have made an adjudication of the parentage of a child if the court acts under circumstances that satisfy the jurisdictional requirements of RCW 26.21.075, and the final order:

             (a) Expressly identifies a child as a "child of the marriage," "issue of the marriage," or similar words indicating that the husband is the father of the child; or

             (b) Provides for support of the child by the husband unless paternity is specifically disclaimed in the order.

             (4) Except as otherwise provided in subsection (2) of this section, a determination of parentage may be a defense in a subsequent proceeding seeking to adjudicate parentage by an individual who was not a party to the earlier proceeding.

             (5) A party to an adjudication of paternity may challenge the adjudication only under law of this state relating to appeal, vacation of judgments, and other judicial review.

 

ARTICLE 6

CHILD OF ASSISTED REPRODUCTION


             NEW SECTION. Sec. 601. SCOPE OF ARTICLE. Sections 602 through 609 of this act do not apply to the birth of a child conceived by means of sexual intercourse.


             NEW SECTION. Sec. 602. PARENTAL STATUS OF DONOR. A donor is not a parent of a child conceived by means of assisted reproduction.


             NEW SECTION. Sec. 603. HUSBAND'S PATERNITY OF CHILD OF ASSISTED REPRODUCTION. If a husband provides sperm for, or consents to, assisted reproduction by his wife as provided in section 604 of this act, he is the father of a resulting child born to his wife.


             NEW SECTION. Sec. 604. CONSENT TO ASSISTED REPRODUCTION. (1) A consent to assisted reproduction by a married woman must be in a record signed by the woman and her husband. This requirement does not apply to the donation of eggs for assisted reproduction by another woman.

             (2) Failure of the husband to sign a consent required by subsection (1) of this section, before or after birth of the child, does not preclude a finding that the husband is the father of a child born to his wife if the wife and husband openly treated the child as their own.


             NEW SECTION. Sec. 605. LIMITATION ON HUSBAND'S DISPUTE OF PATERNITY. (1) Except as otherwise provided in subsection (2) of this section, the husband of a wife who gives birth to a child by means of assisted reproduction may not challenge his paternity of the child unless:

             (a) Within two years after learning of the birth of the child he commences a proceeding to adjudicate his paternity; and

             (b) The court finds that he did not consent to the assisted reproduction, before or after birth of the child.

             (2) A proceeding to adjudicate paternity may be maintained at any time if the court determines that:

             (a) The husband did not provide sperm for, or before or after the birth of the child consent to, assisted reproduction by his wife;

             (b) The husband and the mother of the child have not cohabited since the probable time of assisted reproduction; and

             (c) The husband never openly treated the child as his own.

             (3) The limitation provided in this section applies to a marriage declared invalid after assisted reproduction.


             NEW SECTION. Sec. 606. EFFECT OF DISSOLUTION OF MARRIAGE. (1) If a marriage is dissolved before placement of eggs, sperm, or an embryo, the former spouse is not a parent of the resulting child unless the former spouse consented in a record that if assisted reproduction were to occur after a divorce, the former spouse would be a parent of the child.

             (2) The consent of the former spouse to assisted reproduction may be revoked by that individual in a record at any time before placement of eggs, sperm, or embryos.


             NEW SECTION. Sec. 607. PARENTAL STATUS OF DECEASED SPOUSE. If a spouse dies before placement of eggs, sperm, or an embryo, the deceased spouse is not a parent of the resulting child unless the deceased spouse consented in a record that if assisted reproduction were to occur after death, the deceased spouse would be a parent of the child.


             NEW SECTION. Sec. 608. EFFECT OF AGREEMENT BETWEEN OVUM DONOR AND WOMAN WHO GIVES BIRTH. The donor of ovum provided to a licensed physician for use in the alternative reproductive medical technology process of attempting to achieve a pregnancy in a woman other than the donor is treated in law as if she were not the natural mother of a child thereafter conceived and born unless the donor and the woman who gives birth to a child as a result of the alternative reproductive medical technology procedures agree in writing that the donor is to be a parent. Section 602 of this act does not apply in such case. A woman who gives birth to a child conceived through alternative reproductive medical technology procedures under the supervision and with the assistance of a licensed physician is treated in law as if she were the natural mother of the child unless an agreement in writing signed by an ovum donor and the woman giving birth to the child states otherwise. An agreement pursuant to this section must be in writing and signed by the ovum donor and the woman who gives birth to the child and any other intended parent of the child. The physician shall certify the parties' signatures and the date of the ovum harvest, identify the subsequent medical procedures undertaken, and identify the intended parents. The agreement, including the affidavit and certification referenced in RCW 26.26.030, must be filed with the registrar of vital statistics, where it must be kept confidential and in a sealed file.


             NEW SECTION. Sec. 609. ISSUANCE OF BIRTH CERTIFICATE. The department of health shall, upon request, issue a birth certificate for any child born as a result of an alternative reproductive medical technology procedure indicating the legal parentage of such child as intended by any agreement filed with the registrar of vital statistics pursuant to section 608 of this act.

 

ARTICLE 7

MISCELLANEOUS PROVISIONS


             Sec. 701. RCW 5.44.140 and 1990 c 175 s 1 are each amended to read as follows:

             In any proceeding regarding the determination of a family relationship, including but not limited to the parent and child relationship and the marriage relationship, a determination of family relationships regarding any person or persons who immigrated to the United States from a foreign country which was made or accepted by the United States immigration and naturalization service at the time of that person or persons' entry into the United States creates a rebuttable presumption that the determination is valid and that the family relationship under foreign law is as made or accepted at the time of entry. Except as provided in ((RCW 26.26.040 (1)(f) and (2))) section 204(2) of this act, the presumption may be overcome by a preponderance of evidence showing that a living person other than the person named by the United States immigration and naturalization service is in the relationship in question.


             Sec. 702. RCW 5.62.030 and 1986 c 212 s 2 are each amended to read as follows:

             Notwithstanding anything to the contrary in this chapter, the privilege created in this chapter is subject to the same limitations and exemptions contained in RCW ((26.26.120,)) 26.44.060(3)((,)) and 51.04.050 as those limitations and exemptions relate to the physician/patient privilege of RCW 5.60.060.


             Sec. 703. RCW 9.41.070 and 1999 c 222 s 2 are each amended to read as follows:

             (1) The chief of police of a municipality or the sheriff of a county shall within thirty days after the filing of an application of any person, issue a license to such person to carry a pistol concealed on his or her person within this state for five years from date of issue, for the purposes of protection or while engaged in business, sport, or while traveling. However, if the applicant does not have a valid permanent Washington driver's license or Washington state identification card or has not been a resident of the state for the previous consecutive ninety days, the issuing authority shall have up to sixty days after the filing of the application to issue a license. The issuing authority shall not refuse to accept completed applications for concealed pistol licenses during regular business hours.

             The applicant's constitutional right to bear arms shall not be denied, unless:

             (a) He or she is ineligible to possess a firearm under the provisions of RCW 9.41.040 or 9.41.045;

             (b) The applicant's concealed pistol license is in a revoked status;

             (c) He or she is under twenty-one years of age;

             (d) He or she is subject to a court order or injunction regarding firearms pursuant to RCW 9A.46.080, 10.14.080, 10.99.040, 10.99.045, 26.09.050, 26.09.060, 26.10.040, 26.10.115, 26.26.130, ((26.26.137,)) 26.50.060, ((or)) 26.50.070, or section 524 of this act;

             (e) He or she is free on bond or personal recognizance pending trial, appeal, or sentencing for a felony offense;

             (f) He or she has an outstanding warrant for his or her arrest from any court of competent jurisdiction for a felony or misdemeanor; or

             (g) He or she has been ordered to forfeit a firearm under RCW 9.41.098(1)(e) within one year before filing an application to carry a pistol concealed on his or her person.

             No person convicted of a felony may have his or her right to possess firearms restored or his or her privilege to carry a concealed pistol restored, unless the person has been granted relief from disabilities by the secretary of the treasury under 18 U.S.C. Sec. 925(c), or RCW 9.41.040 (3) or (4) applies.

             (2) The issuing authority shall check with the national crime information center, the Washington state patrol electronic data base, the department of social and health services electronic data base, and with other agencies or resources as appropriate, to determine whether the applicant is ineligible under RCW 9.41.040 or 9.41.045 to possess a firearm and therefore ineligible for a concealed pistol license. This subsection applies whether the applicant is applying for a new concealed pistol license or to renew a concealed pistol license.

             (3) Any person whose firearms rights have been restricted and who has been granted relief from disabilities by the secretary of the treasury under 18 U.S.C. Sec. 925(c) or who is exempt under 18 U.S.C. Sec. 921(a)(20)(A) shall have his or her right to acquire, receive, transfer, ship, transport, carry, and possess firearms in accordance with Washington state law restored except as otherwise prohibited by this chapter.

             (4) The license application shall bear the full name, residential address, telephone number at the option of the applicant, date and place of birth, race, gender, description, not more than two complete sets of fingerprints, and signature of the licensee, and the licensee's driver's license number or state identification card number if used for identification in applying for the license. A signed application for a concealed pistol license shall constitute a waiver of confidentiality and written request that the department of social and health services, mental health institutions, and other health care facilities release information relevant to the applicant's eligibility for a concealed pistol license to an inquiring court or law enforcement agency.

             The application for an original license shall include two complete sets of fingerprints to be forwarded to the Washington state patrol.

             The license and application shall contain a warning substantially as follows:

 

CAUTION: Although state and local laws do not differ, federal law and state law on the possession of firearms differ. If you are prohibited by federal law from possessing a firearm, you may be prosecuted in federal court. A state license is not a defense to a federal prosecution.

 

             The license shall contain a description of the major differences between state and federal law and an explanation of the fact that local laws and ordinances on firearms are preempted by state law and must be consistent with state law. The application shall contain questions about the applicant's eligibility under RCW 9.41.040 to possess a pistol, the applicant's place of birth, and whether the applicant is a United States citizen. The applicant shall not be required to produce a birth certificate or other evidence of citizenship. A person who is not a citizen of the United States shall meet the additional requirements of RCW 9.41.170 and produce proof of compliance with RCW 9.41.170 upon application. The license shall be in triplicate and in a form to be prescribed by the department of licensing.

             The original thereof shall be delivered to the licensee, the duplicate shall within seven days be sent to the director of licensing and the triplicate shall be preserved for six years, by the authority issuing the license.

             The department of licensing shall make available to law enforcement and corrections agencies, in an on-line format, all information received under this subsection.

             (5) The nonrefundable fee, paid upon application, for the original five-year license shall be thirty-six dollars plus additional charges imposed by the Federal Bureau of Investigation that are passed on to the applicant. No other state or local branch or unit of government may impose any additional charges on the applicant for the issuance of the license.

             The fee shall be distributed as follows:

             (a) Fifteen dollars shall be paid to the state general fund;

             (b) Four dollars shall be paid to the agency taking the fingerprints of the person licensed;

             (c) Fourteen dollars shall be paid to the issuing authority for the purpose of enforcing this chapter; and

             (d) Three dollars to the firearms range account in the general fund.

             (6) The nonrefundable fee for the renewal of such license shall be thirty-two dollars. No other branch or unit of government may impose any additional charges on the applicant for the renewal of the license.

             The renewal fee shall be distributed as follows:

             (a) Fifteen dollars shall be paid to the state general fund;

             (b) Fourteen dollars shall be paid to the issuing authority for the purpose of enforcing this chapter; and

             (c) Three dollars to the firearms range account in the general fund.

             (7) The nonrefundable fee for replacement of lost or damaged licenses is ten dollars to be paid to the issuing authority.

             (8) Payment shall be by cash, check, or money order at the option of the applicant. Additional methods of payment may be allowed at the option of the issuing authority.

             (9) A licensee may renew a license if the licensee applies for renewal within ninety days before or after the expiration date of the license. A license so renewed shall take effect on the expiration date of the prior license. A licensee renewing after the expiration date of the license must pay a late renewal penalty of ten dollars in addition to the renewal fee specified in subsection (6) of this section. The fee shall be distributed as follows:

             (a) Three dollars shall be deposited in the state wildlife fund and used exclusively first for the printing and distribution of a pamphlet on the legal limits of the use of firearms, firearms safety, and the preemptive nature of state law, and subsequently the support of volunteer instructors in the basic firearms safety training program conducted by the department of fish and wildlife. The pamphlet shall be given to each applicant for a license; and

             (b) Seven dollars shall be paid to the issuing authority for the purpose of enforcing this chapter.

             (10) Notwithstanding the requirements of subsections (1) through (9) of this section, the chief of police of the municipality or the sheriff of the county of the applicant's residence may issue a temporary emergency license for good cause pending review under subsection (1) of this section. However, a temporary emergency license issued under this subsection shall not exempt the holder of the license from any records check requirement. Temporary emergency licenses shall be easily distinguishable from regular licenses.

             (11) A political subdivision of the state shall not modify the requirements of this section or chapter, nor may a political subdivision ask the applicant to voluntarily submit any information not required by this section.

             (12) A person who knowingly makes a false statement regarding citizenship or identity on an application for a concealed pistol license is guilty of false swearing under RCW 9A.72.040. In addition to any other penalty provided for by law, the concealed pistol license of a person who knowingly makes a false statement shall be revoked, and the person shall be permanently ineligible for a concealed pistol license.

             (13) A person may apply for a concealed pistol license:

             (a) To the municipality or to the county in which the applicant resides if the applicant resides in a municipality;

             (b) To the county in which the applicant resides if the applicant resides in an unincorporated area; or

             (c) Anywhere in the state if the applicant is a nonresident.


             Sec. 704. RCW 9.41.800 and 1996 c 295 s 14 are each amended to read as follows:

             (1) Any court when entering an order authorized under RCW 9A.46.080, 10.14.080, 10.99.040, 10.99.045, 26.09.050, 26.09.060, 26.10.040, 26.10.115, 26.26.130, ((26.26.137,)) 26.50.060, ((or)) 26.50.070, or section 524 of this act shall, upon a showing by clear and convincing evidence, that a party has: Used, displayed, or threatened to use a firearm or other dangerous weapon in a felony, or previously committed any offense that makes him or her ineligible to possess a firearm under the provisions of RCW 9.41.040:

             (a) Require the party to surrender any firearm or other dangerous weapon;

             (b) Require the party to surrender any concealed pistol license issued under RCW 9.41.070;

             (c) Prohibit the party from obtaining or possessing a firearm or other dangerous weapon;

             (d) Prohibit the party from obtaining or possessing a concealed pistol license.

             (2) Any court when entering an order authorized under RCW 9A.46.080, 10.14.080, 10.99.040, 10.99.045, 26.09.050, 26.09.060, 26.10.040, 26.10.115, 26.26.130, ((26.26.137,)) 26.50.060, ((or)) 26.50.070, or section 524 of this act may, upon a showing by a preponderance of the evidence but not by clear and convincing evidence, that a party has: Used, displayed, or threatened to use a firearm or other dangerous weapon in a felony, or previously committed any offense that makes him or her ineligible to possess a pistol under the provisions of RCW 9.41.040:

             (a) Require the party to surrender any firearm or other dangerous weapon;

             (b) Require the party to surrender a concealed pistol license issued under RCW 9.41.070;

             (c) Prohibit the party from obtaining or possessing a firearm or other dangerous weapon;

             (d) Prohibit the party from obtaining or possessing a concealed pistol license.

             (3) The court may order temporary surrender of a firearm or other dangerous weapon without notice to the other party if it finds, on the basis of the moving affidavit or other evidence, that irreparable injury could result if an order is not issued until the time for response has elapsed.

             (4) In addition to the provisions of subsections (1), (2), and (3) of this section, the court may enter an order requiring a party to comply with the provisions in subsection (1) of this section if it finds that the possession of a firearm or other dangerous weapon by any party presents a serious and imminent threat to public health or safety, or to the health or safety of any individual.

             (5) The requirements of subsections (1), (2), and (4) of this section may be for a period of time less than the duration of the order.

             (6) The court may require the party to surrender any firearm or other dangerous weapon in his or her immediate possession or control or subject to his or her immediate possession or control to the sheriff of the county having jurisdiction of the proceeding, the chief of police of the municipality having jurisdiction, or to the restrained or enjoined party's counsel or to any person designated by the court.


             Sec. 705. RCW 74.20.310 and 1991 c 367 s 45 are each amended to read as follows:

             (1) The provisions of ((RCW 26.26.090)) section 512 of this act requiring appointment of a ((general guardian or)) guardian ad litem to represent the child in an action brought to determine the parent and child relationship do not apply to actions brought under chapter 26.26 RCW if:

             (a) The action is brought by the attorney general on behalf of the department of social and health services and the child; or

             (b) The action is brought by any prosecuting attorney on behalf of the state and the child when referral has been made to the prosecuting attorney by the department of social and health services requesting such action.

             (2) On the issue of parentage, the attorney general or prosecuting attorney functions as the child's guardian ad litem provided the interests of the state and the child are not in conflict.

             (3) The court, on its own motion or on motion of a party, may appoint a guardian ad litem when necessary.

             (4) The summons shall contain a notice to the parents that pursuant to section 512 of this act the parents have a right to move the court for a guardian ad litem for the child other than the prosecuting attorney or the attorney general subject to subsection (2) of this section.


             Sec. 706. RCW 74.20.360 and 1997 c 58 s 901 are each amended to read as follows:

             (1) The division of child support may issue an order for genetic testing when providing services under this chapter and Title IV-D of the federal social security act if genetic testing:

             (a) Is appropriate in an action under chapter 26.26 RCW, the uniform parentage act;

             (b) Is appropriate in an action to establish support under RCW 74.20A.056; or

             (c) Would assist the parties or the division of child support in determining whether it is appropriate to proceed with an action to establish or disestablish paternity.

             (2) The order for genetic testing shall be served on the alleged parent or parents and the legal parent by personal service or by any form of mail requiring a return receipt.

             (3) Within twenty days of the date of service of an order for genetic testing, any party required to appear for genetic testing, the child, or a guardian on the child's behalf, may petition in superior court under chapter 26.26 RCW to bar or postpone genetic testing.

             (4) The order for genetic testing shall contain:

             (a) An explanation of the right to proceed in superior court under subsection (3) of this section;

             (b) Notice that if no one proceeds under subsection (3) of this section, the agency issuing the order will schedule genetic testing and will notify the parties of the time and place of testing by regular mail;

             (c) Notice that the parties must keep the agency issuing the order for genetic testing informed of their residence address and that mailing a notice of time and place for genetic testing to the last known address of the parties by regular mail constitutes valid service of the notice of time and place;

             (d) Notice that the order for genetic testing may be enforced through:

             (i) Public assistance grant reduction for noncooperation, pursuant to agency rule, if the child and custodian are receiving public assistance;

             (ii) Termination of support enforcement services under Title IV-D of the federal social security act if the child and custodian are not receiving public assistance;

             (iii) A referral to superior court for an appropriate action under chapter 26.26 RCW; or

             (iv) A referral to superior court for remedial sanctions under RCW 7.21.060.

             (5) The department may advance the costs of genetic testing under this section.

             (6) If an action is pending under chapter 26.26 RCW, a judgment for reimbursement of the cost of genetic testing may be awarded under ((RCW 26.26.100)) section 521 of this act.

             (7) If no action is pending in superior court, the department may impose an obligation to reimburse costs of genetic testing according to rules adopted by the department to implement RCW 74.20A.056.


             Sec. 707. RCW 74.20A.056 and 1997 c 58 s 941 are each amended to read as follows:

             (1) If an alleged father has signed an affidavit acknowledging paternity which has been filed with the state registrar of vital statistics before July 1, 1997, the division of child support may serve a notice and finding of parental responsibility on him. ((Procedures for and responsibility resulting from acknowledgments filed after July 1, 1997, are in subsections (8) and (9) of this section.)) Service of the notice shall be in the same manner as a summons in a civil action or by certified mail, return receipt requested. The notice shall have attached to it a copy of the affidavit or certification of birth record information advising of the existence of a filed affidavit, provided by the state registrar of vital statistics, and shall state that:

             (a) The alleged father may file an application for an adjudicative proceeding at which he will be required to appear and show cause why the amount stated in the finding of financial responsibility as to support is incorrect and should not be ordered;

             (b) An alleged father may request that a blood or genetic test be administered to determine whether such test would exclude him from being a natural parent and, if not excluded, may subsequently request that the division of child support initiate an action in superior court to determine the existence of the parent-child relationship; and

             (c) If the alleged father does not request that a blood or genetic test be administered or file an application for an adjudicative proceeding, the amount of support stated in the notice and finding of parental responsibility shall become final, subject only to a subsequent determination under ((RCW 26.26.060)) sections 501 through 537 of this act that the parent-child relationship does not exist.

             (2) An alleged father who objects to the amount of support requested in the notice or who requests genetic tests may file an application for an adjudicative proceeding up to twenty days after the date the notice was served. An application for an adjudicative proceeding may be filed within one year of service of the notice and finding of parental responsibility without the necessity for a showing of good cause or upon a showing of good cause thereafter. An adjudicative proceeding under this section shall be pursuant to RCW 74.20A.055. The only issues shall be the amount of the accrued debt, the amount of the current and future support obligation, and the reimbursement of the costs of blood or genetic tests if advanced by the department.

             (3) If the application for an adjudicative proceeding is filed within twenty days of service of the notice, collection action shall be stayed pending a final decision by the department. If no application is filed within twenty days:

             (a) The amounts in the notice shall become final and the debt created therein shall be subject to collection action; and

             (b) Any amounts so collected shall neither be refunded nor returned if the alleged father is later found not to be a responsible parent.

             (4) An alleged father who denies being a responsible parent may request that a blood or genetic test be administered at any time. The request for testing shall be in writing and served on the division of child support personally or by registered or certified mail. If a request for testing is made, the department shall arrange for the test and, pursuant to rules adopted by the department, may advance the cost of such testing. The department shall mail a copy of the test results by certified mail, return receipt requested, to the alleged father's last known address.

             (5) If the test excludes the alleged father from being a natural parent, the division of child support shall file a copy of the results with the state registrar of vital statistics and shall dismiss any pending administrative collection proceedings based upon the affidavit in issue. The state registrar of vital statistics shall remove the alleged father's name from the birth certificate and change the child's surname to be the same as the mother's maiden name as stated on the birth certificate, or any other name which the mother may select.

             (6) The alleged father may, within twenty days after the date of receipt of the test results, request the division of child support to initiate an action under ((RCW 26.26.060)) sections 501 through 537 of this act to determine the existence of the parent-child relationship. If the division of child support initiates a superior court action at the request of the alleged father and the decision of the court is that the alleged father is a natural parent, the alleged father shall be liable for court costs incurred.

             (7) If the alleged father does not request the division of child support to initiate a superior court action, or if the alleged father fails to appear and cooperate with blood or genetic testing, the notice of parental responsibility shall become final for all intents and purposes and may be overturned only by a subsequent superior court order entered under ((RCW 26.26.060)) sections 501 through 537 of this act.

             (8)(a) Subsections (1) through (7) of this section do not apply to acknowledgments of paternity filed with the state registrar of vital statistics after July 1, 1997.

             (b) If an ((alleged)) acknowledged father has signed an ((affidavit acknowledging)) acknowledgment of paternity that has been filed with the state registrar of vital statistics after July 1, 1997((, within sixty days from the date of filing of the acknowledgment)):

             (i) The division of child support may serve a notice and finding of ((parental responsibility on him as set forth under this section)) financial responsibility under RCW 74.20A.055 based on the acknowledgment. The division of child support shall attach a copy of the acknowledgment or certification of the birth record information advising of the existence of a filed acknowledgment of paternity to the notice; ((and))

             (ii) The notice shall include a statement that the ((alleged)) acknowledged father or any other signatory may ((rescind his acknowledgment of paternity. The rescission shall be notarized and delivered to the state registrar of vital statistics personally or by registered or certified mail. The state registrar shall remove the father's name from the birth certificate and change the child's surname to be the same as the mother's maiden name as stated on the birth certificate or any other name that the mother may select. The state registrar shall file rescission notices in a sealed file. All future paternity actions on behalf of the child in question shall be performed under court order)) commence a proceeding in court to rescind or challenge the acknowledgment or denial of paternity under sections 307 and 308 of this act; and

             (iii) The party commencing the action to rescind or challenge the acknowledgment or denial must serve notice on the division of child support and the office of the prosecuting attorney in the county in which the proceeding is commenced. Commencement of a proceeding to rescind or challenge the acknowledgment or denial stays the establishment of the notice and finding of financial responsibility, if the notice has not yet become a final order.

             (((b))) (c) If the ((alleged)) acknowledged father or other party to the notice does not file an application for an adjudicative proceeding or ((rescind his)) the signatories to the acknowledgment or denial do not commence a proceeding to rescind or challenge the acknowledgment of paternity, the amount of support stated in the notice and finding of ((parental)) financial responsibility becomes final, subject only to a subsequent determination under ((RCW 26.26.060)) sections 501 through 537 of this act that the parent-child relationship does not exist. The division of child support does not refund nor return any amounts collected under a notice that becomes final under this section or RCW 74.20A.055, even if a court later determines that the acknowledgment is void.

             (((c))) (d) An ((alleged)) acknowledged father or other party to the notice who objects to the amount of support requested in the notice may file an application for an adjudicative proceeding up to twenty days after the date the notice was served. An application for an adjudicative proceeding may be filed within one year of service of the notice and finding of parental responsibility without the necessity for a showing of good cause or upon a showing of good cause thereafter. An adjudicative proceeding under this section shall be pursuant to RCW 74.20A.055. The only issues shall be the amount of the accrued debt and the amount of the current and future support obligation.

             (i) If the application for an adjudicative proceeding is filed within twenty days of service of the notice, collection action shall be stayed pending a final decision by the department.

             (ii) If the application for an adjudicative proceeding is not filed within twenty days of the service of the notice, any amounts collected under the notice shall be neither refunded nor returned if the alleged father is later found not to be a responsible parent.

             (((d) If an alleged father makes a request for genetic testing, the department shall proceed as set forth under RCW 74.20.360.))

             (e) If the ((alleged)) acknowledged father or other party to the notice does not request ((an)) a timely adjudicative proceeding, or if ((the alleged father fails to rescind his filed acknowledgment of paternity)) no timely action is brought to rescind or challenge the acknowledgment or denial after service of the notice, the notice of ((parental)) financial responsibility becomes final for all intents and purposes and may be overturned only by a subsequent superior court order entered under ((RCW 26.26.060)) sections 501 through 537 of this act.

             (9) ((Affidavits acknowledging)) Acknowledgments of paternity that are filed after July 1, 1997, are subject to requirements of chapters 26.26, the uniform parentage act, and 70.58 RCW.

             (10) The department and the department of health may adopt rules to implement the requirements under this section.


             Sec. 708. RCW 70.58.080 and 1997 c 58 s 937 are each amended to read as follows:

             (1) Within ten days after the birth of any child, the attending physician, midwife, or his or her agent shall:

             (a) Fill out a certificate of birth, giving all of the particulars required, including: (i) The mother's name and date of birth, and (ii) if the mother and father are married at the time of birth or ((the father has signed)) an acknowledgment of paternity has been signed or one has been filed with the state registrar of vital statistics naming the man as the father, the father's name and date of birth; and

             (b) File the certificate of birth together with the mother's and father's social security numbers with the state registrar of vital statistics.

             (2) The local registrar shall forward the birth certificate, any signed ((affidavit acknowledging)) acknowledgment of paternity that has not been filed with the state registrar of vital statistics, and the mother's and father's social security numbers to the state office of vital statistics pursuant to RCW 70.58.030.

             (3) The state registrar of vital statistics shall make available to the division of child support the birth certificates, the mother's and father's social security numbers and acknowledgments of paternity ((affidavits)).

             (4) Upon the birth of a child to an unmarried woman, the attending physician, midwife, or his or her agent shall:

             (a) Provide an opportunity for the child's mother and natural father to complete an ((affidavit acknowledging)) acknowledgment of paternity. The completed ((affidavit)) acknowledgment shall be filed with the state registrar of vital statistics. The ((affidavit)) acknowledgment shall ((contain or have attached:

             (i) A sworn statement by the mother consenting to the assertion of paternity and stating that this is the only possible father;

             (ii) A statement by the father that he is the natural father of the child;

             (iii) A sworn statement signed by the mother and the putative father that each has been given notice, both orally and in writing, of the alternatives to, the legal consequences of, and the rights, including, if one parent is a minor, any rights afforded due to minority status, and responsibilities that arise from, signing the affidavit acknowledging paternity;

             (iv) Written information, furnished by the department of social and health services, explaining the implications of signing, including parental rights and responsibilities; and

             (v) The social security numbers of both parents)) be prepared as required by section 302 of this act.

             (b) Provide written information and oral information, furnished by the department of social and health services, to the mother and the father regarding the benefits of having the child's paternity established and of the availability of paternity establishment services, including a request for support enforcement services. The oral and written information shall also include information regarding the alternatives to, the legal consequences of, and the rights, including, if one parent is a minor any rights afforded due to minority status, and responsibilities that arise from, signing the ((affidavit acknowledging)) acknowledgment of paternity.

             (5) The physician or midwife or his or her agent is entitled to reimbursement for reasonable costs, which the department shall establish by rule, when an ((affidavit acknowledging)) acknowledgment of paternity is filed with the state registrar of vital statistics.

             (6) If there is no attending physician or midwife, the father or mother of the child, householder or owner of the premises, manager or superintendent of the public or private institution in which the birth occurred, shall notify the local registrar, within ten days after the birth, of the fact of the birth, and the local registrar shall secure the necessary information and signature to make a proper certificate of birth.

             (7) When an infant is found for whom no certificate of birth is known to be on file, a birth certificate shall be filed within the time and in the form prescribed by the state board of health.

             (8) When no ((putative)) alleged father is named on a birth certificate of a child born to an unwed mother the mother may give any surname she so desires to her child but shall designate in space provided for father's name on the birth certificate "None Named".


             NEW SECTION. Sec. 709. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.


             NEW SECTION. Sec. 710. 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. 711. The following acts or parts of acts are each repealed:

             (1) RCW 26.26.010 ("Parent and child relationship" defined) and 1975-'76 2nd ex.s. c 42 s 2;

             (2) RCW 26.26.020 (Relationship not dependent on marriage) and 1975-'76 2nd ex.s. c 42 s 3;

             (3) RCW 26.26.030 (How parent and child relationship established) and 2002 c ... (SUBSTITUTE SENATE BILL NO. 5433) s 1, 1985 c 7 s 86, & 1975-'76 2nd ex.s. c 42 s 4;

             (4) RCW 26.26.035 (Default) and 1994 c 230 s 13;

             (5) RCW 26.26.040 (Presumption of paternity) and 1997 c 58 s 938, 1994 c 230 s 14, 1990 c 175 s 2, 1989 c 55 s 4, & 1975-'76 2nd ex.s. c 42 s 5;

             (6) RCW 26.26.050 (Artificial insemination) and 2002 c ... (SUBSTITUTE SENATE BILL NO. 5433) s 2 & 1975-'76 2nd ex.s. c 42 s 6;

             (7) RCW 26.26.060 (Determination of father and child relationship--Who may bring action--When action may be brought) and 1983 1st ex.s. c 41 s 5 & 1975-'76 2nd ex.s. c 42 s 7;

             (8) RCW 26.26.070 (Determination of father and child relationship--Petition to arrest alleged father--Warrant of arrest--Issuance--Grounds--Hearing) and 1975-'76 2nd ex.s. c 42 s 8;

             (9) RCW 26.26.080 (Jurisdiction--Venue) and 1975-'76 2nd ex.s. c 42 s 9;

             (10) RCW 26.26.090 (Parties) and 1984 c 260 s 31, 1983 1st ex.s. c 41 s 6, & 1975-'76 2nd ex.s. c 42 s 10;

             (11) RCW 26.26.100 (Blood or genetic tests) and 1997 c 58 s 946;

             (12) RCW 26.26.110 (Evidence relating to paternity) and 1994 c 146 s 2, 1984 c 260 s 33, & 1975-'76 2nd ex.s. c 42 s 12;

             (13) RCW 26.26.120 (Civil action--Testimony--Evidence--Jury) and 1994 c 146 s 3, 1984 c 260 s 34, & 1975-'76 2nd ex.s. c 42 s 13;

             (14) RCW 26.26.137 (Temporary support--Temporary restraining order--Preliminary injunction--Domestic violence or antiharassment protection order--Notice of modification or termination of restraining order--Support debts, notice) and 2000 c 119 s 11, 1995 c 246 s 32, 1994 sp.s. c 7 s 456, & 1983 1st ex.s. c 41 s 12;

             (15) RCW 26.26.170 (Action to determine mother and child relationship) and 1975-'76 2nd ex.s. c 42 s 18;

             (16) RCW 26.26.180 (Promise to render support) and 1983 1st ex.s. c 41 s 9 & 1975-'76 2nd ex.s. c 42 s 19;

             (17) RCW 26.26.200 (Hearing or trials to be in closed court--Records confidential) and 1983 1st ex.s. c 41 s 10 & 1975-'76 2nd ex.s. c 42 s 21;

             (18) RCW 26.26.900 (Uniformity of application and construction) and 1975-'76 2nd ex.s. c 42 s 42;

             (19) RCW 26.26.901 (Short title) and 1975-'76 2nd ex.s. c 42 s 43; and

             (20) RCW 26.26.905 (Severability--1975-'76 2nd ex.s. c 42) and 1975-'76 2nd ex.s. c 42 s 44.


