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FIFTY-NINTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Wednesday, March 10, 2004

      The Senate was called to order at 9:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present.

      The Sergeant at Arms Color Guard consisting of Pages Cody Pomerinke and Cade Stephens presented the Colors. Senator Morton offered the prayer.


MOTION


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


MOTION


      There being no objection, the Senate advanced to the first order of business.


REPORTS OF STANDING COMMITTEES


March 9, 2004

SHB 1357          Prime Sponsor, Committee on Finance: Modifying the taxation of physical fitness services. Reported by Committee on Ways & Means

 

MAJORITY recommendation: Do pass. Signed by Senators Zarelli, Chair; Parlette, Vice Chair; Hewitt, Vice Chair, Capital Budget Chair; Carlson, Doumit, Hale, Honeyford, Johnson, Pflug, Rasmussen, Sheahan, B. Sheldon and Winsley.


      Passed to Committee on Rules for second reading.


March 9, 2004

EHB 1777          Prime Sponsor, Representative Morrell: Implementing the collective bargaining agreement between the home care quality authority and individual home care providers. Reported by Committee on Ways & Means

 

MAJORITY recommendation: Do pass as amended. Signed by Senators Zarelli, Chair; Parlette, Vice Chair; Hewitt, Vice Chair, Capital Budget Chair; Carlson, Doumit, Fairley, Fraser, Hale, Honeyford, Johnson, Pflug, Prentice, Rasmussen, Regala, Sheahan, B. Sheldon and Winsley.


      Passed to Committee on Rules for second reading.


March 9, 2004

SHB 1976          Prime Sponsor, Committee on Finance: Providing a property tax exemption to widows or widowers of honorably discharged veterans. Reported by Committee on Ways & Means

 

MAJORITY recommendation: Do pass as amended. Signed by Senators Zarelli, Chair; Parlette, Vice Chair; Hewitt, Vice Chair, Capital Budget Chair; Carlson, Doumit, Fairley, Fraser, Johnson, Pflug, Prentice, Rasmussen, Regala, Sheahan, B. Sheldon and Winsley.


      Passed to Committee on Rules for second reading.


MOTION


      On motion of Senator Esser, the measures listed on the Standing Committee report were referred to the committees as designated.


MOTION


      On motion of Senator Esser, the Senate advanced to the eighth order of business.


MOTION


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


SENATE RESOLUTION NO. 8736


By Senators Roach, Esser, Johnson, Rasmussen, Kastama, Franklin, Regala, Oke, Winsley and Fraser


      WHEREAS, The Lake Tapps reservoir provides many public benefits for the citizens of Pierce County as well as the greater Puget Sound region; and

      WHEREAS, Over the past four years, community members, public officials, and the private sector have worked tirelessly as part of the Lake Tapps Task Force to save the Lake Tapps reservoir in Pierce County; and

      WHEREAS, The Puget Sound Chinook salmon have been making great strides on the White River; and

      WHEREAS, The White River diversion dam is an essential component of the U.S. Army Corps of Engineers' trap and haul facilities that provide passage for threatened Puget Sound Chinook salmon above the Corps' Mud Mountain Dam; and

      WHEREAS, Puget Sound Energy ceased operating the White River diversion dam and hydroelectric project on January 15, 2004; and

      WHEREAS, Without the ongoing operation of the White River diversion dam, and the facilities required to pass water through the reservoir, these fish passage facilities will no longer function properly and the Mud Mountain Dam will become an impassible barrier to salmon and other anadromous species; and

      WHEREAS, The recovery efforts related to threatened salmon and other species will suffer if the fish passage facilities are not continued in operation; and

      WHEREAS, To avoid the harm to threatened fish species, the Corps has entered into an interim contract with Puget Sound Energy to keep the diversion dam and related facilities operating for fish passage purposes; and

      WHEREAS, Interim funding is required to continue operating the fish passage facilities until the Corps can put a long-term solution in place;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate recognize the efforts of the local citizens and the U.S. Army Corps of Engineers in their attempt to meet the needs of endangered and threatened salmon as well as those of private property owners; and

      BE IT FURTHER RESOLVED, That the Senate join with the citizens of Pierce County in hoping that the United States will help provide the necessary resources to help bring a successful resolution to these issues, including continuing fish passage efforts on the White River; and

      BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Secretary of the Senate to Pierce County and the Lake Tapps Task Force.

      Senators Roach and Fraser spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8736.

      The motion by Senator Roach carried and the resolution was adopted by voice vote.


MOTION


      At 9:11 a.m., on motion of Senator Esser, the Senate was declared to be at ease subject to the Call of the President for the purpose of a Rules Committee Meeting.


      The Senate was called to order at 9:45 a.m. by President Owen.


MOTION


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


MESSAGE FROM THE HOUSE


March 5, 2004


MR. PRESIDENT:


      The House has passed SUBSTITUTE SENATE BILL NO. 5326, with the following amendments{s}.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. FINDINGS. The legislature finds that:

      (1) The ability to respond to emergency situations by many of Washington state's fire protection jurisdictions has not kept up with the state's needs, particularly in urban regions;

      (2) Providing a fire protection service system requires a shared partnership and responsibility among the federal, state, local, and regional governments and the private sector;

      (3) There are efficiencies to be gained by regional fire protection service delivery while retaining local control; and

      (4) Timely development of significant projects can best be achieved through enhanced funding options for regional fire protection service agencies, using already existing taxing authority to address fire protection emergency service needs and new authority to address critical fire protection projects and emergency services.

      NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Board" means the governing body of a regional fire protection service authority.

      (2) "Regional fire protection service authority" or "authority" means 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, whose boundaries are coextensive with two or more adjacent fire protection jurisdictions and that has been created by a vote of the people under this chapter to implement a regional fire protection service authority plan.

      (3) "Regional fire protection service authority planning committee" or "planning committee" means the advisory committee created under section 3 of this act to create and propose to fire protection jurisdictions a regional fire protection service authority plan to design, finance, and develop fire protection service projects.

      (4) "Regional fire protection service authority plan" or "plan" means a plan to develop and finance a fire protection service authority project or projects, including, but not limited to, specific capital projects, fire operations and emergency service operations pursuant to section 4(3)(b) of this act, and preservation and maintenance of existing or future facilities.

      (5) "Fire protection jurisdiction" means a fire district, city, town, port district, or Indian tribe.

      (6) "Regular property taxes" has the same meaning as in RCW 84.04.140.

      NEW SECTION. Sec. 3. PLANNING COMMITTEE FORMATION. Regional fire protection service authority planning committees are advisory entities that are created, convened, and empowered as follows:

      (1) Any two or more adjacent fire protection jurisdictions may create a regional fire protection service authority and convene a regional fire protection service authority planning committee. No fire protection jurisdiction may participate in more than one authority.

      (2) Each governing body of the fire protection jurisdictions participating in planning under this chapter shall appoint three elected officials to the authority planning committee. Members of the planning committee may receive compensation of seventy dollars per day, or portion thereof, not to exceed seven hundred dollars per year, for attendance at planning committee meetings and for performance of other services in behalf of the authority, and may be reimbursed for travel and incidental expenses at the discretion of their respective governing body.

      (3) A regional fire protection service authority planning committee may receive state funding, as appropriated by the legislature, or county funding provided by the affected counties for start-up funding to pay for salaries, expenses, overhead, supplies, and similar expenses ordinarily and necessarily incurred. Upon creation of a regional fire protection service authority, the authority shall within one year reimburse the state or county for any sums advanced for these start-up costs from the state or county.

      (4) The planning committee shall conduct its affairs and formulate a regional fire protection service authority plan as provided under section 4 of this act.

      (5) At its first meeting, a regional fire protection service authority planning committee may elect officers and provide for the adoption of rules and other operating procedures.

      (6) The planning committee may dissolve itself at any time by a majority vote of the total membership of the planning committee. Any participating fire protection jurisdiction may withdraw upon thirty calendar days' written notice to the other jurisdictions.

      NEW SECTION. Sec. 4. PLANNING COMMITTEE DUTIES. (1) A regional fire protection service authority planning committee shall adopt a regional fire protection service authority plan providing for the design, financing, and development of fire protection services. The planning committee may consider the following factors in formulating its plan:

      (a) Land use planning criteria; and

      (b) The input of cities and counties located within, or partially within, a participating fire protection jurisdiction.

      (2) The planning committee may coordinate its activities with neighboring cities, towns, and other local governments that engage in fire protection planning.

      (3) The planning committee shall:

      (a) Create opportunities for public input in the development of the plan;

      (b) Adopt a plan proposing the creation of a regional fire protection service authority and recommending design, financing, and development of fire protection and emergency service facilities and operations, including maintenance and preservation of facilities or systems, except that no ambulance service may be recommended unless the regional fire protection service authority determines that the fire protection jurisdictions that are members of the authority are not adequately served by existing private ambulance service in which case the authority may provide for the establishment of a system of ambulance service to be operated by the authority or operated by contract after a call for bids; and

      (c) Recommend sources of revenue authorized by section 5 of this act and a financing plan to fund selected fire protection service projects.

      (4) Once adopted, the plan must be forwarded to the participating fire protection jurisdictions' governing bodies to initiate the election process under section 6 of this act.

      (5) If the ballot measure is not approved, the planning committee may redefine the selected regional fire protection service authority projects, financing plan, and the ballot measure. The fire protection jurisdictions' governing bodies may approve the new plan and ballot measure, and may then submit the revised proposition to the voters at a subsequent election or a special election. If a ballot measure is not approved by the voters by the third vote, the planning committee is dissolved.

      NEW SECTION. Sec. 5. TAXES AND FEES. (1) A regional fire protection service authority planning committee may, as part of a regional fire protection service authority plan, recommend the imposition of some or all of the following revenue sources, which a regional fire protection service authority may impose upon approval of the voters as provided in this chapter:

      (a) Benefit charges under sections 24 through 33 of this act;

      (b) Property taxes under sections 15 through 18 and 20 of this act and RCW 84.09.030, 84.52.010, 84.52.052, and 84.52.069; or

      (c) Both (a) and (b) of this subsection.

      (2) Taxes and benefit charges may not be imposed unless they are identified in the regional fire protection service authority plan and the plan is approved by an affirmative vote of the majority of the voters within the boundaries of the authority voting on a ballot proposition as set forth in section 6 of this act. The voter approval requirement provided in this section is in addition to any other voter approval requirement under law for the levying of property taxes or the imposition of benefit charges. Revenues from these taxes and benefit charges may be used only to implement the plan as set forth in this chapter.

      NEW SECTION. Sec. 6. SUBMISSION OF PLAN TO THE VOTERS. The governing bodies of two or more adjacent fire protection jurisdictions, upon receipt of the regional fire protection service authority plan under section 4 of this act, may certify the plan to the ballot, including identification of the tax options necessary to fund the plan. The governing bodies of the fire protection jurisdictions may draft a ballot title, give notice as required by law for ballot measures, and perform other duties as required to put the plan before the voters of the proposed authority for their approval or rejection as a single ballot measure that both approves formation of the authority and approves the plan. Authorities may negotiate interlocal agreements necessary to implement the plan. The electorate is the voters voting within the boundaries of the proposed regional fire protection service authority. A simple majority of the total persons voting on the single ballot measure to approve the plan, establish the authority, and approve the taxes is required for approval. The authority must act in accordance with the general election laws of the state. The authority is liable for its proportionate share of the costs when the elections are held under RCW 29A.04.320 and 29A.04.330.

      NEW SECTION. Sec. 7. CERTIFICATION OF FORMATION. If the voters approve the plan, including creation of a regional fire protection service authority and imposition of taxes, if any, the authority is formed. The appropriate county election officials shall, within fifteen days of the final certification of the election results, publish a notice in a newspaper or newspapers of general circulation in the authority declaring the authority formed. A party challenging the procedure or the formation of a voter-approved authority must file the challenge in writing by serving the prosecuting attorney of each county within, or partially within, the regional fire protection service authority and the attorney general within thirty days after the final certification of the election. Failure to challenge within that time forever bars further challenge of the authority's valid formation.

      NEW SECTION. Sec. 8. BOARD ORGANIZATION AND COMPOSITION. (1) The board shall adopt rules for the conduct of business. The board shall adopt bylaws to govern authority affairs, which may include:

      (a) The time and place of regular meetings;

      (b) Rules for calling special meetings;

      (c) The method of keeping records of proceedings and official acts;

      (d) Procedures for the safekeeping and disbursement of funds; and

      (e) Any other provisions the board finds necessary to include.

      (2) The governing board shall be determined by the plan and consist solely of elected officials.