             NEW SECTION. Sec. 712. TRANSITIONAL PROVISION. A proceeding to adjudicate parentage which was commenced before the effective date of this section is governed by the law in effect at the time the proceeding was commenced.


             NEW SECTION. Sec. 713. CAPTIONS, ARTICLE DESIGNATIONS, AND ARTICLE HEADINGS NOT LAW. Captions, article designations, and article headings used in this chapter are not any part of the law.


             NEW SECTION. Sec. 714. EFFECTIVE DATE. This act takes effect July 1, 2002.


             NEW SECTION. Sec. 715. Sections 101 through 609, 709, 710, and 712 through 714 of this act are each added to chapter 26.26 RCW."


             On page 1, line 1 of the title, after "parentage act;" strike the remainder of the title and insert "amending RCW 5.44.140, 5.62.030, 9.41.070, 9.41.800, 74.20.310, 74.20.360, 74.20A.056, and 70.58.080; adding new sections to chapter 26.26 RCW; repealing RCW 26.26.010, 26.26.020, 26.26.030, 26.26.035, 26.26.040, 26.26.050, 26.26.060, 26.26.070, 26.26.080, 26.26.090, 26.26.100, 26.26.110, 26.26.120, 26.26.137, 26.26.170, 26.26.180, 26.26.200, 26.26.900, 26.26.901, and 26.26.905; prescribing penalties; and providing an effective date."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Second Substitute House Bill No. 2346 and advanced the bill as amended by the Senate to final passage.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute House Bill No. 2346 as amended by the Senate and the bill passed the House by the following vote: Yeas - 66, Nays - 28, Absent - 0, Excused - 4.

             Voting yea: Representatives Anderson, Ballasiotes, Barlean, Berkey, Campbell, Chase, Clements, Cody, Conway, Cooper, Cox, Darneille, Delvin, Dickerson, Doumit, Dunshee, Eickmeyer, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, Miloscia, Mitchell, Morris, Murray, Nixon, O'Brien, Ogden, Pflug, Reardon, Rockefeller, Romero, Ruderman, Santos, Schoesler, Schual-Berke, Simpson, Skinner, Sommers, Sullivan, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 66.

             Voting nay: Representatives Ahern, Alexander, Armstrong, Ballard, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Casada, Chandler, Crouse, DeBolt, Dunn, Ericksen, Holmquist, McMorris, Mielke, Morell, Mulliken, Orcutt, Pearson, Roach, Schindler, Sehlin, Sump and Talcott - 28.

             Excused: Representatives Edwards, Lisk, Quall and Schmidt - 4.

  

             Second Substitute House Bill No. 2346 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Second Substitute House Bill No. 2346.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 6, 2002

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2357, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 35.81.010 and 1991 c 363 s 41 are each amended to read as follows:

             The following terms wherever used or referred to in this chapter, shall have the following meanings, unless a different meaning is clearly indicated by the context:

             (1) "Agency" or "((urban)) community renewal agency" ((shall)) means a public agency created ((by)) under RCW 35.81.160 or otherwise authorized to serve as a community renewal agency under this chapter.

             (2) "Blighted area" ((shall)) means an area which, by reason of the substantial physical dilapidation, deterioration, defective construction, material, and arrangement and/or age or obsolescence of buildings or improvements, whether residential or nonresidential, inadequate provision for ventilation, light, proper sanitary facilities, or open spaces as determined by competent appraisers on the basis of an examination of the building standards of the municipality; inappropriate ((or mixed)) uses of land or buildings; ((high density of population and)) existence of overcrowding of buildings or structures; defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or usefulness; excessive land coverage; insanitary or unsafe conditions; deterioration of site; existence of hazardous soils, substances, or materials; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; improper subdivision or obsolete platting; existence of persistent and high levels of unemployment or poverty within the area; or the existence of conditions ((which)) that endanger life or property by fire or other causes, or any combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency ((and)) or crime; substantially impairs or arrests the sound growth of the ((city)) municipality or its environs, or retards the provision of housing accommodations ((or)); constitutes an economic or social liability((,)); and/or is detrimental, or constitutes a menace, to the public health, safety, welfare, ((and)) or morals in its present condition and use.

             (3) "Bonds" ((shall)) means any bonds, notes, or debentures (including refunding obligations) herein authorized to be issued.

             (4) "Clerk" ((shall)) means the clerk or other official of the municipality who is the custodian of the official records of such municipality.

             (5) "Community renewal area" means a blighted area which the local governing body designates as appropriate for a community renewal project or projects.

             (6) "Community renewal plan" means a plan, as it exists from time to time, for a community renewal project or projects, which plan (a) shall be consistent with the comprehensive plan or parts thereof for the municipality as a whole; (b) shall be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the community renewal area; zoning and planning changes, if any, which may include, among other things, changes related to land uses, densities, and building requirements; and the plan's relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements; (c) shall address the need for replacement housing, within the municipality, where existing housing is lost as a result of the community renewal project undertaken by the municipality under this chapter; and (d) may include a plan to address any persistent high levels of unemployment or poverty in the community renewal area.

             (7) "Community renewal project" includes one or more undertakings or activities of a municipality in a community renewal area: (a) For the elimination and the prevention of the development or spread of blight; (b) for encouraging economic growth through job creation or retention; (c) for redevelopment or rehabilitation in a community renewal area; or (d) any combination or part thereof in accordance with a community renewal plan.

             (8) "Federal government" ((shall include)) includes the United States of America or any agency or instrumentality, corporate or otherwise, of the United States of America.

             (((6))) (9) "Local governing body" ((shall)) means the council or other legislative body charged with governing the municipality.

             (((7))) (10) "Mayor" ((shall)) means the chief executive of a city or town, or the elected executive, if any, of any county operating under a charter, or the county legislative authority of any other county.

             (((8))) (11) "Municipality" ((shall)) means any incorporated city or town, or any county, in the state.

             (((9))) (12) "Obligee" ((shall include)) includes any bondholder, agent, or trustees for any bondholders, ((or)) any lessor demising to the municipality property used in connection with ((an urban)) a community renewal project, or any assignee or assignees of such lessor's interest or any part thereof, and the federal government when it is a party to any contract with the municipality.

             (((10))) (13) "Person" ((shall)) means any individual, firm, partnership, corporation, company, association, joint stock association, or school district; and shall include any trustee, receiver, assignee, or other person acting in a similar representative capacity.

             (((11))) (14) "Persons of low income" means an individual with an annual income, at the time of hiring or at the time assistance is provided under this chapter, that does not exceed the higher of either: (a) Eighty percent of the statewide median family income, adjusted for family size; or (b) eighty percent of the median family income for the county or standard metropolitan statistical area, adjusted for family size, where the community renewal area is located.

             (15) "Public body" ((shall)) means the state or any municipality, ((township,)) board, commission, district, or any other subdivision or public body of the state or of a municipality.

             (((12))) (16) "Public officer" ((shall)) means any officer who is in charge of any department or branch of the government of the municipality relating to health, fire, building regulations, or to other activities concerning dwellings in the municipality.

             (((13))) (17) "Real property" ((shall)) includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest, right and use, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise.

             (((14))) (18) "Redevelopment" ((may)) includes (a) acquisition of a blighted area or portion thereof; (b) demolition and removal of buildings and improvements; (c) installation, construction or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out in the area the ((urban)) community renewal provisions of this chapter in accordance with the ((urban)) community renewal plan((, and)); (d) making the land available for development or redevelopment by private enterprise or public ((agencies)) bodies (including sale, initial leasing, or retention by the municipality itself) at its fair value for uses in accordance with the ((urban)) community renewal plan; and (e) making loans or grants to a person or public body for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

             (((15))) (19) "Rehabilitation" ((may)) includes the restoration and renewal of a blighted area or portion thereof, in accordance with ((an urban)) a community renewal plan, by (a) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements; (b) acquisition of real property and demolition or removal of buildings and improvements thereon where necessary to eliminate unhealthful, insanitary or unsafe conditions, lessen density, reduce traffic hazards, eliminate obsolete or other uses detrimental to the public welfare, or otherwise to remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities; (c) installation, construction or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out in the area the ((urban)) community renewal provisions of this chapter; and (d) the disposition of any property acquired in such ((urban)) community renewal area (((including sale, initial leasing, or retention by the municipality itself) at its fair value)) for uses in accordance with such ((urban)) community renewal plan.

             (((16) "Urban renewal area" means a blighted area which the local governing body designates as appropriate for an urban renewal project or projects.

             (17) "Urban renewal plan" means a plan, as it exists from time to time, for an urban renewal project, which plan (a) shall conform to the comprehensive plan or parts thereof for the municipality as a whole; and (b) shall be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the urban renewal area, zoning and planning changes, if any, land uses, maximum densities, building requirements, and the plan's relationship to definite local objectives respecting appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements.

             (18) "Urban renewal project" may include undertakings or activities of a municipality in an urban renewal area for the elimination and for the prevention of the development or spread of blight, and may involve redevelopment in an urban renewal area, or rehabilitation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan.))


             Sec. 2. RCW 35.81.020 and 1965 c 7 s 35.81.020 are each amended to read as follows:

             It is hereby found and declared that blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals and welfare of the residents of the state exist in municipalities of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime and depreciation of property values, constitutes an economic and social liability, substantially impairs or arrests the sound growth of municipalities, retards the provision of housing accommodations, hinders job creation and economic growth, aggravates traffic problems and substantially impairs or arrests the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of such areas is a matter of state policy and state concern in order that the state and its municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, are conducive to fires, are difficult to police and to provide police protection for, and, while contributing little to the tax income of the state and its municipalities, consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization and other forms of public protection, services, and facilities.

             It is further found and declared that certain of such areas, or portions thereof, may require acquisition, clearance, and disposition subject to use restrictions, as provided in this chapter, since the prevailing condition of decay may make impracticable the reclamation of the area by rehabilitation; that other areas or portions thereof may, through the means provided in this chapter, be susceptible of rehabilitation in such a manner that the conditions and evils hereinbefore enumerated may be eliminated, remedied or prevented; and that to the extent feasible salvable blighted areas should be rehabilitated through voluntary action and the regulatory process.

             It is further found and declared that there is an urgent need to enhance the ability of municipalities to act effectively and expeditiously to revive blighted areas and to prevent further blight due to shocks to the economy of the state and their actual and threatened effects on unemployment, poverty, and the availability of private capital for businesses and projects in the area.

             It is further found and declared that the powers conferred by this chapter are for public uses and purposes for which public money may be expended and the power of eminent domain exercised; and that the necessity in the public interest for the provisions herein enacted is hereby declared as a matter of legislative determination.


             Sec. 3. RCW 35.81.030 and 1965 c 7 s 35.81.030 are each amended to read as follows:

             A municipality, to the greatest extent it determines to be feasible in carrying out the provisions of this chapter, shall afford maximum opportunity, consistent with the ((sound)) needs of the municipality as a whole, to the rehabilitation or redevelopment of the ((urban)) community renewal area by private enterprise. A municipality shall give consideration to this objective in exercising its powers under this chapter, including the formulation of a workable program, the approval of ((urban)) community renewal plans (consistent with the comprehensive plan or parts thereof for the municipality), the exercise of its zoning powers, the enforcement of other laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements, the disposition of any property acquired, and the provision of necessary public improvements.


             Sec. 4. RCW 35.81.040 and 1965 c 7 s 35.81.040 are each amended to read as follows:

             A municipality for the purposes of this chapter may formulate a workable program for ((utilizing)) using appropriate private and public resources to eliminate, and prevent the development or spread of, blighted areas, to encourage needed ((urban)) community rehabilitation, to provide for the redevelopment of such areas, or to undertake ((such of)) the ((aforesaid)) activities, or other feasible municipal activities as may be suitably employed to achieve the objectives of ((such)) the workable program. ((Such)) The workable program may include, without limitation, provision for: The prevention of the spread of blight into areas of the municipality which are free from blight through diligent enforcement of housing, zoning, and occupancy controls and standards; the rehabilitation of blighted areas or portions thereof by replanning, removing congestion, providing parks, playgrounds and other public improvements, by encouraging voluntary rehabilitation and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; ((and)) the replacement of housing that is lost as a result of community renewal activities within a community renewal area; the clearance and redevelopment of blighted areas or portions thereof; and the reduction of unemployment and poverty within the community renewal area by providing financial or technical assistance to a person or public body that is used to create or retain jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.


             Sec. 5. RCW 35.81.050 and 1965 c 7 s 35.81.050 are each amended to read as follows:

             (1) No municipality shall exercise any of the powers hereafter conferred upon municipalities by this chapter until after its local governing body shall have adopted ((a)) an ordinance or resolution finding that: (((1))) (a) One or more blighted areas exist in such municipality; and (((2))) (b) the rehabilitation, redevelopment, or a combination thereof, of such area or areas is necessary in the interest of the public health, safety, morals, or welfare of the residents of such municipality.

             (2) After adoption of the ordinance or resolution making the findings described in subsection (1) of this section, the local governing body of the municipality may elect to have the powers of a community renewal agency under this chapter exercised in one of the following ways:

             (a) By appointing a board or commission composed of not less than five members, which board or commission shall include municipal officials and elected officials, selected by the mayor, with approval of the local governing body of the municipality; or

             (b) By the local governing body of the municipality directly; or

             (c) By the board of a public corporation, commission, or authority under chapter 35.21 RCW, or a public facilities district created under chapter 35.57 or 36.100 RCW, or a public port district created under chapter 53.04 RCW, or a housing authority created under chapter 35.82 RCW, that is authorized to conduct activities as a community renewal agency under this chapter.


             Sec. 6. RCW 35.81.060 and 1965 c 7 s 35.81.060 are each amended to read as follows:

             (1) A municipality shall not approve ((an urban)) a community renewal project for ((an urban)) a community renewal area unless the local governing body has, by ordinance or resolution, determined such an area to be a blighted area and designated ((such)) the area as appropriate for ((an urban)) a community renewal project. The local governing body shall not approve ((an urban)) a community renewal plan until a comprehensive plan or parts of ((such)) the plan for an area which would include ((an urban)) a community renewal area for the municipality have been prepared as provided in chapter ((35.63 RCW. For this purpose and other municipal purposes, authority is hereby vested in every municipality to prepare, to adopt, and to revise from time to time, a comprehensive plan or parts thereof for the physical development of the municipality as a whole (giving due regard to the environs and metropolitan surroundings), to establish and maintain a planning commission for such purpose and related municipal planning activities, and to make available and to appropriate necessary funds therefor)) 36.70A RCW. For municipalities not subject to the planning requirements of chapter 36.70A RCW, any proposed comprehensive plan must be consistent with a local comprehensive plan adopted under chapter 35.63 or 36.70 RCW, or any other applicable law. A municipality shall not acquire real property for ((an urban)) a community renewal project unless the local governing body has approved the ((urban)) community renewal project plan in accordance with subsection (4) ((hereof)) of this section.

             (2) The municipality may itself prepare or cause to be prepared ((an urban)) a community renewal plan, or any person or agency, public or private, may submit such a plan to the municipality. Prior to its approval of ((an urban)) a community renewal project, the local governing body shall ((submit such plan to the planning commission of the municipality for review and recommendations as to its conformity)) review and determine the conformity of the community renewal plan with the comprehensive plan or parts thereof for the development of the municipality as a whole. ((The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within sixty days after receipt of it. Upon receipt of the recommendations of the planning commission, or if no recommendations are received within sixty days, then without such recommendations, the local governing body may proceed with the hearing on the proposed urban renewal project plan prescribed by subsection (3) hereof)) If the community renewal plan is not consistent with the existing comprehensive plan, the local governing body may amend its comprehensive plan or community renewal plan.

             (3) Prior to adoption, the local governing body shall hold a public hearing on ((an urban)) a community renewal plan after providing public notice ((thereof)). ((Such)) The notice shall be given by publication once each week for two consecutive weeks not less than ten nor more than thirty days prior to the date of the hearing in a newspaper having a general circulation in the ((urban)) community renewal area of the municipality and by mailing a notice of ((such)) the hearing not less than ten days prior to the date of the hearing to the persons whose names appear on the county treasurer's tax roll as the owner or reputed owner of the property, at the address shown on the tax roll. The notice shall describe the time, date, place, and purpose of the hearing, shall generally identify the ((urban)) community renewal area affected, and shall outline the general scope of the ((urban)) community renewal plan under consideration.

             (4) Following ((such)) the hearing, the local governing body may approve ((an urban)) a community renewal project if it finds that (a) a ((workable and)) feasible plan exists for making available adequate housing for the ((persons)) residents who may be displaced by the project; (b) the ((urban)) community renewal plan conforms to the comprehensive plan ((or parts thereof)) for the municipality ((as a whole)); (c) the ((urban)) community renewal plan will afford maximum opportunity, consistent with the ((sound)) needs of the municipality ((as a whole)), for the rehabilitation or redevelopment of the ((urban)) community renewal area by private enterprise; ((and)) (d) a sound and adequate financial program exists for the financing of ((said)) the project; and (e) the ((urban)) community renewal project area is a blighted area as defined in RCW 35.81.010(2) (as recodified by this act).

             (5) ((An urban)) A community renewal project plan may be modified at any time by the local governing body((: PROVIDED, That)). However, if modified after the lease or sale by the municipality of real property in the ((urban)) community renewal project area, ((such)) the modification shall be subject to ((such)) the rights at law or in equity as a lessee or purchaser, or ((his)) the successor or successors in interest may be entitled to assert.

             (6) ((Upon the approval of an urban renewal project by a municipality, the provisions of the urban renewal plan with respect to the future use and building requirements applicable to the property covered by said plan shall be controlling with respect thereto)) Unless otherwise expressly stated in an ordinance or resolution of the governing body of the municipality, a community renewal plan shall not be considered a subarea plan or part of a comprehensive plan for purposes of chapter 36.70A RCW. However, a municipality that has adopted a comprehensive plan under chapter 36.70A RCW may adopt all or part of a community renewal plan at any time as a new or amended subarea plan, whether or not any subarea plan has previously been adopted for all or part of the community renewal area. Any community renewal plan so adopted, unless otherwise determined by the growth management hearings board with jurisdiction under a timely appeal in RCW 36.70A.280, shall be conclusively presumed to comply with the requirements in this chapter for consistency with the comprehensive plan.


             Sec. 7. RCW 35.81.070 and 1965 c 7 s 35.81.070 are each amended to read as follows:

             Every municipality shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others ((herein)) granted under this chapter:

             (1) To undertake and carry out ((urban)) community renewal projects within the municipality, to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under this chapter, and to disseminate blight clearance and ((urban)) community renewal information.

             (2) To provide or to arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities or other facilities for, or in connection with, ((an urban)) a community renewal project; to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of ((an urban)) a community renewal project, and to include in any contract let in connection with such a project, provisions to fulfill such of said conditions as it may deem reasonable and appropriate.

             (3) To provide financial or technical assistance, using available public or private funds, to a person or public body for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

             (4) To make payments, loans, or grants to, provide assistance to, and contract with existing or new owners and tenants of property in the community renewal areas as compensation for any adverse impacts, such as relocation or interruption of business, that may be caused by the implementation of a community renewal project, and/or consideration for commitments to develop, expand, or retain land uses that contribute to the success of the project or plan, including without limitation businesses that will create or retain jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

             (5) To contract with a person or public body to provide financial assistance, authorized under this section, to property owners and tenants impacted by the implementation of the community renewal plan and to provide incentives to property owners and tenants to encourage them to locate in the community renewal area after adoption of the community renewal plan.

             (6) Within the municipality, to enter upon any building or property in any ((urban)) community renewal area, in order to make surveys and appraisals, provided that such entries shall be made in such a manner as to cause the least possible inconvenience to the persons in possession, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted; to acquire by purchase, lease, option, gift, grant, bequest, devise, eminent domain, or otherwise, any real property and such personal property as may be necessary for the administration of the provisions herein contained, together with any improvements thereon; to hold, improve, clear, or prepare for redevelopment any such property; to dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance: PROVIDED, That no statutory provision with respect to the acquisition, clearance, or disposition of property by public bodies shall restrict a municipality in the exercise of such functions with respect to ((an urban)) a community renewal project.

             (((4))) (7) To invest any ((urban)) community renewal project funds held in reserves or sinking funds or any such funds which are not required for immediate disbursement, in property or securities in which mutual savings banks may legally invest funds subject to their control; to redeem such bonds as have been issued pursuant to RCW 35.81.100 at the redemption price established therein or to purchase such bonds at less than redemption price, all such bonds so redeemed or purchased to be canceled.

             (((5))) (8) To borrow money and to apply for, and accept, advances, loans, grants, contributions and any other form of financial assistance from the federal government, the state, county, or other public body, or from any sources, public or private, for the purposes of this chapter, and to enter into and carry out contracts in connection therewith. A municipality may include in any application or contract for financial assistance with the federal government for ((an urban)) a community renewal project such conditions imposed pursuant to federal laws as the municipality may deem reasonable and appropriate and which are not inconsistent with the purposes of this chapter.

             (((6))) (9) Within the municipality, to make or have made all plans necessary to the carrying out of the purposes of this chapter and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify, and amend such plans. Such plans may include, without limitation: (a) A comprehensive plan or parts thereof for the locality as a whole, (b) ((urban)) community renewal plans, (c) plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements, (d) plans for the enforcement of state and local laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements, ((and)) (e) appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of ((urban)) community renewal projects, and (f) plans to provide financial or technical assistance to a person or public body for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income. The municipality is authorized to develop, test, and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the elimination of ((urban)) blight, for job creation or retention activities, and to apply for, accept, and utilize grants of, funds from the federal government for such purposes.

             (((7))) (10) To prepare plans for the relocation of families displaced from ((an urban)) a community renewal area, and to coordinate public and private agencies in such relocation, including requesting such assistance for this purpose as is available from other private and governmental agencies, both for the municipality and other parties.

             (((8))) (11) To appropriate such funds and make such expenditures as may be necessary to carry out the purposes of this chapter, and in accordance with state law: (a) Levy taxes and assessments for such purposes; (b) acquire land either by negotiation ((and/or)) or eminent domain, or both; (c) close, vacate, plan, or replan streets, roads, sidewalks, ways, or other places; (d) plan or replan, zone or rezone any part of the municipality; (e) adopt annual budgets for the operation of ((an urban)) a community renewal agency, department, or offices vested with ((urban)) community renewal project powers under RCW 35.81.150; and (f) enter into agreements with such agencies or departments (which agreements may extend over any period) respecting action to be taken by such municipality pursuant to any of the powers granted by this chapter.

             (((9))) (12) Within the municipality, to organize, coordinate, and direct the administration of the provisions of this chapter as they apply to such municipality in order that the objective of remedying blighted areas and preventing the causes thereof within such municipality may be most effectively promoted and achieved, and to establish such new office or offices of the municipality or to reorganize existing offices in order to carry out such purpose most effectively.

             (((10))) (13) To contract with a person or public body to assist in carrying out the purposes of this chapter.

             (14) To exercise all or any part or combination of powers herein granted.


             Sec. 8. RCW 35.81.080 and 1965 c 7 s 35.81.080 are each amended to read as follows:

             A municipality shall have the right to acquire by condemnation, in accordance with the procedure provided for condemnation by such municipality for other purposes, any interest in real property, which it may deem necessary for ((an urban)) a community renewal project under this chapter after the adoption by the local governing body of a resolution declaring that the acquisition of the real property described therein is necessary for such purpose. Condemnation for ((urban)) community renewal of blighted areas is declared to be a public use, and property already devoted to any other public use or acquired by the owner or ((his)) a predecessor in interest by eminent domain may be condemned for the purposes of this chapter.

             The award of compensation for real property taken for such a project shall not be increased by reason of any increase in the value of the real property caused by the assembly, clearance, or reconstruction, or proposed assembly, clearance, or reconstruction in the project area. No allowance shall be made for the improvements begun on real property after notice to the owner of such property of the institution of proceedings to condemn such property. Evidence shall be admissible bearing upon the insanitary, unsafe, or substandard condition of the premises, or the unlawful use thereof.


             Sec. 9. RCW 35.81.090 and 1965 c 7 s 35.81.090 are each amended to read as follows:

             (1) A municipality, with approval of its legislative authority, may acquire real property, or any interest therein, for the purposes of a community renewal project (a) prior to the selection of one or more persons interested in undertaking to redevelop or rehabilitate the real property, or (b) after the selection of one or more persons interested in undertaking to redevelop or rehabilitate such real property. In either case the municipality may select a redeveloper through a competitive bidding process consistent with this section or through a process consistent with section 10 of this act.

             (2) A municipality, with approval of its legislative authority, may sell, lease, or otherwise transfer real property or any interest therein acquired by it for ((an urban)) a community renewal project, in ((an urban)) a community renewal area for residential, recreational, commercial, industrial, or other uses or for public use, and may enter into contracts with respect thereto, or may retain such a property or interest only for parks and recreation, education, public utilities, public transportation, public safety, health, highways, streets, and alleys, administrative buildings, or civic centers, in accordance with the ((urban)) community renewal project plan, subject to such covenants, conditions, and restrictions, including covenants running with the land, as it may deem to be necessary or desirable to assist in preventing the development or spread of blighted areas or otherwise to carry out the purposes of this chapter((: PROVIDED, That)). However, such a sale, lease, other transfer, or retention, and any agreement relating thereto, may be made only after the approval of the ((urban)) community renewal plan by the local governing body. The purchasers or lessees and their successors and assigns shall be obligated to devote ((such)) the real property only to the uses specified in the ((urban)) community renewal plan, and may be obligated to comply with ((such)) any other requirements as the municipality may determine to be in the public interest, including the obligation to begin and complete, within a reasonable time, any improvements on ((such)) the real property required by the ((urban)) community renewal plan or promised by the transferee. ((Such)) The real property or interest shall be sold, leased, or otherwise transferred((, or retained at not less than its fair value for uses in accordance with the urban renewal plan)) for the consideration the municipality determines adequate. In determining the ((fair value of real property for uses in accordance with the urban renewal plan)) adequacy of consideration, a municipality ((shall)) may take into account((, and give consideration to,)) the uses ((provided in such)) permitted under the community renewal plan; the restrictions upon, and the covenants, conditions, and obligations assumed by, the ((purchaser or lessee or by the municipality retaining the property)) transferee; and the public benefits to be realized, including furthering of the objectives of ((such)) the plan for the prevention of the recurrence of blighted areas.

             (3) The municipality in any instrument of conveyance to a private purchaser or lessee may provide that ((such)) the purchaser or lessee shall be without power to sell, lease, or otherwise transfer the real property, or to permit changes in ownership or control of a purchaser or lessee that is not a natural person, in each case without the prior written consent of the municipality until ((he)) the purchaser or lessee has completed the construction of ((any and)) all improvements ((which he)) that it has obligated ((himself)) itself to construct thereon. The municipality may also retain the right, upon any earlier transfer or change in ownership or control without consent; or any failure or change in ownership or control without consent; or any failure to complete the improvements within the time agreed to terminate the transferee's interest in the property; or to retain or collect on any deposit or instrument provided as security, or both. The enforcement of these restrictions and remedies is declared to be consistent with the public policy of this state. Real property acquired by a municipality ((which)) that, in accordance with the provisions of the ((urban)) community renewal plan, is to be transferred, shall be transferred as rapidly as feasible, in the public interest, consistent with the carrying out of the provisions of the ((urban)) community renewal plan. The inclusion in any ((such)) contract or conveyance to a purchaser or lessee of any ((such)) covenants, restrictions, or conditions (including the incorporation by reference therein of the provisions of ((an urban)) a community renewal plan or any part thereof) shall not prevent the recording of such a contract or conveyance in the land records of the auditor or the county in which ((such)) the city or town is located, in ((such)) a manner ((as to)) that affords actual or constructive notice thereof.

             (((2))) (4)(a)(i) A municipality may dispose of real property in ((an urban)) a community renewal area, acquired by the municipality under this chapter, to any private persons only under ((such)) those reasonable competitive bidding procedures as it shall prescribe, or by competitive bidding as ((hereinafter)) provided in this subsection, through direct negotiation where authorized under (c) of this subsection, or by a process authorized in section 10 of this act.

             (ii) A competitive bidding process may occur (A) prior to the purchase of the real property by the municipality, or (B) after the purchase of the real property by the municipality.

             (b)(i) A municipality may, by public notice by publication once each week for three consecutive weeks in a newspaper having a general circulation in the community, prior to the execution of any contract or deed to sell, lease, or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite bids from, and make available all pertinent information to, private redevelopers or any persons interested in undertaking to redevelop or rehabilitate ((an urban)) a community renewal area, or any part thereof. ((Such)) This notice shall identify the area, or portion thereof, and shall state that ((such)) further information as is available may be obtained at ((such)) the office as shall be designated in ((said)) the notice.

             (ii) The municipality shall consider all responsive redevelopment or rehabilitation bids and the financial and legal ability of the persons making ((such)) the bids to carry them out. The municipality may accept ((such)) the bids as it deems to be in the public interest and in furtherance of the purposes of this chapter. Thereafter, the municipality may execute, in accordance with the provisions of subsection (((1))) (2) of this section, and deliver contracts, deeds, leases, and other instruments of transfer.

             (((3))) (c) If the legislative authority of the municipality determines that the sale of real property to a specific person is necessary to the success of a neighborhood revitalization or community renewal project for which the municipality is providing assistance to a nonprofit organization from federal community development block grant funds under 42 U.S.C. Sec. 5305(a)(15), or successor provision, under a plan or grant application approved by the United States department of housing and urban development, or successor agency, then the municipality may sell or lease that property to that person through direct negotiation, for consideration determined by the municipality to be adequate consistent with subsection (2) of this section. This direct negotiation may occur, and the municipality may enter into an agreement for sale or lease, either before or after the acquisition of the property by the municipality. Unless the municipality has provided notice to the public of the intent to sell or lease the property by direct negotiation, as part of a citizen participation process adopted under federal regulations for the plan or grant application under which the federal community development block grant funds have been awarded, the municipality shall publish notice of the sale at least fifteen days prior to the conveyance of the property.

             (5) A municipality may operate and maintain real property acquired in ((an urban)) a community renewal area for a period of three years pending the disposition of the property for redevelopment, without regard to the provisions of subsection (((1) above)) (2) of this section, for such uses and purposes as may be deemed desirable even though not in conformity with the ((urban)) community renewal plan((: PROVIDED, That)). However, the municipality may, after a public hearing, extend the time for a period not to exceed three years.

             (6) Any covenants, restrictions, promises, undertakings, releases, or waivers in favor of a municipality contained in any deed or other instrument accepted by any transferee of property from the municipality or community renewal agency under this chapter, or contained in any document executed by any owner of property in a community renewal area, shall run with the land to the extent provided in the deed, instrument, or other document, so as to bind, and be enforceable by the municipality against, the person accepting or making the deed, instrument, or other document and that person's heirs, successors in interest, or assigns having actual or constructive notice thereof.


             NEW SECTION. Sec. 10. A new section is added to chapter 35.81 RCW to read as follows:

             (1) The process authorized under this section may occur (a) prior to the purchase of the real property by the municipality, or (b) after the purchase of the real property by the municipality.

             (2) A municipality may, by public notice once each week for three consecutive weeks in a legal newspaper in the municipality, or prior to the execution of any contract or deed to sell, lease, or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite statements of interest and qualifications and, at the municipality's option, proposals from any persons interested in undertaking to redevelop or rehabilitate the real property.

             (3) The notice required under this section shall identify the area, or portion thereof, the process the municipality will use to evaluate qualifications and, if applicable, proposals submitted by redevelopers or any persons, and other information relevant to the community renewal project. The notice shall also state that further information, as is available, may be obtained at the offices designated in the notice.

             (4)(a) Based on its evaluation of qualifications and, if applicable, proposals, the municipality may select a proposer with whom to negotiate or may select two or more finalists to submit proposals, or to submit more detailed or revised proposals. The municipality may, in its sole discretion, reject all responses or proposals, amend any solicitation to allow modification or supplementation of qualifications or proposals, or waive irregularities in the content or timing of any qualifications or proposals.

             (b) The municipality may initiate negotiations with the person selected on the basis of qualifications or proposals. If the municipality does not enter into a contract with that person, it may (i) enter into negotiations with the person that submitted the next highest ranked qualifications or proposal, (ii) solicit additional proposals using a process permitted by RCW 35.81.090, or (iii) otherwise dispose of or retain the real property consistent with the provisions of this chapter. A municipality shall not be required to select or enter into a contract with any proposer or to compensate any proposer for the cost of preparing a proposal or negotiating with the municipality.

             (c) A municipality, with approval of its legislative authority, may select and enter into a contract with more than one proposer to carry out different aspects or parts of a community renewal plan.


             Sec. 11. RCW 35.81.100 and 1983 c 167 s 64 are each amended to read as follows:

             (1) A municipality shall have the power to issue bonds from time to time in its discretion to finance the undertaking of any ((urban)) community renewal project under this chapter, including, without limiting the generality ((thereof)) of this power, the payment of principal and interest upon any advances for surveys and plans for ((urban)) community renewal projects, and shall also have power to issue refunding bonds for the payment or retirement of such bonds previously issued by it. Such bonds shall not pledge the general credit of the municipality and shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues, and funds of the municipality derived from, or held in connection with, its undertaking and carrying out of ((urban)) community renewal projects under this chapter((: PROVIDED, That)). However, the payment of such bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant, or contribution from the municipality, the federal government, or from other sources, in aid of any ((urban)) community renewal projects of the municipality under this chapter.

             (2) Bonds issued under this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance, or sale of bonds. Bonds issued under the provisions of this chapter are declared to be issued for an essential public and governmental purpose, and together with interest thereon and income therefrom, shall be exempted from all taxes.

             (3) Bonds issued under this section shall be authorized by resolution or ordinance of the local governing body and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form either coupon or registered as provided in RCW 39.46.030, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption (with or without premium), be secured in such manner, and have such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto.

             (4) Such bonds may be sold at not less than ninety-eight percent of par at public or private sale, or may be exchanged for other bonds on the basis of par: PROVIDED, That such bonds may be sold to the federal government at private sale at not less than par and, in the event less than all of the authorized principal amount of such bonds is sold to the federal government, the balance may be sold at public or private sale at not less than ninety-eight percent of par at an interest cost to the municipality of not to exceed the interest cost to the municipality of the portion of the bonds sold to the federal government.

             (5)(a) The municipality may annually pay into a fund to be established for the benefit of such bonds any and all excess of the taxes received by it from the same property over and above the average of the annual taxes authorized without vote for a five-year period immediately preceding the acquisition of the property by the municipality for renewal purposes, such payment to continue until such time as all bonds payable from the fund are paid in full. Any other taxing unit ((in a municipality)) that receives property tax revenues from property in the community renewal area is authorized to allocate ((a like amount of such)) excess taxes, computed in the same manner, to the municipality or municipalities in which it is situated.

             (b) In addition to the excess property tax revenues from property in the community renewal area, authorized in this subsection, the municipality may annually pay into the fund, established in this subsection, any and all excess of the excise tax received by it from business activity in the community renewal area over and above the average of the annual excise tax collected for a five-year period immediately preceding the establishment of a community renewal area. The payment may continue until all the bonds payable from the fund are paid in full. Any other taxing unit that receives excise tax from business activity in the community renewal area is authorized to allocate excess excise tax, computed in the same manner, to the municipality or municipalities in which it is situated. As used in this subsection, "excise tax" means a local retail sales and use tax authorized in chapter 82.14 RCW. The legislature declares that it is a proper purpose of a municipality to allocate an excise tax for purposes of a community renewal project under this chapter.

             (6) In case any of the public officials of the municipality whose signatures appear on any bonds or any coupons issued under this chapter shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. Any provision of any law to the contrary notwithstanding, any bonds, issued pursuant to this chapter shall be fully negotiable.

             (7) In any suit, action, or proceeding involving the validity or enforceability of any bond issued under this chapter or the security therefor, any such bond reciting in substance that it has been issued by the municipality in connection with ((an urban)) a community renewal project, as herein defined, shall be conclusively deemed to have been issued for such purpose and such project shall be conclusively deemed to have been planned, located, and carried out in accordance with the provisions of this chapter.

             (8) Notwithstanding subsections (1) through (7) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.


             Sec. 12. RCW 35.81.110 and 1965 c 7 s 35.81.110 are each amended to read as follows:

             All banks, trust companies, bankers, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking or investment business, all insurance companies, insurance associations, and other persons carrying on an insurance business and all executors, administrators, curators, trustees, and other fiduciaries, may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds or other obligations issued by a municipality ((pursuant to)) under this chapter((: PROVIDED, That such bonds and other obligations shall be secured by an agreement between the issuer and the federal government in which the issuer agrees to borrow from the federal government and the federal government agrees to lend to the issuer, prior to the maturity of such bonds or other obligations, moneys in an amount which (together with any other moneys irrevocably committed to the payment of interest on such bonds or other obligations) will suffice to pay the principal of such bonds or other obligations with interest to maturity thereon, which moneys under the terms of said agreement are required to be used for the purpose of paying the principal of, and the interest on, such bonds or other obligations at their maturity)). Such bonds and other obligations shall be authorized security for all public deposits. It is the purpose of this section to authorize any persons, political subdivisions, and officers, public or private, to use any funds owned or controlled by them for the purchase of any such bonds or other obligations. Nothing contained in this section with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities.


             NEW SECTION. Sec. 13. A new section is added to chapter 35.81 RCW to read as follows:

             (1) A community renewal agency may establish local improvement districts within the community renewal area, and levy special assessments, in annual installments extending over a period not exceeding twenty years on all property specially benefited by the local improvement, on the basis of special benefits, to pay in whole or in part the damages or costs of the local improvement, and issue local improvement bonds to be paid from local improvement assessments. The formation of the local improvement districts, the determination, levy, and collection of such assessments, and the issuance of such bonds shall be as provided for the formation of local improvement districts, the determination, levy, and collection of local improvement assessments, and the issuance of local improvement bonds by cities and towns, insofar as consistent with this chapter. These bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.

             (2) Notwithstanding subsection (1) of this section, the bonds authorized under subsection (1) of this section may be issued and sold in accordance with chapter 39.46 RCW.


             NEW SECTION. Sec. 14. A new section is added to chapter 35.81 RCW to read as follows:

             Any notice given to the public or to the owners of specific lots, tracts, or parcels of land relating to the formation of a local improvement district created under section 13 of this act shall contain a statement that actual assessments may vary from assessment estimates so long as they do not exceed a figure equal to the increased benefit the improvement adds to the property.


             Sec. 15. RCW 35.81.120 and 1965 c 7 s 35.81.120 are each amended to read as follows:

             (1) All property of a municipality, including funds, owned or held by it for the purposes of this chapter, shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall judgment against a municipality be a charge or lien upon such property: PROVIDED, That the provisions of this section shall not apply to, or limit the right of, obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this chapter by a municipality on its rents, fees, grants, or revenues from ((urban)) community renewal projects.

             (2) The property of a municipality, acquired or held for the purposes of this chapter, is declared to be public property used for essential public and governmental purposes and such property shall be exempt from all taxes of the municipality, the county, the state, or any political subdivision thereof: PROVIDED, That such tax exemption shall terminate when the municipality sells, leases, or otherwise disposes of such property in ((an urban)) a community renewal area to a purchaser or lessee ((which)) that is not a public body or other organization normally entitled to tax exemption with respect to such property.


             Sec. 16. RCW 35.81.130 and 1965 c 7 s 35.81.130 are each amended to read as follows:

             (((1))) For the purpose of aiding in the planning, undertaking, or carrying out of ((an urban)) a community renewal project located within the area in which it is authorized to act, any public body authorized by law or by this chapter, may, upon such terms, with or without consideration, as it may determine: (((a))) (1) Dedicate, sell, convey, or lease any of its interest in any property, or grant easements, licenses, or other rights or privileges therein to a municipality or other public body; (((b))) (2) incur the entire expense of any public improvements made by ((such)) a public body, in exercising the powers granted in this section; (((c))) (3) do any and all things necessary to aid or cooperate in the planning or carrying out of ((an urban)) a community renewal plan; (((d))) (4) lend, grant, or contribute funds, including without limitation any funds derived from bonds issued or other borrowings authorized in this chapter, to a municipality or other public body and, subject only to any applicable constitutional limits, to any other person; (((e))) (5) enter into agreements (which may extend over any period, notwithstanding any provision or rule of law to the contrary) with a municipality or other public body respecting action to be taken pursuant to any of the powers granted by this chapter, including the furnishing of funds or other assistance in connection with ((an urban)) a community renewal project((, and (f))); (6) cause public building and public facilities, including parks, playgrounds, recreational, community, educational, water, sewer, or drainage facilities, or any other works ((which)) that it is otherwise empowered to undertake to be furnished; furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or replan streets, roads, sidewalks, ways, or other places; (7) abate environmental problems; (8) plan or replan, zone or rezone any part of the ((urban)) community renewal area; and (9) provide such administrative and other services as may be deemed requisite to the efficient exercise of the powers herein granted.

             (((2) Any sale, conveyance, lease, or agreement provided for in this section shall be made by a public body with appraisal, public notice, advertisement, or public bidding in accordance with the provisions of RCW 35.81.090(2).))


             Sec. 17. RCW 35.81.150 and 1965 c 7 s 35.81.150 are each amended to read as follows:

             (1) A municipality may itself exercise its ((urban)) community renewal project powers (((as herein defined))) or may, if the local governing body by ordinance or resolution determines such action to be in the public interest, elect to have such powers exercised by the ((urban)) community renewal agency (((created by RCW 35.81.160))) or a department or other officers of the municipality or by any ((existing)) other public body ((corporate, as they are authorized to exercise under this chapter)).

             (2) In the event the local governing body ((makes such determination)) determines to have the powers exercised by the community renewal agency, such body may authorize the ((urban)) community renewal agency or department or other officers of the municipality to exercise any of the following ((urban)) community renewal project powers:

             (a) To formulate and coordinate a workable program as specified in RCW 35.81.040.

             (b) To prepare ((urban)) community renewal plans.

             (c) To prepare recommended modifications to ((an urban)) a community renewal project plan.

             (d) To undertake and carry out ((urban)) community renewal projects as required by the local governing body.

             (e) To acquire, own, lease, encumber, and sell real or personal property. The agency may not acquire real or personal property using the eminent domain process, unless authorized independently of this chapter.

             (f) To create local improvement districts under sections 13 and 14 of this act.

             (g) To issue bonds from time to time in its discretion to finance the undertaking of any community renewal project under this chapter. The bonds issued under this section must meet the requirements of RCW 35.81.100.

             (h) To make and execute contracts as specified in RCW 35.81.070, with the exception of contracts for the purchase or sale of real or personal property.

             (((f))) (i) To disseminate blight clearance and ((urban)) community renewal information.

             (((g))) (j) To exercise the powers prescribed by RCW 35.81.070(2), except the power to agree to conditions for federal financial assistance and imposed pursuant to federal law relating to salaries and wages, shall be reserved to the local governing body.

             (((h))) (k) To enter any building or property, in any ((urban)) community renewal area, in order to make surveys and appraisals in the manner specified in RCW 35.81.070(((3))) (6).

             (((i))) (l) To improve, clear, or prepare for redevelopment any real or personal property in ((an urban)) a community renewal area.

             (((j))) (m) To insure real or personal property as provided in RCW 35.81.070(((3))) (6).

             (((k))) (n) To effectuate the plans provided for in RCW 35.81.070(((6))) (9).

             (((l))) (o) To prepare plans for the relocation of families displaced from ((an urban)) a community renewal area and to coordinate public and private agencies in such relocation.

             (((m))) (p) To prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements.

             (((n))) (q) To conduct appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of ((urban)) community renewal projects.

             (((o))) (r) To negotiate for the acquisition of land.

             (((p))) (s) To study the closing, vacating, planning, or replanning of streets, roads, sidewalks, ways, or other places and to make recommendations with respect thereto.

             (((q))) (t) To provide financial and technical assistance to a person or public body, for the purpose of creating or retaining jobs, a substantial portion of which, as determined by the municipality, shall be for persons of low income.

             (u) To make payments, grants, and other assistance to, or contract with, existing or new owners and tenants of property in the community renewal area, under RCW 35.81.070.

             (v) To organize, coordinate, and direct the administration of the provisions of this chapter.

             (((r))) (w) To perform such duties as the local governing body may direct so as to make the necessary arrangements for the exercise of the powers and the performance of the duties and responsibilities entrusted to the local governing body.

             Any powers granted in this chapter that are not included in ((RCW 35.81.150(2))) this subsection (2) as powers of the ((urban)) community renewal agency or a department or other officers of a municipality in lieu thereof((,)) may only be exercised by the local governing body or other officers, boards, and commissions as provided ((under existing)) by law.


             Sec. 18. RCW 35.81.160 and 1965 c 7 s 35.81.160 are each amended to read as follows:

             (1) When a municipality has made the finding prescribed in RCW 35.81.050 and has elected to have the ((urban)) community renewal project powers, as specified in RCW 35.81.150, exercised, such ((urban)) community renewal project powers may be assigned to a department or other officers of the municipality or to any existing public body corporate, or the legislative body of a ((city)) municipality may create ((an urban)) a community renewal agency in such municipality to be known as a public body corporate to which such powers may be assigned.

             (2) If the ((urban)) community renewal agency is authorized to transact business and exercise powers ((hereunder)) under this chapter, the mayor, by and with the advice and consent of the local governing body, shall appoint a board of commissioners of the ((urban)) community renewal agency which shall consist of five commissioners. The initial membership shall consist of one commissioner appointed for one year, one for two years, one for three years, and two for four years; and each appointment thereafter shall be for four years, except that in the case of death, incapacity, removal, or resignation of a commissioner, the replacement may be appointed to serve the remainder of the commissioner's term.

             (3) A commissioner shall receive no compensation for ((his)) services but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his or her duties. Each commissioner shall hold office until ((his)) a successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the municipality and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner.

             The powers and responsibilities of ((an urban)) a community renewal agency shall be exercised by the commissioners thereof. A majority of the commissioners shall constitute a quorum for the purpose of conducting business and exercising the powers and responsibilities of the agency and for all other purposes. Action may be taken by the agency upon a vote of a majority of the commissioners present, unless in any case the bylaws shall require a larger number. Any persons may be appointed as commissioners if they reside within the municipality.

             The ((urban)) community renewal agency or department or officers exercising ((urban)) community renewal project powers shall be staffed with the necessary technical experts and such other agents and employees, permanent and temporary, as it may require. An agency authorized to transact business and exercise powers under this chapter shall file, with the local governing body, on or before March 31st of each year, a report of its activities for the preceding calendar year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expense as of the end of such calendar year. At the time of filing the report, the agency shall publish in a legal newspaper ((of general circulation)) in the community a notice to the effect that such report has been filed with the municipality and that the report is available for inspection during business hours in the office of the ((city)) clerk of the municipality and in the office of the agency.

             (4) For inefficiency, neglect of duty, or misconduct in office, a commissioner may be removed by the legislative body of the municipality.


             Sec. 19. RCW 35.81.170 and 1965 c 7 s 35.81.170 are each amended to read as follows:

             For all of the purposes of this chapter, no person shall, because of race, creed, color, sex, or national origin, be subjected to any discrimination.


             Sec. 20. RCW 35.81.180 and 1965 c 7 s 35.81.180 are each amended to read as follows:

             No ((public)) official((,)) or department or division head of a municipality or ((urban)) community renewal agency or department or officers ((which have been vested by a municipality with urban)) with responsibility for making or supervising any decisions in the exercise of community renewal project powers and responsibilities under RCW 35.81.150((,)) shall voluntarily acquire any interest, direct or indirect, in any ((urban)) community renewal project, or in any property included or planned to be included in any ((urban)) community renewal project of such municipality, or in any contract or proposed contract in connection with such ((urban)) community renewal project. ((Where)) Whether or not such an acquisition is ((not)) voluntary, the ((interest acquired)) person acquiring it shall ((be)) immediately ((disclosed)) disclose the interest acquired in writing to the local governing body and such disclosure shall be entered upon the minutes of the governing body. If any such official((,)) or department or division head owns or controls, or owned or controlled within two years prior to the date of the first public hearing on the ((urban)) community renewal project, any interest, direct or indirect, in any property ((which)) that he or she knows is included in ((an urban)) a community renewal project, he or she shall immediately disclose this fact in writing to the local governing body, and such disclosure shall be entered upon the minutes of the governing body, and any such official((,)) or department or division head shall not participate in any action on that particular project by the municipality or ((urban)) community renewal agency((, department, or officers which have been vested with urban renewal project powers by the municipality pursuant to the provisions of RCW 35.81.150. A majority of the commissioners of an urban renewal agency exercising powers pursuant to this chapter shall not hold any other public office under the municipality other than their commissionership or office with respect to such urban renewal agency, department, or officers)). Any willful violation of the provisions of this section shall constitute misconduct in office.


             Sec. 21. RCW 35.81.910 and 1965 c 7 s 35.81.910 are each amended to read as follows:

             This chapter shall be known and may be cited as the "((Urban)) Community Renewal Law."


             Sec. 22. RCW 35.82.070 and 1993 c 478 s 17 are each amended to read as follows:

             An authority shall constitute a public body corporate and politic, exercising public and essential governmental functions, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others herein granted:

             (1) To sue and be sued; to have a seal and to alter the same at pleasure; to have perpetual succession; to make and execute contracts and other instruments, including but not limited to partnership agreements and joint venture agreements, necessary or convenient to the exercise of the powers of the authority; to participate in the organization or the operation of a nonprofit corporation which has as one of its purposes to provide or assist in the provision of housing for persons of low income; and to make and from time to time amend and repeal bylaws, rules and regulations, not inconsistent with this chapter, to carry into effect the powers and purposes of the authority.

             (2) Within its area of operation: To prepare, carry out, acquire, lease and operate housing projects; to provide for the construction, reconstruction, improvement, alteration or repair of any housing project or any part thereof; to agree to rent or sell dwellings forming part of the projects to or for persons of low income. Where an agreement or option is made to sell a dwelling to a person of low income, the authority may convey the dwelling to the person upon fulfillment of the agreement irrespective of whether the person is at the time of the conveyance a person of low income. Leases, options, agreements, or conveyances may include such covenants as the authority deems appropriate to assure the achievement of the objectives of this chapter.

             (3) To acquire, lease, rent, sell, or otherwise dispose of any commercial space located in buildings or structures containing a housing project or projects.

             (4) To arrange or contract for the furnishing by any person or agency, public or private, of services, privileges, works, or facilities for, or in connection with, a housing project or the occupants thereof; and (notwithstanding anything to the contrary contained in this chapter or in any other provision of law) to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum wages and maximum hours of labor, and comply with any conditions which the federal government may have attached to its financial aid of the project.

             (5) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in any housing project and (subject to the limitations contained in this chapter) to establish and revise the rents or charges therefor; to own or manage buildings containing a housing project or projects as well as commercial space or other dwelling units that do not constitute a housing project as that term is defined in this chapter((: PROVIDED, That)). However, notwithstanding the provisions under subsection (1) of this section, dwelling units made available or sold to persons of low income, together with functionally related and subordinate facilities, shall occupy at least fifty percent of the interior space in the total development owned by the authority or at least fifty percent of the total number of units in the development owned by the authority, whichever produces the greater number of units for persons of low income, and for mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park owned by the authority; to own, hold, and improve real or personal property; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise including financial assistance and other aid from the state or any public body, person or corporation, any real or personal property or any interest therein; to acquire by the exercise of the power of eminent domain any real property; to sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest therein; to sell, lease, exchange, transfer, or dispose of any real or personal property or interest therein at less than fair market value to a governmental entity for any purpose when such action assists the housing authority in carrying out its powers and purposes under this chapter, to a low-income person or family for the purpose of providing housing for that person or family, or to a nonprofit corporation provided the nonprofit corporation agrees to sell the property to a low-income person or family or to use the property for the provision of housing for persons of low income for at least twenty years; to insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards; to procure or agree to the procurement of insurance or guarantees from the federal government of the payment of any bonds or parts thereof issued by an authority, including the power to pay premiums on any such insurance.

             (6) To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to purchase its bonds at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be canceled.

             (7) Within its area of operation: To investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions; to determine where slum areas exist or where there is a shortage of decent, safe and sanitary dwelling accommodations for persons of low income; to make studies and recommendations relating to the problem of clearing, replanning and reconstructing of slum areas, and the problem of providing dwelling accommodations for persons of low income, and to cooperate with the city, the county, the state or any political subdivision thereof in action taken in connection with such problems; and to engage in research, studies and experimentation on the subject of housing.

             (8) Acting through one or more commissioners or other person or persons designated by the authority: To conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information; to administer oaths, issue subpoenas requiring the attendance of witnesses or the production of books and papers and to issue commissions for the examination of witnesses who are outside of the state or unable to attend before the authority, or excused from attendance; to make available to appropriate agencies (including those charged with the duty of abating or requiring the correction of nuisances or like conditions, or of demolishing unsafe or insanitary structures within its area of operation) its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety or welfare.

             (9) To initiate eviction proceedings against any tenant as provided by law. Activity occurring in any housing authority unit that constitutes a violation of chapter 69.41, 69.50 or 69.52 RCW shall constitute a nuisance for the purpose of RCW 59.12.030(5).

             (10) To exercise all or any part or combination of powers herein granted.

             No provisions of law with respect to the acquisition, operation or disposition of property by other public bodies shall be applicable to an authority unless the legislature shall specifically so state.

             (11) To agree (notwithstanding the limitation contained in RCW 35.82.210) to make such payments in lieu of taxes as the authority finds consistent with the achievement of the purposes of this chapter.

             (12) Upon the request of a county or city, to exercise any powers of ((an urban)) a community renewal agency under chapter 35.81 RCW or a public corporation, commission, or authority under chapter 35.21 RCW. ((However, in the exercise of any such powers the housing authority shall be subject to any express limitations contained in this chapter.))

             (13) To exercise the powers granted in this chapter within the boundaries of any city, town, or county not included in the area in which such housing authority is originally authorized to function: PROVIDED, HOWEVER, The governing or legislative body of such city, town, or county, as the case may be, adopts a resolution declaring that there is a need for the authority to function in such territory.

             (14) To administer contracts for assistance payments to persons of low income in accordance with section 8 of the United States Housing Act of 1937, as amended by Title II, section 201 of the Housing and Community Development Act of 1974, P.L. 93-383.

             (15) To sell at public or private sale, with or without public bidding, for fair market value, any mortgage or other obligation held by the authority.

             (16) To the extent permitted under its contract with the holders of bonds, notes, and other obligations of the authority, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest security, or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the authority is a party.

             (17) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans to persons of low income to enable them to acquire, construct, reconstruct, rehabilitate, improve, lease, or refinance their dwellings, and to take such security therefor as is deemed necessary and prudent by the authority.

             (18) To make, purchase, participate in, invest in, take assignments of, or otherwise acquire loans for the acquisition, construction, reconstruction, rehabilitation, improvement, leasing, or refinancing of land, buildings, or developments for housing for persons of low income. For purposes of this subsection, development shall include either land or buildings or both.

             (a) Any development financed under this subsection shall be subject to an agreement that for at least twenty years the dwelling units made available to persons of low income together with functionally related and subordinate facilities shall occupy at least fifty percent of the interior space in the total development or at least fifty percent of the total number of units in the development, whichever produces the greater number of units for persons of low income. For mobile home parks, the mobile home lots made available to persons of low income shall be at least fifty percent of the total number of mobile home lots in the park. During the term of the agreement, the owner shall use its best efforts in good faith to maintain the dwelling units or mobile home lots required to be made available to persons of low income at rents affordable to persons of low income. The twenty-year requirement under this subsection (18)(a) shall not apply when an authority finances the development by nonprofit corporations or governmental units of dwellings or mobile home lots intended for sale to persons of low and moderate income, and shall not apply to construction or other short-term financing provided to nonprofit corporations or governmental units when the financing has a repayment term of one year or less.

             (b) In addition, if the development is owned by a for-profit entity, the dwelling units or mobile home lots required to be made available to persons of low income shall be rented to persons whose incomes do not exceed fifty percent of the area median income, adjusted for household size, and shall have unit or lot rents that do not exceed fifteen percent of area median income, adjusted for household size, unless rent subsidies are provided to make them affordable to persons of low income.

             For purposes of this subsection (18)(b), if the development is owned directly or through a partnership by a governmental entity or a nonprofit organization, which nonprofit organization is itself not controlled by a for-profit entity or affiliated with any for-profit entity that a nonprofit organization itself does not control, it shall not be treated as being owned by a for-profit entity when the governmental entity or nonprofit organization exercises legal control of the ownership entity and in addition, (i) the dwelling units or mobile home lots required to be made available to persons of low income are rented to persons whose incomes do not exceed sixty percent of the area median income, adjusted for household size, and (ii) the development is subject to an agreement that transfers ownership to the governmental entity or nonprofit organization or extends an irrevocable right of first refusal to purchase the development under a formula for setting the acquisition price that is specified in the agreement.

             (c) Commercial space in any building financed under this subsection that exceeds four stories in height shall not constitute more than twenty percent of the interior area of the building. Before financing any development under this subsection the authority shall make a written finding that financing is important for project feasibility or necessary to enable the authority to carry out its powers and purposes under this chapter.

             (19) To contract with a public authority or corporation, created by a county, city, or town under RCW 35.21.730 through 35.21.755, to act as the developer for new housing projects or improvement of existing housing projects.


             Sec. 23. RCW 35.21.730 and 1985 c 332 s 1 are each amended to read as follows:

             In order to improve the administration of authorized federal grants or programs, to improve governmental efficiency and services, or to improve the general living conditions in the urban areas of the state, any city, town, or county may by lawfully adopted ordinance or resolution:

             (1) Transfer to any public corporation, commission, or authority created ((hereunder)) under this section, with or without consideration, any funds, real or personal property, property interests, or services;

             (2) Organize and participate in joint operations or cooperative organizations funded by the federal government when acting solely as coordinators or agents of the federal government;

             (3) Continue federally-assisted programs, projects, and activities after expiration of contractual term or after expending allocated federal funds as deemed appropriate to fulfill contracts made in connection with such agreements or as may be proper to permit an orderly readjustment by participating corporations, associations, or individuals;

             (4) Enter into contracts with public corporations, commissions, and authorities for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW; and

             (5) Create public corporations, commissions, and authorities to: Administer and execute federal grants or programs; receive and administer private funds, goods, or services for any lawful public purpose; and perform any lawful public purpose or public function. The ordinance or resolution shall limit the liability of such public corporations, commissions, and authorities to the assets and properties of such public corporation, commission, or authority in order to prevent recourse to such cities, towns, or counties or their assets or credit.


             Sec. 24. RCW 35.21.745 and 1985 c 332 s 2 are each amended to read as follows:

             (1) Any city, town, or county which shall create a public corporation, commission, or authority pursuant to RCW 35.21.730 or 35.21.660, shall provide for its organization and operations and shall control and oversee its operation and funds in order to correct any deficiency and to assure that the purposes of each program undertaken are reasonably accomplished.

             (2) Any public corporation, commission, or authority created as provided in RCW 35.21.730 may be empowered to own and sell real and personal property; to contract with a city, town, or county to conduct community renewal activities under chapter 35.81 RCW; to contract with individuals, associations, and corporations, and the state and the United States; to sue and be sued; to loan and borrow funds and issue bonds and other instruments evidencing indebtedness; transfer any funds, real or personal property, property interests, or services; to do anything a natural person may do; and to perform all manner and type of community services((: PROVIDED, That such)). However, the public corporation, commission, or authority shall have no power of eminent domain nor any power to levy taxes or special assessments.


             Sec. 25. RCW 35.57.020 and 1999 c 165 s 2 are each amended to read as follows:

             (1) A public facilities district is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate one or more regional centers. For purposes of this chapter, "regional center" means a convention, conference, or special events center, or any combination of facilities, and related parking facilities, serving a regional population constructed, improved, or rehabilitated after July 25, 1999, at a cost of at least ten million dollars, including debt service. "Regional center" also includes an existing convention, conference, or special events center, and related parking facilities, serving a regional population, that is improved or rehabilitated after July 25, 1999, where the costs of improvement or rehabilitation are at least ten million dollars, including debt service. A regional center is conclusively presumed to serve a regional population if state and local government investment in the construction, improvement, or rehabilitation of the regional center is equal to or greater than ten million dollars.

             (2) A public facilities district may enter into contracts with any city or town for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.

             (3) A public facilities district may impose charges and fees for the use of its facilities, and may accept and expend or use gifts, grants, and donations for the purpose of a regional center.

             (((3))) (4) A public facilities district may impose charges, fees, and taxes authorized in RCW 35.57.040, and use revenues derived therefrom for the purpose of paying principal and interest payments on bonds issued by the public facilities district to construct a regional center.

             (((4))) (5) Notwithstanding the establishment of a career, civil, or merit service system, a public facilities district may contract with a public or private entity for the operation or management of its public facilities.

             (((5))) (6) A public facilities district is authorized to use the supplemental alternative public works contracting procedures set forth in chapter 39.10 RCW in connection with the design, construction, reconstruction, remodel, or alteration of any regional center.

             (7) A city or town in conjunction with any special agency, authority, or other district established by a county or any other governmental agency is authorized to use the supplemental alternative public works contracting procedures set forth in chapter 39.10 RCW in connection with the design, construction, reconstruction, remodel, or alteration of any regional center funded in whole or in part by a public facilities district.


             Sec. 26. RCW 36.100.010 and 1995 3rd sp.s. c 1 s 301 are each amended to read as follows:

             (1) A public facilities district may be created in any county and shall be coextensive with the boundaries of the county.

             (2) A public facilities district shall be created upon adoption of a resolution providing for the creation of such a district by the county legislative authority in which the proposed district is located.

             (3) A public facilities district is a municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

             (4) No taxes authorized under this chapter may be assessed or levied unless a majority of the voters of the public facilities district has approved such tax at a general or special election. A single ballot proposition may both validate the imposition of the sales and use tax under RCW 82.14.048 and the excise tax under RCW 36.100.040.

             (5) A public facilities district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued.

             (6) A public facilities district may enter into contracts with a county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.