      NEW SECTION. Sec. 9. BOARD'S POWERS AND DUTIES. (1) The governing board of the authority is responsible for the execution of the voter-approved plan. Participating jurisdictions shall review the plan every ten years. The board shall:

      (a) Levy and impose taxes as authorized in the plan and approved by authority voters;

      (b) Enter into agreements with federal, state, local, and regional entities and departments as necessary to accomplish authority purposes and protect the authority's investments;

      (c) Accept gifts, grants, or other contributions of funds that will support the purposes and programs of the authority;

      (d) Monitor and audit the progress and execution of fire protection service projects to protect the investment of the public and annually make public its findings;

      (e) Pay for services and enter into leases and contracts, including professional service contracts;

      (f) Hire, manage, and terminate employees; and

      (g) Exercise other powers and duties as may be reasonable to carry out the purposes of the authority.

      (2) An authority may acquire, hold, or dispose of real property.

      (3) An authority may exercise the powers of eminent domain.

      (4) An authority may enforce fire codes as provided under chapter 19.27 RCW.

      NEW SECTION. Sec. 10. TRANSFER OF RESPONSIBILITIES. (1) All powers, duties, and functions of a participating fire protection jurisdiction pertaining to providing fire protection services may be transferred, by resolution, to the regional fire protection service authority.

      (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the participating fire protection jurisdiction pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the regional fire protection service authority. All real property and personal property including cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the participating fire protection jurisdiction in carrying out the powers, functions, and duties transferred shall be made available to the regional fire protection service authority. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the regional fire protection service authority.

      (b) Any appropriations made to the participating fire protection jurisdiction for carrying out the powers, functions, and duties transferred shall, on the effective date of the resolution, be transferred and credited to the regional fire protection service authority.

      (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 governing body of the participating fire protection jurisdiction shall make a determination as to the proper allocation.

      (3) All rules and all pending business before the participating fire protection jurisdiction pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the regional fire protection service authority. All existing contracts and obligations shall remain in full force and shall be performed by the regional fire protection service authority.

      (4) The transfer of the powers, duties, functions, and personnel of the participating fire protection jurisdiction shall not affect the validity of any act performed before the effective date of the resolution.

      (5) If apportionments of budgeted funds are required because of the transfers directed by the resolution, the treasurer under section 18 of this act shall certify the apportionments.

      (6) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified as provided by law. RCW 35.13.215 through 35.13.235 apply to the transfer of employees under this section.

      NEW SECTION. Sec. 11. WITHDRAWAL OR REANNEXATION OF AREAS. (1) As provided in this section, a regional fire protection service authority may withdraw areas from its boundaries or reannex into the authority areas that previously had been withdrawn from the authority under this section.

      (2)(a) The withdrawal of an area is authorized upon: (i) Adoption of a resolution by the board approving the withdrawal and finding that, in the opinion of the board, inclusion of this area within the regional fire protection service authority will result in a reduction of the authority's tax levy rate under the provisions of RCW 84.52.010; or (ii) adoption of a resolution by the city or town council approving the withdrawal, if the area is located within the city or town, or adoption of a resolution by the governing body of the fire protection district within which the area is located approving the withdrawal, if the area is located outside of a city or town, but within a fire protection district.

      (b) A withdrawal under this section is effective at the end of the day on the thirty-first day of December in the year in which the resolution under (a)(i) or (ii) of this subsection is adopted, but for purposes of establishing boundaries for property tax purposes, the boundaries shall be established immediately upon the adoption of the resolution.

      (c) The withdrawal of an area from the boundaries of an authority does not exempt any property therein from taxation for the purpose of paying the costs of redeeming any indebtedness of the authority existing at the time of withdrawal.

      (3)(a) An area that has been withdrawn from the boundaries of a regional fire protection service authority under this section may be reannexed into the authority upon: (i) Adoption of a resolution by the board proposing the reannexation; and (ii) adoption of a resolution by the city or town council approving the reannexation, if the area is located within the city or town, or adoption of a resolution by the governing body of the fire protection district within which the area is located approving the reannexation, if the area is located outside of a city or town but within a fire protection district.

      (b) A reannexation under this section shall be effective at the end of the day on the thirty-first day of December in the year in which the adoption of the resolution under (a)(ii) of this subsection occurs, but for purposes of establishing boundaries for property tax purposes, the boundaries shall be established immediately upon the adoption of the resolution.

      (c)(i) Referendum action on the proposed reannexation under this section may be taken by the voters of the area proposed to be reannexed if a petition calling for a referendum is filed with the city or town council, or governing body of the fire protection district, within a thirty-day period after the adoption of the resolution under (a)(ii) of this subsection, which petition has been signed by registered voters of the area proposed to be reannexed equal in number to ten percent of the total number of the registered voters residing in that area.

      (ii) If a valid petition signed by the requisite number of registered voters has been so filed, the effect of the resolutions shall be held in abeyance and a ballot proposition to authorize the reannexation shall be submitted to the voters of the area at the next special election date specified in RCW 29A.04.330 that occurs forty-five or more days after the petitions have been validated. Approval of the ballot proposition authorizing the reannexation by a simple majority vote shall authorize the reannexation.

      NEW SECTION. Sec. 12. DISSOLUTION--ELECTION. Any fire protection district within the authority may be dissolved by a majority vote of the registered electors of the district at an election conducted by the election officials of the county or counties in which the district is located in accordance with the general election laws of the state. The proceedings for dissolution may be initiated by the adoption of a resolution by the board. The dissolution of the district shall not cancel outstanding obligations of the district or of a local improvement district within the district, and the county legislative authority or authorities of the county or counties in which the district was located may make annual levies against the lands within the district until the obligations of the districts are paid. All powers, duties, and functions of a dissolved fire protection jurisdiction within the authority boundaries, pertaining to providing fire protection services may be transferred, by resolution, to the regional fire protection service authority.

      Sec. 13. RCW 57.90.010 and 1999 c 153 s 24 are each amended to read as follows:

      Water-sewer, park and recreation, metropolitan park, county rural library, cemetery, flood control, mosquito control, diking and drainage, irrigation or reclamation, weed, health, or fire protection districts, and any air pollution control authority or regional fire protection service authority, hereinafter referred to as "special districts," which are located wholly or in part within a county with a population of two hundred ten thousand or more may be disincorporated when the district has not actively carried out any of the special purposes or functions for which it was formed within the preceding consecutive five-year period.

      NEW SECTION. Sec. 14. DEBT AND BONDING. Unless contrary to this section, chapter 39.42 RCW applies to debt and bonding under this section. The authority may borrow money, but may not issue any debt of its own for more than ten years' duration. An authority may issue notes or other evidences of indebtedness with a maturity of not more than twenty years. An authority may, when authorized by the plan, enter into agreements with the state to pledge taxes or other revenues of the authority for the purpose of paying in part or whole principal and interest on bonds issued by the authority. The contracts pledging revenues and taxes are binding for the term of the agreement, but not to exceed twenty-five years, and no tax pledged by an agreement may be eliminated or modified if it would impair the pledge of the agreement.

      NEW SECTION. Sec. 15. (1) To carry out the purposes for which a regional fire protection service authority is created, as authorized in the plan and approved by the voters, the governing board of an authority may annually levy the following taxes:

      (a) An ad valorem tax on all taxable property located within the authority not to exceed fifty cents per thousand dollars of assessed value;

      (b) An ad valorem tax on all property located within the authority not to exceed fifty cents per thousand dollars of assessed value and which will not cause the combined levies to exceed the constitutional or statutory limitations. This levy, or any portion of this levy, may also be made when dollar rates of other taxing units are released by agreement with the other taxing units from their authorized levies; and

      (c) An ad valorem tax on all taxable property located within the authority not to exceed fifty cents per thousand dollars of assessed value if the authority has at least one full-time, paid employee, or contracts with another municipal corporation for the services of at least one full-time, paid employee. This levy may be made only if it will not affect dollar rates which other taxing districts may lawfully claim nor cause the combined levies to exceed the constitutional or statutory limitations or both.

      (2) Levies in excess of the amounts provided in subsection (1) of this section or in excess of the aggregate dollar rate limitations or both may be made for any authority purpose when so authorized at a special election under RCW 84.52.052. Any such tax when levied must 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 authority fund or funds as provided by law, and must be paid out on warrants of the auditor of the county in which all, or the largest portion of, the authority is located, upon authorization of the governing board of the authority.

      (3) Authorities are additionally authorized to incur general indebtedness and to issue general obligation bonds for capital purposes as provided in section 14 of this act. Authorities may provide for the retirement of general indebtedness by excess property tax levies, when the voters of the authority have approved a proposition authorizing such indebtedness and levies by an affirmative vote of three-fifths of those voting on the proposition at such an election, at which election the total number of persons voting shall constitute not less than forty percent of the voters in the authority who voted at the last preceding state general election. Elections must be held as provided in RCW 39.36.050. The maximum term of any bonds issued under the authority of this section may not exceed ten years and must be issued and sold in accordance with chapter 39.46 RCW.

      (4) For purposes of this section, the term "value of the taxable property" has the same meaning as in RCW 39.36.015.

      NEW SECTION. Sec. 16. At the time of making general tax levies in each year, the county legislative authority or authorities of the county or counties in which a regional fire protection service authority is located shall make the required levies for authority purposes against the real and personal property in the authority in accordance with the equalized valuations of the property for general tax purposes and as a part of the general taxes. The tax levies are part of the general tax roll and must be collected as a part of the general taxes against the property in the authority.

      NEW SECTION. Sec. 17. In the event that lands lie within both a regional fire protection service authority and a forest protection assessment area they shall be taxed and assessed as follows:

      (1) If the lands are wholly unimproved, they are subject to forest protection assessments but not to authority levies;

      (2) If the lands are wholly improved, they are subject to authority levies but not to forest protection assessments; and

      (3) If the lands are partly improved and partly unimproved, they are subject both to authority levies and to forest protection assessments. However, upon request, accompanied by appropriate legal descriptions, the county assessor shall segregate any unimproved portions which each consist of twenty or more acres, and thereafter the unimproved portion or portions are subject only to forest protection assessments.

      NEW SECTION. Sec. 18. It is the duty of the county treasurer of the county in which the regional fire protection service authority created under this chapter is located to collect taxes authorized and levied under this chapter. However, when a regional fire protection service authority is located in more than one county, the county treasurer of each county in which the authority is located shall collect the regional fire protection service authority's taxes that are imposed on property located within the county and transfer these funds to the treasurer of the county in which the majority of the authority lies.

      Sec. 19. RCW 84.09.030 and 1996 c 230 s 1613 are each amended to read as follows:

      Except as follows, the boundaries of counties, cities and all other taxing districts, for purposes of property taxation and the levy of property taxes, shall be the established official boundaries of such districts existing on the first day of March of the year in which the property tax levy is made.

      The official boundaries of a newly incorporated taxing district shall be established at a different date in the year in which the incorporation occurred as follows:

      (1) Boundaries for a newly incorporated city shall be established on the last day of March of the year in which the initial property tax levy is made, and the boundaries of a road district, library district, or fire protection district or districts, that include any portion of the area that was incorporated within its boundaries shall be altered as of this date to exclude this area, if the budget for the newly incorporated city is filed pursuant to RCW 84.52.020 and the levy request of the newly incorporated city is made pursuant to RCW 84.52.070. Whenever a proposed city incorporation is on the March special election ballot, the county auditor shall submit the legal description of the proposed city to the department of revenue on or before the first day of March;

      (2) Boundaries for a newly incorporated port district or regional fire protection service authority shall be established on the first day of October if the boundaries of the newly incorporated port district or regional fire protection service authority are coterminous with the boundaries of another taxing district or districts, as they existed on the first day of March of that year;

      (3) Boundaries of any other newly incorporated taxing district shall be established on the first day of June of the year in which the property tax levy is made if the taxing district has boundaries coterminous with the boundaries of another taxing district, as they existed on the first day of March of that year;

      (4) Boundaries for a newly incorporated water-sewer district shall be established on the fifteenth of June of the year in which the proposition under RCW 57.04.050 authorizing a water district excess levy is approved.

      The boundaries of a taxing district shall be established on the first day of June if territory has been added to, or removed from, the taxing district after the first day of March of that year with boundaries coterminous with the boundaries of another taxing district as they existed on the first day of March of that year. However, the boundaries of a road district, library district, or fire protection district or districts, that include any portion of the area that was annexed to a city or town within its boundaries shall be altered as of this date to exclude this area. In any case where any instrument setting forth the official boundaries of any newly established taxing district, or setting forth any change in such boundaries, is required by law to be filed in the office of the county auditor or other county official, said instrument shall be filed in triplicate. The officer with whom such instrument is filed shall transmit two copies to the county assessor.

      No property tax levy shall be made for any taxing district whose boundaries are not established as of the dates provided in this section.

      NEW SECTION. Sec. 20. A new section is added to chapter 84.52 RCW to read as follows:

      (1) If a fire protection district is a participating fire protection jurisdiction in a regional fire protection service authority, the regular property tax levies of the fire protection district are limited as follows:

      (a) The regular levy of the district under RCW 52.16.130 shall not exceed fifty cents per thousand dollars of assessed value of taxable property in the district less the amount of any levy imposed by the authority under section 15(1)(a) of this act;

      (b) The levy of the district under RCW 52.16.140 shall not exceed fifty cents per thousand dollars of assessed value of taxable property in the district less the amount of any levy imposed by the authority under section 15(1)(b) of this act; and

      (c) The levy of the district under RCW 52.16.160 shall not exceed fifty cents per thousand dollars of assessed value of taxable property in the district less the amount of any levy imposed by the authority under section 15(1)(c) of this act.

      (2) If a city or town is a participating fire protection jurisdiction in a regional fire protection service authority, the regular levies of the city or town shall not exceed the applicable rates provided in RCW 27.12.390, 52.04.081, and 84.52.043(1) less the aggregate rates of any regular levies made by the authority under section 15(1) of this act.

      (3) If a port district is a participating fire protection jurisdiction in a regional fire protection service authority, the regular levy of the port district under RCW 53.36.020 shall not exceed forty-five cents per thousand dollars of assessed value of taxable property in the district less the aggregate rates of any regular levies imposed by the authority under section 15(1) of this act.

      (4) For purposes of this section, the following definitions apply:

      (a) "Fire protection jurisdiction" means a fire protection district, city, town, Indian tribe, or port district; and

      (b) "Participating fire protection jurisdiction" means a fire protection district, city, town, Indian tribe, or port district that is represented on the governing board of a regional fire protection service authority.

      Sec. 21. RCW 84.52.010 and 2003 c 83 s 310 are each amended to read as follows:

      Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

      The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

      When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

      (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 36.54.130, 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows: (a) The levy imposed by a ferry district under RCW 36.54.130 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated; (b) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and (d) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

      (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

      (a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

      (b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

      (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, regional fire protection service authorities, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

      (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts created on or after January 1, 2002, shall be reduced on a pro rata basis or eliminated;

      (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to regional fire protection service authorities under section 15(1) (b) and (c) of this act and fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

      (f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for regional fire protection service authorities under section 15(1)(a) of this act, fire protection districts under RCW 52.16.130, library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

      In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 84.55.012.

      Sec. 22. RCW 84.52.052 and 2003 c 83 s 312 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, cemetery district, city, town, transportation benefit district, emergency medical service district with a population density of less than one thousand per square mile, cultural arts, stadium, and convention district, ferry district, ((or)) city transportation authority, or regional fire protection service authority.

      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."

      Sec. 23. RCW 84.52.069 and 1999 c 224 s 1 are each amended to read as follows:

      (1) As used in this section, "taxing district" means a county, emergency medical service district, city or town, public hospital district, urban emergency medical service district, regional fire protection service authority, or fire protection district.

      (2) A taxing district may impose additional regular property tax levies in an amount equal to fifty cents or less per thousand dollars of the assessed value of property in the taxing district. The tax shall be imposed (a) each year for six consecutive years, (b) each year for ten consecutive years, or (c) permanently. A tax levy under this section must be specifically authorized by a majority of at least three-fifths of the registered voters thereof approving a proposition authorizing the levies submitted at a general or special election, at which election the number of persons voting "yes" on the proposition shall constitute three-fifths of a number equal to forty percent of the total number of voters voting in such taxing district at the last preceding general election when the number of registered voters voting on the proposition does not exceed forty percent of the total number of voters voting in such taxing district in the last preceding general election; or by a majority of at least three-fifths of the registered voters thereof voting on the proposition when the number of registered voters voting on the proposition exceeds forty percent of the total number of voters voting in such taxing district in the last preceding general election. Ballot propositions shall conform with RCW ((29.30.111)) 29A.36.210. A taxing district shall not submit to the voters at the same election multiple propositions to impose a levy under this section.

      (3) A taxing district imposing a permanent levy under this section shall provide for separate accounting of expenditures of the revenues generated by the levy. The taxing district shall maintain a statement of the accounting which shall be updated at least every two years and shall be available to the public upon request at no charge.

      (4) A taxing district imposing a permanent levy under this section shall provide for a referendum procedure to apply to the ordinance or resolution imposing the tax. This referendum procedure shall specify that a referendum petition may be filed at any time with a filing officer, as identified in the ordinance or resolution. Within ten days, the filing officer shall confer with the petitioner concerning form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the designated local official. The petitioner shall have thirty days in which to secure the signatures of not less than fifteen percent of the registered voters of the taxing district, as of the last general election, upon petition forms which contain the ballot title and the full text of the measure to be referred. The filing officer shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the referendum measure to the next election within the taxing district if one is to be held within one hundred eighty days from the date of filing of the referendum petition, or at a special election to be called for that purpose in accordance with RCW ((29.13.020)) 29A.04.330.

      The referendum procedure provided in this subsection shall be exclusive in all instances for any taxing district imposing the tax under this section and shall supersede the procedures provided under all other statutory or charter provisions for initiative or referendum which might otherwise apply.

      (5) Any tax imposed under this section shall be used only for the provision of emergency medical care or emergency medical services, including related personnel costs, training for such personnel, and related equipment, supplies, vehicles and structures needed for the provision of emergency medical care or emergency medical services.

      (6) If a county levies a tax under this section, no taxing district within the county may levy a tax under this section. If a regional fire protection service authority imposes a tax under this section, no other taxing district that is a participating fire protection jurisdiction in the regional fire protection service authority may levy a tax under this section. No other taxing district may levy a tax under this section if another taxing district has levied a tax under this section within its boundaries: PROVIDED, That if a county levies less than fifty cents per thousand dollars of the assessed value of property, then any other taxing district may levy a tax under this section equal to the difference between the rate of the levy by the county and fifty cents: PROVIDED FURTHER, That if a taxing district within a county levies this tax, and the voters of the county subsequently approve a levying of this tax, then the amount of the taxing district levy within the county shall be reduced, when the combined levies exceed fifty cents. Whenever a tax is levied county-wide, the service shall, insofar as is feasible, be provided throughout the county: PROVIDED FURTHER, That no county-wide levy proposal may be placed on the ballot without the approval of the legislative authority of each city exceeding fifty thousand population within the county: AND PROVIDED FURTHER, That this section and RCW 36.32.480 shall not prohibit any city or town from levying an annual excess levy to fund emergency medical services: AND PROVIDED, FURTHER, That if a county proposes to impose tax levies under this section, no other ballot proposition authorizing tax levies under this section by another taxing district in the county may be placed before the voters at the same election at which the county ballot proposition is placed: AND PROVIDED FURTHER, That any taxing district emergency medical service levy that is limited in duration and that is authorized subsequent to a county emergency medical service levy that is limited in duration, shall expire concurrently with the county emergency medical service levy.

      (7) The limitations in RCW 84.52.043 shall not apply to the tax levy authorized in this section.

      (8) If a ballot proposition approved under subsection (2) of this section did not impose the maximum allowable levy amount authorized for the taxing district under this section, any future increase up to the maximum allowable levy amount must be specifically authorized by the voters in accordance with subsection (2) of this section at a general or special election.

      (9) The limitation in RCW 84.55.010 shall not apply to the first levy imposed pursuant to this section following the approval of such levy by the voters pursuant to subsection (2) of this section.

      (10) For purposes of this section, the following definitions apply:

      (a) "Fire protection jurisdiction" means a fire protection district, city, town, Indian tribe, or port district; and

      (b) "Participating fire protection jurisdiction" means a fire protection district, city, town, Indian tribe, or port district that is represented on the governing board of a regional fire protection service authority.

      NEW SECTION. Sec. 24. (1) The governing board of a regional fire protection service authority may by resolution, as authorized in the plan and approved by the voters, for authority purposes authorized by law, fix and impose a benefit charge on personal property and improvements to real property which are located within the authority on the date specified and which have received or will receive the benefits provided by the authority, to be paid by the owners of the properties. A benefit charge does not apply to personal property and improvements to real property owned or used by any recognized religious denomination or religious organization as, or including, a sanctuary or for purposes related to the bona fide religious ministries of the denomination or religious organization, including schools and educational facilities used for kindergarten, primary, or secondary educational purposes or for institutions of higher education and all grounds and buildings related thereto. However, a benefit charge does apply to personal property and improvements to real property owned or used by any recognized religious denomination or religious organization for business operations, profit-making enterprises, or activities not including use of a sanctuary or related to kindergarten, primary, or secondary educational purposes or for institutions of higher education. The aggregate amount of these benefit charges in any one year may not exceed an amount equal to sixty percent of the operating budget for the year in which the benefit charge is to be collected. It is the duty of the county legislative authority or authorities of the county or counties in which the regional fire protection service authority is located to make any necessary adjustments to assure compliance with this limitation and to immediately notify the governing board of an authority of any changes thereof.

      (2) A benefit charge imposed must be reasonably proportioned to the measurable benefits to property resulting from the services afforded by the authority. It is acceptable to apportion the benefit charge to the values of the properties as found by the county assessor or assessors modified generally in the proportion that fire insurance rates are reduced or entitled to be reduced as the result of providing the services. Any other method that reasonably apportions the benefit charges to the actual benefits resulting from the degree of protection, which may include but is not limited to the distance from regularly maintained fire protection equipment, the level of fire prevention services provided to the properties, or the need of the properties for specialized services, may be specified in the resolution and is subject to contest on the grounds of unreasonable or capricious action or action in excess of the measurable benefits to the property resulting from services afforded by the authority. The governing board of an authority may determine that certain properties or types or classes of properties are not receiving measurable benefits based on criteria they establish by resolution. A benefit charge authorized by this chapter is not applicable to the personal property or improvements to real property of any individual, corporation, partnership, firm, organization, or association maintaining a fire department and whose fire protection and training system has been accepted by a fire insurance underwriter maintaining a fire protection engineering and inspection service authorized by the state insurance commissioner to do business in this state, but the property may be protected by the authority under a contractual agreement.

      (3) For administrative purposes, the benefit charge imposed on any individual property may be compiled into a single charge, provided that the authority, upon request of the property owner, provide an itemized list of charges for each measurable benefit included in the charge.

      (4) For the purposes of this section and sections 25 through 33 of this act, the following definitions apply:

      (a)(i) "Personal property" includes every form of tangible personal property including, but not limited to, all goods, chattels, stock in trade, estates, or crops.

      (ii) "Personal property" does not include any personal property used for farming, field crops, farm equipment, or livestock.

      (b) "Improvements to real property" does not include permanent growing crops, field improvements installed for the purpose of aiding the growth of permanent crops, or other field improvements normally not subject to damage by fire.

      NEW SECTION. Sec. 25. All personal property not assessed and subjected to ad valorem taxation under Title 84 RCW, all property under contract or for which the regional fire protection service authority is receiving payment for as authorized by law, all property subject to chapter 54.28 RCW, and all property that is subject to a contract for services with an authority, is exempt from the benefit charge imposed under this chapter.


      NEW SECTION. Sec. 26. (1) The resolution establishing benefit charges as specified in section 24 of this act must specify, by legal geographical areas or other specific designations, the charge to apply to each property by location, type, or other designation, or other information that is necessary to the proper computation of the benefit charge to be charged to each property owner subject to the resolution.

      (2) The county assessor of each county in which the regional fire protection service authority is located shall determine and identify the personal properties and improvements to real property that are subject to a benefit charge in each authority and shall furnish and deliver to the county treasurer of that county a listing of the properties with information describing the location, legal description, and address of the person to whom the statement of benefit charges is to be mailed, the name of the owner, and the value of the property and improvements, together with the benefit charge to apply to each. These benefit charges must be certified to the county treasurer for collection in the same manner that is used for the collection of fire protection charges for forest lands protected by the department of natural resources under RCW 76.04.610 and the same penalties and provisions for collection apply.

      NEW SECTION. Sec. 27. Each regional fire protection service authority shall contract, prior to the imposition of a benefit charge, for the administration and collection of the benefit charge by each county treasurer, who shall deduct a percentage, as provided by contract to reimburse the county for expenses incurred by the county assessor and county treasurer in the administration of the resolution and this chapter. The county treasurer shall make distributions each year, as the charges are collected, in the amount of the benefit charges imposed on behalf of each authority, less the deduction provided for in the contract.

      NEW SECTION. Sec. 28. (1) Notwithstanding any other provision in this chapter to the contrary, any benefit charge authorized by this chapter is not effective unless a proposition to impose the benefit charge is approved by a sixty percent majority of the voters of the regional fire protection service authority voting at a general election or at a special election called by the authority for that purpose, held within the authority. An election held under this section must be held not more than twelve months prior to the date on which the first charge is to be assessed. A benefit charge approved at an election expires in six years or fewer as authorized by the voters, unless subsequently reapproved by the voters.