             (7) The county legislative authority or the city council may transfer property to the public facilities district created under this chapter. No property that is encumbered with debt or that is in need of major capital renovation may be transferred to the district without the agreement of the district and revenues adequate to retire the existing indebtedness.


             NEW SECTION. Sec. 27. A new section is added to chapter 53.08 RCW to read as follows:

             A port district may enter into a contract with any city, town, or county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.


             NEW SECTION. Sec. 28. 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. 29. (1) This act does not impair any authority granted, any actions undertaken, or any liability or obligation incurred under the sections amended in this act or under any rule, order, plan, or project adopted under those sections, nor does it impair any proceedings instituted under those sections.

             (2) Any power granted in this act with respect to a community renewal plan, and any process authorized for the exercise of the power, may be used by any municipality in implementing any urban renewal plan or project adopted under chapter 35.81 RCW, to the same extent as if the plan were adopted as a community renewal plan.

             (3) This act shall be liberally construed.


             NEW SECTION. Sec. 30. (1) RCW 35.81.010 is recodified as RCW 35.81.015.

             (2) RCW 35.81.020 is recodified as RCW 35.81.005."


             On page 1, line 1 of the title, after "renewal;" strike the remainder of the title and insert "amending RCW 35.81.010, 35.81.020, 35.81.030, 35.81.040, 35.81.050, 35.81.060, 35.81.070, 35.81.080, 35.81.090, 35.81.100, 35.81.110, 35.81.120, 35.81.130, 35.81.150, 35.81.160, 35.81.170, 35.81.180, 35.81.910, 35.82.070, 35.21.730, 35.21.745, 35.57.020, and 36.100.010; adding a new section to chapter 53.08 RCW; adding new sections to chapter 35.81 RCW; creating a new section; and recodifying RCW 35.81.010 and 35.81.020."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Substitute House Bill No. 2357 and advanced the bill as amended by the Senate to final passage.


             Representatives Veloria and Van Luven spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2357 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Substitute House Bill No. 2357 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Substitute House Bill No. 2357.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2446, with the following amendment:

             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 43.20 RCW to read as follows:

             For any new or revised water system plan submitted for review under this chapter, the department shall review and either approve, conditionally approve, reject, or request amendments within ninety days of the receipt of the submission of the plan. The department may extend this ninety-day time limitation for new submittals by up to an additional ninety days if insufficient time exists to adequately review the general comprehensive plan. For rejections of plans or extensions of the timeline, the department shall provide in writing, to the person or entity submitting the plan, the reason for such action. In addition, the person or entity submitting the plan and the department may mutually agree to an extension of the deadlines contained in this section.


             NEW SECTION. Sec. 2. A new section is added to chapter 57.16 RCW to read as follows:

             For any new or revised sewer general comprehensive plan submitted by a water-sewer district for review under this chapter, the appropriate state agency shall review and either approve, conditionally approve, reject, or request amendments within ninety days of the receipt of the submission of the plan. The appropriate state agency may extend this ninety-day time limitation for new submittals by up to an additional ninety days if insufficient time exists to adequately review the general comprehensive plan. For rejections of plans or extensions of the timeline, the appropriate state agency shall provide in writing to the water-sewer district the reason for such action. In addition, the governing body of the water-sewer district and the appropriate state agency may mutually agree to an extension of the deadlines contained in this section.


             NEW SECTION. Sec. .3 A new section is added to chapter 70.116 RCW to read as follows:

             For any new or revised water or sewer system plan submitted for review under this chapter, the department of health shall review and either approve, conditionally approve, reject, or request amendments within ninety days of the receipt of the submission of the plan. The department of health may extend this ninety-day time limitation for new submittals by up to an additional ninety days if insufficient time exists to adequately review the general comprehensive plan. For rejections of plans or extensions of the timeline, the department shall provide in writing, to the person or entity submitting the plan, the reason for such action. In addition, the person or entity submitting the plan and the department of health may mutually agree to an extension of the deadlines contained in this section.


             Sec. 4. RCW 90.48.020 and 1995 c 255 s 7 are each amended to read as follows:

             Whenever the word "person" is used in this chapter, it shall be construed to include any political subdivision, government agency, municipality, industry, public or private corporation, copartnership, association, firm, individual or any other entity whatsoever.

             Wherever the words "waters of the state" shall be used in this chapter, they shall be construed to include lakes, rivers, ponds, streams, inland waters, underground waters, salt waters and all other surface waters and watercourses within the jurisdiction of the state of Washington.

             Whenever the word "pollution" is used in this chapter, it shall be construed to mean such contamination, or other alteration of the physical, chemical or biological properties, of any waters of the state, including change in temperature, taste, color, turbidity, or odor of the waters, or such discharge of any liquid, gaseous, solid, radioactive, or other substance into any waters of the state as will or is likely to create a nuisance or render such waters harmful, detrimental or injurious to the public health, safety or welfare, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish or other aquatic life.

             Wherever the word "department" is used in this chapter it shall mean the department of ecology.

             Whenever the word "director" is used in this chapter it shall mean the director of ecology.

             Whenever the words "aquatic noxious weed" are used in this chapter, they have the meaning prescribed under RCW 17.26.020.

             Whenever the words "general sewer plan" are used in this chapter they shall be construed to include all sewerage general plans, sewer general comprehensive plans, plans for a system of sewerage, and other plans for sewer systems adopted by a local government entity including but not limited to cities, towns, public utility districts, and water-sewer districts.


             Sec. 5. RCW 90.48.110 and 1994 c 118 s 1 are each amended to read as follows:

             (1) Except under subsection (2) of this section, all engineering reports, plans, and specifications for the construction of new sewerage systems, sewage treatment or disposal plants or systems, or for improvements or extensions to existing sewerage systems or sewage treatment or disposal plants, and the proposed method of future operation and maintenance of said facility or facilities, shall be submitted to and be approved by the department, before construction thereof may begin. No approval shall be given until the department is satisfied that said plans and specifications and the methods of operation and maintenance submitted are adequate to protect the quality of the state's waters as provided for in this chapter.

             (2) To promote efficiency in service delivery and intergovernmental cooperation in protecting the quality of the state's waters, the department may delegate the authority for review and approval of engineering reports, plans, and specifications for the construction of new sewerage systems, sewage treatment or disposal plants or systems, or for improvements or extensions to existing sewerage system or sewage treatment or disposal plants, and the proposed method of future operations and maintenance of said facility or facilities and industrial pretreatment systems, to local units of government requesting such delegation and meeting criteria established by the department.

             (3) For any new or revised general sewer plan submitted for review under this section, the department shall review and either approve, conditionally approve, reject, or request amendments within ninety days of the receipt of the submission of the plan. The department may extend this ninety-day time limitation for new submittals by up to an additional ninety days if insufficient time exists to adequately review the general sewer plan. For rejections of plans or extensions of the timeline, the department shall provide in writing to the local government entity the reason for such action. In addition, the governing body of the local government entity and the department may mutually agree to an extension of the deadlines contained in this section."


             On page 1, line 2 of the title, after "plans;" strike the remainder of the title and insert "amending RCW 90.48.020 and 90.48.110; adding a new section to chapter 43.20 RCW; adding a new section to chapter 57.16 RCW; and adding a new section to chapter 70.116 RCW."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Substitute House Bill No. 2446 and advanced the bill as amended by the Senate to final passage.


             Representatives Dunshee and Mulliken spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2446 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Substitute House Bill No. 2446 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Substitute House Bill No. 2446.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 8, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2453, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The protection from identity theft for veterans who choose to file their discharge papers with the county auditor is a matter of gravest concern. At the same time, the integrity of the public record of each county is a matter of utmost importance to the economic life of this state and to the right of each citizen to be secure in his or her ownership of real property and other rights and obligations of our citizens that rely upon the public record for their proof. Likewise the integrity of the public record is essential for the establishment of ancestral ties that may be of interest to this and future generations. While the public record as now kept by the county auditors is sufficient by itself for the accomplishment of these and many other public and private purposes, the proposed use of the public record for purposes that in their nature and intent are not public, so as to keep the veterans' discharge papers from disclosure to those of ill intent, causes concern among many segments of the population of this state.

             In order to voice these concerns effectively and thoroughly, a working group may be convened by the joint committee on veterans' and military affairs to develop a means to preserve the integrity of the public record while protecting those veterans from identity theft.


             Sec. 2. RCW 42.17.310 and 2001 c 278 s 1, 2001 c 98 s 2, and 2001 c 70 s 1 are each reenacted and amended to read as follows:

             (1) The following are exempt from public inspection and copying:

             (a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

             (b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

             (c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 84.08.210, 82.32.330, 84.40.020, or 84.40.340 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

             (d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

             (e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

             (f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

             (g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

             (h) Valuable formulae, designs, drawings, computer source code or object code, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

             (i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

             (j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

             (k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

             (l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

             (m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (i) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (ii) highway construction or improvement as required by RCW 47.28.070.

             (n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

             (o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW, and by persons pertaining to export projects pursuant to RCW 43.23.035.

             (p) Financial disclosures filed by private vocational schools under chapters 28B.85 and 28C.10 RCW.

             (q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

             (r) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency.

             (s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

             (t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

             (u) The residential addresses or residential telephone numbers of employees or volunteers of a public agency which are held by any public agency in personnel records, public employment related records, or volunteer rosters, or are included in any mailing list of employees or volunteers of any public agency.

             (v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers, except that this information may be released to the division of child support or the agency or firm providing child support enforcement for another state under Title IV-D of the federal social security act, for the establishment, enforcement, or modification of a support order.

             (w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.040 maintained in the files of the department shall automatically be withheld from public inspection and copying unless the provider specifically requests the information be released, and except as provided for under RCW 42.17.260(9).

             (x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

             (y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

             (z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

             (aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

             (bb) Financial and valuable trade information under RCW 51.36.120.

             (cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or 70.123.075 or a rape crisis center as defined in RCW 70.125.030.

             (dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

             (ee) Investigative records compiled by an employing agency conducting a current investigation of a possible unfair practice under chapter 49.60 RCW or of a possible violation of other federal, state, or local laws prohibiting discrimination in employment.

             (ff) Business related information protected from public inspection and copying under RCW 15.86.110.

             (gg) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW.

             (hh) Information and documents created specifically for, and collected and maintained by a quality improvement committee pursuant to RCW 43.70.510 or 70.41.200, or by a peer review committee under RCW 4.24.250, regardless of which agency is in possession of the information and documents.

             (ii) Personal information in files maintained in a data base created under RCW 43.07.360.

             (jj) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010.

             (kk) Names of individuals residing in emergency or transitional housing that are furnished to the department of revenue or a county assessor in order to substantiate a claim for property tax exemption under RCW 84.36.043.

             (ll) The names, residential addresses, residential telephone numbers, and other individually identifiable records held by an agency in relation to a vanpool, carpool, or other ride-sharing program or service. However, these records may be disclosed to other persons who apply for ride-matching services and who need that information in order to identify potential riders or drivers with whom to share rides.

             (mm) The personally identifying information of current or former participants or applicants in a paratransit or other transit service operated for the benefit of persons with disabilities or elderly persons.

             (nn) The personally identifying information of persons who acquire and use transit passes and other fare payment media including, but not limited to, stored value smart cards and magnetic strip cards, except that an agency may disclose this information to a person, employer, educational institution, or other entity that is responsible, in whole or in part, for payment of the cost of acquiring or using a transit pass or other fare payment media, or to the news media when reporting on public transportation or public safety. This information may also be disclosed at the agency's discretion to governmental agencies or groups concerned with public transportation or public safety.

             (oo) Proprietary financial and commercial information that the submitting entity, with review by the department of health, specifically identifies at the time it is submitted and that is provided to or obtained by the department of health in connection with an application for, or the supervision of, an antitrust exemption sought by the submitting entity under RCW 43.72.310. If a request for such information is received, the submitting entity must be notified of the request. Within ten business days of receipt of the notice, the submitting entity shall provide a written statement of the continuing need for confidentiality, which shall be provided to the requester. Upon receipt of such notice, the department of health shall continue to treat information designated under this section as exempt from disclosure. If the requester initiates an action to compel disclosure under this chapter, the submitting entity must be joined as a party to demonstrate the continuing need for confidentiality.

             (pp) Records maintained by the board of industrial insurance appeals that are related to appeals of crime victims' compensation claims filed with the board under RCW 7.68.110.

             (qq) Financial and commercial information supplied by or on behalf of a person, firm, corporation, or entity under chapter 28B.95 RCW relating to the purchase or sale of tuition units and contracts for the purchase of multiple tuition units.

             (rr) Any records of investigative reports prepared by any state, county, municipal, or other law enforcement agency pertaining to sex offenses contained in chapter 9A.44 RCW or sexually violent offenses as defined in RCW 71.09.020, which have been transferred to the Washington association of sheriffs and police chiefs for permanent electronic retention and retrieval pursuant to RCW 40.14.070(2)(b).

             (ss) Credit card numbers, debit card numbers, electronic check numbers, card expiration dates, or bank or other financial account numbers supplied to an agency for the purpose of electronic transfer of funds, except when disclosure is expressly required by law.

             (tt) Financial information, including but not limited to account numbers and values, and other identification numbers supplied by or on behalf of a person, firm, corporation, limited liability company, partnership, or other entity related to an application for a liquor license, gambling license, or lottery retail license.

             (uu) Records maintained by the employment security department and subject to chapter 50.13 RCW if provided to another individual or organization for operational, research, or evaluation purposes.

             (vv) Individually identifiable information received by the work force training and education coordinating board for research or evaluation purposes.

             (ww) Those portions of records containing specific and unique vulnerability assessments or specific and unique response plans, either of which is intended to prevent or mitigate criminal terrorist acts as defined in RCW 70.74.285, the public disclosure of which would have a substantial likelihood of threatening public safety.

             (xx) Commercial fishing catch data from logbooks required to be provided to the department of fish and wildlife under RCW 77.12.047, when the data identifies specific catch location, timing, or methodology and the release of which would result in unfair competitive disadvantage to the commercial fisher providing the catch data. However, this information may be released to government agencies concerned with the management of fish and wildlife resources.

             (yy) Sensitive wildlife data obtained by the department of fish and wildlife. However, sensitive wildlife data may be released to government agencies concerned with the management of fish and wildlife resources. Sensitive wildlife data includes:

             (i) The nesting sites or specific locations of endangered species designated under RCW 77.12.020, or threatened or sensitive species classified by rule of the department of fish and wildlife;

             (ii) Radio frequencies used in, or locational data generated by, telemetry studies; or

             (iii) Other location data that could compromise the viability of a specific fish or wildlife population, and where at least one of the following criteria are met:

             (A) The species has a known commercial or black market value;

             (B) There is a history of malicious take of that species; or

             (C) There is a known demand to visit, take, or disturb, and the species behavior or ecology renders it especially vulnerable or the species has an extremely limited distribution and concentration.

             (zz) The personally identifying information of persons who acquire recreational licenses under RCW 77.32.010 or commercial licenses under chapter 77.65 or 77.70 RCW, except name, address of contact used by the department, and type of license, endorsement, or tag. However, the department of fish and wildlife may disclose personally identifying information to:

             (i) Government agencies concerned with the management of fish and wildlife resources;

             (ii) The department of social and health services, child support division, and to the department of licensing in order to implement RCW 77.32.014 and 46.20.291; and

             (iii) Law enforcement agencies for the purpose of firearm possession enforcement under RCW 9.41.040.

             (aaa)(i) Discharge papers of a veteran of the armed forces of the United States filed at the office of the county auditor before July 1, 2002, that have not been commingled with other recorded documents. These records will be available only to the veteran, the veteran's next of kin, a deceased veteran's properly appointed personal representative or executor, a person holding that veteran's general power of attorney, or to anyone else designated in writing by that veteran to receive the records.

             (ii) Discharge papers of a veteran of the armed forces of the United States filed at the office of the county auditor before July 1, 2002, that have been commingled with other records, if the veteran has recorded a "request for exemption from public disclosure of discharge papers" with the county auditor. If such a request has been recorded, these records may be released only to the veteran filing the papers, the veteran's next of kin, a deceased veteran's properly appointed personal representative or executor, a person holding the veteran's general power of attorney, or anyone else designated in writing by the veteran to receive the records.

             (iii) Discharge papers of a veteran filed at the office of the county auditor after June 30, 2002, are not public records, but will be available only to the veteran, the veteran's next of kin, a deceased veteran's properly appointed personal representative or executor, a person holding the veteran's general power of attorney, or anyone else designated in writing by the veteran to receive the records.

             (iv) For the purposes of this subsection (1)(aaa), next of kin of deceased veterans have the same rights to full access to the record. Next of kin are the veteran's widow or widower who has not remarried, son, daughter, father, mother, brother, and sister.

             (2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

             (3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

             (4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.


             Sec. 3. RCW 73.04.030 and 1989 c 50 s 1 are each amended to read as follows:

             Each county auditor of the several counties of the state of Washington shall record upon presentation without expense, in a suitable permanent record the discharge of any veteran of the armed forces of the United States who is residing in the state of Washington.

             The department of veterans affairs, in consultation with the association of county auditors, shall develop and distribute to county auditors the form referred to in RCW 42.17.310(1)(aaa) entitled "request for exemption from public disclosure of discharge papers."

             The county auditor may charge a basic recording fee and preservation fee that together shall not exceed a total of seven dollars for the recording of the "request for exemption from public disclosure of discharge papers."

             County auditors shall develop a form for requestors of military discharge papers (form DD214) to verify that the requestor is authorized to receive or view the military discharge paper.


             NEW SECTION. Sec. 4. Section 1 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


             On page 1, line 1 of the title, after "inspection;" strike the remainder of the title and insert "amending RCW 73.04.030; reenacting and amending RCW 42.17.310; creating a new section; and declaring an emergency."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed Substitute House Bill No. 2453 and advanced the bill as amended by the Senate to final passage.


             Representative Bush spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2453 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Engrossed Substitute House Bill No. 2453 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed Substitute House Bill No. 2353.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 8, 2002

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2496, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 84.52.052 and 1996 c 230 s 1615 are each amended to read as follows:

             The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district, except school districts and fire protection districts, in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. As used in this section, the term "taxing district" means any county, metropolitan park district, park and recreation service area, park and recreation district, water-sewer district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, rural partial-county library district, intercounty rural library district, ((fire protection district,)) cemetery district, city, town, transportation benefit district, emergency medical service district with a population density of less than one thousand per square mile, or cultural arts, stadium, and convention district.

             Any such taxing district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and 84.52.043, or 84.55.010 through 84.55.050, when authorized so to do by the voters of such taxing district in the manner set forth in Article VII, section 2(a) of the Constitution of this state at a special or general election to be held in the year in which the levy is made.

             A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any such taxing district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."


             NEW SECTION. Sec. 2. A new section is added to chapter 84.52 RCW to read as follows:

             The limitations imposed by RCW 84.52.050 through 84.52.056, and 84.52.043 shall not prevent the levy of taxes by a fire protection district, when authorized so to do by the voters of a fire protection district in the manner and for the purposes and number of years allowable under Article VII, section 2(a) of the Constitution of this state. Elections for taxes shall be held in the year in which the levy is made, or in the case of propositions authorizing two-year through four-year levies for maintenance and operation support of a fire district, or authorizing two-year through six-year levies to support the construction, modernization, or remodeling of fire district facilities, in the year in which the first annual levy is made. Once additional tax levies have been authorized for maintenance and operation support of a fire protection district for a two-year through four-year period, no further additional tax levies for maintenance and operation support of the district for that period may be authorized.

             A special election may be called and the time fixed by the fire protection district commissioners, by giving notice by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing the excess levy shall be submitted in a form as to enable the voters favoring the proposition to vote "yes" and those opposed to vote "no."


             Sec. 3. RCW 52.16.130 and 1989 c 63 s 27 are each amended to read as follows:

             To carry out the purposes for which fire protection districts are created, the board of fire commissioners of a district may levy each year, in addition to the levy or levies provided in RCW 52.16.080 for the payment of the principal and interest of any outstanding general obligation bonds, an ad valorem tax on all taxable property located in the district not to exceed fifty cents per thousand dollars of assessed value: PROVIDED, That in no case may the total general levy for all purposes, except the levy for the retirement of general obligation bonds, exceed one dollar per thousand dollars of assessed value. Levies in excess of one dollar per thousand dollars of assessed value or in excess of the aggregate dollar rate limitations or both may be made for any district purpose when so authorized at a special election under ((RCW 84.52.052)) section 2 of this act. Any such tax when levied shall be certified to the proper county officials for the collection of the tax as for other general taxes. The taxes when collected shall be placed in the appropriate district fund or funds as provided by law, and shall be paid out on warrants of the auditor of the county in which all, or the largest portion of, the district is located, upon authorization of the board of fire commissioners of the district.


             NEW SECTION. Sec. 4. This act takes effect January 1, 2003, if the proposed amendment to Article VII, section 2 of the state Constitution authorizing multiyear excess property tax levies is validly submitted to and approved by the voters at the next general election. If the proposed amendment is not approved, this act is void in its entirety."


             On page 1, line 1 of the title, after "taxes;" strike the remainder of the title and insert "amending RCW 84.52.052 and 52.16.130; adding a new section to chapter 84.52 RCW; and providing a contingent effective date."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to House Bill No. 2496 and advanced the bill as amended by the Senate to final passage.


             Representatives Dunshee and Mulliken spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 2496 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             House Bill No. 2496 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on House Bill No. 2496.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL


March 8, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2505, with the following amendment:


             On page 1 line 7 of the amendment, after "she:" strike "(a)"

              On page 1, line 12 of the amendment, after "disorder" strike all the material down to and including "disorder" on line 17


             On page 1, line 10, after "significant" insert "bodily"


             Renumber the sections consecutively and correct any internal references accordingly.


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed Substitute House Bill No. 2505 and advanced the bill as amended by the Senate to final passage.


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


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2505 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Engrossed Substitute House Bill No. 2505 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed Substitute House Bill No. 2505.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2568, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 26.44 RCW to read as follows:

             (1) The department must investigate referrals of alleged child abuse or neglect occurring at the state school for the deaf, including alleged incidents involving students abusing other students; determine whether there is a finding of abuse or neglect; and determine whether a referral to law enforcement is appropriate under this chapter.

             (2) The department must send a copy of the investigation report, including the finding, regarding any incidents of alleged child abuse or neglect at the state school for the deaf to the school's superintendent. The department may include recommendations to the superintendent and the board of trustees or its successor board for increasing the safety of the school's students.


             NEW SECTION. Sec. 2. A new section is added to chapter 72.40 RCW to read as follows:

             (1) The department of social and health services must periodically monitor the residential program at the state school for the deaf, including but not limited to examining the residential-related policies and procedures as well as the residential facilities. The department of social and health services must make recommendations to the school's superintendent and the board of trustees or its successor board on health and safety improvements related to child safety and well-being. The department of social and health services must conduct the monitoring reviews at least quarterly until December 1, 2006.

             (2) The department of social and health services must conduct a comprehensive child health and safety review, as defined in rule, of the residential program at the state school for the deaf every three years. The department of social and health services must deliver the first health and safety review to the governor, the legislature, the school's superintendent, and the school's board of trustees or successor board by December 1, 2004.

             (3) The state school for the deaf must provide the department of social and health services' staff with full and complete access to all records and documents that the department staff may request to carry out the requirements of this section. The department of social and health services must have full and complete access to all students and staff of the state school for the deaf to conduct interviews to carry out the requirements of this section.

             (4) For the purposes of this section, the department of social and health services must use the safety standards established in this chapter when conducting the reviews."


             On page 1, line 3 of the title, after "deaf;" strike the remainder of the title and insert "adding a new section to chapter 26.44 RCW; and adding a new section to chapter 72.40 RCW."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Substitute House Bill No. 2568 and advanced the bill as amended by the Senate to final passage.


             Representative Dickerson spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2568 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Substitute House Bill No. 2568 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Substitute House Bill No. 2568.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED HOUSE BILL NO. 2623, with the following amendment:


             On page 1, line 7, after "since" strike "1971" and insert "1986"


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed House Bill No. 2623 and advanced the bill as amended by the Senate to final passage.


             Representatives Hatfield and Mulliken spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 2623 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Engrossed House Bill No. 2623 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed House Bill No. 2623.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2641, with the following amendment:

             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The legislature finds that the application of the business and occupation tax deductions provided in RCW 82.04.4281 for investment income of persons deemed to be "other financial businesses" has been the subject of uncertainty, and therefore, disagreement and litigation between taxpayers and the state. The legislature further finds that the decision of the state supreme court in Simpson Investment Co. v. Department of Revenue could lead to a restrictive, narrow interpretation of the deductibility of investment income for business and occupation tax purposes. As a result, the legislature directed the department of revenue to work with affected businesses to develop a revision of the statute that would provide certainty and stability for taxpayers and the state. The legislature intends, by adopting this recommended revision of the statute, to provide a positive environment for capital investment in this state, while continuing to treat similarly situated taxpayers fairly.


             Sec. 2. RCW 82.04.4281 and 1980 c 37 s 2 are each amended to read as follows:

             (1) In computing tax there may be deducted from the measure of tax:

             (a) Amounts derived ((by persons, other than those engaging in banking, loan, security, or other financial businesses,)) from investments ((or the use of money as such, and also));

             (b) Amounts derived as dividends or distributions from capital account by a parent from its subsidiary ((corporations)) entities; and

             (c) Amounts derived from interest on loans between subsidiary entities and a parent entity or between subsidiaries of a common parent entity, but only if the total investment and loan income is less than five percent of gross receipts of the business annually.

             (2) The following are not deductible under subsection (1)(a) of this section:

             (a) Amounts received from loans, except as provided in subsection (1)(c) of this section, or the extension of credit to another, revolving credit arrangements, installment sales, the acceptance of payment over time for goods or services, or any of the foregoing that have been transferred by the originator of the same to an affiliate of the transferor; or

             (b) Amounts received by a banking, lending, or security business.

             (3) The definitions in this subsection apply only to this section.

             (a) "Banking business" means a person engaging in business as a national or state-chartered bank, a mutual savings bank, a savings and loan association, a trust company, an alien bank, a foreign bank, a credit union, a stock savings bank, or a similar entity that is chartered under Title 30, 31, 32, or 33 RCW, or organized under Title 12 U.S.C.

             (b) "Lending business" means a person engaged in the business of making secured or unsecured loans of money, or extending credit, and (i) more than one-half of the person's gross income is earned from such activities and (ii) more than one-half of the person's total expenditures are incurred in support of such activities.

             (c) The terms "loan" and "extension of credit" do not include ownership of or trading in publicly traded debt instruments, or substantially equivalent instruments offered in a private placement.

             (d) "Security business" means a person, other than an issuer, who is engaged in the business of effecting transactions in securities as a broker, dealer, or broker-dealer, as those terms are defined in the securities act of Washington, chapter 21.20 RCW, or the federal securities act of 1933. "Security business" does not include any company excluded from the definition of broker or dealer under the federal investment company act of 1940 or any entity that is not an investment company by reason of sections 3(c)(1) and 3(c)(3) through 3(c)(14) thereof.


             NEW SECTION. Sec. 3. This act takes effect July 1, 2002."


             On page 1, line 3 of the title, after "tax;" strike the remainder of the title and insert "amending RCW 82.04.4281; creating a new section; and providing an effective date."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to House Bill No. 2641 and advanced the bill as amended by the Senate to final passage.


             Representative Gombosky spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 2641 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             House Bill No. 2641 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on House Bill No. 2641.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 8, 2002

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2657, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The legislature finds that state-produced agricultural products are of the highest quality, transported the least distance, and are the freshest agricultural products available in Washington state. The legislature further finds that providing improved markets for the richly diversified agricultural commodities produced in Washington is needed to stabilize and enhance the rural and agricultural economies in Washington.


             NEW SECTION. Sec. 2. A new section is added to chapter 43.19 RCW to read as follows:

             (1) The department of general administration, through the state purchasing and material control director, shall encourage each state and local agency doing business with the department to purchase Washington fruit, vegetables, and agricultural products when available.

             (2) The department of general administration shall work with the department of agriculture and other interested parties to identify and recommend strategies to increase public purchasing of Washington fruit, vegetables, and agricultural products, and report back orally to the appropriate committees of the legislature in September 2002, and in January 2003.


             NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


             On page 1, line 2 of the title, after "facilities;" strike the remainder of the title and insert "adding a new section to chapter 43.19 RCW; creating a new section; and declaring an emergency."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to House Bill No. 2657 and advanced the bill as amended by the Senate to final passage.


             Representatives Hunt and Schoesler spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of House Bill No. 2657 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             House Bill No. 2657 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on House Bill No. 2657.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 2663, with the following amendment:


             Strike everything after the enacting clause and insert the following:


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

             (a) Benzene is detected in most fire environments and has been associated with leukemia and multiple myeloma. Given the established exposure to benzene in a fire environment, there is biologic plausibility for fire fighters to be at increased risk of these malignancies;

             (b) Increased risks of leukemia and lymphoma have been described in several epidemiologic studies of fire fighters. The risks of leukemia are often two or three times that of the population as a whole, and a two-fold risk of non-Hodgkin's lymphoma has also been found;

             (c) Epidemiologic studies assessing fire fighters' cancer risks concluded that there is adequate support for a causal relationship between fire fighting and brain cancer;

             (d) Fire fighters are exposed to polycyclic aromatic hydrocarbons as products of combustion and these chemicals have been associated with bladder cancer. The epidemiologic data suggests fire fighters have a three-fold risk of bladder cancer compared to the population as a whole;

             (e) A 1990 review of fire fighter epidemiology calculated a statistically significant risk for melanoma among fire fighters;

             (f) Fire fighters are exposed to extremely hazardous environments. Potentially lethal products of combustion include particulates and gases and are the major source of fire fighter exposures to toxic chemicals; and

             (g) The burning of a typical urban structure containing woods, paints, glues, plastics, and synthetic materials in furniture, carpeting, and insulation liberates hundreds of chemicals. Fire fighters are exposed to a wide variety of potential carcinogens, including polycyclic aromatic hydrocarbons in soots, tars, and diesel exhaust, arsenic in wood preservatives, formaldehyde in wood smoke, and asbestos in building insulation.

             (2) The legislature further finds that some occupational diseases resulting from fire fighter working conditions can develop slowly, usually manifesting themselves years after exposure.


             Sec. 2. RCW 51.32.185 and 1987 c 515 s 2 are each amended to read as follows:

             (1) In the case of fire fighters as defined in RCW 41.26.030(4) (a), (b), and (c) who are covered under Title 51 RCW and fire fighters, including supervisors, employed on a full-time, fully compensated basis as a fire fighter of a private sector employer's fire department that includes over fifty such fire fighters, there shall exist a prima facie presumption that: (a) Respiratory disease ((is an)); (b) heart problems that are experienced within seventy-two hours of exposure to smoke, fumes, or toxic substances; (c) cancer; and (d) infectious diseases are occupational diseases under RCW 51.08.140. This presumption of occupational disease may be rebutted by a preponderance of the evidence ((controverting the presumption)). ((Controverting)) Such evidence may include, but is not limited to, use of tobacco products, physical fitness and weight, lifestyle, hereditary factors, and exposure from other employment or nonemployment activities.

             (2) The presumptions established in subsection (1) of this section shall be extended to an applicable member following termination of service for a period of three calendar months for each year of requisite service, but may not extend more than sixty months following the last date of employment.

             (3) The presumption established in subsection (1)(c) of this section shall only apply to any active or former fire fighter who has cancer that develops or manifests itself after the fire fighter has served at least ten years and who was given a qualifying medical examination upon becoming a fire fighter that showed no evidence of cancer. The presumption within subsection (1)(c) of this section shall only apply to primary brain cancer, malignant melanoma, leukemia, non-Hodgkin's lymphoma, bladder cancer, ureter cancer, and kidney cancer.

             (4) The presumption established in subsection (1)(d) of this section shall be extended to any fire fighter who has contracted any of the following infectious diseases: Human immunodeficiency virus/acquired immunodeficiency syndrome, all strains of hepatitis, meningococcal meningitis, or mycobacterium tuberculosis.