      (2) The ballot must be submitted so as to enable the voters favoring the authorization of a regional fire protection service authority benefit charge to vote "Yes" and those opposed to vote "No." The ballot question is as follows:

"Shall . . . . . . the regional fire protection service authority composed of (insert the participating fire protection jurisdictions) . . . . . be authorized to impose benefit charges each year for . . . . (insert number of years not to exceed six) years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional property tax under RCW . . . (section 15(1)(c) of this act)?

                                                                      YES                                                                        NO

                                                                       □                                                                               □"

      (3) Authorities renewing the benefit charge may elect to use the following alternative ballot:


"Shall . . . . . the regional fire protection service authority composed of (insert the participating fire protection jurisdictions) . . . . . . be authorized to continue voter-authorized benefit charges each year for . . . . (insert number of years not to exceed six) years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional property tax under RCW . . . (section 15(1)(c) of this act)?

                                                                      YES                                                                        NO

                                                                       □                                                                               □"

      NEW SECTION. Sec. 29. (1) Not fewer than ten days nor more than six months before the election at which the proposition to impose the benefit charge is submitted as provided in this chapter, the governing board of the regional fire protection service authority shall hold a public hearing specifically setting forth its proposal to impose benefit charges for the support of its legally authorized activities that will maintain or improve the services afforded in the authority. A report of the public hearing shall be filed with the county treasurer of each county in which the property is located and be available for public inspection.

      (2) Prior to November 15th of each year the governing board of the authority shall hold a public hearing to review and establish the regional fire protection service authority benefit charges for the subsequent year.

      (3) All resolutions imposing or changing the benefit charges must be filed with the county treasurer or treasurers of each county in which the property is located, together with the record of each public hearing, before November 30th immediately preceding the year in which the benefit charges are to be collected on behalf of the authority.

      (4) After the benefit charges have been established, the owners of the property subject to the charge must be notified of the amount of the charge.

      NEW SECTION. Sec. 30. A regional fire protection service authority that imposes a benefit charge under this chapter shall not impose all or part of the property tax authorized under section 15(1)(c) of this act.

      NEW SECTION. Sec. 31. After notice has been given to the property owners of the amount of the charge, the governing board of a regional fire protection service authority imposing a benefit charge under this chapter shall form a review board for at least a two-week period and shall, upon complaint in writing of an aggrieved party owning property in the authority, reduce the charge of a person who, in their opinion, has been charged too large a sum, to a sum or amount as they believe to be the true, fair, and just amount.

      NEW SECTION. Sec. 32. The Washington fire commissioners association, as soon as practicable, shall draft a model resolution to impose the regional fire protection service authority benefit charge authorized by this chapter and may provide assistance to authorities in the establishment of a program to develop benefit charges.

      NEW SECTION. Sec. 33. A person who is receiving the exemption contained in RCW 84.36.381 through 84.36.389 is exempt from any legal obligation to pay a portion of the benefit charge imposed under this chapter as follows:

      (1) A person who meets the income limitation contained in RCW 84.36.381(5)(a) and does not meet the income limitation contained in RCW 84.36.381(5)(b) (i) or (ii) is exempt from twenty-five percent of the charge;

      (2) A person who meets the income limitation contained in RCW 84.36.381(5)(b)(i) is exempt from fifty percent of the charge; and

      (3) A person who meets the income limitation contained in RCW 84.36.381(5)(b)(ii) shall be exempt from seventy-five percent of the charge.

      Sec. 34. RCW 35.21.766 and 1975 1st ex.s. c 24 s 1 are each amended to read as follows:

      Whenever a regional fire protection service authority or the legislative authority of any city or town determines that the fire protection jurisdictions that are members of the authority or the city or town or a substantial portion of the city or town is not adequately served by existing private ambulance service, the governing board of the authority may by resolution, or the legislative authority of the city or town may by appropriate legislation, provide for the establishment of a system of ambulance service to be operated by the authority as a public utility of the city or town, or operated by contract after a call for bids.

      NEW SECTION. Sec. 35. CAPTIONS. Captions used in this act are not any part of the law.

      NEW SECTION. Sec. 36. CODIFICATION. Sections 1 through 12, 14 through 18, and 24 through 33 of this act constitute a new chapter in Title 52 RCW.

      NEW SECTION. Sec. 37. SEVERABILITY. 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."

      Correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


      Senator Winsley moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5326.

      Senator Winsley spoke in favor of the motion.


MOTION


      On motion of Senator Murray, Senator Hewitt was excused.


      The President declared the question before the Senate to be the motion by Senator Winsley that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5326.

      The motion by Senator Winsley carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 5326.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5326, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5326, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Absent: Senator Doumit - 1.

     Excused: Senator Hewitt - 1.

       SUBSTITUTE SENATE BILL NO. 5326, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


PERSONAL PRIVILEGE


      Senator Zarelli: “Thank you, Mr. President, I rise to a point of personal privilege. Ladies and Gentlemen, Mr. President. Today’s the fifty-ninth day of the Legislative session and I just noticed that one of our Ways & Means staff is missing. Apparently, I’ve been told that he’s been missing all session. You all understand why this staff person is so easily over looked, since Randy is so quiet in retiring. I asked the other staff what became of him and there was some rumor that he had left the staff and is currently dancing with the Balshoi Ballet. Others said he was seen at the Mariners tryouts this spring in training camp. But I am happy to report that he is here working for the University of Washington. Mr. President, with your permission, I’d like to ask Randy to stand. We all remember this guy. I’m sure most of you remember him. Randy started with the Senate in 1988, idealistic, slim young man with a full head of hair. He had moved here from the California Legislature fleeing the Reagan administration and got hired by a real liberal guy named Dan McDonald. 1988, quite a while ago. Senator Finkbeiner wasn’t old enough to buy beer at that time. He’s not here. Senator Murray was probably still packing his lego’s away and Senator Brown was in Nicaragua developing her political philosophy. I’m told that Randy wasn’t all that good of a budget analyst, so they promoted to management where, along with Stan Pynch, they became known as Laurel and Hardy of Senate Committee Services. Seriously, though the staff Randy hired during that period has brought to the Senate the professional non-partisan budget staff that we enjoy today and Randy has a unique distinction of retaining that job through six changes in chairmanship and those include: Senator Rinehart, West, Loveland, Brown, Rossi and myself. Although he didn’t hang around long once I got the job. I don’t know what that meant. The new committee coordinator however, David Schumacher and the Ways & Means staff are doing-not just a fine-but an excellent job, as they usually do. I think that a lot of that credit goes to Randy and building a team that could do what I believe is a fine example of leadership and that, is that once you take yourself out of the equation, things move on and maybe in some cases improve. I think that we all owe great amount of gratitude to Randy. We hope that he has great success in his new job. Although I think that job that your predecessor now enjoys isn’t as available to you in the future, I’m sorry to say Randy, but he’s doing a fine job too. We seem to have a winning team in Seattle today. Anyway, please join me in thanking Randy and sharing our respect, in our congratulations in his new job and for all the work that he’s done here for all of us in the State Senate.”


PERSONAL PRIVILEGE


      Senator Jacobsen: “When Randy got the job I told him that he was going to have to practice standing in front of the mirror and learn how to quit saying ‘No’ and ask for more and so he had a couple years of practice in that. The other thing that Randy has a really good if you ever need some help-there’s a song and you vaguely recall parts of it and you can’t remember the rest of it or who did it and this and that. Randy’s desk top reference on it. There was a song that I checked on the other day, ‘Jokers to the left, fools to the right of me, stuck in the middle’ and I had the jokers and the fools on the wrong side and you got to correct it for me.”


MESSAGE FROM THE HOUSE


March 2, 2004


MR. PRESIDENT:


      The House has passed SUBSTITUTE SENATE BILL NO. 6107, with the following amendments{s}.

      On page 3, line 5, after "examinations." strike "Where disease or contamination is suspected" and insert "When the director has determined that there is probable cause that there is a serious risk from disease or contamination"

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


      Senator Swecker moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6107.

      Senator Swecker spoke in favor of the motion.



MOTION


      On motion of Senator Eide, Senator Doumit was excused.


      The President declared the question before the Senate to be the motion by Senator Swecker that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6107.


POINT OF INQUIRY


      Senator Thibaudeau: “Would Senator Swecker yield to a question? Thank you Senator. My question has to do, because I’ve received a lot of emails, about the need for the downer cow legislation. Would this cover that?”

      Senator Swecker: “Thank you Senator Thibaudeau. This one does not. However I worked out with my leadership a plan to get that bill before us and to get it passed. So I too urge the body to move that issue, today if possible.”


      The motion by Senator Swecker carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6107.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6107, as amended by the House.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6107, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

       SUBSTITUTE SENATE BILL NO. 6107, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 5, 2004


MR. PRESIDENT:


      The House has passed SUBSTITUTE SENATE BILL NO. 6189, with the following amendments{s}.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. PURPOSE. The purpose of this act is to create more comprehensive, streamlined, and cost-effective procedures applicable to proceedings in which property of a person is administered by the courts of this state for the benefit of creditors and other persons having an interest therein.

      NEW SECTION. Sec. 2. A new section is added to chapter 7.60 RCW to read as follows:

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

      (1) "Court" means the superior court of this state in which the receivership is pending.

      (2) "Entity" means a person other than a natural person.

      (3) "Estate" means the entirety of the property with respect to which a receiver's appointment applies, but does not include trust fund taxes or property of an individual person exempt from execution under the laws of this state. Estate property includes any nonexempt interest in property that is partially exempt, including fee title to property subject to a homestead exemption under chapter 6.13 RCW.

      (4) "Executory contract" means a contract where the obligation of both the person over whose property the receiver is appointed and the other party to the contract are so far unperformed that the failure of either party to the contract to complete performance would constitute a material breach of the contract, thereby excusing the other party's performance of the contract.

      (5) "Insolvent" or "insolvency" means a financial condition of a person such that the sum of the person's debts and other obligations is greater than all of that person's property, at a fair valuation, exclusive of (a) property transferred, concealed, or removed with intent to hinder, delay, or defraud any creditors of the person, and (b) any property exempt from execution under any statutes of this state.

      (6) "Lien" means a charge against or interest in property to secure payment of a debt or the performance of an obligation.

      (7) "Notice and a hearing" or any similar phrase means notice and opportunity for a hearing.

      (8) "Person" means an individual, corporation, limited liability company, general partnership, limited partnership, limited liability partnership, association, governmental entity, or other entity, of any kind or nature.

      (9) "Property" includes all right, title, and interests, both legal and equitable, and including any community property interest, in or with respect to any property of a person with respect to which a receiver is appointed, regardless of the manner by which the property has been or is acquired. "Property" includes any proceeds, products, offspring, rents, or profits of or from property in the estate. "Property" does not include any power that a person may exercise solely for the benefit of another person or trust fund taxes.

      (10) "Receiver" means a person appointed by the court as the court's agent, and subject to the court's direction, to take possession of, manage, or dispose of property of a person.

      (11) "Receivership" means the case in which the receiver is appointed. "General receivership" means a receivership in which a general receiver is appointed. "Custodial receivership" means a receivership in which a custodial receiver is appointed.

      (12) "Security interest" means a lien created by an agreement.

      (13) "State agent" and "state agency" means any office, department, division, bureau, board, commission, or other agency of the state of Washington or of any subdivision thereof, or any individual acting in an official capacity on behalf of any state agent or state agency.

      (14) "Utility" means a person providing any service regulated by the utilities and transportation commission.

      NEW SECTION. Sec. 3. A new section is added to chapter 7.60 RCW to read as follows:

      TYPES OF RECEIVERS. A receiver must be either a general receiver or a custodial receiver. A receiver must be a general receiver if the receiver is appointed to take possession and control of all or substantially all of a person's property with authority to liquidate that property and, in the case of a business over which the receiver is appointed, wind up affairs. A receiver must be a custodial receiver if the receiver is appointed to take charge of limited or specific property of a person or is not given authority to liquidate property. The court shall specify in the order appointing a receiver whether the receiver is appointed as a general receiver or as a custodial receiver. When the sole basis for the appointment is the pendency of an action to foreclose upon a lien against real property, or the giving of a notice of a trustee's sale under RCW 61.24.040 or a notice of forfeiture under RCW 61.30.040, the court shall appoint the receiver as a custodial receiver. The court by order may convert either a general receivership or a custodial receivership into the other.

      NEW SECTION. Sec. 4. A new section is added to chapter 7.60 RCW to read as follows:

      APPOINTMENT OF RECEIVER. (1) A receiver may be appointed by the superior court of this state in the following instances, but except in any case in which a receiver's appointment is expressly required by statute, or any case in which a receiver's appointment is sought by a state agent whose authority to seek the appointment of a receiver is expressly conferred by statute, or any case in which a receiver's appointment with respect to real property is sought under (b)(ii) of this subsection, a receiver shall be appointed only if the court additionally determines that the appointment of a receiver is reasonably necessary and that other available remedies either are not available or are inadequate:

      (a) On application of any party, when the party is determined to have a probable right to or interest in property that is a subject of the action and in the possession of an adverse party, or when the property or its revenue-producing potential is in danger of being lost or materially injured or impaired. A receiver may be appointed under this subsection (1)(a) whether or not the application for appointment of a receiver is combined with, or is ancillary to, an action seeking a money judgment or other relief;

      (b) Provisionally, during the pendency of any action to foreclose upon any lien against or for forfeiture of any interest in real or personal property, or after notice of a trustee's sale has been given under RCW 61.24.040, or after notice of forfeiture has been given under RCW 61.30.040, on application of any person, when the interest in the property that is the subject of foreclosure or forfeiture of the person seeking the receiver's appointment is determined to be probable and either:

      (i) The property or its revenue-producing potential is in danger of being lost or materially injured or impaired; or

      (ii) The appointment of a receiver with respect to the real or personal property that is the subject of the action, the notice of trustee's sale or notice of forfeiture is provided for by agreement or is reasonably necessary to effectuate or enforce an assignment of rents or other revenues from the property;

      (c) After judgment, in order to give effect to the judgment;

      (d) To dispose of property according to provisions of a judgment dealing with its disposition;

      (e) To the extent that property is not exempt from execution, at the instance of a judgment creditor either before or after the issuance of any execution, to preserve or protect it, or prevent its transfer;

      (f) If and to the extent that property is subject to execution to satisfy a judgment, to preserve the property during the pendency of an appeal, or when an execution has been returned unsatisfied, or when an order requiring a judgment debtor to appear for proceedings supplemental to judgment has been issued and the judgment debtor fails to submit to examination as ordered;

      (g) Upon an attachment of real or personal property when the property attached is of a perishable nature or is otherwise in danger of waste, impairment, or destruction, or where the abandoned property's owner has absconded with, secreted, or abandoned the property, and it is necessary to collect, conserve, manage, control, or protect it, or to dispose of it promptly, or when the court determines that the nature of the property or the exigency of the case otherwise provides cause for the appointment of a receiver;

      (h) In an action by a transferor of real or personal property to avoid or rescind the transfer on the basis of fraud, or in an action to subject property or a fund to the payment of a debt;

      (i) In an action against any person who is not an individual if the object of the action is the dissolution of that person, or if that person has been dissolved, or if that person is insolvent or is not generally paying the person's debts as those debts become due unless they are the subject of bona fide dispute, or if that person is in imminent danger of insolvency;

      (j) In accordance with RCW 7.08.030 (4) and (6), in cases in which a general assignment for the benefit of creditors has been made;

      (k) In quo warranto proceedings under chapter 7.56 RCW;

      (l) As provided under RCW 11.64.022;

      (m) In an action by the department of licensing under RCW 18.35.220(3) with respect to persons engaged in the business of dispensing of hearing aids, RCW 18.85.350 in the case of persons engaged in the business of a real estate broker, associate real estate broker, or real estate salesperson, or RCW 19.105.470 with respect to persons engaged in the business of camping resorts;

      (n) In an action under RCW 18.44.470 or 18.44.490 in the case of persons engaged in the business of escrow agents;

      (o) Upon a petition with respect to a nursing home in accordance with and subject to receivership provisions under chapter 18.51 RCW;

      (p) Under RCW 19.40.071(3), in connection with a proceeding for relief with respect to a transfer fraudulent as to a creditor or creditors;

      (q) Under RCW 19.100.210(1), in an action by the attorney general or director of financial institutions to restrain any actual or threatened violation of the franchise investment protection act;

      (r) In an action by the attorney general or by a prosecuting attorney under RCW 19.110.160 with respect to a seller of business opportunities;

      (s) In an action by the director of financial institutions under RCW 21.20.390 in cases involving actual or threatened violations of the securities act of Washington or under RCW 21.30.120 in cases involving actual or threatened violations of chapter 21.30 RCW with respect to certain businesses and transactions involving commodities;

      (t) In an action for dissolution of a business corporation under RCW 23B.14.310 or 23B.14.320, for dissolution of a nonprofit corporation under RCW 24.03.270, for dissolution of a mutual corporation under RCW 24.06.305, or in any other action for the dissolution or winding up of any other entity provided for by Title 23, 23B, 24, or 25 RCW;

      (u) In any action in which the dissolution of any public or private entity is sought, in any action involving any dispute with respect to the ownership or governance of such an entity, or upon the application of a person having an interest in such an entity when the appointment is reasonably necessary to protect the property of the entity or its business or other interests;

      (v) Under RCW 25.05.215, in aid of a charging order with respect to a partner's interest in a partnership;

      (w) Under and subject to RCW 30.44.100, 30.44.270, and 30.56.030, in the case of a bank or trust company or, under and subject to RCW 32.24.070 through 32.24.090, in the case of a mutual savings bank;

      (x) Under and subject to RCW 31.12.637 and 31.12.671 through 31.12.724, in the case of credit unions;

      (y) Upon the application of the director of financial institutions under RCW 31.35.090 in actions to enforce chapter 31.35 RCW applicable to agricultural lenders, under RCW 31.40.120 in actions to enforce chapter 31.40 RCW applicable to entities engaged in federally guaranteed small business loans, under RCW 31.45.160 in actions to enforce chapter 31.45 RCW applicable to persons licensed as check cashers or check sellers, or under RCW 19.230.230 in actions to enforce chapter 19.230 RCW applicable to persons licensed under the uniform money services act;

      (z) Under RCW 35.82.090 or 35.82.180, with respect to a housing project;

      (aa) Under RCW 39.84.160 or 43.180.360, in proceedings to enforce rights under any revenue bonds issued for the purpose of financing industrial development facilities or bonds of the Washington state housing finance commission, or any financing document securing any such bonds;

      (bb) Under and subject to RCW 43.70.195, in an action by the secretary of health or by a local health officer with respect to a public water system;

      (cc) As contemplated by RCW 61.24.030, with respect to real property that is the subject of nonjudicial foreclosure proceedings under chapter 61.24 RCW;

      (dd) As contemplated by RCW 61.30.030(3), with respect to real property that is the subject of judicial or nonjudicial forfeiture proceedings under chapter 61.30 RCW;

      (ee) Under RCW 64.32.200(2), in an action to foreclose upon a lien for common expenses against a dwelling unit subject to the horizontal property regimes act, chapter 64.32 RCW;

      (ff) Under RCW 64.34.364(10), in an action by a unit owners' association to foreclose a lien for nonpayment of delinquent assessments against condominium units;

      (gg) Upon application of the attorney general under RCW 64.36.220(3), in aid of any writ or order restraining or enjoining violations of chapter 64.36 RCW applicable to timeshares;

      (hh) Under RCW 70.95A.050(3), in aid of the enforcement of payment or performance of municipal bonds issued with respect to facilities used to abate, control, or prevent pollution;

      (ii) Upon the application of the department of social and health services under RCW 74.42.580, in cases involving nursing homes;

      (jj) Upon the application of the utilities and transportation commission under RCW 80.28.040, with respect to a water company that has failed to comply with an order of such commission within the time deadline specified therein;

      (kk) Under RCW 87.56.065, in connection with the dissolution of an irrigation district;

      (ll) Upon application of the attorney general or the department of licensing, in any proceeding that either of them are authorized by statute to bring to enforce Title 18 or 19 RCW; the securities act of Washington, chapter 21.20 RCW; the Washington commodities act, chapter 21.30 RCW; the land development act, chapter 58.19 RCW; or under chapter 64.36 RCW relating to the regulation of timeshares;

      (mm) Upon application of the director of financial institutions in any proceeding that the director of financial institutions is authorized to bring to enforce chapters 31.35, 31.40, and 31.45 RCW; or

      (nn) In such other cases as may be provided for by law, or when, in the discretion of the court, it may be necessary to secure ample justice to the parties.

      (2) The superior courts of this state shall appoint as receiver of property located in this state a person who has been appointed by a federal or state court located elsewhere as receiver with respect to the property specifically or with respect to the owner's property generally, upon the application of the person or of any party to that foreign proceeding, and following the appointment shall give effect to orders, judgments, and decrees of the foreign court affecting the property in this state held by the receiver, unless the court determines that to do so would be manifestly unjust or inequitable. The venue of such a proceeding may be any county in which the person resides or maintains any office, or any county in which any property over which the receiver is to be appointed is located at the time the proceeding is commenced.

      (3) At least seven days' notice of any application for the appointment of a receiver shall be given to the owner of property to be subject thereto and to all other parties in the action, and to other parties in interest as the court may require. If any execution by a judgment creditor under Title 6 RCW or any application by a judgment creditor for the appointment of a receiver, with respect to property over which the receiver's appointment is sought, is pending in any other action at the time the application is made, then notice of the application for the receiver's appointment also shall be given to the judgment creditor in the other action. The court may shorten or expand the period for notice of an application for the appointment of a receiver upon good cause shown.

      (4) The order appointing a receiver in all cases shall reasonably describe the property over which the receiver is to take charge, by category, individual items, or both if the receiver is to take charge of less than all of the owner's property. If the order appointing a receiver does not expressly limit the receiver's authority to designated property or categories of property of the owner, the receiver is a general receiver with the authority to take charge over all of the owner's property, wherever located.

      (5) The court may condition the appointment of a receiver upon the giving of security by the person seeking the receiver's appointment, in such amount as the court may specify, for the payment of costs and damages incurred or suffered by any person should it later be determined that the appointment of the receiver was wrongfully obtained.

      NEW SECTION. Sec. 5. A new section is added to chapter 7.60 RCW to read as follows:

      ELIGIBILITY TO SERVE AS RECEIVER. Except as provided in this chapter or otherwise by statute, any person, whether or not a resident of this state, may serve as a receiver, with the exception that a person may not be appointed as a receiver, and shall be replaced as receiver if already appointed, if it should appear to the court that the person:

      (1) Has been convicted of a felony or other crime involving moral turpitude or is controlled by a person who has been convicted of a felony or other crime involving moral turpitude;

      (2) Is a party to the action, or is a parent, grandparent, child, grandchild, sibling, partner, director, officer, agent, attorney, employee, secured or unsecured creditor or lienor of, or holder of any equity interest in, or controls or is controlled by, the person whose property is to be held by the receiver, or who is the agent or attorney of any disqualified person;

      (3) Has an interest materially adverse to the interest of persons to be affected by the receivership generally; or

      (4) Is the sheriff of any county.

      NEW SECTION. Sec. 6. A new section is added to chapter 7.60 RCW to read as follows:

      RECEIVER'S BOND. Except as otherwise provided for by statute or court rule, before entering upon duties of receiver, a receiver shall execute a bond with one or more sureties approved by the court, in the amount the court specifies, conditioned that the receiver will faithfully discharge the duties of receiver in accordance with orders of the court and state law. Unless otherwise ordered by the court, the receiver's bond runs in favor of all persons having an interest in the receivership proceeding or property held by the receiver and in favor of state agencies. The receiver's bond must provide substantially as follows:

      [Case Caption]


RECEIVER'S BOND


    TO WHOM IT MAY CONCERN:


    KNOW ALL BY THESE PRESENTS, that  . . . . . . . ., as Principal, and  . . . . . . . ., as Surety, are held and firmly bound in the amount of  . . . . . . . . Dollars ($ . . . . . . . .) for the faithful performance by Principal of the Principal's duties as receiver with respect to property of  . . . . . . . . in accordance with order(s) of such court previously or hereafter entered in the above-captioned proceeding and state law. If the Principal faithfully discharges the duties of receiver in accordance with such orders, this obligation shall be void, but otherwise it will remain in full force and effect.


                 Dated this . . . day of  . . . . . . . ., . . . ..


                                                                                         . . . . . . . . . . . . . . . .

                                                                                         [Signature of Receiver]


                                                                                         . . . . . . . . . . . . . . . .

                                                                                         [Signature of Surety]


The court, in lieu of a bond, may approve the posting of alternative security, such as a letter of credit or a deposit of funds with the clerk of the court, to be held by the clerk to secure the receiver's faithful performance of the receiver's duties in accordance with orders of the court and state law until the court authorizes the release or return of the deposited sums. No part of the property over which the receiver is appointed may be used in making the deposit; however, any interest that may accrue on a deposit ordered by the court shall be remitted to the receiver upon the receiver's discharge. A claim against the bond shall be made within one year from the date the receiver is discharged. Claims by state agencies against the bond shall have priority.

    NEW SECTION. Sec. 7. A new section is added to chapter 7.60 RCW to read as follows:

    POWERS OF THE COURT. Except as otherwise provided for by this chapter, the court in all cases has exclusive authority over the receiver, and the exclusive possession and right of control with respect to all real property and all tangible and intangible personal property with respect to which the receiver is appointed, wherever located, and the exclusive jurisdiction to determine all controversies relating to the collection, preservation, application, and distribution of all the property, and all claims against the receiver arising out of the exercise of the receiver's powers or the performance of the receiver's duties. However, the court does not have exclusive jurisdiction over actions in which a state agency is a party and in which a statute expressly vests jurisdiction or venue elsewhere.