             (5) Beginning July 1, 2003, this section does not apply to a fire fighter who develops a heart or lung condition and who is a regular user of tobacco products or who has a history of tobacco use. The department, using existing medical research, shall define in rule the extent of tobacco use that shall exclude a fire fighter from the provisions of this section."


             On page 1, line 1 of the title, after "fighters;" strike the remainder of the title and insert "amending RCW 51.32.185; and creating a new section."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Second Substitute House Bill No. 2663 and advanced the bill as amended by the Senate to final passage.


             Representatives Clements, Conway and Dunshee spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Second Substitute House Bill No. 2663 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Second Substitute House Bill No. 2663 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Second Substitute House Bill No. 2663.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 5, 2002

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2699, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. Strategic lawsuits against public participation, or SLAPP suits, involve communications made to influence a government action or outcome which results in a civil complaint or counterclaim filed against individuals or organizations on a substantive issue of some public interest or social significance. SLAPP suits are designed to intimidate the exercise of First Amendment rights and rights under Article I, section 5 of the Washington state Constitution.

             Although Washington state adopted the first modern anti-SLAPP law in 1989, that law has, in practice, failed to set forth clear rules for early dismissal review. Since that time, the United States supreme court has made it clear that, as long as the petitioning is aimed at procuring favorable government action, result, product, or outcome, it is protected and the case should be dismissed. This bill amends Washington law to bring it in line with these court decisions which recognizes that the United States Constitution protects advocacy to government, regardless of content or motive, so long as it is designed to have some effect on government decision making.


             Sec. 2. RCW 4.24.510 and 1999 c 54 s 1 are each amended to read as follows:

             A person who ((in good faith)) communicates a complaint or information to any branch or agency of federal, state, or local government, or to any self-regulatory organization that regulates persons involved in the securities or futures business and that has been delegated authority by a federal, state, or local government agency and is subject to oversight by the delegating agency, is immune from civil liability for claims based upon the communication to the agency or organization regarding any matter reasonably of concern to that agency or organization. A person prevailing upon the defense provided for in this section ((shall be)) is entitled to recover ((costs)) expenses and reasonable attorneys' fees incurred in establishing the defense and in addition shall receive statutory damages of ten thousand dollars. Statutory damages may be denied if the court finds that the complaint or information was communicated in bad faith."


             On page 1, line 2 of the title, after "organizations;" strike the remainder of the title and insert "amending RCW 4.24.510; and creating a new section."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Substitute House Bill No. 2699 and advanced the bill as amended by the Senate to final passage.


             Representatives Lantz, Conway and Ahern spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2699 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Substitute House Bill No. 2699 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Substitute House Bill No. 2699.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2736, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. It is the policy of the state to encourage basic and applied scientific research by the state's research universities. The creation of knowledge is a core mission of the state's research universities, and research provides teaching and learning opportunities for students and faculty. State of the art facilities for research by research universities serve to attract the most capable students and faculty to the state and research grants from public and private institutions throughout the world. The application of such research stimulates investment and employment within Washington and the strengthening of our tax base. In order to finance research facilities, the state's research universities often use federal, state, private, and university resources and therefore require the authority to enter into financing arrangements that leverage funding sources and reduce the costs of such complex facilities to the state.


             NEW SECTION. Sec. 2. The University of Washington and Washington State University each may:

             (1) Acquire, construct, rehabilitate, equip, and operate facilities and equipment to promote basic and applied research in the sciences;

             (2) Borrow money for such research purposes, including interest during construction and other incidental costs, issue revenue bonds or other evidences of indebtedness, refinance the same before or at maturity, and provide for the amortization of such indebtedness by pledging all or a component of the fees and revenues of the university available for such purpose derived from the ownership and operation of any of its facilities or conducting research that are not subject to appropriation by the legislature and that do not constitute general state revenues as defined in Article VIII, section 1 of the state Constitution;

             (3) Enter into leases, with or without an option to purchase, of real and personal property to be used in basic and applied research in the sciences; and

             (4) Lease all or a portion of such facilities and equipment as is deemed prudent by the university to provide for research conducted by persons or entities that are not part of the university but that provide rental income to support university research facilities or provide opportunities for the interaction of public and private research and research personnel, including students and faculty.


             NEW SECTION. Sec. 3. The governing body of a university financing facilities and equipment under this chapter shall give due regard to the costs of maintaining and operating such facilities and equipment during the useful lives of the facilities and equipment. No state appropriated funds may be used for (1) the payment of maintenance and operation of the facilities and equipment financed under this chapter; or (2) the grant or contract-supported research activities housed in these facilities. If funding through grants or contracts for research activities housed in these facilities is reduced, eliminated, or declared insufficient, the funding deficiencies are not a state obligation to be paid from the state general fund.


             NEW SECTION. Sec. 4. The authority granted by this chapter is supplemental to any existing or future authority granted to the University of Washington and Washington State University and shall not be construed to limit the existing or future authority of these universities.


             Sec. 5. RCW 28B.10.022 and 1989 c 356 s 6 are each amended to read as follows:

             The boards of regents of the state universities and the boards of trustees of the regional universities, The Evergreen State College, and the state board for community and technical colleges ((education)), are severally authorized to enter into financing contracts as provided in chapter 39.94 RCW. Except as provided in this section, financing contracts shall be subject to the approval of the state finance committee. Except for facilities financed under chapter 28B.--- RCW (sections 1 through 4 and 7 of this act), the board of regents of a state university may enter into financing contracts which are payable solely from and secured by all or any component of the fees and revenues of the university derived from its ownership and operation of its facilities not subject to appropriation by the legislature and not constituting "general state revenues," as defined in Article VIII, section 1 of the state Constitution, without the prior approval of the state finance committee. The board of regents shall notify the state finance committee at least sixty days prior to entering into such contract and provide information relating to such contract as requested by the state finance committee.


             Sec. 6. RCW 39.94.040 and 1998 c 291 s 5 are each amended to read as follows:

             (1) Except as provided in RCW 28B.10.022 and chapter 28B.--- RCW (sections 1 through 4 and 7 of this act), the state may not enter into any financing contract for itself if the aggregate principal amount payable thereunder is greater than an amount to be established from time to time by the state finance committee or participate in a program providing for the issuance of certificates of participation, including any contract for credit enhancement, without the prior approval of the state finance committee. Except as provided in RCW 28B.10.022, the state finance committee shall approve the form of all financing contracts or a standard format for all financing contracts. The state finance committee also may:

             (a) Consolidate existing or potential financing contracts into master financing contracts with respect to property acquired by one or more agencies, departments, instrumentalities of the state, the state board for community and technical colleges, or a state institution of higher learning; or to be acquired by an other agency;

             (b) Approve programs providing for the issuance of certificates of participation in master financing contracts for the state or for other agencies;

             (c) Enter into agreements with trustees relating to master financing contracts; and

             (d) Make appropriate rules for the performance of its duties under this chapter.

             (2) In the performance of its duties under this chapter, the state finance committee may consult with representatives from the department of general administration, the office of financial management, and the department of information services.

             (3) With the approval of the state finance committee, the state also may enter into agreements with trustees relating to financing contracts and the issuance of certificates of participation.

             (4) The state may not enter into any financing contract for real property of the state without prior approval of the legislature.

             (5) The state may not enter into any financing contract on behalf of an other agency without the approval of such a financing contract by the governing body of the other agency.


             NEW SECTION. Sec. 7. Before January 31st of each year, the University of Washington and Washington State University must report to the ways and means committee of the senate and the capital budget committee of the house of representatives on the financing arrangements entered into under the authority of this chapter.


             NEW SECTION. Sec. 8. Sections 1 through 4 and 7 of this act constitute a new chapter in Title 28B RCW."


             On page 1, line 1 of the title, after "universities;" strike the remainder of the title and insert "amending RCW 28B.10.022 and 39.94.040; and adding a new chapter to Title 28B RCW."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Substitute House Bill No. 2736 and advanced the bill as amended by the Senate to final passage.


             Representatives Esser and Murray spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2736 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Substitute House Bill No. 2736 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Substitute House Bill No. 2736.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 7, 2002

Mr. Speaker:


             The Senate has passed ENGROSSED HOUSE BILL NO. 2748, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 28A.185 RCW to read as follows:

             In order to ensure that school districts are meeting the requirements of an approved program for highly capable students, the superintendent of public instruction shall monitor highly capable programs at least once every five years. Monitoring shall begin during the 2002-03 school year.

             Any program review and monitoring under this section may be conducted concurrently with other program reviews and monitoring conducted by the office of the superintendent of public instruction. In its review, the office shall monitor program components that include but need not be limited to the process used by the district to identify and reach out to highly capable students with diverse talents and from diverse backgrounds, assessment data and other indicators to determine how well the district is meeting the academic needs of highly capable students, and district expenditures used to enrich or expand opportunities for these students.

             Beginning June 30, 2003, and every five years thereafter, the office of the superintendent of public instruction shall submit a report to the education committees of the house of representatives and the senate that provides a brief description of the various instructional programs offered to highly capable students.

             The superintendent of public instruction may adopt rules under chapter 34.05 RCW to implement this section."


             On page 1, line 2 of the title, after "students;" strike the remainder of the title and insert "and adding a new section to chapter 28A.185 RCW."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Engrossed House Bill No. 2748 and advanced the bill as amended by the Senate to final passage.


             Representatives Anderson and Schual-Berke spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 2748 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Engrossed House Bill No. 2748 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Engrossed House Bill No. 2748.


JEANNE EDWARDS, 1st District


SENATE AMENDMENTS TO HOUSE BILL

March 2, 2002

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2767, with the following amendment:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. A new section is added to chapter 74.08 RCW to read as follows:

             (1) Any person receiving public assistance is prohibited from using electronic benefit cards or cash obtained with electronic benefit cards:

             (a) For the purpose of participating in any of the activities authorized under chapter 9.46 RCW;

             (b) For the purpose of parimutuel wagering authorized under chapter 67.16 RCW; or

             (c) To purchase lottery tickets or shares authorized under chapter 67.70 RCW.

             (2)(a) The department shall notify, in writing, all recipients of electronic benefit cards that any violation of subsection (1) of this section could result in legal proceedings and forfeiture of all cash public assistance.

             (b) Whenever the department receives notice that a person has violated subsection (1) of this section, the department shall notify the person in writing that the violation could result in legal proceedings and forfeiture of all cash public assistance.

             (c) The department shall assign a protective payee to the person receiving public assistance who violates subsection (1) of this section.


             NEW SECTION. Sec. 2. A new section is added to chapter 9.46 RCW to read as follows:

             (1) Any licensee authorized under this chapter is prohibited from allowing the use of public assistance electronic benefit cards for the purpose of participating in any of the activities authorized under this chapter.

             (2) Any licensee authorized under this chapter shall report to the department of social and health services any known violations of section 1 of this act.


             NEW SECTION. Sec. 3. A new section is added to chapter 9.46 RCW to read as follows:

             The commission shall consider the provisions of section 2 of this act as elements to be negotiated with federally recognized Indian tribes as provided in RCW 9.46.360.


             NEW SECTION. Sec. 4. A new section is added to chapter 67.16 RCW to read as follows:

             (1) Any licensee authorized under this chapter is prohibited from allowing the use of public assistance electronic benefit cards for the purpose of parimutuel wagering authorized under this chapter.

             (2) Any licensee authorized under this chapter shall report to the department of social and health services any known violations of section 1 of this act.


             NEW SECTION. Sec. 5. A new section is added to chapter 67.70 RCW to read as follows:

             (1) Any licensee authorized under this chapter is prohibited from allowing the use of public assistance electronic benefit cards to purchase lottery tickets or shares authorized under this chapter.

             (2) Any licensee authorized under this chapter shall report to the department of social and health services any known violations of section 1 of this act."


             On page 1, line 1 of the title, after "cards;" strike the remainder of the title and insert "adding a new section to chapter 74.08 RCW; adding new sections to chapter 9.46 RCW; adding a new section to chapter 67.16 RCW; and adding a new section to chapter 67.70 RCW."


and the same is herewith transmitted.

Tony M. Cook, Secretary


             There being no objection, the House concurred in the Senate amendment to Substitute House Bill No. 2767 and advanced the bill as amended by the Senate to final passage.


             Representative Orcutt spoke in favor of the passage of the bill.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2767 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Berkey, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Chase, Clements, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Eickmeyer, Ericksen, Esser, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Mielke, Miloscia, Mitchell, Morell, Morris, Mulliken, Murray, Nixon, O'Brien, Ogden, Orcutt, Pearson, Pflug, Reardon, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tokuda, Upthegrove, Van Luven, Veloria, Wood, Woods and Mr. Speaker - 94.

             Excused: Representatives Edwards, Lisk, Quall, and Schmidt - 4.

  

             Substitute House Bill No. 2767 as amended by the Senate having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             If I had been present, I would have voted YEA on Substitute House Bill No. 2767.


JEANNE EDWARDS, 1st District


SIGNED BY THE SPEAKER


             The Speaker signed:


SUBSTITUTE HOUSE BILL NO. 1189,

SUBSTITUTE HOUSE BILL NO. 1395,

SUBSTITUTE HOUSE BILL NO. 1521,

SUBSTITUTE HOUSE BILL NO. 2031,

HOUSE BILL NO. 2286,

HOUSE BILL NO. 2313,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2326,

SUBSTITUTE HOUSE BILL NO. 2400,

SUBSTITUTE HOUSE BILL NO. 2466,

HOUSE BILL NO. 2537,

HOUSE BILL NO. 2550,

SUBSTITUTE HOUSE BILL NO. 2629,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2662,

HOUSE BILL NO. 2669,

SUBSTITUTE HOUSE BILL NO. 2800,

HOUSE BILL NO. 2824,

HOUSE BILL NO. 2902,

SUBSTITUTE SENATE BILL NO. 5400,

SENATE BILL NO. 5513,

SENATE BILL NO. 5594,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6060,

SENATE BILL NO. 6292,

SUBSTITUTE SENATE BILL NO. 6342,

SENATE BILL NO. 6379,

SENATE BILL NO. 6381,

SENATE BILL NO. 6416,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6464,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6588,

ENGROSSED SENATE BILL NO. 6675,


MESSAGE FROM THE SENATE

March 11, 2002

Mr. Speaker:


             The Senate has concurred in the House amendment to the following bills and passed the bills as amended by the House:

SENATE BILL NO. 5064,

SENATE BILL NO. 5138,

SUBSTITUTE SENATE BILL NO. 5166,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5207,

SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5291,

SUBSTITUTE SENATE BILL NO. 5354,

SUBSTITUTE SENATE BILL NO. 5552,

SUBSTITUTE SENATE BILL NO. 5369,

ENGROSSED SENATE BILL NO. 5624,

ENGROSSED SENATE BILL NO. 5626,

ENGROSSED SENATE BILL NO. 5692,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5748,

ENGROSSED SENATE BILL NO. 5954,

SECOND ENGROSSED SENATE BILL NO. 6001,

SUBSTITUTE SENATE BILL NO. 6037,

SECOND SUBSTITUTE SENATE BILL NO. 6080,

ENGROSSED SENATE BILL NO. 6232,

SUBSTITUTE SENATE BILL NO. 6233,

and the same are herewith transmitted.

Brad Hendrickson, Deputy Secretary


SECOND READING


             HOUSE BILL NO. 2901, by Representatives Conway, Clements, Reardon, Berkey, Kenney, Santos, Lovick, Chase, Simpson, Wood and Sullivan


             Regarding unemployment insurance.


             The bill was read the second time.


             Representative Conway moved the adoption of amendment (507):


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 50.22.140 and 2000 2nd sp.s. c 1 s 916 are each amended to read as follows:

             (1) The employment security department is authorized to pay training benefits under RCW 50.22.150, but may not obligate expenditures beyond the limits specified in this section or as otherwise set by the legislature. For the fiscal year ending June 30, 2000, the commissioner may not obligate more than twenty million dollars for training benefits. For the two fiscal years ending June 30, 2002, the commissioner may not obligate more than sixty million dollars for training benefits. Any funds not obligated in one fiscal year may be carried forward to the next fiscal year. For each fiscal year beginning after June 30, 2002, the commissioner may not obligate more than twenty million dollars annually in addition to any funds carried ((over)) forward from previous fiscal years. The department shall develop a process to ensure that expenditures do not exceed available funds and to prioritize access to funds when again available.

             (2) After June 30, 2002, in addition to the amounts that may be obligated under subsection (1) of this section, the commissioner may obligate up to thirty-four million dollars for training benefits under RCW 50.22.150 for individuals in the aerospace industry assigned the standard industrial classification code "372" or the North American industry classification system code "336411" whose claims are filed before January 5, 2003. The funds provided in this subsection must be fully obligated for training benefits for these individuals before the funds provided in subsection (1) of this section may be obligated for training benefits for these individuals. Any amount of the funds specified in this subsection that is not obligated as permitted may not be carried forward to any future period.


             Sec. 2. RCW 50.22.150 and 2000 c 2 s 8 are each amended to read as follows:

             (1) Subject to availability of funds, training benefits are available for an individual who is eligible for or has exhausted entitlement to unemployment compensation benefits and who:

             (a) Is a dislocated worker as defined in RCW 50.04.075;

             (b) Except as provided under subsection (2) of this section, has demonstrated, through a work history, sufficient tenure in an occupation or in work with a particular skill set. This screening will take place during the assessment process;

             (c) Is, after assessment of demand for the individual's occupation or skills in the individual's labor market, determined to need job-related training to find suitable employment in his or her labor market. Beginning July 1, 2001, the assessment of demand for the individual's occupation or skill sets must be substantially based on declining occupation or skill sets identified in local labor market areas by the local work force development councils, in cooperation with the employment security department and its labor market information division, under subsection (((9))) (10) of this section;

             (d) Develops an individual training program that is submitted to the commissioner for approval within sixty days after the individual is notified by the employment security department of the requirements of this section;

             (e) Enters the approved training program by ninety days after the date of the notification, unless the employment security department determines that the training is not available during the ninety-day period, in which case the individual enters training as soon as it is available; and

             (f) Is enrolled in training approved under this section on a full-time basis as determined by the educational institution, and is making satisfactory progress in the training as certified by the educational institution.

             (2) Until June 30, 2002, the following individuals who meet the requirements of subsection (1) of this section may, without regard to the tenure requirements under subsection (1)(b) of this section, receive training benefits as provided in this section:

             (a) An exhaustee who has base year employment in the aerospace industry assigned the standard industrial classification code "372" or the North American industry classification system code "336411";

             (b) An exhaustee who has base year employment in the forest products industry, determined by the department, but including the industries assigned the major group standard industrial classification codes "24" and "26" or any equivalent codes in the North American industry classification system code, and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment; or

             (c) An exhaustee who has base year employment in the fishing industry assigned the standard industrial classification code "0912" or any equivalent codes in the North American industry classification system code.

             (3) An individual is not eligible for training benefits under this section if he or she:

             (a) Is a standby claimant who expects recall to his or her regular employer;

             (b) Has a definite recall date that is within six months of the date he or she is laid off; or

             (c) Is unemployed due to a regular seasonal layoff which demonstrates a pattern of unemployment consistent with the provisions of RCW 50.20.015. Regular seasonal layoff does not include layoff due to permanent structural downsizing or structural changes in the individual's labor market.

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

             (a) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410, including equivalent educational institutions in other states.

             (b) "Sufficient tenure" means earning a plurality of wages in a particular occupation or using a particular skill set during the base year and at least two of the four twelve-month periods immediately preceding the base year.

             (c) "Training benefits" means additional benefits paid under this section.

             (d) "Training program" means:

             (i) An education program determined to be necessary as a prerequisite to vocational training after counseling at the educational institution in which the individual enrolls under his or her approved training program; or

             (ii) A vocational training program at an educational institution:

             (A) That is targeted to training for a high demand occupation. Beginning July 1, 2001, the assessment of high demand occupations authorized for training under this section must be substantially based on labor market and employment information developed by local work force development councils, in cooperation with the employment security department and its labor market information division, under subsection (((9))) (10) of this section;

             (B) That is likely to enhance the individual's marketable skills and earning power; and

             (C) That meets the criteria for performance developed by the work force training and education coordinating board for the purpose of determining those training programs eligible for funding under Title I of P.L. 105-220.

             "Training program" does not include any course of education primarily intended to meet the requirements of a baccalaureate or higher degree, unless the training meets specific requirements for certification, licensing, or for specific skills necessary for the occupation.

             (5) Benefits shall be paid as follows:

             (a)(i) Except as provided in (a)(iii) of this subsection, for exhaustees who are eligible under subsection (1) of this section, the total training benefit amount shall be fifty-two times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year; or

             (ii) For exhaustees who are eligible under subsection (2) of this section, for claims filed before June 30, 2002, the total training benefit amount shall be seventy-four times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year. ((Beginning with new claims filed after June 30, 2002, for exhaustees eligible under subsection (2) of this section, the total training benefit amount shall be fifty-two times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year)); or

             (iii) For exhaustees eligible under subsection (1) of this section from industries listed under subsection (2)(a) of this section, for claims filed on or after June 30, 2002, but before January 5, 2003, the total training benefit amount shall be seventy-four times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year.

             (b) The weekly benefit amount shall be the same as the regular weekly amount payable during the applicable benefit year and shall be paid under the same terms and conditions as regular benefits. The training benefits shall be paid before any extended benefits but not before any similar federally funded program.

             (c) Training benefits are not payable for weeks more than two years beyond the end of the benefit year of the regular claim.

             (6) The requirement under RCW 50.22.010(10) relating to exhausting regular benefits does not apply to an individual otherwise eligible for training benefits under this section when the individual's benefit year ends before his or her training benefits are exhausted and the individual is eligible for a new benefit year. These individuals will have the option of remaining on the original claim or filing a new claim.

             (7)(a) Except as provided in (b) of this subsection, individuals who receive training benefits under this section or under any previous additional benefits program for training are not eligible for training benefits under this section for five years from the last receipt of training benefits under this section or under any previous additional benefits program for training.

             (b) With respect to claims that are filed before January 5, 2003, an individual in the aerospace industry assigned the standard industrial code "372" or the North American industry classification system code "336411" who received training benefits under this section, and who had been making satisfactory progress in a training program but did not complete the program, is eligible, without regard to the five-year limitation of this section and without regard to the requirement of subsection (1)(b) of this section, if applicable, to receive training benefits under this section in order to complete that training program. The total training benefit amount that applies to the individual is seventy-four times the individual's weekly benefit amount, reduced by the total amount of regular benefits paid, or deemed paid, with respect to the benefit year in which the training program resumed and, if applicable, reduced by the amount of training benefits paid, or deemed paid, with respect to the benefit year in which the training program commenced.

             (8) An individual eligible to receive a trade readjustment allowance under chapter 2 of Title II of the Trade Act of 1974, as amended, shall not be eligible to receive benefits under this section for each week the individual receives such trade readjustment allowance. An individual eligible to receive emergency unemployment compensation, so called, under any federal law, shall not be eligible to receive benefits under this section for each week the individual receives such compensation.

             (9) All base year employers are interested parties to the approval of training and the granting of training benefits.

             (((9))) (10) By July 1, 2001, each local work force development council, in cooperation with the employment security department and its labor market information division, must identify occupations and skill sets that are declining and occupations and skill sets that are in high demand. For the purposes of RCW 50.22.130 through 50.22.150 and section 9, chapter 2, Laws of 2000, "high demand" means demand for employment that exceeds the supply of qualified workers for occupations or skill sets in a labor market area. Local work force development councils must use state and locally developed labor market information. Thereafter, each local work force development council shall update this information annually or more frequently if needed.

             (((10))) (11) The commissioner shall adopt rules as necessary to implement this section.


             NEW SECTION. Sec. 3. A new section is added to chapter 50.20 RCW to read as follows:

             (1) From July 1, 2002, to June 30, 2004, the maximum amount payable weekly shall be four hundred ninety-six dollars.

             (2) From July 1, 2004, to June 30, 2010, the maximum amount payable weekly shall be seventy percent of the "average weekly wage" for the calendar year preceding such June 30th, except that the maximum amount payable weekly shall not increase by more than four percent each year. If growth in the average annual wage causes growth in the maximum amount payable weekly that exceeds four percent, then fifty percent of the growth rate that exceeds four percent shall be added to the maximum amount payable weekly in any of the subsequent three years. For years in which the potential recaptured growth rate exceeds the growth rate needed to reach four percent, the excess recaptured growth rate is available to be added to the maximum amount payable weekly in the remaining years in the three-year period. Each year, the department shall add any excess recaptured growth rate to the maximum amount payable weekly. Remaining portions of the excess additional growth rate not applied within the three-year period shall lapse. The sum of the growth rate and the excess additional growth rate shall not exceed four percent.

             (3) If the maximum amount payable weekly is less than seventy percent of the average weekly wage on June 30, 2010, it shall be restored to seventy percent of the average weekly wage using one of the following methods. The maximum amount payable weekly may be restored: (a) In equal increments in the four fiscal years ending on June 30, 2014; or (b) in increments which, together with the growth rate in the maximum amount payable weekly, do not exceed nine percent in each fiscal year. The applicable method is the method that restores the maximum amount payable weekly to seventy percent of the average weekly wage first.


             Sec. 4. RCW 50.20.120 and 1993 c 483 s 12 are each amended to read as follows:

             (1) Subject to the other provisions of this title, benefits shall be payable to any eligible individual during the individual's benefit year in a maximum amount equal to the lesser of thirty times the weekly benefit amount (determined hereinafter) or one-third of the individual's base year wages under this title: PROVIDED, That as to any week beginning on and after March 31, 1981, which falls in an extended benefit period as defined in RCW 50.22.010(1), as now or hereafter amended, an individual's eligibility for maximum benefits in excess of twenty-six times his or her weekly benefit amount will be subject to the terms and conditions set forth in RCW 50.22.020, as now or hereafter amended.

             (2) An individual's weekly benefit amount shall be an amount equal to one twenty-fifth of the average quarterly wages of the individual's total wages during the two quarters of the individual's base year in which such total wages were highest. The maximum and minimum amounts payable weekly shall be determined as of each June 30th to apply to benefit years beginning in the twelve-month period immediately following such June 30th. Except as provided in section 3 of this act, the maximum amount payable weekly shall be seventy percent of the "average weekly wage" for the calendar year preceding such June 30th. The minimum amount payable weekly shall be fifteen percent of the "average weekly wage" for the calendar year preceding such June 30th. If any weekly benefit, maximum benefit, or minimum benefit amount computed herein is not a multiple of one dollar, it shall be reduced to the next lower multiple of one dollar.


             Sec. 5. RCW 50.24.010 and 2000 c 2 s 2 are each amended to read as follows:

             (1) Contributions shall accrue and become payable by each employer (except employers as described in RCW 50.44.010 who have properly elected to make payments in lieu of contributions and those employers who are required to make payments in lieu of contributions) for each calendar year in which the employer is subject to this title at the rate established pursuant to chapter 50.29 RCW.

             (2) In each rate year, the amount of wages subject to tax for each individual shall be one hundred fifteen percent of the amount of wages subject to tax for the previous year rounded to the next lower one hundred dollars, except that:

             (a) For employers assigned under RCW 50.29.025 to rate class 1 through 18, the amount of wages subject to tax in any rate year shall not exceed eighty percent of the "average annual wage for contributions purposes" for the second preceding calendar year rounded to the next lower one hundred dollars. ((However, the amount subject to tax shall be twenty-four thousand three hundred dollars for rate year 2000.))

             (b) For employers assigned under RCW 50.29.025 to rate class 19 through 20E, and contribution paying employers not qualified to be in the array under RCW 50.29.025(6), the amount of wages subject to tax:

             (i) For rate year 2003, shall not exceed eighty-five percent of the "average annual wage for contributions purposes" for the second preceding calendar year rounded to the next lower one hundred dollars.

             (ii) For rate year 2004 and thereafter, shall not exceed ninety percent of the "average annual wage for contributions purposes" for the second preceding calendar year rounded to the next lower one hundred dollars.

             (3) In making computations under this section and RCW 50.29.010, wages paid based on services for employers making payments in lieu of contributions shall not be considered remuneration. Moneys paid from the fund, based on services performed for employers who make payments in lieu of contributions, which have not been reimbursed to the fund as of any June 30 shall be deemed an asset of the unemployment compensation fund, to the extent that such moneys exceed the amount of payments in lieu of contributions which the commissioner has previously determined to be uncollectible: PROVIDED, FURTHER, That the amount attributable to employment with the state shall also include interest as provided for in RCW 50.44.020.

             (4)(a) Contributions shall become due and be paid by each employer to the treasurer for the unemployment compensation fund in accordance with such regulations as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in employment of the employer. Any deduction in violation of the provisions of this section shall be unlawful.

             (b) In the payment of any contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.


             Sec. 6. RCW 50.29.020 and 2000 c 2 s 3 are each amended to read as follows:

             (1) An experience rating account shall be established and maintained for each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, based on existing records of the employment security department. Benefits paid to any eligible individuals shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.

             (2) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:

             (a) Benefits paid to any individuals later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer.

             (b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer only if:

             (i) The individual files under RCW 50.06.020(1) after receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or

             (ii) The individual files under RCW 50.06.020(2).

             (c) Benefits paid which represent the state's share of benefits payable as extended benefits defined under RCW 50.22.010(6) shall not be charged to the experience rating account of any contribution paying employer.

             (d) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.

             (e) In the case of individuals identified under RCW 50.20.015, benefits paid with respect to a calendar quarter, which exceed the total amount of wages earned in the state of Washington in the higher of two corresponding calendar quarters included within the individual's determination period, as defined in RCW 50.20.015, shall not be charged to the experience rating account of any contribution paying employer.

             (((f) Benefits paid under RCW 50.22.150 shall not be charged to the experience rating account of any contribution paying employer.))

             (3)(a) A contribution-paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:

             (i) Last left the employ of such employer voluntarily for reasons not attributable to the employer;

             (ii) Was discharged for misconduct connected with his or her work not a result of inability to meet the minimum job requirements;

             (iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, work site, or other facility. This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or

             (iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer. Benefit charge relief ceases when the employment relationship between the employer requesting relief and the claimant is terminated. This subsection does not apply to shared work employers under chapter 50.60 RCW.

             (b) The employer requesting relief of charges under this subsection must request relief in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be granted.


             Sec. 7. RCW 50.29.025 and 2000 c 2 s 4 are each amended to read as follows:

             The contribution rate for each employer subject to contributions under RCW 50.24.010 shall be determined under this section.