    NEW SECTION. Sec. 8. A new section is added to chapter 7.60 RCW to read as follows:

    POWERS AND DUTIES OF RECEIVER GENERALLY. (1) A receiver has the following powers and authority in addition to those specifically conferred by this chapter or otherwise by statute, court rule, or court order:

    (a) The power to incur or pay expenses incidental to the receiver's preservation and use of the property with respect to which the appointment applies, and otherwise in the performance of the receiver's duties, including the power to pay obligations incurred prior to the receiver's appointment if and to the extent that payment is determined by the receiver to be prudent in order to preserve the value of property in the receiver's possession and the funds used for this purpose are not subject to any lien or right of setoff in favor of a creditor who has not consented to the payment and whose interest is not otherwise adequately protected;

    (b) If the appointment applies to all or substantially all of the property of an operating business or any revenue-producing property of any person, to do all things which the owner of the business or property might do in the ordinary course of the operation of the business as a going concern or use of the property including, but not limited to, the purchase and sale of goods or services in the ordinary course of such business, and the incurring and payment of expenses of the business or property in the ordinary course;

    (c) The power to assert any rights, claims, or choses in action of the person over whose property the receiver is appointed relating thereto, if and to the extent that the claims are themselves property within the scope of the appointment or relate to any property, to maintain in the receiver's name or in the name of such a person any action to enforce any right, claim, or chose in action, and to intervene in actions in which the person over whose property the receiver is appointed is a party for the purpose of exercising the powers under this subsection (1)(c);

    (d) The power to intervene in any action in which a claim is asserted against the person over whose property the receiver is appointed relating thereto, for the purpose of prosecuting or defending the claim and requesting the transfer of venue of the action to the court. However, the court shall not transfer actions in which both a state agency is a party and as to which a statute expressly vests jurisdiction or venue elsewhere. This power is exercisable with court approval in the case of a liquidating receiver, and with or without court approval in the case of a general receiver;

    (e) The power to assert rights, claims, or choses in action of the receiver arising out of transactions in which the receiver is a participant;

    (f) The power to pursue in the name of the receiver any claim under chapter 19.40 RCW assertable by any creditor of the person over whose property the receiver is appointed, if pursuit of the claim is determined by the receiver to be appropriate;

    (g) The power to seek and obtain advice or instruction from the court with respect to any course of action with respect to which the receiver is uncertain in the exercise of the receiver's powers or the discharge of the receiver's duties;

    (h) The power to obtain appraisals with respect to property in the hands of the receiver;

    (i) The power by subpoena to compel any person to submit to an examination under oath, in the manner of a deposition in a civil case, with respect to estate property or any other matter that may affect the administration of the receivership; and

    (j) Other powers as may be conferred upon the receiver by the court or otherwise by statute or rule.

    (2) A receiver has the following duties in addition to those specifically conferred by this chapter or otherwise by statute or court rule:

    (a) The duty to notify all federal and state taxing and applicable regulatory agencies of the receiver's appointment in accordance with any applicable laws imposing this duty, including but not limited to 26 U.S.C. Sec. 6036 and RCW 51.14.073, 51.16.160, and 82.32.240, or any successor statutes;

    (b) The duty to comply with state law;

    (c) If the receiver is appointed with respect to any real property, the duty to file with the auditor of the county in which the real property is located, or the registrar of lands in accordance with RCW 65.12.600 in the case of registered lands, a certified copy of the order of appointment, together with a legal description of the real property if one is not included in that order; and

    (d) Other duties as the receiver may be directed to perform by the court or as may be provided for by statute or rule.

    (3) The various powers and duties of a receiver provided for by this chapter may be expanded, modified, or limited by order of the court for good cause shown.

    NEW SECTION. Sec. 9. A new section is added to chapter 7.60 RCW to read as follows:

    TURNOVER OF PROPERTY. Upon demand by a receiver appointed under this chapter, any person shall turn over any property over which the receiver has been appointed that is within the possession or control of that person unless otherwise ordered by the court for good cause shown. A receiver by motion may seek to compel turnover of estate property unless there exists a bona fide dispute with respect to the existence or nature of the receiver's interest in the property, in which case turnover shall be sought by means of an action under section 18 of this act. In the absence of a bona fide dispute with respect to the receiver's right to possession of estate property, the failure to relinquish possession and control to the receiver shall be punishable as a contempt of the court.

    NEW SECTION. Sec. 10. A new section is added to chapter 7.60 RCW to read as follows:

    DUTIES OF PERSON OVER WHOSE PROPERTY THE RECEIVER IS APPOINTED. The person over whose property the receiver is appointed shall:

    (1) Assist and cooperate fully with the receiver in the administration of the estate and the discharge of the receiver's duties, and comply with all orders of the court;

    (2) Supply to the receiver information necessary to enable the receiver to complete any schedules that the receiver may be required to file under section 11 of this act, and otherwise assist the receiver in the completion of the schedules;

    (3) Upon the receiver's appointment, deliver into the receiver's possession all of the property of the estate in the person's possession, custody, or control, including, but not limited to, all accounts, books, papers, records, and other documents; and

    (4) Following the receiver's appointment, submit to examination by the receiver, or by any other person upon order of the court, under oath, concerning the acts, conduct, property, liabilities, and financial condition of that person or any matter relating to the receiver's administration of the estate.

    When the person over whose property the receiver is appointed is an entity, each of the officers, directors, managers, members, partners, or other individuals exercising or having the power to exercise control over the affairs of the entity are subject to the requirements of this section.

    NEW SECTION. Sec. 11. A new section is added to chapter 7.60 RCW to read as follows:

    SCHEDULES OF PROPERTY AND LIABILITIES--INVENTORY OF PROPERTY--APPRAISALS. (1) In the event of a general assignment of property for the benefit of creditors under chapter 7.08 RCW, the assignment shall have annexed as schedule a true list of all of the person's known creditors, their mailing addresses, the amount and nature of their claims, and whether their claims are disputed; and as schedule B a true list of all property of the estate, including the estimated liquidation value and location of the property and, if real property, a legal description thereof, as of the date of the assignment.

    (2) In all other cases, within twenty days after the date of appointment of a general receiver, the receiver shall file as schedule A a true list of all of the known creditors and applicable regulatory and taxing agencies of the person over whose assets the receiver is appointed, their mailing addresses, the amount and nature of their claims, and whether their claims are disputed; and as schedule B a true list of all property of the estate identifiable by the receiver, including the estimated liquidation value and location of the property and, if real property, a legal description thereof, as of the date of appointment of the receiver.

    (3) The schedules must be in substantially the following forms:


SCHEDULE A--CREDITOR LIST

1. List all creditors having security interests or liens, showing:

Name

Address

Amount

Collateral

Whether or not disputed

2. List all wages, salaries, commissions, or contributions to an employee benefit plan owed, showing:

Name

Address

Amount


 

Whether or not disputed

3. List all consumer deposits owed, showing:

Name

Address

Amount


 

Whether or not disputed

4. List all taxes owed, showing:

Name

Address

Amount

 

Whether or not disputed

5. List all unsecured claims, showing:

Name

Address

Amount


 

Whether or not disputed

6. List all owners or shareholders, showing:

Name

Address

Percentage of Ownership

7. List all applicable regulatory agencies, showing:

Name

Address

 


SCHEDULE B--LIST OF PROPERTY

List each category of property and for each give approximate value obtainable for the asset on the date of assignment/appointment of the receiver, and address where asset is located.


I. Nonexempt Property

 

 

Description and Location

Liquidation Value on Date of Assignment/Appointment of Receiver

1.

Legal Description and street address of real property, including leasehold interests:

 

 

 

 

2.

Fixtures:

 

 

 

 

3.

Cash and bank accounts:

 

 

 

 

4.

Inventory:

 

 

 

 

5.

Accounts receivable:

 

 

 

 

6.

Equipment:

 

 

 

 

7.

Prepaid expenses, including deposits, insurance, rents, and utilities:

 

 

 

 

8.

Other, including loans to third parties, claims, and choses in action:

 

 

 

 


II. Exempt Property

 

 

 

 

 

 

Description and Location


Liquidation Value on Date of Assignment/Appointment of Receiver



I DECLARE under penalty of perjury under the laws of the state of Washington that the foregoing is true, correct, and complete to the best of my knowledge. DATED this . . . day of  . . . . . . . ., . . . ., at  . . . . . . . ., state of  . . . . . . . ..

 

 

 . . . . . . . . . . . . . . . . . . . . . . . .

[SIGNATURE]

 


        (4) When schedules are filed by a person making a general assignment of property for the benefit of creditors under chapter 7.08 RCW, the schedules shall be duly verified upon oath by such person.

        (5) The receiver shall obtain an appraisal or other independent valuation of the property in the receiver's possession if ordered by the court.

        (6) The receiver shall file a complete inventory of the property in the receiver's possession if ordered by the court.

        NEW SECTION. Sec. 12. A new section is added to chapter 7.60 RCW to read as follows:

        RECEIVER'S REPORTS. A general receiver shall file with the court a monthly report of the receiver's operations and financial affairs unless otherwise ordered by the court. Except as otherwise ordered by the court, each report of a general receiver shall be due by the last day of the subsequent month and shall include the following:

        (1) A balance sheet;

        (2) A statement of income and expenses;

        (3) A statement of cash receipts and disbursements;

        (4) A statement of accrued accounts receivable of the receiver. The statement shall disclose amounts considered to be uncollectable;

        (5) A statement of accounts payable of the receiver, including professional fees. The statement shall list the name of each creditor and the amounts owing and remaining unpaid over thirty days; and

        (6) A tax disclosure statement, which shall list postfiling taxes due or tax deposits required, the name of the taxing agency, the amount due, the date due, and an explanation for any failure to make payments or deposits.

        A custodial receiver shall file with the court all such reports the court may require.

        NEW SECTION. Sec. 13. A new section is added to chapter 7.60 RCW to read as follows:

        AUTOMATIC STAY OF CERTAIN PROCEEDINGS. (1) Except as otherwise ordered by the court, the entry of an order appointing a general receiver or a custodial receiver with respect to all of a person's property shall operate as a stay, applicable to all persons, of:

        (a) The commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the person over whose property the receiver is appointed that was or could have been commenced before the entry of the order of appointment, or to recover a claim against the person that arose before the entry of the order of appointment;

        (b) The enforcement, against the person over whose property the receiver is appointed or any estate property, of a judgment obtained before the order of appointment;

        (c) Any act to obtain possession of estate property from the receiver, or to interfere with, or exercise control over, estate property;

        (d) Any act to create, perfect, or enforce any lien or claim against estate property except by exercise of a right of setoff, to the extent that the lien secures a claim against the person that arose before the entry of the order of appointment; or

        (e) Any act to collect, assess, or recover a claim against the person that arose before the entry of the order of appointment.

        (2) The stay shall automatically expire as to the acts specified in subsection (1)(a), (b), and (e) of this section sixty days after the entry of the order of appointment unless before the expiration of the sixty-day period the receiver, for good cause shown, obtains an order of the court extending the stay, after notice and a hearing. A person whose action or proceeding is stayed by motion to the court may seek relief from the stay for good cause shown. Any judgment obtained against the person over whose property the receiver is appointed or estate property following the entry of the order of appointment is not a lien against estate property unless the receivership is terminated prior to a conveyance of the property against which the judgment would otherwise constitute a lien.

        (3) The entry of an order appointing a receiver does not operate as a stay of:

        (a) The commencement or continuation of a criminal proceeding against the person over whose property the receiver is appointed;

        (b) The commencement or continuation of an action or proceeding to establish paternity, or to establish or modify an order for alimony, maintenance, or support, or to collect alimony, maintenance, or support under any order of a court;

        (c) Any act to perfect, or to maintain or continue the perfection of, an interest in estate property if the interest perfected would be effective against a creditor of the person over whose property the receiver is appointed holding at the time of the entry of the order of appointment either a perfected nonpurchase money security interest under chapter 62A.9A RCW against the property involved, or a lien by attachment, levy, or the like, whether or not such a creditor exists. If perfection of an interest would require seizure of the property involved or the commencement of an action, the perfection shall instead be accomplished by filing, and by serving upon the receiver, or receiver's counsel, if any, notice of the interest within the time fixed by law for seizure or commencement;

        (d) The commencement or continuation of an action or proceeding by a governmental unit to enforce its police or regulatory power;

        (e) The enforcement of a judgment, other than a money judgment, obtained in an action or proceeding by a governmental unit to enforce its police or regulatory power, or with respect to any licensure of the person over whose property the receiver is appointed;

        (f) The exercise of a right of setoff, including but not limited to (i) any right of a commodity broker, forward contract merchant, stockbroker, financial institution, or securities clearing agency to set off a claim for a margin payment or settlement payment arising out of a commodity contract, forward contract, or securities contract against cash, securities, or other property held or due from the commodity broker, forward contract merchant, stockbroker, financial institution, or securities clearing agency to margin, guarantee, secure, or settle the commodity contract, forward contract, or securities contract, and (ii) any right of a swap participant to set off a claim for a payment due to the swap participant under or in connection with a swap agreement against any payment due from the swap participant under or in connection with the swap agreement or against cash, securities, or other property of the debtor held by or due from the swap participant to guarantee, secure, or settle the swap agreement; or

        (g) The establishment by a governmental unit of any tax liability and any appeal thereof.