             (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the September 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

             (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year, except that during rate year 2004 tax schedule C shall be in effect unless a lower tax schedule is determined to be in effect by the interval of the fund balance ratio. The intervals for determining the effective tax schedule shall be:

 

                           Interval of the

                       Fund Balance Ratio                                                                                                               Effective

                  Expressed as a Percentage                                                                                                    Tax Schedule

 

                          2.90 and above                                                                                                                          AA

                          2.10 to 2.89                                                                                                                                  A

                          1.70 to 2.09                                                                                                                                  B

                          1.40 to 1.69                                                                                                                                  C

                          1.00 to 1.39                                                                                                                                  D

                          0.70 to 0.99                                                                                                                                  E

                          Less than 0.70                                                                                                                              F

 

             (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

             (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

             (5)(a) Except as provided in RCW 50.29.026 and sections 9 and 10 of this act, the contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:

 

                           ((Percent of

                           Cumulative   Schedules of Contributions Rates

                       Taxable Payrolls    for Effective Tax Schedule

 

                                    Rate

                  From  To Class   AA      A     B       C     D       E       F

 

                 0.00   5.00    1    0.47   0.47 0.57   0.97 1.47   1.87   2.47

                 5.01 10.00    2    0.47   0.47 0.77   1.17 1.67   2.07   2.67

               10.01 15.00    3    0.57   0.57 0.97   1.37 1.77   2.27   2.87

               15.01 20.00    4    0.57   0.73 1.11   1.51 1.90   2.40   2.98

               20.01 25.00    5    0.72   0.92 1.30   1.70 2.09   2.59   3.08

               25.01 30.00    6    0.91   1.11 1.49   1.89 2.29   2.69   3.18

               30.01 35.00    7    1.00   1.29 1.69   2.08 2.48   2.88   3.27

               35.01 40.00    8    1.19   1.48 1.88   2.27 2.67   3.07   3.47

               40.01 45.00    9    1.37   1.67 2.07   2.47 2.87   3.27   3.66

               45.01 50.00  10    1.56   1.86 2.26   2.66 3.06   3.46   3.86

               50.01 55.00  11    1.84   2.14 2.45   2.85 3.25   3.66   3.95

               55.01 60.00  12    2.03   2.33 2.64   3.04 3.44   3.85   4.15

               60.01 65.00  13    2.22   2.52 2.83   3.23 3.64   4.04   4.34

               65.01 70.00  14    2.40   2.71 3.02   3.43 3.83   4.24   4.54

               70.01 75.00  15    2.68   2.90 3.21   3.62 4.02   4.43   4.63

               75.01 80.00  16    2.87   3.09 3.69   3.81 4.22   4.53   4.73

               80.01 85.00  17    3.27   3.47 3.77   4.17 4.57   4.87   4.97

               85.01 90.00  18    3.67   3.87 4.17   4.57 4.87   4.97   5.17

               90.01 95.00  19    4.07   4.27 4.57   4.97 5.07   5.17   5.37

               95.01100.00 20    5.40   5.40 5.40   5.40 5.40   5.40   5.40))

                             Percent of

                           Cumulative   Schedules of Contributions Rates

                       Taxable Payrolls    for Effective Tax Schedule

 

                                    Rate

                  From  To Class   AA      A     B       C     D       E       F

 

                 0.00   5.00    1    0.47   0.47 0.62   1.02 1.47   1.87   2.47

                 5.01 10.00    2    0.47   0.47 0.82   1.22 1.67   2.07   2.67

               10.01 15.00    3    0.57   0.57 1.02   1.42 1.77   2.27   2.87

               15.01 20.00    4    0.57   0.73 1.16   1.56 1.90   2.40   2.98

               20.01 25.00    5    0.72   0.92 1.30   1.70 2.09   2.59   3.08

               25.01 30.00    6    0.91   1.11 1.49   1.89 2.29   2.69   3.18

               30.01 35.00    7    1.00   1.29 1.69   2.08 2.48   2.88   3.27

               35.01 40.00    8    1.19   1.48 1.88   2.27 2.67   3.07   3.47

               40.01 45.00    9    1.37   1.67 2.07   2.47 2.87   3.27   3.66

               45.01 50.00  10    1.56   1.86 2.26   2.66 3.06   3.46   3.86

               50.01 55.00  11    1.84   2.14 2.45   2.85 3.25   3.66   3.95

               55.01 60.00  12    2.03   2.33 2.64   3.04 3.44   3.85   4.15

               60.01 65.00  13    2.22   2.52 2.83   3.23 3.64   4.04   4.34

               65.01 70.00  14    2.40   2.71 3.02   3.43 3.83   4.24   4.54

               70.01 75.00  15    2.68   2.90 3.21   3.62 4.02   4.43   4.63

               75.01 80.00  16    2.87   3.09 3.42   3.81 4.22   4.53   4.73

               80.01 85.00  17    3.27   3.47 3.77   4.17 4.57   4.87   4.97

               85.01 90.00  18    3.67   3.87 4.17   4.57 4.87   4.97   5.17

               90.01 95.00  19    4.10   4.30 4.60   5.00 5.10   5.20   5.40

               95.01100.00 20                                                  

                                20A    5.40   5.40 5.40   5.40 5.40   5.55   5.60

                                20B    5.40   5.45 5.50   5.55 5.60   5.65   5.70

                                20C    5.50   5.55 5.60   5.65 5.70   5.75   5.80

                                20D    5.60   5.65 5.70   5.75 5.80   5.85   5.90

                                 20E    5.70   5.75 5.80   5.85 5.90   5.95   6.00

 

          (b) Employers assigned to rate class 20 shall be assigned to one of the rate classes 20A through E as follows:

          (i) Employers with a benefit ratio of less than 0.054000 shall be assigned to rate class 20A;

          (ii) Employers with a benefit ratio of at least 0.054000 but less than 0.063000 shall be assigned to rate class 20B;

          (iii) Employers with a benefit ratio of at least 0.063000 but less than 0.068000 shall be assigned to rate class 20C;

          (iv) Employers with a benefit ratio of at least 0.068000 but less than 0.075000 shall be assigned to rate class 20D; and

          (v) Employers with a benefit ratio of 0.075000 or higher shall be assigned to rate class 20E.

          (c) The maximum contribution rate for employers whose standard industrial classification code is within major group "01," "02," or "07," or is code "5148," or the equivalent code in the North American industry classification system code, may not exceed the rate in rate class 20A for the applicable rate year.

          (6) Except as provided in sections 9 and 10 of this act, the contribution rate for each employer not qualified to be in the array shall be as follows:

          (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned a contribution rate two-tenths higher than that in rate class 20E for the applicable rate year, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to a contribution rate two-tenths higher than that in rate class 20E for the applicable rate year; and

          (b) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this section, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the standard industrial classification code, or in the North American industry classification system code.


          Sec. 8. RCW 50.29.025 and 2000 c 2 s 4 are each amended to read as follows:

          The contribution rate for each employer subject to contributions under RCW 50.24.010 shall be determined under this section.

          (1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the September 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

          (2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:

 

                              Interval of the

                         Fund Balance Ratio                                                                                                             Effective

                    Expressed as a Percentage                                                                                                 Tax Schedule

 

                            2.90 and above                                                                                                                       AA

                            2.10 to 2.89                                                                                                                               A

                            1.70 to 2.09                                                                                                                               B

                            1.40 to 1.69                                                                                                                               C

                            1.00 to 1.39                                                                                                                               D

                            0.70 to 0.99                                                                                                                                E

                            Less than 0.70                                                                                                                            F

 

          (3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

          (4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

          (5)(a) Except as provided in RCW 50.29.026 and sections 9 and 10 of this act, the contribution rate for each employer in the array shall be the rate specified in the following tables for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:

 

                           ((Percent of

                           Cumulative   Schedules of Contributions Rates

                       Taxable Payrolls    for Effective Tax Schedule

 

                                    Rate

                  From  To Class   AA      A     B       C     D       E       F

 

                 0.00   5.00    1    0.47   0.47 0.57   0.97 1.47   1.87   2.47

                 5.01 10.00    2    0.47   0.47 0.77   1.17 1.67   2.07   2.67

               10.01 15.00    3    0.57   0.57 0.97   1.37 1.77   2.27   2.87

               15.01 20.00    4    0.57   0.73 1.11   1.51 1.90   2.40   2.98

               20.01 25.00    5    0.72   0.92 1.30   1.70 2.09   2.59   3.08

               25.01 30.00    6    0.91   1.11 1.49   1.89 2.29   2.69   3.18

               30.01 35.00    7    1.00   1.29 1.69   2.08 2.48   2.88   3.27

               35.01 40.00    8    1.19   1.48 1.88   2.27 2.67   3.07   3.47

               40.01 45.00    9    1.37   1.67 2.07   2.47 2.87   3.27   3.66

               45.01 50.00  10    1.56   1.86 2.26   2.66 3.06   3.46   3.86

               50.01 55.00  11    1.84   2.14 2.45   2.85 3.25   3.66   3.95

               55.01 60.00  12    2.03   2.33 2.64   3.04 3.44   3.85   4.15

               60.01 65.00  13    2.22   2.52 2.83   3.23 3.64   4.04   4.34

               65.01 70.00  14    2.40   2.71 3.02   3.43 3.83   4.24   4.54

               70.01 75.00  15    2.68   2.90 3.21   3.62 4.02   4.43   4.63

               75.01 80.00  16    2.87   3.09 3.69   3.81 4.22   4.53   4.73

               80.01 85.00  17    3.27   3.47 3.77   4.17 4.57   4.87   4.97

               85.01 90.00  18    3.67   3.87 4.17   4.57 4.87   4.97   5.17

               90.01 95.00  19    4.07   4.27 4.57   4.97 5.07   5.17   5.37

               95.01100.00 20    5.40   5.40 5.40   5.40 5.40   5.40   5.40))

                             Percent of

                           Cumulative   Schedules of Contributions Rates

                       Taxable Payrolls    for Effective Tax Schedule

 

                                    Rate

                  From  To Class   AA      A     B       C     D       E       F

 

                 0.00   5.00    1    0.47   0.47 0.62   1.02 1.47   1.87   2.47

                 5.01 10.00    2    0.47   0.47 0.82   1.22 1.67   2.07   2.67

               10.01 15.00    3    0.57   0.57 1.02   1.42 1.77   2.27   2.87

               15.01 20.00    4    0.57   0.73 1.14   1.54 1.90   2.40   2.98

               20.01 25.00    5    0.72   0.92 1.30   1.70 2.09   2.59   3.08

               25.01 30.00    6    0.91   1.03 1.44   1.89 2.29   2.69   3.18

               30.01 35.00    7    1.00   1.17 1.61   2.08 2.48   2.88   3.27

               35.01 40.00    8    1.19   1.35 1.79   2.27 2.67   3.07   3.47

               40.01 45.00    9    1.37   1.52 1.97   2.47 2.87   3.27   3.66

               45.01 50.00  10    1.56   1.69 2.15   2.66 3.06   3.46   3.86

               50.01 55.00  11    1.84   1.95 2.33   2.85 3.25   3.66   3.95

               55.01 60.00  12    2.03   2.12 2.51   3.04 3.44   3.85   4.15

               60.01 65.00  13    2.22   2.29 2.69   3.23 3.64   4.04   4.34

               65.01 70.00  14    2.40   2.47 2.87   3.43 3.83   4.24   4.54

               70.01 75.00  15    2.64   2.68 3.05   3.62 4.02   4.43   4.63

               75.01 80.00  16    2.81   2.87 3.25   3.81 4.22   4.53   4.73

               80.01 85.00  17    3.27   3.30 3.58   4.17 4.57   4.87   4.97

               85.01 90.00  18    3.67   3.87 4.17   4.57 4.87   4.97   5.17

               90.01 95.00  19    4.10   4.30 4.60   5.00 5.10   5.20   5.40

               95.01100.00 20                                                  

                                20A    5.40   5.40 5.40   5.40 5.40   5.55   5.60

                                20B    5.40   5.45 5.50   5.55 5.60   5.65   5.70

                                20C    5.50   5.55 5.60   5.65 5.70   5.75   5.80

                                20D    5.60   5.65 5.70   5.75 5.80   5.85   5.90

                                 20E    5.70   5.75 5.80   5.85 5.90   5.95   6.00

 

          (b) Employers assigned to rate class 20 shall be assigned to one of the rate classes 20A through E as follows:

          (i) Employers with a benefit ratio of less than 0.054000 shall be assigned to rate class 20A;

          (ii) Employers with a benefit ratio of at least 0.054000 but less than 0.063000 shall be assigned to rate class 20B;

          (iii) Employers with a benefit ratio of at least 0.063000 but less than 0.068000 shall be assigned to rate class 20C;

          (iv) Employers with a benefit ratio of at least 0.068000 but less than 0.075000 shall be assigned to rate class 20D; and

          (v) Employers with a benefit ratio of 0.075000 or higher shall be assigned to rate class 20E.

          (c) The maximum contribution rate for employers whose standard industrial classification code is within major group "01," "02," or "07," or is code "5148," or the equivalent code in the North American industry classification system code, may not exceed the rate in rate class 20A for the applicable rate year.

          (6) Except as provided in sections 9 and 10 of this act, the contribution rate for each employer not qualified to be in the array shall be as follows:

          (a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned a contribution rate two-tenths higher than that in rate class 20E for the applicable rate year, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to a contribution rate two-tenths higher than that in rate class 20E for the applicable rate year; and

          (b) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this section, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the standard industrial classification code, or in the North American industry classification system code.


          NEW SECTION. Sec. 9. A new section is added to chapter 50.29 RCW to read as follows:

          For rate years 2003 and 2004, the contribution rate of each employer subject to contributions under RCW 50.24.010 shall include, in addition to the contribution rate under RCW 50.29.025, an insolvency surcharge of fifteen one-hundredths of one percent. However, the insolvency surcharge is not in effect:

          (1) For rate year 2003, if, before January 1, 2003, federal Reed act moneys are transferred to the account of this state pursuant to section 903 of the social security act (42 U.S.C. Sec. 1103), as amended, in an amount equal to or greater than fifteen one-hundredths of one percent multiplied by the amount of total taxable payroll for fiscal year 2002.

          (2) For rate year 2004, if the fund balance ratio under RCW 50.29.025 is equal to or greater than 1.40 on September 30, 2003.


          NEW SECTION. Sec. 10. A new section is added to chapter 50.29 RCW to read as follows:

          (1) Beginning with contributions assessed for rate year 2005, the contribution rate of each employer subject to contributions under RCW 50.24.010 shall include, in addition to the contribution rate under RCW 50.29.025, an equity surcharge as determined under this section if the employer's experience rating account has ineffective charges in at least three of the four completed fiscal years immediately preceding the computation date. The commissioner shall determine the equity surcharge rate for a rate year for each applicable employer as follows:

          (a) If the employer's net ineffective charges are equal to or less than zero, no equity surcharge is applicable to the employer. If the employer's net ineffective charges are greater than zero, an equity surcharge is applicable to the employer.

          (b) An employer's equity surcharge rate for a rate year is equal to the net ineffective charges divided by the employer's taxable payroll, expressed as a percentage.

          (2) The equity surcharge may not exceed four-tenths of one percent, except that for any given rate year the maximum surcharge is six-tenths of one percent if the commissioner determines that the total ineffective charges in the completed fiscal year immediately preceding the computation date is greater than fifteen percent of the total benefits paid in that fiscal year.

          (3) This section does not apply to an employer in rate class 20A through 20E whose assigned standard industrial classification code is within major group "09" or is "203," or the equivalent codes in the North American industry classification system code.

          (4) For purposes of this section:

          (a) "Ineffective charges" means the dollar amount charged in the previous four completed fiscal years to an employer's experience rating account attributable to unemployment benefits paid to claimants that exceed the contributions paid by the respective employer in those four fiscal years.

          (b) "Net ineffective charges" means the sum of the employer's ineffective charges as defined in (a) of this subsection reduced by the employer's estimated contributions.

          (c) "Estimated contributions" means the employer's taxable payroll multiplied by the employer's contribution rate assigned under RCW 50.29.025 for the next applicable rate year.

          (d) "Taxable payroll" means the amount of wages subject to tax for the employer as determined under RCW 50.24.010 in the completed fiscal year immediately preceding the computation date.


          Sec. 11. RCW 50.29.010 and 1987 c 213 s 2 are each amended to read as follows:

          As used in this chapter:

          (1) "Computation date" means July 1st of any year;

          (2) "Cut-off date" means September 30th next following the computation date;

          (3) "Qualification date" means April 1st of the ((third)) second year preceding the computation date;

          (4) "Rate year" means the calendar year immediately following the computation date;

          (5) "Payroll" means all wages (as defined for contribution purposes) paid by an employer to individuals in his or her employment;

          (6) "Qualified employer" means any employer who (((1))) (a) reported some employment in the twelve-month period beginning with the qualification date, (((2))) (b) had no period of four or more consecutive calendar quarters for which he or she reported no employment in the two calendar years immediately preceding the computation date, and (((3))) (c) has submitted by the cut-off date all reports, contributions, interest, and penalties required under this title for the period preceding the computation date. Unpaid contributions, interest, and penalties may be disregarded for the purposes of this section if they constitute less than either one hundred dollars or one-half of one percent of the employer's total tax reported for the twelve-month period immediately preceding the computation date. Late reports, contributions, penalties, or interest from employment defined under RCW 50.04.160 may be disregarded for the purposes of this section if showing is made to the satisfaction of the commissioner that an otherwise qualified employer acted in good faith and that forfeiture of qualification for a reduced contribution rate because of such delinquency would be inequitable.


          Sec. 12. RCW 50.29.062 and 1996 c 238 s 1 are each amended to read as follows:

          Predecessor and successor employer contribution rates shall be computed in the following manner:

          (1) If the successor is an employer, as defined in RCW 50.04.080, at the time of the transfer, its contribution rate shall remain unchanged for the remainder of the rate year in which the transfer occurs. From and after January 1 following the transfer, the successor's contribution rate for each rate year shall be based on its experience with payrolls and benefits including the experience of the acquired business or portion of a business from the date of transfer, as of the regular computation date for that rate year.

          (2) If the successor is not an employer at the time of the transfer, it shall pay contributions at the lowest rate determined under either of the following:

          (a)(i) For transfers before January 1, 1997, the contribution rate of the rate class assigned to the predecessor employer at the time of the transfer for the remainder of that rate year and continuing until the successor qualifies for a different rate in its own right;

          (ii) For transfers on or after January 1, 1997, the contribution rate of the rate class assigned to the predecessor employer at the time of the transfer for the remainder of that rate year. Any experience relating to the assignment of that rate class attributable to the predecessor is transferred to the successor. Beginning with the January 1 following the transfer, the successor's contribution rate shall be based on the transferred experience of the acquired business and the successor's experience after the transfer; or

          (b) The contribution rate equal to the average industry rate as determined by the commissioner, but not less than one percent, and continuing until the successor qualifies for a different rate in its own right. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, must be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the standard industrial classification code, or in the North American industry classification code system.

          (3) If the successor is not an employer at the time of the transfer and simultaneously acquires the business or a portion of the business of two or more employers in different rate classes, its rate from the date the transfer occurred until the end of that rate year and until it qualifies in its own right for a new rate, shall be the highest rate class applicable at the time of the acquisition to any predecessor employer who is a party to the acquisition, but not less than one percent.

          (4) If the successor is not an employer at the time of the transfer, the taxable wage base applicable to the predecessor employer at the time of the transfer shall continue to apply to the successor employer for the remainder of the rate year in which the transfer occurs.

          (5) The contribution rate on any payroll retained by a predecessor employer shall remain unchanged for the remainder of the rate year in which the transfer occurs.

          (((5))) (6) In all cases, from and after January 1 following the transfer, the predecessor's contribution rate for each rate year shall be based on its experience with payrolls and benefits as of the regular computation date for that rate year including the experience of the acquired business or portion of business up to the date of transfer: PROVIDED, That if all of the predecessor's business is transferred to a successor or successors, the predecessor shall not be a qualified employer until it satisfies the requirements of a "qualified employer" as set forth in RCW 50.29.010.

          In addition to contributions at rates computed under this section, predecessor and successor employers are subject to contributions under rates computed as provided in sections 9 and 10 of this act.


          Sec. 13. RCW 50.24.014 and 2000 c 2 s 15 are each amended to read as follows:

          (1)(a) A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund. Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at a basic rate of two one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010.

          (b) A separate and identifiable account is established in the administrative contingency fund for financing the employment security department's administrative cost under RCW 50.22.150 ((and)), the costs under RCW 50.22.150(9), and the administrative cost under chapter . . ., Laws of 2002 (this act). Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, those employers who are required to make payments in lieu of contributions, those employers described under RCW 50.29.025(6)(b), and those qualified employers assigned one of the rate classes 20A through 20E under RCW 50.29.025, at a basic rate of one one-hundredth of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010. ((Any amount of contributions payable under this subsection (1)(b) that exceeds the amount that would have been collected at a rate of four one-thousandths of one percent must be deposited in the unemployment compensation trust fund.))

          (c) For the first calendar quarter of 1994 only, the basic two one-hundredths of one percent contribution payable under (a) of this subsection shall be increased by one-hundredth of one percent to a total rate of three one-hundredths of one percent. The proceeds of this incremental one-hundredth of one percent shall be used solely for the purposes described in section 22, chapter 483, Laws of 1993, and for the purposes of conducting an evaluation of the call center approach to unemployment insurance under section 5, chapter 161, Laws of 1998. During the 1997-1999 fiscal biennium, any surplus from contributions payable under this subsection (c) may be deposited in the unemployment compensation trust fund, used to support tax and wage automated systems projects that simplify and streamline employer reporting, or both.

          (2)(a) Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

          (b) In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

          (3) If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st.


          NEW SECTION. Sec. 14. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.


          NEW SECTION. Sec. 15. 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. 16. (1) Section 3 of this act applies beginning with claims that have an effective date on or after July 7, 2002.

          (2) Sections 5 and 7 of this act apply to rate years beginning on or after January 1, 2003.

          (3) Section 6 of this act applies to benefits charged to the experience rating accounts of employers for claims that have an effective date on or after July 7, 2002.

          (4) Section 8 of this act applies to rate years beginning on or after January 1, 2005.


          NEW SECTION. Sec. 17. (1) Sections 7 and 9 of this act expire January 1, 2005.

          (2) Section 3 of this act expires July 1, 2014.


          NEW SECTION. Sec. 18. (1) Section 3 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

          (2) Section 8 of this act takes effect January 1, 2005."


          Correct the title.


          With the consent of the House, amendment (515) to amendment (507) was withdrawn.


          Representative Mulliken moved the adoption of amendment (509) to amendment (507):


          On page 7, line 35, after "one" strike the remainder of the sentence and insert the following:


"((twenty-fifth of the average quarterly wages of the individual's total wages during the two quarters of)) percent of the total wages paid in the individual's base year ((in which such total wages were highest))."


          Representatives Mulliken, Talcott, McMorris, Matson and Cox spoke in favor of the adoption of the amendment to the amendment.


          Representative Conway spoke against the adoption of the amendment to the amendment.


          The amendment to the amendment was not adopted.


          Representative Clements moved the adoption of amendment (511) to amendment (507):


          On page 8, after line 9, insert the following:


          "Sec. 5. RCW 50.20.170 and 1945 c 35 s 85 are each amended to read as follows:

          (1)(a) Subject to (b) of this subsection, an individual who has received an initial determination finding that he or she is potentially entitled to receive waiting period credit or benefits shall, during the benefit year, be given waiting period credit or be paid benefits in accordance with such initial determination for any week with respect to which the conditions of eligibility for such credit or benefits, as prescribed by this title, are met, unless the individual is denied waiting period credit or benefits under the disqualification provisions of this title.

          (b) An individual who has received an initial determination under (a) of this subsection must be notified in writing that he or she is entitled to a redetermination of the amount of benefits payable if he or she has taken unpaid family and medical leave totaling six or more weeks, whether taken consecutively or intermittently, during his or her base year and if the claim equals less than thirty times the weekly benefit amount. The notice must describe the method by which the claimant may request a redetermination under this subsection. If the notified claimant requests the redetermination, the department must reevaluate the claimant's base year as provided in RCW 50.04.020(2)(b).

          (2) All benefits shall be paid through employment offices in accordance with such regulations as the commissioner may prescribe.


          Sec. 6. RCW 50.04.020 and 1994 c 3 s 1 are each amended to read as follows:

          (1) "Base year" with respect to each individual, shall mean ((either)) the first four of the last five completed calendar quarters ((or)), the last four completed calendar quarters immediately preceding the first day of the individual's benefit year, or, if applicable under subsection (2) of this section, an additional base year.

          (2)(a) Except as provided in (b) of this subsection, for the purposes of establishing a benefit year, the department shall initially use the first four of the last five completed calendar quarters as the base year. If a benefit year is not established using the first four of the last five calendar quarters as the base year, the department shall use the last four completed calendar quarters as the base year.

          (b) If a claimant requests a redetermination under RCW 50.20.170(1)(b), the department shall evaluate an additional base year, using the four quarters with the highest wages in the last six completed calendar quarters. The base year, for the purposes of establishing the claimant's benefit year, must be either the base year initially used under (a) of this subsection or the additional base year used under this subsection, whichever base year entitles the claimant to the higher maximum benefits under RCW 50.20.120(1). However, any benefit year established under this subsection may not use calendar quarters that were previously used to establish a prior benefit year.

          (3) Computations using the last four completed calendar quarters shall be based on available wage items processed as of the close of business on the day preceding the date of application. The department shall promptly contact employers to request assistance in obtaining wage information for the last completed calendar quarter if it has not been reported at the time of initial application.


          NEW SECTION. Sec. 7. A new section is added to chapter 50.04 RCW to read as follows:

          "Family and medical leave" means leave taken under either the federal family and medical leave act of 1993 (Act of Feb. 5, 1993, P.L. 103-3, 107 Stat. 6) or the state family leave law, chapter 49.78 RCW."


          Renumber the remaining sections and correct internal references accordingly.


          On page 24, line 32, after "(1)" strike "Section 3 of this act applies" and insert "Sections 3, 5, and 6 of this act apply"


          Correct the title.


          Representative Clements spoke in favor of the adoption of the amendment to the amendment.


          Representative Kagi spoke against the adoption of the amendment to the amendment.


          The amendment to the amendment was not adopted.


          Representative Clements moved the adoption of amendment (513) to amendment (507):


          On page 8, after line 9, insert the following:


          "NEW SECTION. Sec. 5. A new section is added to chapter 50.24 RCW to read as follows:

          (1) For the purposes of this section:

          (a) "Individual benefits" means benefits paid to individuals who are not considered to have left work voluntarily without good cause under RCW 50.20.050(2).

          (b) "Individual contributions" means the money payments due to the state unemployment compensation fund as provided under this section.

          (2) Beginning on January 1, 2003, individual contributions to the state unemployment compensation fund shall accrue and become payable by each employer in accordance with such rules as the commissioner may adopt.

          (3) Beginning on September 30, 2002, and on September 30 of each year thereafter, the commissioner shall determine the rate of individual contributions. The individual contribution rate shall be the lowest rate necessary to ensure that the total amount of individual contributions that accrue and become payable for the next rate year equals the total amount of individual benefits paid in the last completed state fiscal year.

          (4) The commissioner shall determine the amount of wages subject to the individual contribution rate under RCW 50.24.010.

          (5) An employer may deduct individual contributions, in whole or in part, from the remuneration of individuals in employment of the employer.

          (6) In the payment of any individual contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

          (7) This section does not apply to: (a) Employers who are required to make payments in lieu of contributions; (b) employers described in RCW 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make payments in lieu of contributions; and (c) taxable local government employers described in RCW 50.44.035.


          Sec. 6. RCW 50.04.072 and 1985 ex.s. c 5 s 5 are each amended to read as follows:

           The terms "contributions," "individual contributions," and "payments in lieu of contributions" used in this title, whether singular or plural, designate the money payments to be made to the state unemployment compensation fund, to the federal interest payment fund under RCW 50.16.070, or to the special account in the administrative contingency fund under RCW 50.24.014 and are deemed to be taxes due to the state of Washington.


          Sec. 7. RCW 50.16.010 and 1993 c 483 s 7 and 1993 c 226 s 10 are each reenacted and amended to read as follows:

           There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable.

          The unemployment compensation fund shall consist of

          (1) all contributions, individual contributions, and payments in lieu of contributions collected pursuant to the provisions of this title,

          (2) any property or securities acquired through the use of moneys belonging to the fund,

          (3) all earnings of such property or securities,

          (4) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

          (5) all money recovered on official bonds for losses sustained by the fund,

          (6) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

          (7) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

          (8) all moneys received for the fund from any other source.

          All moneys in the unemployment compensation fund shall be commingled and undivided.

          The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title, all fines and penalties collected pursuant to the provisions of this title, all sums recovered on official bonds for losses sustained by the fund, and revenue received under RCW 50.24.014: PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

          Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

          (a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

          (b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

          (c) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.

          Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010."


          Renumber remaining sections and correct internal references accordingly.


          Correct the title.


          Representative Clements spoke in favor of the adoption of the amendment to the amendment.


          Representative Conway spoke against the adoption of the amendment to the amendment.


          The amendment to the amendment was not adopted.


          Representative Clements moved the adoption of amendment (514) to amendment (507):


          On page 8, after line 9, insert the following:


          "NEW SECTION. Sec. 5. A new section is added to chapter 50.24 RCW to read as follows:

          (1) For the purposes of this section, "individual contributions" means the money payments due to the state unemployment compensation fund as provided under this section.

          (2) Beginning on January 1, 2003, individual contributions to the state unemployment compensation fund shall accrue and become payable by each employer in accordance with such rules as the commissioner may adopt.

          (3) Beginning on September 30, 2002, and on September 30 of each year thereafter, the commissioner shall determine the rate of individual contributions. The individual contribution rate shall be the lowest rate necessary to ensure that the total amount of individual contributions that accrue and become payable for the next rate year equals the total amount of benefits paid in the last completed state fiscal year less the total amount of benefits that would have been paid in the last completed state fiscal year if weekly benefit amounts were equal to one percent of the total wages paid in the base year.

          (4) The commissioner shall determine the amount of wages subject to the individual contribution rate under RCW 50.24.010.

          (5) An employer may deduct individual contributions, in whole or in part, from the remuneration of individuals in employment of the employer.

          (6) In the payment of any individual contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

          (7) This section does not apply to: (a) Employers who are required to make payments in lieu of contributions; (b) employers described in RCW 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make payments in lieu of contributions; and (c) taxable local government employers described in RCW 50.44.035.


          Sec. 6. RCW 50.04.072 and 1985 ex.s. c 5 s 5 are each amended to read as follows:

           The terms "contributions," "individual contributions," and "payments in lieu of contributions" used in this title, whether singular or plural, designate the money payments to be made to the state unemployment compensation fund, to the federal interest payment fund under RCW 50.16.070, or to the special account in the administrative contingency fund under RCW 50.24.014 and are deemed to be taxes due to the state of Washington.


          Sec. 7. RCW 50.16.010 and 1993 c 483 s 7 and 1993 c 226 s 10 are each reenacted and amended to read as follows:

           There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable.

          The unemployment compensation fund shall consist of

          (1) all contributions, individual contributions, and payments in lieu of contributions collected pursuant to the provisions of this title,

          (2) any property or securities acquired through the use of moneys belonging to the fund,

          (3) all earnings of such property or securities,

          (4) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

          (5) all money recovered on official bonds for losses sustained by the fund,

          (6) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

          (7) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

          (8) all moneys received for the fund from any other source.

          All moneys in the unemployment compensation fund shall be commingled and undivided.

          The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title, all fines and penalties collected pursuant to the provisions of this title, all sums recovered on official bonds for losses sustained by the fund, and revenue received under RCW 50.24.014: PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

          Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

          (a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

          (b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

          (c) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.

          Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010."


          Renumber remaining sections and correct internal references accordingly.


          Correct the title.


          Representative Clements spoke in favor of the adoption of the amendment to the amendment.


          Representative Conway spoke against the adoption of the amendment to the amendment.


          The amendment to the amendment was not adopted.


          Representative Clements moved the adoption of amendment (522) to amendment (507):


          On page 8, after line 9 of the amendment, insert the following:

          "NEW SECTION. Sec. 5. A new section is added to chapter 50.24 RCW to read as follows:

          (1) For the purposes of this section:

          (a) "Individual benefits" means benefits paid to individuals who are not considered to have left work voluntarily without good cause under RCW 50.20.050(2).

          (b) "Individual contributions" means the money payments due to the state unemployment compensation fund as provided under this section.

          (2) For the rate year immediately following a year in which the fund balance ratio is determined to be 1.39 or less under RCW 50.29.025, individual contributions to the state unemployment compensation fund shall accrue and become payable by each employer in accordance with such rules as the commissioner may adopt.

          (3) The commissioner shall determine the rate of individual contributions. The individual contribution rate shall be the lowest rate necessary to ensure that the total amount of individual contributions that accrue and become payable for the specified rate year equals the total amount of individual benefits paid in the completed state fiscal year immediately preceding the rate year.          (4) The commissioner shall determine the amount of wages subject to the individual contribution rate under RCW 50.24.010.

          (5) An employer may deduct individual contributions, in whole or in part, from the remuneration of individuals in employment of the employer.

          (6) In the payment of any individual contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

          (7) This section does not apply to: (a) Employers who are required to make payments in lieu of contributions; (b) employers described in RCW 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make payments in lieu of contributions; and (c) taxable local government employers described in RCW 50.44.035.


          Sec. 6. RCW 50.04.072 and 1985 ex.s. c 5 s 5 are each amended to read as follows:

           The terms "contributions," "individual contributions," and "payments in lieu of contributions" used in this title, whether singular or plural, designate the money payments to be made to the state unemployment compensation fund, to the federal interest payment fund under RCW 50.16.070, or to the special account in the administrative contingency fund under RCW 50.24.014 and are deemed to be taxes due to the state of Washington.


          Sec. 7. RCW 50.16.010 and 1993 c 483 s 7 and 1993 c 226 s 10 are each reenacted and amended to read as follows:

           There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable.

          The unemployment compensation fund shall consist of:

          (1) All contributions, individual contributions, and payments in lieu of contributions collected pursuant to the provisions of this title,

          (2) Any property or securities acquired through the use of moneys belonging to the fund,

          (3) All earnings of such property or securities,

          (4) Any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

          (5) All money recovered on official bonds for losses sustained by the fund,

          (6) All money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

          (7) All money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

          (8) All moneys received for the fund from any other source.

          All moneys in the unemployment compensation fund shall be commingled and undivided.

          The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title, all fines and penalties collected pursuant to the provisions of this title, all sums recovered on official bonds for losses sustained by the fund, and revenue received under RCW 50.24.014: PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended.

          Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

          (a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

          (b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

          (c) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.

          Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010."


          Renumber remaining sections and correct internal references accordingly.


          Correct the title.


          Representative Clements spoke in favor of the adoption of the amendment to the amendment.


          Representative Wood spoke against the adoption of the amendment to the amendment.


          The amendment to the amendment was not adopted.


          Representative Holmquist moved the adoption of amendment (510) to amendment (507) *:


          On page 24, after line 17, insert the following:


          "NEW SECTION. Sec. 14. A new section is added to chapter 50.20 RCW to read as follows:

          (1) An individual shall be disqualified from benefits beginning with the first day of the calendar week in which he or she has left work voluntarily and thereafter for seven calendar weeks and until he or she has obtained bona fide work in employment covered by this title and earned wages in that employment equal to seven times his or her weekly benefit amount.

          (2) The disqualification shall continue if the work obtained is a mere sham to qualify for benefits and is not bona fide work. In determining whether work is of a bona fide nature, the commissioner shall consider factors including but not limited to the following:

          (a) The duration of the work;

          (b) The extent of direction and control by the employer over the work; and

          (c) The level of skill required for the work in light of the individual's training and experience."


          Renumber the remaining sections and correct internal cross references accordingly.


          On page 25, after line 13, insert the following:


          "NEW SECTION. Sec. 19. RCW 50.20.050 and 2000 c 2 s 12 and any acts subsequently amending RCW 50.20.050 are each repealed."


          Correct the title.


          Representatives Holmquist, Boldt, Clements and Matson spoke in favor of the adoption of the amendment to the amendment.


          Representatives Wood and Conway spoke against the adoption of the amendment to the amendment.


          The amendment to the amendment was not adopted.


          Representative Conway moved the adoption of amendment (520) to amendment (507) *:


          On page 25, line 9 of the amendment, after "(1) Section" strike "3" and insert "2"


          Representatives Conway and Clements spoke in favor of the adoption of the amendment to the amendment.


          The amendment to the amendment was adopted.


          Representative Casada moved the adoption of amendment (521) to amendment (507):


          Strike all text beginning on page 1, line 7, through page 25, line 14, and insert the following:


          "Sec. 1. RCW 50.22.140 and 2000 2nd sp.s. c 1 s 916 are each amended to read as follows:

          (1) The employment security department is authorized to pay training benefits under RCW 50.22.150, but may not obligate expenditures beyond the limits specified in this section or as otherwise set by the legislature. For the fiscal year ending June 30, 2000, the commissioner may not obligate more than twenty million dollars for training benefits. For the two fiscal years ending June 30, 2002, the commissioner may not obligate more than sixty million dollars for training benefits. Any funds not obligated in one fiscal year may be carried forward to the next fiscal year. For each fiscal year beginning after June 30, 2002, the commissioner may not obligate more than twenty million dollars annually in addition to any funds carried ((over)) forward from previous fiscal years. The department shall develop a process to ensure that expenditures do not exceed available funds and to prioritize access to funds when again available.

          (2) After June 30, 2002, in addition to the amounts that may be obligated under subsection (1) of this section, the commissioner may obligate up to thirty-four million dollars for training benefits under RCW 50.22.150 for individuals in the aerospace industry assigned the standard industrial classification code "372" or the North American industry classification system code "336411" whose claims are filed before January 5, 2003. The funds provided in this subsection must be fully obligated for training benefits for these individuals before the funds provided in subsection (1) of this section may be obligated for training benefits for these individuals. Any amount of the funds specified in this subsection that is not obligated as permitted may not be carried forward to any future period.


          Sec. 2. RCW 50.22.150 and 2000 c 2 s 8 are each amended to read as follows:

          (1) Subject to availability of funds, training benefits are available for an individual who is eligible for or has exhausted entitlement to unemployment compensation benefits and who:

          (a) Is a dislocated worker as defined in RCW 50.04.075;

          (b) Except as provided under subsection (2) of this section, has demonstrated, through a work history, sufficient tenure in an occupation or in work with a particular skill set. This screening will take place during the assessment process;

          (c) Is, after assessment of demand for the individual's occupation or skills in the individual's labor market, determined to need job-related training to find suitable employment in his or her labor market. Beginning July 1, 2001, the assessment of demand for the individual's occupation or skill sets must be substantially based on declining occupation or skill sets identified in local labor market areas by the local work force development councils, in cooperation with the employment security department and its labor market information division, under subsection (((9))) (10) of this section;

          (d) Develops an individual training program that is submitted to the commissioner for approval within sixty days after the individual is notified by the employment security department of the requirements of this section;

          (e) Enters the approved training program by ninety days after the date of the notification, unless the employment security department determines that the training is not available during the ninety-day period, in which case the individual enters training as soon as it is available; and

          (f) Is enrolled in training approved under this section on a full-time basis as determined by the educational institution, and is making satisfactory progress in the training as certified by the educational institution.

          (2) Until June 30, 2002, the following individuals who meet the requirements of subsection (1) of this section may, without regard to the tenure requirements under subsection (1)(b) of this section, receive training benefits as provided in this section:

          (a) An exhaustee who has base year employment in the aerospace industry assigned the standard industrial classification code "372" or the North American industry classification system code "336411";

          (b) An exhaustee who has base year employment in the forest products industry, determined by the department, but including the industries assigned the major group standard industrial classification codes "24" and "26" or any equivalent codes in the North American industry classification system code, and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment; or

          (c) An exhaustee who has base year employment in the fishing industry assigned the standard industrial classification code "0912" or any equivalent codes in the North American industry classification system code.

          (3) An individual is not eligible for training benefits under this section if he or she:

          (a) Is a standby claimant who expects recall to his or her regular employer;

          (b) Has a definite recall date that is within six months of the date he or she is laid off; or

          (c) Is unemployed due to a regular seasonal layoff which demonstrates a pattern of unemployment consistent with the provisions of RCW 50.20.015. Regular seasonal layoff does not include layoff due to permanent structural downsizing or structural changes in the individual's labor market.

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

          (a) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410, including equivalent educational institutions in other states.

          (b) "Sufficient tenure" means earning a plurality of wages in a particular occupation or using a particular skill set during the base year and at least two of the four twelve-month periods immediately preceding the base year.

          (c) "Training benefits" means additional benefits paid under this section.

          (d) "Training program" means:

          (i) An education program determined to be necessary as a prerequisite to vocational training after counseling at the educational institution in which the individual enrolls under his or her approved training program; or

          (ii) A vocational training program at an educational institution:

          (A) That is targeted to training for a high demand occupation. Beginning July 1, 2001, the assessment of high demand occupations authorized for training under this section must be substantially based on labor market and employment information developed by local work force development councils, in cooperation with the employment security department and its labor market information division, under subsection (((9))) (10) of this section;

          (B) That is likely to enhance the individual's marketable skills and earning power; and

          (C) That meets the criteria for performance developed by the work force training and education coordinating board for the purpose of determining those training programs eligible for funding under Title I of P.L. 105-220.

          "Training program" does not include any course of education primarily intended to meet the requirements of a baccalaureate or higher degree, unless the training meets specific requirements for certification, licensing, or for specific skills necessary for the occupation.

          (5) Benefits shall be paid as follows:

          (a)(i) Except as provided in (a)(iii) of this subsection, for exhaustees who are eligible under subsection (1) of this section, the total training benefit amount shall be fifty-two times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year; or

          (ii) For exhaustees who are eligible under subsection (2) of this section, for claims filed before June 30, 2002, the total training benefit amount shall be seventy-four times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year. ((Beginning with new claims filed after June 30, 2002, for exhaustees eligible under subsection (2) of this section, the total training benefit amount shall be fifty-two times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year)); or

          (iii) For exhaustees eligible under subsection (1) of this section from industries listed under subsection (2)(a) of this section, for claims filed on or after June 30, 2002, but before January 5, 2003, the total training benefit amount shall be seventy-four times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year.

          (b) The weekly benefit amount shall be the same as the regular weekly amount payable during the applicable benefit year and shall be paid under the same terms and conditions as regular benefits. The training benefits shall be paid before any extended benefits but not before any similar federally funded program.

          (c) Training benefits are not payable for weeks more than two years beyond the end of the benefit year of the regular claim.

          (6) The requirement under RCW 50.22.010(10) relating to exhausting regular benefits does not apply to an individual otherwise eligible for training benefits under this section when the individual's benefit year ends before his or her training benefits are exhausted and the individual is eligible for a new benefit year. These individuals will have the option of remaining on the original claim or filing a new claim.

          (7)(a) Except as provided in (b) of this subsection, individuals who receive training benefits under this section or under any previous additional benefits program for training are not eligible for training benefits under this section for five years from the last receipt of training benefits under this section or under any previous additional benefits program for training.

          (b) With respect to claims that are filed before January 5, 2003, an individual in the aerospace industry assigned the standard industrial code "372" or the North American industry classification system code "336411" who received training benefits under this section, and who had been making satisfactory progress in a training program but did not complete the program, is eligible, without regard to the five-year limitation of this section and without regard to the requirement of subsection (1)(b) of this section, if applicable, to receive training benefits under this section in order to complete that training program. The total training benefit amount that applies to the individual is seventy-four times the individual's weekly benefit amount, reduced by the total amount of regular benefits paid, or deemed paid, with respect to the benefit year in which the training program resumed and, if applicable, reduced by the amount of training benefits paid, or deemed paid, with respect to the benefit year in which the training program commenced.

          (8) An individual eligible to receive a trade readjustment allowance under chapter 2 of Title II of the Trade Act of 1974, as amended, shall not be eligible to receive benefits under this section for each week the individual receives such trade readjustment allowance. An individual eligible to receive emergency unemployment compensation, so called, under any federal law, shall not be eligible to receive benefits under this section for each week the individual receives such compensation.

          (9) All base year employers are interested parties to the approval of training and the granting of training benefits.

          (((9))) (10) By July 1, 2001, each local work force development council, in cooperation with the employment security department and its labor market information division, must identify occupations and skill sets that are declining and occupations and skill sets that are in high demand. For the purposes of RCW 50.22.130 through 50.22.150 and section 9, chapter 2, Laws of 2000, "high demand" means demand for employment that exceeds the supply of qualified workers for occupations or skill sets in a labor market area. Local work force development councils must use state and locally developed labor market information. Thereafter, each local work force development council shall update this information annually or more frequently if needed.

          (((10))) (11) The commissioner shall adopt rules as necessary to implement this section.


          Sec. 3. RCW 50.29.020 and 2000 c 2 s 3 are each amended to read as follows:

          (1) An experience rating account shall be established and maintained for each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, based on existing records of the employment security department. Benefits paid to any eligible individuals shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.

          (2) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:

          (a) Benefits paid to any individuals later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer.

          (b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer only if:

          (i) The individual files under RCW 50.06.020(1) after receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or

          (ii) The individual files under RCW 50.06.020(2).

          (c) Benefits paid which represent the state's share of benefits payable as extended benefits defined under RCW 50.22.010(6) shall not be charged to the experience rating account of any contribution paying employer.

          (d) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.

          (e) In the case of individuals identified under RCW 50.20.015, benefits paid with respect to a calendar quarter, which exceed the total amount of wages earned in the state of Washington in the higher of two corresponding calendar quarters included within the individual's determination period, as defined in RCW 50.20.015, shall not be charged to the experience rating account of any contribution paying employer.

          (((f) Benefits paid under RCW 50.22.150 shall not be charged to the experience rating account of any contribution paying employer.))

          (3)(a) A contribution-paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:

          (i) Last left the employ of such employer voluntarily for reasons not attributable to the employer;

          (ii) Was discharged for misconduct connected with his or her work not a result of inability to meet the minimum job requirements;

          (iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, work site, or other facility. This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or

          (iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer. Benefit charge relief ceases when the employment relationship between the employer requesting relief and the claimant is terminated. This subsection does not apply to shared work employers under chapter 50.60 RCW.

          (b) The employer requesting relief of charges under this subsection must request relief in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be granted.


          NEW SECTION. Sec. 4. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.


          NEW SECTION. Sec. 5. 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. 6. Section 2 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.


          NEW SECTION. Sec. 7. Section 3 of this act applies to benefits charged to the experience rating accounts of employers for claims that have an effective date on or after July 7, 2002."


          Correct the title.


          Representatives Casada, Clements and Chandler spoke in favor of the adoption of the amendment to the amendment.


          Representatives Reardon and Lysen spoke against the adoption of the amendment to the amendment.


          Representative Woods demanded an electronic roll call vote and the demand was sustained.


          The Speaker stated the question before the House to be adoption of amendment (521) to amendment (507) to House Bill No. 2901.


ROLL CALL


          The Clerk called the roll on the adoption of amendment (521) to amendment (507) to House Bill No. 2901, and the amendment was not adopted by the following vote: Yeas - 42, Nays - 54, Absent - 0, Excused - 2.

          Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Casada, Chandler, Clements, Cox, Crouse, DeBolt, Delvin, Dunn, Ericksen, Esser, Hankins, Jarrett, Mielke, Mitchell, Morell, Nixon, Orcutt, Pearson, Pflug, Roach, Schindler, Schoesler, Sehlin, Skinner, Sump, Talcott, Van Luven, and Woods - 42.

          Voting nay: Representatives Berkey, Chase, Cody, Conway, Cooper, Darneille, Dickerson, Doumit, Dunshee, Edwards, Eickmeyer, Fisher, Fromhold, Gombosky, Grant, Haigh, Hatfield, Holmquist, Hunt, Hurst, Jackley, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, Mastin, McDermott, McIntire, McMorris, Miloscia, Morris, Mulliken, Murray, O'Brien, Ogden, Quall, Reardon, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tokuda, Upthegrove, Veloria, Wood and Mr. Speaker - 54.

          Excused: Representatives Lisk and Schmidt - 2.


          The amendment (507) as amended 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 Conway, Reardon, Kenney, Wood and McIntire spoke in favor of passage of the bill.


          Representatives Chandler, DeBolt, Benson, Mulliken, Orcutt, Morell and Clements spoke against the passage of the bill.


          The Speaker stated the question before the House to be the final passage of Engrossed House Bill No. 2901.


ROLL CALL


          The Clerk called the roll on the final passage of Engrossed House Bill No. 2901 and the bill passed the House by the following vote: Yeas - 66, Nays - 29, Absent - 0, Excused - 2, Not Voting - 1.

          Voting yea: Representatives Alexander, Anderson, Armstrong, Ballard, Ballasiotes, Barlean, Berkey, Buck, Cairnes, Campbell, Chase, Cody, Conway, Cooper, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunshee, Edwards, Eickmeyer, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, McDermott, McIntire, Miloscia, Mitchell, Morris, Murray, O'Brien, Ogden, Pearson, Pflug, Quall, Reardon, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tokuda, Upthegrove, Veloria, Wood and Mr. Speaker - 66.

          Voting nay: Representatives Ahern, Benson, Boldt, Bush, Carrell, Casada, Chandler, Clements, Cox, Crouse, Dunn, Ericksen, Esser, Holmquist, Mastin, McMorris, Mielke, Morell, Mulliken, Nixon, Orcutt, Schindler, Schoesler, Sehlin, Skinner, Sump, Talcott, Van Luven, and Woods - 29.

          Excused: Representatives Lisk and Schmidt - 2.

          Not Voting: Representative Roach - 1.


          Engrossed House Bill No. 2901, having received the necessary constitutional majority, was declared passed.


          There being no objection, the House immediately reconsidered the vote on third reading by which Engrossed House Bill No. 2901 passed the House.


RECONSIDERATION


          The Speaker stated the question before the House to be the final passage of Engrossed House Bill No. 2901 on reconsideration.


ROLL CALL


          The Clerk called the roll on the final passage of Engrossed House Bill No. 2901 on reconsideration, and the bill passed the House by the following vote: Yeas - 65, Nays - 31, Absent - 0, Excused - 2.

          Voting yea: Representatives Alexander, Anderson, Ballard, Ballasiotes, Barlean, Berkey, Buck, Cairnes, Campbell, Chase, Cody, Conway, Cooper, Darneille, DeBolt, Delvin, Dickerson, Doumit, Dunshee, Edwards, Eickmeyer, Fisher, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hunt, Hurst, Jackley, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Lysen, McDermott, McIntire, Miloscia, Mitchell, Morris, Murray, O'Brien, Ogden, Pearson, Pflug, Quall, Reardon, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tokuda, Upthegrove, Veloria, Wood and Mr. Speaker - 65.

          Voting nay: Representatives Ahern, Armstrong, Benson, Boldt, Bush, Carrell, Casada, Chandler, Clements, Cox, Crouse, Dunn, Ericksen, Esser, Holmquist, Mastin, McMorris, Mielke, Morell, Mulliken, Nixon, Orcutt, Roach, Schindler, Schoesler, Sehlin, Skinner, Sump, Talcott, Van Luven, and Woods - 31.

          Excused: Representatives Lisk and Schmidt - 2.


          Engrossed House Bill No. 2901, on reconsideration, having received the constitutional majority, was declared passed.


MESSAGES FROM THE SENATE

March 11, 2002

Mr. Speaker:


          The President has signed:

SUBSTITUTE HOUSE BILL NO. 2031,

HOUSE BILL NO. 2286,

HOUSE BILL NO. 2313,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2326,

SUBSTITUTE HOUSE BILL NO. 2400,

SUBSTITUTE HOUSE BILL NO. 2466,

HOUSE BILL NO. 2537,

HOUSE BILL NO. 2550,

SUBSTITUTE HOUSE BILL NO. 2629,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2662,

HOUSE BILL NO. 2669,

SUBSTITUTE HOUSE BILL NO. 2800,

HOUSE BILL NO. 2824,

HOUSE BILL NO. 2902,

and the same are herewith transmitted.

Tony M. Cook, Secretary


March 11, 2002

Mr. Speaker:


          The President has signed:

SENATE BILL NO. 5064,

SENATE BILL NO. 5138,

SUBSTITUTE SENATE BILL NO. 5166,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5207,

SECOND SUBSTITUTE SENATE BILL NO. 5291,

SECOND SUBSTITUTE SENATE BILL NO. 5354,

SUBSTITUTE SENATE BILL NO. 5369,

SUBSTITUTE SENATE BILL NO. 5552,

ENGROSSED SENATE BILL NO. 5624,

ENGROSSED SENATE BILL NO. 5626,

ENGROSSED SENATE BILL NO. 5692,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5777,

ENGROSSED SENATE BILL NO. 5954,

SECOND ENGROSSED SENATE BILL NO. 6001,

SUBSTITUTE SENATE BILL NO. 6037,

SECOND SUBSTITUTE SENATE BILL NO. 6080,

ENGROSSED SENATE BILL NO. 6232,

SUBSTITUTE SENATE BILL NO. 6233,

and the same are herewith transmitted.

Tony M. Cook, Secretary


March 11, 2002

Mr. Speaker:


          The President has signed:

SUBSTITUTE SENATE BILL NO. 5099,

SUBSTITUTE SENATE BILL NO. 5292,

SENATE BILL NO. 5629,

SUBSTITUTE SENATE BILL NO. 6234,

SUBSTITUTE SENATE BILL NO. 6248,

SUBSTITUTE SENATE BILL NO. 6254,

SUBSTITUTE SENATE BILL NO. 6264,

SUBSTITUTE SENATE BILL NO. 6286,

SUBSTITUTE SENATE BILL NO. 6301,

ENGROSSED SENATE BILL NO. 6316,

SENATE BILL NO. 6457,

SUBSTITUTE SENATE BILL NO. 6461,

SENATE BILL NO. 6465,

SENATE BILL NO. 6530,

SENATE BILL NO. 6538,

and the same are herewith transmitted.

Tony M. Cook, Secretary


SENATE AMENDMENTS TO HOUSE BILL

March 8, 2002

Mr. Speaker:


          The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2671, with the following amendments:


          Strike everything after the enacting clause and insert the following:


          "NEW SECTION. Sec. 1. The legislature finds that the health and safety of its citizens, natural resources, and the environment are vital interests of the state that must be protected to preserve the state's quality of life. The legislature also finds that the state's economic well-being is a vital interest that depends upon the development of fair, coordinated environmental permitting processes that ensure that the state not only protects natural resources, but also encourages appropriate activities that stimulate growth and development. The legislature further finds that during the past twenty years, Washington's environmental protection programs have established strict standards to reduce pollution and protect public health and safety and the environment.

          The legislature finds that as the number of environmental and land use laws have grown in Washington, so have the number of permits required of business and government. The increasing number of individual permits and permit authorities has generated the potential for conflict, overlap, and duplication between the various state, local, and federal permits. Lack of coordination in the processing of permit applications may cause costly delays and frustration to the applicant.

          The legislature finds that not all project applicants require the same type of technical assistance. While applicants with small projects may merely need information about local and state permits, and assistance in applying for those permits, intermediate-sized projects may require a facilitated facilitating permit process. Large, complex projects may even need extensive coordination among local, state, and federal agencies.

          The legislature finds that a range of assistance and coordination options should be available for project applicants. The legislature further finds that citizens should be provided with a reliable and consolidated source of information concerning federal, state, and local environmental and land use laws and procedures that might apply to any given proposal; facilitated interagency forums for discussion of significant issues related to the multiple permitting processes can be very useful for some project proponents; and finally, some applicants may require active coordination of all applicable regulatory and land use permitting procedures.

          The legislature declares that the purpose of this chapter is to provide efficient processes that will assist businesses and citizens in complying with the environmental and land use laws while protecting public health and safety and the environment.


          NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

          (1) "Center" means the permit assistance center established in section 3 of this act.

          (2) "Permit" includes any license, certificate, registration, permit, or other form of use authorization required by a permit agency to engage in a particular activity.

          (3) "Project" means an activity, the conduct of which requires permits from one or more permit agencies.

          (4) "Use authorization" means a lease, material purchase, easement, permit, or other document authorizing the use of either state-owned aquatic lands or materials, or both.


          NEW SECTION. Sec. 3. (1) The permit assistance center is created in the office of the governor. The center shall:

          (a) Publish and keep current one or more handbooks containing lists and explanations of all permit laws. To the extent possible, the handbook must include relevant local, state, federal, and tribal laws. A state agency or local government must provide a reasonable number of copies of application forms, statutes, ordinances, rules, handbooks, and other informational material requested by the center and must otherwise fully cooperate with the center. The center must seek the cooperation of relevant federal agencies and tribal governments;

          (b) Establish, and make known, a point of contact for distribution of the handbook and advice to the public as to its interpretation in any given case;

          (c) Work closely and cooperatively with the business license center in providing efficient and nonduplicative service to the public;

          (d) Collect and disseminate information to public and private entities on federal, state, local, and tribal government programs that rely on private professional expertise to assist governmental agencies in project permit review;

          (e) Provide an annual performance report to the legislature and the public. The report must be based on survey of customers;

          (f) Report annually to the legislature regarding any statutory or regulatory conflicts relating to differing legal authorities and roles of the agencies issuing permits or use authorizations and how these were resolved. The report may include recommendations to the legislature and to agencies; and

          (g) Report annually to the legislature regarding use of outside independent consultants pursuant to section 7 of this act, including the nature and amount of work performed by outside independent consultants and implementation of the requirements of section 7 of this act relating to costs.

          (2) The center must prioritize the expenditure of general fund moneys allotted to the center to provide a set of services to the applicants of small projects.

          (3) The center shall work with state resource agencies, the governor's office, local government officials, and the department of community, trade, and economic development to create a range of permit assistance options for permit applicants. These options include, but are not limited to, a centralized customer call center, a web site for permitting information, facilitation services offered on a regional basis, and a process for developing a coordinated permit process utilizing a cost reimbursement system authorized under section 7 of this act.

          (4) The center shall also work to develop informal processes for dispute resolution between agencies and permit applicants.

          (5) To the maximum extent possible, the center shall work with the transportation permit efficiency and accountability committee established by chapter 47.06C RCW.


          NEW SECTION. Sec. 4. (1) The center shall operate based on the principle that citizens of the state of Washington have the right to expect the following information to be provided to them when asking for a permit, license, or permission to engage in a lawful activity:

          (a) A date and time for a decision on permits;

          (b) A defined amount of information required to award a permit by a permitting authority before any application for permits can be accepted; and

          (c) An estimate of the maximum amount of costs in fees, studies, or public processes that will be incurred by the permit applicant.

          (2) This section does not create a right of action.


          NEW SECTION. Sec. 5. (1) Upon the request of a project proponent, the center shall appoint a project facilitator to assist the applicant in determining which regulatory requirements, processes, and permits may be required for development and operation of the proposed project. The project facilitator shall provide the information to the applicant and explain the options available to the applicant in obtaining the required permits.

          (2) If requested by the applicant, the project facilitator shall facilitate a project scoping meeting. The meeting may involve the project applicant, state agencies that will require a permit or use authorization for the project, and the local governments in whose jurisdiction the project is proposed. Federal agencies and tribal governments that either issue or may require a permit, or that may require a use authorization for the project, shall each be invited to participate in the scoping meeting. All agencies participating in the scoping process are encouraged to remain in communication for purposes of coordination throughout the subsequent permit review processes until final permit decisions are made.

          (3) The purpose of the scoping meeting is to share perspectives and identify the issues and information needs of concern to each participant with regard to the proposed project, and jointly develop a strategy for managing the permitting process. This project scoping process must be concluded within sixty days of the applicant's request.

          (a) During this review, the permit agencies shall identify:

          (i) The permits that are required for the project;

          (ii) A review of the permit application forms and other application requirements of the agencies that are participating in the scoping meeting;

          (iii) The specific information needs and issues of concern and their significance to each participant with regard to the permitting processes involved; 

          (iv) Any statutory or regulatory conflicts that might arise relating to differing legal authorities and roles of the agencies issuing the permit or use authorization of the project;

          (v) Any state or local jurisdiction or private sector liability that might result from permitting or issuing a use authorization for the project;

          (vi) Any natural resources, including federal or state listed species, that might be adversely affected by the permitting or authorizing decision; and

          (vii) The permit decision timelines that will be used by each permit agency, including the time periods required to determine if the permit applications are complete, to review the application or applications, and to process the component permits. In the development of this timeline, full attention must be given to achieving the maximum efficiencies possible through concurrent studies, consolidated applications, hearings, and comment periods.

          (b) Following this project scoping review, the outcome shall be documented in written form and furnished to the applicant, and be available to the public.

          (c) Upon completion of this review, the permitting and authorizing agencies and governments shall proceed according to their respective statutes.


          NEW SECTION. Sec. 6. (1) Upon request, a permit applicant may also request that the center actively coordinate the project permitting processes. This process shall be implemented through a cost reimbursement contract developed under section 7 of this act.

          (2) According to the specific requirements contained in a cost reimbursement contract, the center may convene a scoping meeting as outlined in section 5 of this act, serve as the main point of contact for the permit applicant with regard to the coordinated permit processes for the project, and manage the procedural aspects of that processing consistent with existing laws. In carrying out these responsibilities, the center shall ensure that the permit applicant has all the information needed to apply for all the component permits that are incorporated in the coordinated permit process for the project, coordinate the review of those permits by the permit agencies, ensure that timely permit decisions are made by the permit agencies, and assist in resolving any conflict or inconsistency among the permit requirements and conditions that are to be imposed by the permit agencies. The center shall maintain contact with the applicant and local, state, and federal permit agencies to ensure that the process is progressing as scheduled.

          (3) Upon completion of the cost reimbursement contract, each permit agency shall send at least one representative qualified to make decisions concerning the applicability and timelines associated with all permits administered by that jurisdiction. At the request of the applicant, the center shall notify any relevant federal agency or federally recognized tribe of the date of the meeting and invite that agency's participation in the process.

          (4) If a permit agency or the applicant foresees, at any time, that it will be unable to meet its obligations under the agreement, it shall notify the center of the problem. The center shall notify the permit agencies and the applicant and, upon agreement of all parties, adjust the schedule, or, if necessary, schedule another work plan meeting.

          (5) This chapter may not be construed to limit or abridge the powers and duties granted to any permit agency under the law that authorizes or requires the agency to issue a permit or a use authorization for a project.


          NEW SECTION. Sec. 7. (1) The center shall negotiate a method of determining, collecting, and distributing permit fees and cost reimbursement for the costs associated with carrying out the purposes of this chapter, including the use of existing fees as set by statute or administrative rule.

          (2) The center may enter into a written agreement with the applicant to recover from the applicant the reasonable costs incurred by the center and permit agencies in carrying out the requirements of this chapter.

          (3) The center may enter into a written agreement with the applicant to recover from the applicant the reasonable costs incurred by outside independent consultants selected by the center and permit agencies to perform permit review and processing tasks consistent with the coordinated permit process.

          (4) The center and outside independent consultants may recover only the costs of performing those permit services that are coordinated through the one-stop coordinated permitting process established under this chapter. The billing process must provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments.

          (5) Prior to providing reimbursement or fees to participating permit agencies under this chapter, the center shall ensure that the participating permit agencies have made all the permit decisions that are necessary for the incorporation of the permits into the coordinated permit process and act on the component permits within the time periods agreed to by the participating permit agencies under the process outlined in section 6 of this act.

          (6) The center shall adopt a policy to administer cost reimbursement agreements executed under this section. Cost reimbursement agreements administered by the center under this section must be based on competitive bids that are awarded for each agreement to the responsible bidder from a prequalified consultant roster that submitted the lowest responsive bid as described in RCW 43.19.1911.

          (7) Prior to entering negotiation with the applicant on cost reimbursement, the center shall request work load analyses for the permits from each permitting agency. These analyses shall be available to the public. The center may only agree to reduce work load if there is a good cause to do so and there is no significant impact on environmental review.

          (8) If independent consultants are hired under the cost reimbursement agreement, they shall report directly to the permitting agency.

          (9) The center shall develop guidance to ensure that, in developing cost reimbursement agreements, conflict of interest problems are eliminated.

          (10) For permits it coordinates, the permit assistance center shall coordinate all cost-reimbursement agreements executed under RCW 43.21A.690, 43.30.420, 43.70.630, 43.300.080, and 70.94.085.


          NEW SECTION. Sec. 8. (1) There is established the permit assistance advisory council composed of eleven members. Seven members shall be appointed by the governor. In making these appointments, the governor shall include representation from business, the environmental community, agriculture, port districts, counties, cities, and the tribes. Two members shall be members of the senate selected by the president of the senate with one member selected from each caucus in the senate, and two members shall be members of the house of representatives selected by the speaker of the house of representatives with one member selected from each caucus in the house of representatives. The legislative members shall be nonvoting members of the council. Appointments to the council shall reflect geographical balance and the diversity of population within Washington state. Members shall serve four-year terms. Of the initial members appointed to the council, two shall serve for two years, two shall serve for three years, and two shall serve for four years. Thereafter members shall be appointed to four-year terms. Vacancies shall be filled by appointment in the same manner as the original appointment for the remainder of the unexpired term of the position being vacated. Nonlegislative members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060. Legislative members shall be reimbursed as provided in RCW 44.04.120.