        NEW SECTION. Sec. 14. A new section is added to chapter 7.60 RCW to read as follows:

        UTILITY SERVICE. A utility providing service to estate property may not alter, refuse, or discontinue service to the property without first giving the receiver fifteen days' notice of any default or intention to alter, refuse, or discontinue service to estate property. This section does not prohibit the court, upon motion by the receiver, to prohibit the alteration or cessation of utility service if the receiver can furnish adequate assurance of payment, in the form of deposit or other security, for service to be provided after entry of the order appointing the receiver.

        NEW SECTION. Sec. 15. A new section is added to chapter 7.60 RCW to read as follows:

        EXECUTORY CONTRACTS AND UNEXPIRED LEASES. (1) A general receiver may assume or reject any executory contract or unexpired lease of the person over whose property the receiver is appointed upon order of the court following notice to the other party to the contract or lease upon notice and a hearing. The court may condition assumption or rejection of any executory contract or unexpired lease on the terms and conditions the court believes are just and proper under the particular circumstances of the case. A general receiver's performance of an executory contract or unexpired lease prior to the court's authorization of its assumption or rejection shall not constitute an assumption of the contract or lease, or an agreement by the receiver to assume it, nor otherwise preclude the receiver thereafter from seeking the court's authority to reject it.

        (2) Any obligation or liability incurred by a general receiver on account of the receiver's assumption of an executory contract or unexpired lease shall be treated as an expense of the receivership. A general receiver's rejection of an executory contract or unexpired lease shall be treated as a breach of the contract or lease occurring immediately prior to the receiver's appointment; and the receiver's right to possess or use property pursuant to any executory contract or lease shall terminate upon rejection of the contract or lease. The other party to an executory contract or unexpired lease that is rejected by a general receiver may take such steps as may be necessary under applicable law to terminate or cancel the contract or lease. The claim of a party to an executory contract or unexpired lease resulting from a general receiver's rejection of it shall be served upon the receiver in the manner provided for by section 23 of this act within thirty days following the rejection.

        (3) A general receiver's power under this section to assume an executory contract or unexpired lease shall not be affected by any provision in the contract or lease that would effect or permit a forfeiture, modification, or termination of it on account of either the receiver's appointment, the financial condition of the person over whose property the receiver is appointed, or an assignment for the benefit of creditors by that person.

        (4) A general receiver may not assume an executory contract or unexpired lease of the person over whose property the receiver is appointed without the consent of the other party to the contract or lease if:

        (a) Applicable law would excuse a party, other than the person over whose property the receiver is appointed, from accepting performance from or rendering performance to anyone other than the person even in the absence of any provisions in the contract or lease expressly restricting or prohibiting an assignment of the person's rights or the performance of the person's duties;

        (b) The contract or lease is a contract to make a loan or extend credit or financial accommodations to or for the benefit of the person over whose property the receiver is appointed, or to issue a security of the person; or

        (c) The executory contract or lease expires by its own terms, or under applicable law prior to the receiver's assumption thereof.

        (5) A receiver may not assign an executory contract or unexpired lease without assuming it, absent the consent of the other parties to the contract or lease.

        (6) If the receiver rejects an executory contract or unexpired lease for:

        (a) The sale of real property under which the person over whose property the receiver is appointed is the seller and the purchaser is in possession of the real property;

        (b) The sale of a real property timeshare interest under which the person over whose property the receiver is appointed is the seller;

        (c) The license of intellectual property rights under which the person over whose property the receiver is appointed is the licensor; or

        (d) The lease of real property in which the person over whose property the receiver is appointed is the lessor;

then the purchaser, licensee, or lessee may treat the rejection as a termination of the contract, license agreement, or lease, or alternatively, the purchaser, licensee, or lessee may remain in possession in which case the purchaser, licensee, or lessee shall continue to perform all obligations arising thereunder as and when they may fall due, but may offset against any payments any damages occurring on account of the rejection after it occurs. The purchaser of real property in such a case is entitled to receive from the receiver any deed or any other instrument of conveyance which the person over whose property the receiver is appointed is obligated to deliver under the executory contract when the purchaser becomes entitled to receive it, and the deed or instrument has the same force and effect as if given by the person. A purchaser, licensee, or lessee who elects to remain in possession under the terms of this subsection has no rights against the receiver on account of any damages arising from the receiver's rejection except as expressly provided for by this subsection. A purchaser of real property who elects to treat rejection of an executory contract as a termination has a lien against the interest in that real property of the person over whose property the receiver is appointed for the recovery of any portion of the purchase price that the purchaser has paid.

        (7) Any contract with the state shall be deemed rejected if not assumed within sixty days of appointment of a general receiver unless the receiver and state agency agree to its assumption.

        (8) Nothing in this chapter affects the enforceability of antiassignment prohibitions provided under contract or applicable law.

        NEW SECTION. Sec. 16. A new section is added to chapter 7.60 RCW to read as follows:

        RECEIVERSHIP FINANCING. (1) If a receiver is authorized to operate the business of a person or manage a person's property, the receiver may obtain unsecured credit and incur unsecured debt in the ordinary course of business allowable under section 25(1)(a) of this act as an administrative expense of the receiver without order of the court.

        (2) The court, after notice and a hearing, may authorize a receiver to obtain credit or incur indebtedness other than in the ordinary course of business. The court may allow the receiver to mortgage, pledge, hypothecate, or otherwise encumber estate property as security for repayment of any indebtedness that the receiver may incur.

        NEW SECTION. Sec. 17. A new section is added to chapter 7.60 RCW to read as follows:

        ABANDONMENT OF PROPERTY. The receiver, or any party in interest, upon order of the court following notice and a hearing, and upon the conditions or terms the court considers just and proper, may abandon any estate property that is burdensome to the receiver or is of inconsequential value or benefit. However, a receiver may not abandon property that is a hazard or potential hazard to the public in contravention of a state statute or rule that is reasonably designed to protect the public health or safety from identified hazards, including but not limited to chapters 70.105 and 70.105D RCW. Property that is abandoned no longer constitutes estate property.

        NEW SECTION. Sec. 18. A new section is added to chapter 7.60 RCW to read as follows:

        ACTIONS BY AND AGAINST THE RECEIVER OR AFFECTING PROPERTY HELD BY RECEIVER. (1) The receiver has the right to sue and be sued in the receiver's capacity as such, without leave of court, in all cases necessary or proper for the conduct of the receivership. However, action seeking to dispossess the receiver of any estate property or otherwise to interfere with the receiver's management or control of any estate property may not be maintained or continued unless permitted by order of the court obtained upon notice and a hearing.

        (2) Litigation by or against a receiver is adjunct to the receivership case. The clerk of the court shall assign a cause number that reflects the relationship of any litigation to the receivership case. All pleadings in adjunct litigation shall include the cause number of the receivership case as well as the adjunct litigation number assigned by the clerk of the court. All adjunct litigation shall be referred to the judge, if any, assigned to the receivership case.

        (3) The receiver may be joined or substituted as a party in any suit or proceeding that was pending at the time of the receiver's appointment and in which the person over whose property the receiver is appointed is a party, upon application by the receiver to the court or agency before which the action is pending.

        (4) Venue for adjunct litigation by or against the receiver shall lie in the court in which the receivership is pending, if the courts of this state have jurisdiction over the cause. Actions in other courts in this state shall be transferred to the court upon the receiver's filing of a motion for change of venue, provided that the receiver files the motion within thirty days following service of original process upon the receiver. However, actions in other courts or forums in which a state agency is a party shall not be transferred on request of the receiver absent consent of the affected state agency or grounds provided under other applicable law.

        (5) Action by or against a receiver does not abate by reason of death or resignation of the receiver, but continues against the successor receiver or against the entity in receivership, if a successor receiver is not appointed.

        (6) Whenever the assets of any domestic or foreign corporation, that has been doing business in this state, has been placed in the hands of any general receiver and the receiver is in possession of its assets, service of all process upon the corporation may be made upon the receiver.

        (7) A judgment against a general receiver is not a lien on the property or funds of the receivership, nor shall any execution issue thereon, but upon entry of the judgment in the court in which a general receivership is pending, or upon filing in a general receivership of a certified copy of the judgment from another jurisdiction, the judgment shall be treated as an allowed claim in the receivership. A judgment against a custodial receiver shall be treated and has the same effect as a judgment against the person over whose property the receiver is appointed, except that the judgment is not enforceable against estate property unless otherwise ordered by the court upon notice and a hearing.

        NEW SECTION. Sec. 19. A new section is added to chapter 7.60 RCW to read as follows:

        PERSONAL LIABILITY OF RECEIVER. (1)(a) The receiver is personally liable to the person over whose property the receiver is appointed or its record or beneficial owners, or to the estate, for loss or diminution in value of or damage to estate property, only if (i) the loss or damage is caused by a failure on the part of the receiver to comply with an order of the court, or (ii) the loss or damage is caused by an act or omission for which members of a board of directors of a business corporation organized and existing under the laws of this state who vote to approve the act or omission are liable to the corporation in cases in which the liability of directors is limited to the maximum extent permitted by RCW 23B.08.320.

        (b) A general receiver is personally liable to state agencies for failure to remit sales tax collected after appointment. A custodial receiver is personally liable to state agencies for failure to remit sales tax collected after appointment with regard to assets administered by the receiver.

        (2) The receiver has no personal liability to a person other than the person over whose property the receiver is appointed or its record or beneficial owners for any loss or damage occasioned by the receiver's performance of the duties imposed by the appointment, or out of the receiver's authorized operation of any business of a person, except loss or damage occasioned by fraud on the part of the receiver, by acts intended by the receiver to cause loss or damage to the specific claimant, or by acts or omissions for which an officer of a business corporation organized and existing under the laws of this state are liable to the claimant under the same circumstances.

        (3) Notwithstanding subsections (1)(a) and (2) of this section, a receiver has no personal liability to any person for acts or omissions of the receiver specifically contemplated by any order of the court.

        (4) A person other than a successor receiver duly appointed by the court does not have a right of action against a receiver under this section to recover property or the value thereof for or on behalf of the estate.

        NEW SECTION. Sec. 20. A new section is added to chapter 7.60 RCW to read as follows:

        EMPLOYMENT AND COMPENSATION OF PROFESSIONALS. (1) The receiver, with the court's approval, may employ one or more attorneys, accountants, appraisers, auctioneers, or other professional persons that do not hold or represent an interest adverse to the estate to represent or assist the receiver in carrying out the receiver's duties.

        (2) A person is not disqualified for employment under this section solely because of the person's employment by, representation of, or other relationship with a creditor or other party in interest, if the relationship is disclosed in the application for the person's employment and if the court determines that there is no actual conflict of interest or inappropriate appearance of a conflict.

        (3) This section does not preclude the court from authorizing the receiver to act as attorney or accountant if the authorization is in the best interests of the estate.

        (4) The receiver, and any professionals employed by the receiver, is permitted to file an itemized billing statement with the court indicating both the time spent, billing rates of all who perform work to be compensated, and a detailed list of expenses and serve copies on any person who has been joined as a party in the action, or any person requesting the same, advising that unless objections are filed with the court, the receiver may make the payments specified in the notice. If an objection is filed, the receiver or professional whose compensation is affected may request the court to hold a hearing on the objection on five days' notice to the persons who have filed objections. If the receiver is a custodial receiver appointed in aid of foreclosure, payment of fees and expenses may be allowed upon the stipulation of any creditor holding a security interest in the property for whose benefit the receiver is appointed.

        NEW SECTION. Sec. 21. A new section is added to chapter 7.60 RCW to read as follows:

        PARTICIPATION OF CREDITORS AND PARTIES IN INTEREST IN RECEIVERSHIP PROCEEDING--EFFECT OF COURT ORDERS ON NONPARTIES. (1) Creditors and parties in interest to whom written notice of the pendency of the receivership is given in accordance with section 23 of this act, and creditors or other persons submitting written claims in the receivership or otherwise appearing and participating in the receivership, are bound by the acts of the receiver with regard to management and disposition of estate property whether or not they are formally joined as parties.