          (2) The council shall elect a chair and a vice-chair from the voting members of the committee. The chair and vice-chair shall serve a term of one year.

          (3) The council shall:

          (a) Assess the performance of the center;

          (b) Review annual customer surveys conducted by the center to determine the effectiveness of the center; and

          (c) Recommend changes to the services provided by the center to enhance technical assistance to permit applicants.

          (4) The council shall meet at least four times per year.


          NEW SECTION. Sec. 9. (1) The powers, duties, and functions of the permit assistance center at the department of ecology are transferred to the center created in section 3 of this act.

          (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of ecology pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the center. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of ecology in carrying out the powers, functions, and duties transferred shall be made available to the center. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the center.

          (b) Any appropriations made to the department of ecology for carrying out the powers, functions, and duties transferred shall, on June 30, 2002, be transferred and credited to the center.

          (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

          (3) All rules and all pending business before the department of ecology pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the center. All existing contracts and obligations shall remain in full force and shall be performed by the center.

          (4) The transfer of the powers, duties, functions, and personnel of the authority shall not affect the validity of any act performed before June 30, 2002.

          (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.


          NEW SECTION. Sec. 10. Nothing in this chapter affects the jurisdiction of the energy facility site evaluation council as provided in chapter 80.50 RCW.


          NEW SECTION. Sec. 11. A new section is added to chapter 43.131 RCW to read as follows:

          The permit assistance center and its powers and duties terminates June 30, 2007, as provided in section 12 of this act.


          NEW SECTION. Sec. 12. A new section is added to chapter 43.131 RCW to read as follows:

          The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2008:

          (1) Section 1 of this act;

          (2) Section 2 of this act;

          (3) Section 3 of this act;

          (4) Section 4 of this act;

          (5) Section 5 of this act;

          (6) Section 6 of this act;

          (7) Section 7 of this act;

          (8) Section 8 of this act;

          (9) Section 9 of this act; and

          (10) Section 10 of this act.


          NEW SECTION. Sec. 13. Sections 1 through 10 of this act constitute a new chapter in Title 90 RCW.


          NEW SECTION. Sec. 14. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2002, in the omnibus appropriations act, this act is null and void.


          NEW SECTION. Sec. 15. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


          On page 1, line 2 of the title, after "ecology;" strike the remainder of the title and insert "adding new sections to chapter 43.131 RCW; adding a new chapter to Title 90 RCW; creating a new section; and declaring an emergency."


          There being no objection, the House refused to concur in the Senate Amendment to Engrossed Second Substitute House Bill No. 2671 and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

February 26, 2002

Mr. Speaker:


          The Senate has passed ENGROSSED HOUSE BILL NO. 2723, with the following amendments:


          Strike everything after the enacting clause and insert the following:


          "NEW SECTION. Sec. 1. INTENT. The legislature finds that greater flexibility to provide state financing for projects developed under chapter 47.46 RCW will result in better use of public resources, lower financing costs, and potential savings to taxpayers. The legislature intends to: Clarify the ability of the department of transportation to use public and private financing for projects selected and developed under chapter 47.46 RCW; provide the department with specific means of state financing where that financing is in the public's best interest; provide citizens living in the impacted areas a statutory mechanism to review proposed toll rates and provide input before adoption of toll schedules by the toll authority; and prevent unreasonable delay of critical transportation projects that are essential for public safety and welfare.


          Sec. 2. RCW 47.56.010 and 1984 c 7 s 246 are each amended to read as follows:

          PROVIDING DEFINITION FOR 1950 TACOMA NARROWS BRIDGE. As used in this chapter:

          (1) "Toll bridge" means a bridge constructed or acquired under this chapter, upon which tolls are charged, together with all appurtenances, additions, alterations, improvements, and replacements thereof, and the approaches thereto, and all lands and interests used therefor, and buildings and improvements thereon.

          (2) "Toll road" means any express highway, superhighway, or motorway at such locations and between such termini as may be established by law, and constructed or to be constructed as a limited access highway under the provisions of this chapter by the department, and shall include, but not be limited to, all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, toll houses, service areas, service facilities, communications facilities, and administration, storage, and other buildings that the department may deem necessary for the operation of the project, together with all property, rights, easements, and interests that may be acquired by the department for the construction or the operation of the project, all of which shall be conducted in the same manner and under the same procedure as provided for the establishing, constructing, operating, and maintaining of toll bridges by the department, insofar as those procedures are reasonably consistent and applicable.

          (3) "1950 Tacoma Narrows bridge" means the bridge crossing the Tacoma Narrows that was opened to vehicle travel in 1950.


          Sec. 3. RCW 47.46.030 and 1996 c 280 s 1 are each amended to read as follows:

          DEMONSTRATION PROJECTS--SELECTION--PUBLIC INVOLVEMENT. (1) The secretary or a designee shall solicit proposals from, and negotiate and enter into agreements with, private entities to undertake as appropriate, together with the department and other public entities, all or a portion of the study, planning, design, construction, operation, and maintenance of transportation systems and facilities, using in whole or in part public or private sources of financing.

          The public-private initiatives program may develop up to six demonstration projects. Each proposal shall be weighed on its own merits, and each of the six agreements shall be negotiated individually, and as a stand-alone project.

          (2) If project proposals selected prior to September 1, 1994, are terminated by the public or private sectors, the department shall not select any new projects, including project proposals submitted to the department prior to September 1, 1994, and designated by the transportation commission as placeholder projects, after June 16, 1995, until June 30, 1997.

          ((The department, in consultation with the legislative transportation committee, shall conduct a program and fiscal audit of the public-private initiatives program for the biennium ending June 30, 1997. The department shall submit a progress report to the legislative transportation committee on the program and fiscal audit by June 30, 1996, with preliminary and final audit reports due December 1, 1996, and June 30, 1997, respectively.

          The department shall develop and submit a proposed public involvement plan to the 1997 legislature to identify the process for selecting new potential projects and the associated costs of implementing the plan. The legislature must adopt the public involvement plan before the department may proceed with any activity related to project identification and selection. Following legislative adoption of the public involvement plan, the department is authorized to implement the plan and to identify potential new projects.

          The public involvement plan for projects selected after June 30, 1997, shall, at a minimum, identify projects that: (a) Have the potential of achieving overall public support among users of the projects, residents of communities in the vicinity of the projects, and residents of communities impacted by the projects; (b) meet a state transportation need; (c) provide a significant state benefit; and (d) provide competition among proposers and maximum cost benefits to users. Prospective projects may include projects identified by the department or submitted by the private sector.))

          Projects that meet the minimum criteria established under this section ((and the requirements of the public involvement plan developed by the department and approved by the legislature)) shall be submitted to the Washington state transportation commission for its review. The commission, in turn, shall submit a list of eligible projects to the legislative transportation committee for its consideration. Forty-five days after the submission to the legislative transportation committee of the list of eligible projects, the secretary is authorized to solicit proposals for the eligible project.

          (((3) Prior to entering into agreements with private entities under the requirements of RCW 47.46.040 for any project proposal selected before September 1, 1994, or after June 30, 1997, except as provided for in subsections (11) and (12) of this section, the department shall require an advisory vote as provided under subsections (5) through (10) of this section.

          (4) The advisory vote shall apply to project proposals selected prior to September 1, 1994, or after June 30, 1997, that receive public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals opposing the project collected and submitted in accordance with the dates established in subsections (12) and (13) of this section. The advisory vote shall be on the preferred alternative identified under the requirements of chapter 43.21C RCW and, if applicable, the national environmental policy act, 42 U.S.C. 4321 et seq. The execution by the department of the advisory vote process established in this section is subject to the prior appropriation of funds by the legislature for the purpose of conducting environmental impact studies, a public involvement program, local involvement committee activities, traffic and economic impact analyses, engineering and technical studies, and the advisory vote.

          (5) In preparing for the advisory vote, the department shall conduct a comprehensive analysis of traffic patterns and economic impact to define the geographical boundary of the project area that is affected by the imposition of tolls or user fees authorized under this chapter. The area so defined is referred to in this section as the affected project area. In defining the affected project area, the department shall, at a minimum, undertake: (a) A comparison of the estimated percentage of residents of communities in the vicinity of the project and in other communities impacted by the project who could be subject to tolls or user fees and the estimated percentage of other users and transient traffic that could be subject to tolls or user fees; (b) an analysis of the anticipated traffic diversion patterns; (c) an analysis of the potential economic impact resulting from proposed toll rates or user fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by the project; (d) an analysis of the economic impact of tolls or user fees on the price of goods and services generally; and (e) an analysis of the relationship of the project to state transportation needs and benefits.

          (6)(a) After determining the definition of the affected project area, the department shall establish a committee comprised of individuals who represent cities and counties in the affected project area; organizations formed to support or oppose the project; and users of the project. The committee shall be named the public-private local involvement committee, and be known as the local involvement committee.

          (b) The members of the local involvement committee shall be: (i) An elected official from each city within the affected project area; (ii) an elected official from each county within the affected project area; (iii) two persons from each county within the affected project area who represent an organization formed in support of the project, if the organization exists; (iv) two persons from each county within the affected project area who represent an organization formed to oppose the project, if the organization exists; and (v) four public members active in a statewide transportation organization. If the committee makeup results in an even number of committee members, there shall be an additional appointment of an elected official from the county in which all, or the greatest portion of the project is located.

          (c) City and county elected officials shall be appointed by a majority of the members of the city or county legislative authorities of each city or county within the affected project area, respectively. The county legislative authority of each county within the affected project area shall identify and validate organizations officially formed in support of or in opposition to the project and shall make the appointments required under this section from a list submitted by the chair of the organizations. Public members shall be appointed by the governor. All appointments to the local involvement committee shall be made and submitted to the department of transportation no later than January 1, 1996, for projects selected prior to September 1, 1994, and no later than thirty days after the affected project area is defined for projects selected after June 30, 1997. Vacancies in the membership of the local involvement committee shall be filled by the appointing authority under (b)(i) through (v) of this subsection for each position on the committee.

          (d) The local involvement committee shall serve in an advisory capacity to the department on all matters related to the execution of the advisory vote.

          (e) Members of the local involvement committee serve without compensation and may not receive subsistence, lodging expenses, or travel expenses.

          (7) The department shall conduct a minimum thirty-day public comment period on the definition of the geographical boundary of the project area. The department, in consultation with the local involvement committee, shall make adjustments, if required, to the definition of the geographical boundary of the affected project area, based on comments received from the public. Within fourteen calendar days after the public comment period, the department shall set the boundaries of the affected project area in units no smaller than a precinct as defined in RCW 29.01.120.

          (8) The department, in consultation with the local involvement committee, shall develop a description for selected project proposals. After developing the description of the project proposal, the department shall publish the project proposal description in newspapers of general circulation for seven calendar days in the affected project area. Within fourteen calendar days after the last day of the publication of the project proposal description, the department shall transmit a copy of the map depicting the affected project area and the description of the project proposal to the county auditor of the county in which any portion of the affected project area is located.

          (9) The department shall provide the legislative transportation committee with progress reports on the status of the definition of the affected project area and the description of the project proposal.

          (10) Upon receipt of the map and the description of the project proposal, the county auditor shall, within thirty days, verify the precincts that are located within the affected project area. The county auditor shall prepare the text identifying and describing the affected project area and the project proposal using the definition of the geographical boundary of the affected project area and the project description submitted by the department and shall set an election date for the submission of a ballot proposition authorizing the imposition of tolls or user fees to implement the proposed project within the affected project area, which date may be the next succeeding general election to be held in the state, or at a special election, if requested by the department. The text of the project proposal must appear in a voter's pamphlet for the affected project area. The department shall pay the costs of publication and distribution. The special election date must be the next date for a special election provided under RCW 29.13.020 that is at least sixty days but, if authorized under RCW 29.13.020, no more than ninety days after the receipt of the final map and project description by the auditor. The department shall pay the cost of an election held under this section.

          (11) Notwithstanding any other provision of law, the department may contract with a private developer of a selected project proposal to conduct environmental impact studies, a public involvement program, and engineering and technical studies funded by the legislature. For projects subject to this subsection, the department shall not enter into an agreement under RCW 47.46.040 prior to the advisory vote on the preferred alternative.

          (12) Subsections (5) through (10) of this section shall not apply to project proposals selected prior to September 1, 1994, that have no organized public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals opposing the project, collected and submitted after September 1, 1994, and by thirty calendar days after June 16, 1995.

          (13) Subsections (5) through (10) of this section shall not apply to project proposals selected after June 30, 1997, that have no organized public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals opposing the project, collected and submitted by ninety calendar days after project selection.))


          NEW SECTION. Sec. 4. A new section is added to chapter 47.46 RCW to read as follows:

          USE OF STATE BONDS ON CERTAIN PROJECTS. (1) To the extent that the legislature specifically appropriates funding for a project developed under this chapter using the proceeds of bonds issued by the state, an agreement for the design or construction of the project entered into by the secretary must incorporate provisions that are consistent with the use of the state financing provided by the appropriation.

          (2) The secretary shall amend existing agreements or execute new agreements to comply with subsection (1) of this section.

          (3) If the secretary is unable to reach agreement with other parties on contractual provisions providing for state financing, the secretary shall not enter into an agreement, or shall take no action with respect to an agreement, or shall exercise termination provisions.


          NEW SECTION. Sec. 5. A new section is added to chapter 47.46 RCW to read as follows:

          STATE TOLL FACILITIES AUTHORIZED FOR PPI PROJECTS. The department may provide for the establishment and construction of state toll bridge facilities upon any public highways of this state together with approaches to them under agreements entered into under this chapter to develop such facilities. A state toll bridge facility authorized under this section includes, but is not limited to, the construction of an additional toll bridge, including approaches, adjacent to and within two miles of an existing bridge, the imposition of tolls on both bridges, and the operation of both bridges as one toll facility.


          NEW SECTION. Sec. 6. A new section is added to chapter 47.46 RCW to read as follows:

          CITIZEN ADVISORY COMMITTEE CREATED. (1) A citizen advisory committee must be created for any project developed under this chapter that imposes toll charges for use of a transportation facility. The governor shall appoint nine members to the committee, all of whom must be permanent residents of the affected project area, as that term is defined by the department.

          (2) The citizen advisory committee shall serve in an advisory capacity to the commission on all matters related to the imposition of tolls. Members of the committee shall serve without compensation.

          (3) No toll charge may be imposed or modified unless the citizen advisory committee has been given at least twenty days to review and comment on any proposed toll charge schedule. In setting toll rates, the commission shall give consideration to any recommendations of the citizen advisory committee.


          NEW SECTION. Sec. 7. A new section is added to chapter 47.46 RCW to read as follows:

          COMMISSION TO ESTABLISH TOLL CHARGES. (1) The commission shall fix the rates of toll and other charges for all toll bridges built under this chapter that are financed primarily by bonds issued by the state. Subject to section 6 of this act, the commission may impose and modify toll charges from time to time as conditions warrant.

          (2) In establishing toll charges, the commission shall give due consideration to any required costs for operating and maintaining the toll bridge or toll bridges, including the cost of insurance, and to any amount required by law to meet the redemption of bonds and interest payments on them.

          (3) The toll charges must be imposed in amounts sufficient to:

          (a) Provide annual revenue sufficient to provide for annual operating and maintenance expenses;

          (b) Make payments required under sections 11 and 12 of this act, including insurance costs and the payment of principal and interest on bonds issued for any toll bridge or toll bridges authorized under this chapter; and

          (c) Repay the motor vehicle fund under sections 8, 11, and 12 of this act.

          (4) The bond principal and interest payments, including repayment of the motor vehicle fund for amounts transferred from that fund to provide for such principal and interest payments, constitute a first direct and exclusive charge and lien on all tolls and other revenues from the toll bridge concerned, subject to operating and maintenance expenses.


          NEW SECTION. Sec. 8. A new section is added to chapter 47.46 RCW to read as follows:

          TERM OF TOLLS. (1) The commission shall retain toll charges on any existing and future facilities constructed under this chapter and financed primarily by bonds issued by the state until:

          (a) All costs of investigation, financing, acquisition of property, and construction advanced from the motor vehicle fund have been fully repaid, except for funds previously expended from a legislative appropriation prior to the effective date of this act;

          (b) Obligations incurred in constructing that facility have been fully paid; and

          (c) The motor vehicle fund is fully repaid under section 12 of this act.

          (2) This section does not prohibit the use of toll revenues to fund maintenance, operations, or management of facilities constructed under this chapter.

          (3) Notwithstanding the provisions of subsection (2) of this section, upon satisfaction of the conditions enumerated in subsection (1) of this section:

          (a) The facility must be operated as a toll-free facility; and

          (b) The operation, maintenance, upkeep, and repair of the facility must be paid from funds appropriated for the use of the department for the construction and maintenance of the primary state highways of the state of Washington.


          NEW SECTION. Sec. 9. A new section is added to chapter 47.46 RCW to read as follows:

          TOLL INCREASES IN EXCESS OF FISCAL GROWTH FACTOR. Pursuant to RCW 43.135.055, the legislature authorizes the transportation commission to increase bridge tolls in excess of the fiscal growth factor.


          NEW SECTION. Sec. 10. A new section is added to chapter 47.46 RCW to read as follows:

          USE OF STATE BOND PROCEEDS. Proceeds of the sale of bonds issued by the state for projects constructed under this chapter must be deposited in the state treasury to the credit of a special account designated for those purposes. Those proceeds must be expended only for the purposes enumerated in this chapter, for payment of the expense incurred in the issuance and sale of any such bonds, and to repay the motor vehicle fund, except for funds previously expended from a legislative appropriation prior to the effective date of this act, for any sums advanced to pay the cost of surveys, location, design, development, right-of-way, and other activities related to the financing and construction of the bridge and its approaches.


          NEW SECTION. Sec. 11. A new section is added to chapter 47.46 RCW to read as follows:

          TACOMA NARROWS TOLL BRIDGE ACCOUNT CREATED. A special account to be known as the Tacoma Narrows toll bridge account is created in the motor vehicle fund in the state treasury.

          (1) Deposits to the account must include:

          (a) All proceeds of bonds issued for construction of the Tacoma Narrows public-private initiative project, including any capitalized interest;

          (b) All of the toll charges and other revenues received from the operation of the Tacoma Narrows bridge as a toll facility, to be deposited at least monthly; and

          (c) Any interest that may be earned from the deposit or investment of those revenues.

          (2) Proceeds of bonds shall be used consistent with section 10 of this act, including the reimbursement of expenses and fees incurred under agreements entered into under RCW 47.46.040 as required by those agreements.

          (3) Toll charges, other revenues, and interest may be used to:

          (a) Pay any required costs of financing, operation, maintenance, and management and necessary repairs of the facility; and

          (b) Repay amounts to the motor vehicle fund as required under section 12 of this act.

          (4) When repaying the motor vehicle fund under section 12 of this act, the state treasurer shall transfer funds from the Tacoma Narrows toll bridge account to the motor vehicle fund on or before each debt service date for bonds issued for the Tacoma Narrows public-private initiative project in an amount sufficient to repay the motor vehicle fund for amounts transferred from that fund to the highway bond retirement fund to provide for any bond principal and interest due on that date. The state treasurer may establish subaccounts for the purpose of segregating toll charges, bond sale proceeds, and other revenues.


          NEW SECTION. Sec. 12. A new section is added to chapter 47.46 RCW to read as follows:

          TOLL CHARGES REMAIN ON FACILITY TO REPAY MOTOR VEHICLE FUND. Toll charges must be used to repay the motor vehicle fund consistent with section 11 of this act for any amounts transferred from the motor vehicle fund to the highway bond retirement fund under RCW 47.10.847 to provide for bond retirement and interest on bonds issued for the Tacoma Narrows public-private initiative project. Toll charges must remain on any facility financed by bonds issued by the state for a length of time necessary to repay the motor vehicle fund, except for funds previously expended from a legislative appropriation prior to the effective date of this act, for any amounts expended from that fund for the design, development, right-of-way, financing, construction, maintenance, repair, or operation of the toll facility or for amounts transferred from the motor vehicle fund to the highway bond retirement fund under RCW 47.10.847 to provide for bond retirement and interest on bonds issued for the Tacoma Narrows public-private initiative project.


          NEW SECTION. Sec. 13. A new section is added to chapter 47.46 RCW to read as follows:

          ALTERATION DOES NOT CONSTITUTE NEW PROPOSAL. If a proposal is or has been selected for the design, development, construction, maintenance, or operation of transportation systems or facilities under this chapter, subsequent agreements may be made to implement portions of the proposal that modify the proposal or that do not incorporate all the features of the proposal. Any such modified agreement does not require the solicitation or consideration of additional proposals for all or any portion of the services rendered under that modified agreement. Modified agreements may provide for the reimbursement of expenses and fees incurred under earlier agreements.


          NEW SECTION. Sec. 14. A new section is added to chapter 47.46 RCW to read as follows:

          APPLICABLE RULES AND STATUTES. All projects designed, constructed, and operated under this chapter must comply with all applicable rules and statutes in existence at the time the agreement is executed, including but not limited to the following provisions: Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49 C.F.R. Part 21.


          NEW SECTION. Sec. 15. A new section is added to chapter 47.46 RCW to read as follows:

          APPLICATION OF RCW 47.46.040 AND 47.46.050. RCW 47.46.040 and 47.46.050 apply only to those agreements that include private sources of financing in whole or in part.


          Sec. 16. RCW 47.46.040 and 2001 c 64 s 14 are each amended to read as follows:

          DEMONSTRATION PROJECTS--TERMS OF AGREEMENTS--PUBLIC PARTICIPATION. (1) ((All projects designed, constructed, and operated under this authority must comply with all applicable rules and statutes in existence at the time the agreement is executed, including but not limited to the following provisions: Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49 C.F.R. Part 21.

          (2))) The secretary or a designee shall consult with legal, financial, and other experts within and outside state government in the negotiation and development of the agreements.

          (((3))) (2) Agreements ((shall)) may provide for private ownership of the projects during the construction period. After completion and final acceptance of each project or discrete segment thereof, the agreement ((shall)) may provide for state ownership of the transportation systems and facilities and lease to the private entity unless the state elects to provide for ownership of the facility by the private entity during the term of the agreement.

          The state ((shall)) may lease each of the demonstration projects, or applicable project segments, to the private entities for operating purposes for up to fifty years.

          (((4))) (3) The department may exercise any power possessed by it to facilitate the development, construction, financing operation, and maintenance of transportation projects under this ((chapter)) section. Agreements for maintenance services entered into under this section shall provide for full reimbursement for services rendered by the department or other state agencies. Agreements for police services for projects, involving state highway routes, developed under agreements shall be entered into with the Washington state patrol. The agreement for police services shall provide that the state patrol will be reimbursed for costs on a comparable basis with the costs incurred for comparable service on other state highway routes. The department may provide services for which it is reimbursed, including but not limited to preliminary planning, environmental certification, and preliminary design of the demonstration projects.

          (((5))) (4) The plans and specifications for each project constructed under this section shall comply with the department's standards for state projects. A facility constructed by and leased to a private entity is deemed to be a part of the state highway system for purposes of identification, maintenance, and enforcement of traffic laws and for the purposes of applicable sections of this title. Upon reversion of the facility to the state, the project must meet all applicable state standards. Agreements shall address responsibility for reconstruction or renovations that are required in order for a facility to meet all applicable state standards upon reversion of the facility to the state.

          (((6))) (5) For the purpose of facilitating these projects and to assist the private entity in the financing, development, construction, and operation of the transportation systems and facilities, the agreements may include provisions for the department to exercise its authority, including the lease of facilities, rights of way, and airspace, exercise of the power of eminent domain, granting of development rights and opportunities, granting of necessary easements and rights of access, issuance of permits and other authorizations, protection from competition, remedies in the event of default of either of the parties, granting of contractual and real property rights, liability during construction and the term of the lease, authority to negotiate acquisition of rights of way in excess of appraised value, and any other provision deemed necessary by the secretary.

          (((7))) (6) The agreements entered into under this section may include provisions authorizing the state to grant necessary easements and lease to a private entity existing rights of way or rights of way subsequently acquired with public or private financing. The agreements may also include provisions to lease to the entity airspace above or below the right of way associated or to be associated with the private entity's transportation facility. In consideration for the reversion rights in these privately constructed facilities, the department may negotiate a charge for the lease of airspace rights during the term of the agreement for a period not to exceed fifty years. If, after the expiration of this period, the department continues to lease these airspace rights to the private entity, it shall do so only at fair market value. The agreement may also provide the private entity the right of first refusal to undertake projects utilizing airspace owned by the state in the vicinity of the public-private project.

          (((8))) (7) Agreements under this section may include any contractual provision that is necessary to protect the project revenues required to repay the costs incurred to study, plan, design, finance, acquire, build, install, operate, enforce laws, and maintain toll highways, bridges, and tunnels and which will not unreasonably inhibit or prohibit the development of additional public transportation systems and facilities. Agreements under this section must secure and maintain liability insurance coverage in amounts appropriate to protect the project's viability and may address state indemnification of the private entity for design and construction liability where the state has approved relevant design and construction plans.

          (((9) Agreements shall include a process that provides for public involvement in decision making with respect to the development of the projects.

          (10)(a) In carrying out the public involvement process required in subsection (9) of this section, the private entity shall proactively seek public participation through a process appropriate to the characteristics of the project that assesses and demonstrates public support among: Users of the project, residents of communities in the vicinity of the project, and residents of communities impacted by the project.

          (b) The private entity shall conduct a comprehensive public involvement process that provides, periodically throughout the development and implementation of the project, users and residents of communities in the affected project area an opportunity to comment upon key issues regarding the project including, but not limited to: (i) Alternative sizes and scopes; (ii) design; (iii) environmental assessment; (iv) right of way and access plans; (v) traffic impacts; (vi) tolling or user fee strategies and tolling or user fee ranges; (vii) project cost; (viii) construction impacts; (ix) facility operation; and (x) any other salient characteristics.

          (c) If the affected project area has not been defined, the private entity shall define the affected project area by conducting, at a minimum: (i) A comparison of the estimated percentage of residents of communities in the vicinity of the project and in other communities impacted by the project who could be subject to tolls or user fees and the estimated percentage of other users and transient traffic that could be subject to tolls or user fees; (ii) an analysis of the anticipated traffic diversion patterns; (iii) an analysis of the potential economic impact resulting from proposed toll rates or user fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by the project; (iv) an analysis of the economic impact of tolls or user fees on the price of goods and services generally; and (v) an analysis of the relationship of the project to state transportation needs and benefits.

          The agreement may require an advisory vote by users of and residents in the affected project area.

          (d) In seeking public participation, the private entity shall establish a local involvement committee or committees comprised of residents of the affected project area, individuals who represent cities and counties in the affected project area, organizations formed to support or oppose the project, if such organizations exist, and users of the project. The private entity shall, at a minimum, establish a committee as required under the specifications of RCW 47.46.030(6)(b) (ii) and (iii) and appointments to such committee shall be made no later than thirty days after the project area is defined.

          (e) Local involvement committees shall act in an advisory capacity to the department and the private entity on all issues related to the development and implementation of the public involvement process established under this section.

          (f) The department and the private entity shall provide the legislative transportation committee and local involvement committees with progress reports on the status of the public involvement process including the results of an advisory vote, if any occurs.

          (11))) (8) Nothing in this chapter limits the right of the secretary and his or her agents to render such advice and to make such recommendations as they deem to be in the best interests of the state and the public.


          Sec. 17. RCW 47.46.050 and 1995 2nd sp.s. c 19 s 4 are each amended to read as follows:

          FINANCIAL ARRANGEMENTS. (1) The department may enter into agreements using federal, state, and local financing in connection with the projects, including without limitation, grants, loans, and other measures authorized by ((section 1012 of ISTEA)) federal law, and to do such things as necessary and desirable to maximize the funding and financing, including the formation of a revolving loan fund to implement this section.

          (2) Agreements entered into under this section ((shall)) may authorize the private entity to lease the facilities within a designated area or areas from the state and to impose user fees or tolls within the designated area to allow a reasonable rate of return on investment, as established through a negotiated agreement between the state and the private entity. The negotiated agreement shall determine a maximum development fee and, where appropriate, a maximum rate of return on investment, based on project and financing characteristics. If the negotiated rate of return on investment or development fee is not affected, the private entity may establish and modify toll rates and user fees.

          (3) Agreements that include a maximum rate of return may establish "incentive" rates of return beyond the negotiated maximum rate of return on investment. The incentive rates of return shall be designed to provide financial benefits to the affected public jurisdictions and the private entity, given the attainment of various safety, performance, or transportation demand management goals. The incentive rates of return shall be negotiated in the agreement.

          (4) Agreements shall require that over the term of the ownership or lease the user fees or toll revenues be applied only to payment of ((the private entity's)):

          (a) The capital outlay costs for the project, including ((project development costs, interest expense,)) the costs associated with planning, design, development, financing, construction, improvement, operations, toll collection, maintenance, and administration of the project((,));

          (b) The reimbursement to the state for all costs associated with ((an election as required under RCW 47.46.030, the costs of)) project review and oversight((,)) and technical and law enforcement services((,));

          (c) The establishment of a fund to assure the adequacy of maintenance expenditures((,)); and

          (d) A reasonable return on investment to the private entity. A negotiated agreement shall not extend the term of the ownership or lease beyond the period of time required for payment of the private entity's capital outlay costs for the project under this subsection.


          Sec. 18. RCW 47.46.060 and 1998 c 179 s 4 are each amended to read as follows:

          DEFERRAL OF TAXES. (1) Any person, including the department of transportation and any private entity ((that is party to an agreement under this chapter)) or entities, may apply for deferral of taxes on the site preparation for, the construction of, the acquisition of any related machinery and equipment which will become a part of, and the rental of equipment for use in the state route number 16 corridor improvements project under this chapter. Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application shall contain information regarding estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.

          (2) The department of revenue shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on the project. ((The use of the certificate shall be governed by rules established by the department of revenue.))

          (3) The department of transportation or a private entity granted a tax deferral under this section shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the project is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax. The project is operationally complete under this section when the collection of tolls is commenced for the state route number 16 improvements covered by the deferral.

          (4) The department of revenue may authorize an accelerated repayment schedule upon request of the department of transportation or a private entity granted a deferral under this section.

          (5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the private entity. Transfer of ownership does not terminate the deferral.

          (6) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW applies to the administration of this section.


          Sec. 19. RCW 47.56.030 and 2001 c 59 s 1 are each amended to read as follows:

          DEPARTMENT'S POWERS AND DUTIES REGARDING TOLL FACILITIES. (1) Except as permitted under chapter 47.46 RCW:

          (a) The department of transportation shall have full charge of the construction of all toll bridges and other toll facilities including the Washington state ferries, and the operation and maintenance thereof.

          (b) The transportation commission shall determine and establish the tolls and charges thereon, and shall perform all duties and exercise all powers relating to the financing, refinancing, and fiscal management of all toll bridges and other toll facilities including the Washington state ferries, and bonded indebtedness in the manner provided by law.

          (c) The department shall have full charge of design of all toll facilities.

          (d) Except as provided in this section, the department shall proceed with the construction of such toll bridges and other facilities and the approaches thereto by contract in the manner of state highway construction immediately upon there being made available funds for such work and shall prosecute such work to completion as rapidly as practicable. The department is authorized to negotiate contracts for any amount without bid under (((a))) (d)(i) and (((b))) (ii) of this subsection:

          (((a))) (i) Emergency contracts, in order to make repairs to ferries or ferry terminal facilities or removal of such facilities whenever continued use of ferries or ferry terminal facilities constitutes a real or immediate danger to the traveling public or precludes prudent use of such ferries or facilities; and

          (((b))) (ii) Single