        (2) Any person having a claim against or interest in any estate property or in the receivership proceedings may appear in the receivership, either in person or by an attorney. Appearance must be made by filing a written notice of appearance, including the name and mailing address of the party in interest, and the name and address of the person's attorney, if any, with the clerk, and by serving a copy of the notice upon the receiver and the receiver's attorney of record, if any. The receiver shall maintain a master mailing list of all persons joined as parties in the receivership and of all persons serving and filing notices of appearance in the receivership in accordance with this section. A creditor or other party in interest has a right to be heard with respect to all matters affecting the person, whether or not the person is joined as a party to the action.

        (3) Any request for relief against a state agency shall be mailed to or otherwise served on the agency and on the office of the attorney general.

        (4) Orders of the court with respect to the treatment of claims and disposition of estate property, including but not limited to orders providing for sales of property free and clear of liens, are effective as to any person having a claim against or interest in the receivership estate and who has actual knowledge of the receivership, whether or not the person receives written notice from the receiver and whether or not the person appears or participates in the receivership.

        (5) The receiver shall give not less than ten days' written notice by mail of any examination by the receiver of the person with respect to whose property the receiver has been appointed and to persons who serve and file an appearance in the proceeding.

        (6) Persons on the master mailing list are entitled to not less than thirty days' written notice of the hearing of any motion or other proceeding involving any proposed:

        (a) Allowance or disallowance of any claim or claims;

        (b) Abandonment, disposition, or distribution of estate property, other than an emergency disposition of perishable property or a disposition of property in the ordinary course of business;

        (c) Compromise or settlement of a controversy that might affect the distribution to creditors from the estate;

        (d) Compensation of the receiver or any professional employed by the receiver; or

        (e) Application for termination of the receivership or discharge of the receiver. Notice of the application shall also be sent to state taxing and applicable regulatory agencies.

        Any opposition to any motion to authorize any of the actions under (a) through (e) of this subsection must be filed and served upon the receiver and the receiver's attorney, if any, at least three days before the date of the proposed action. Persons on the master mailing list shall be served with all pleadings or in opposition to any motion. The court may require notice to be given to persons on the master mailing list of additional matters the court deems appropriate, and may enlarge or reduce any time period provided for by this section for good cause shown. The receiver shall make a copy of the current master mailing list available to any person on that list upon the person's request.

        (7) All persons duly notified by the receiver of any hearing to approve or authorize an action or a proposed action by the receiver is bound by any order of the court with respect to the action, whether or not the persons have appeared or objected to the action or proposed action or have been joined formally as parties to the particular action.

        (8) Whenever notice is not specifically required to be given under this chapter, the court may consider motions and grant or deny relief without notice or hearing, if it appears that no person joined as a party or who has appeared in the receivership would be prejudiced or harmed by the relief requested.

        NEW SECTION. Sec. 22. A new section is added to chapter 7.60 RCW to read as follows:

        NOTICE TO CREDITORS AND OTHER PARTIES IN INTEREST. (1) A general receiver shall give notice of the receivership by publication in a newspaper of general circulation published in the county or counties in which estate property is known to be located once a week for three consecutive weeks, the first notice to be published within twenty days after the date of appointment of the receiver; and by mailing notice to all known creditors and other known parties in interest within twenty days after the date of appointment of the receiver. The notice of the receivership shall include the date of appointment of the receiver; the name of the court and the case number; the last day on which claims may be filed and served upon the receiver; and the name and address of the debtor, the receiver, and the receiver's attorney, if any. For purposes of this section, all intangible property of a person is deemed to be located in the county in which an individual owner thereof resides, or in which any entity owning the property maintains its principal administrative offices.

        (2) The notice of the receivership shall be in substantially the following form:

IN THE SUPERIOR COURT, IN AND FOR

                      COUNTY, WASHINGTON

[Case Name]

)

Case No.

 

)

 

 

)

NOTICE OF RECEIVERSHIP

 

)

 

 

)

 

                                           

)

 

  

TO CREDITORS AND OTHER PARTIES IN INTEREST:

  

PLEASE TAKE NOTICE that a receiver was appointed for , whose last known address is , on , .

  

YOU ARE HEREBY FURTHER NOTIFIED that in order to receive any dividend in this proceeding you must file proof of claim with the receiver on or before , (120 days from the date of appointment of the receiver).

 

 

                                                  

              RECEIVER

Attorney for receiver (if any):

Address:

        NEW SECTION. Sec. 23. A new section is added to chapter 7.60 RCW to read as follows:

        SUBMISSION OF CLAIMS IN GENERAL RECEIVERSHIPS. (1) All claims, whether contingent, liquidated, unliquidated, or disputed, other than claims of creditors with security interests in or other liens against property of the estate, arising prior to the receiver's appointment, must be served in accordance with this chapter, and any claim not so filed is barred from participating in any distribution to creditors in any general receivership.

        (2) Claims must be served by delivering the claim to the general receiver within thirty days from the date notice is given by mail under this section, unless the court reduces or extends the period for cause shown, except that a claim arising from the rejection of an executory contract or an unexpired lease of the person over whose property the receiver is appointed may be filed within thirty days after the rejection. Claims need not be filed. Claims must be served by state agencies on the general receiver within one hundred eighty days from the date notice is given by mail under this section.

        (3) Claims must be in written form entitled "Proof of Claim," setting forth the name and address of the creditor and the nature and amount of the claim, and executed by the creditor or the creditor's authorized agent. When a claim, or an interest in estate property of securing the claim, is based on a writing, the original or a copy of the writing must be included as a part of the proof of claim, together with evidence of perfection of any security interest or other lien asserted by the claimant.

        (4) A claim, executed and served in accordance with this section, constitutes prima facie evidence of the validity and amount of the claim.

        NEW SECTION. Sec. 24. A new section is added to chapter 7.60 RCW to read as follows:

        OBJECTION TO AND ALLOWANCE OF CLAIMS. (1) At any time prior to the entry of an order approving the general receiver's final report, the general receiver or any party in interest may file with the court an objection to a claim, which objection must be in writing and must set forth the grounds for the objection. A copy of the objection, together with notice of hearing, must be mailed to the creditor at least thirty days prior to the hearing. Claims properly served upon the general receiver and not disallowed by the court are entitled to share in distributions from the estate in accordance with the priorities provided for by this chapter or otherwise by law.

        (2) Upon the request of a creditor, the general receiver, or any party in interest objecting to the creditor's claim, or upon order of the court, an objection is subject to mediation prior to adjudication of the objection, under the rules or orders adopted or issued with respect to mediations. However, state claims are not subject to mediation absent agreement of the state.

        (3) Upon motion of the general receiver or other party in interest, the following claims may be estimated for purpose of allowance under this section under the rules or orders applicable to the estimation of claims under this subsection:

        (a) Any contingent or unliquidated claim, the fixing or liquidation of which, as the case may be, would unduly delay the administration of the case; or

        (b) Any right to payment arising from a right to an equitable remedy for breach of performance.

        Claims subject to this subsection shall be allowed in the estimated amount thereof.

        NEW SECTION. Sec. 25. A new section is added to chapter 7.60 RCW to read as follows:

        PRIORITIES. (1) Allowed claims in a general receivership shall receive distribution under this chapter in the order of priority under (a) through (h) of this subsection and, with the exception of (a) and (c) of this subsection, on a pro rata basis.

        (a) Creditors with liens on property of the estate, which liens are duly perfected under applicable law, shall receive the proceeds from the disposition of their collateral. However, the receiver may recover from property securing an allowed secured claim the reasonable, necessary expenses of preserving, protecting, or disposing of the property to the extent of any benefit to the creditors. If and to the extent that the proceeds are less than the amount of a creditor's allowed claim or a creditor's lien is avoided on any basis, the creditor is an unsecured claim under (h) of this subsection. Secured claims shall be paid from the proceeds in accordance with their respective priorities under otherwise applicable law.

        (b) Actual, necessary costs and expenses incurred during the administration of the estate, other than those expenses allowable under (a) of this subsection, including allowed fees and reimbursement of reasonable charges and expenses of the receiver and professional persons employed by the receiver under section 20 of this act. Notwithstanding (a) of this subsection, expenses incurred during the administration of the estate have priority over the secured claim of any creditor obtaining or consenting to the appointment of the receiver.

        (c) Creditors with liens on property of the estate, which liens have not been duly perfected under applicable law, shall receive the proceeds from the disposition of their collateral if and to the extent that unsecured claims are made subject to those liens under applicable law.

        (d) Claims for wages, salaries, or commissions, including vacation, severance, and sick leave pay, or contributions to an employee benefit plan, earned by the claimant within ninety days of the date of appointment of the receiver or the cessation of the estate's business, whichever occurs first, but only to the extent of two thousand dollars.

        (e) Allowed unsecured claims, to the extent of nine hundred dollars for each individual, arising from the deposit with the person over whose property the receiver is appointed before the date of appointment of the receiver of money in connection with the purchase, lease, or rental of property or the purchase of services for personal, family, or household use by individuals that were not delivered or provided.

        (f) Claims for a support debt as defined in RCW 74.20A.020(10), but not to the extent that the debt (i) is assigned to another entity, voluntarily, by operation of law, or otherwise; or (ii) includes a liability designated as a support obligation unless that liability is actually in the nature of a support obligation.

        (g) Unsecured claims of governmental units for taxes which accrued prior to the date of appointment of the receiver.

        (h) Other unsecured claims.

        (2) If all of the classes under subsection (1) of this section have been paid in full, any residue shall be paid to the person over whose property the receiver is appointed.

        NEW SECTION. Sec. 26. A new section is added to chapter 7.60 RCW to read as follows:

        SECURED CLAIMS AGAINST AFTER-ACQUIRED PROPERTY. Except as otherwise provided for by statute, property acquired by the estate or by the person over whose property the receiver is appointed after the date of appointment of the receiver is subject to an allowed secured claim to the same extent as would be the case in the absence of a receivership.

        NEW SECTION. Sec. 27. A new section is added to chapter 7.60 RCW to read as follows:

        INTEREST ON CLAIMS. To the extent that funds are available in the estate for distribution to creditors in a general receivership, the holder of an allowed noncontingent, liquidated claim is entitled to receive interest at the legal rate or other applicable rate from the date of appointment of the receiver or the date on which the claim became a noncontingent, liquidated claim. If there are sufficient funds in the estate to fully pay all interest owing to all members of the class, then interest shall be paid proportionately to each member of the class.

        NEW SECTION. Sec. 28. A new section is added to chapter 7.60 RCW to read as follows:

        RECEIVER'S DISPOSITION OF PROPERTY--SALES FREE AND CLEAR. (1) The receiver, with the court's approval after notice and a hearing, may use, sell, or lease estate property other than in the ordinary course of business. Except in the case of a leasehold estate with a remaining term of less than two years or a vendor's interest in a real estate contract, estate property consisting of real property may not be sold by a custodial receiver other than in the ordinary course of business.

        (2) The court may order that a general receiver's sale of estate property under subsection (1) of this section be effected free and clear of liens and of all rights of redemption, whether or not the sale will generate proceeds sufficient to fully satisfy all claims secured by the property, unless either:

        (a) The property is real property used principally in the production of crops, livestock, or aquaculture, or the property is a homestead under RCW 6.13.010(1), and the owner of the property has not consented to the sale following the appointment of the receiver; or

        (b) The owner of the property or a creditor with an interest in the property serves and files a timely opposition to the receiver's sale, and the court determines that the amount likely to be realized by the objecting person from the receiver's sale is less than the person would realize within a reasonable time in the absence of the receiver's sale.

        Upon any sale free and clear of liens authorized by this section, all security interests and other liens encumbering the property conveyed transfer and attach to the proceeds of the sale, net of reasonable expenses incurred in the disposition of the property, in the same order, priority, and validity as the liens had with respect to the property immediately before the conveyance. The court may authorize the receiver at the time of sale to satisfy, in whole or in part, any allowed claim secured by the property out of the proceeds of its sale if the interest of any other creditor having a lien against the proceeds of the sale would not thereby be impaired.

        (3) At a public sale of property under subsection (1) of this section, a creditor with an allowed claim secured by a lien against the property to be sold may bid at the sale of the property. A secured creditor who purchases the property from a receiver may offset against the purchase price its allowed secured claim against the property, provided that the secured creditor tenders cash sufficient to satisfy in full all secured claims payable out of the proceeds of sale having priority over the secured creditor's secured claim. If the lien or the claim it secures is the subject of a bona fide dispute, the court may order the holder of the claim to provide the receiver with adequate security to assure full payment of the purchase price in the event the lien, the claim, or any part thereof is determined to be invalid or unenforceable.

        (4) If estate property includes an interest as a coowner of property, the receiver shall have the rights and powers of a coowner afforded by applicable state or federal law, including but not limited to any rights of partition.

        (5) The reversal or modification on appeal of an authorization to sell or lease estate property under this section does not affect the validity of a sale or lease under that authorization to an entity that purchased or leased the property in good faith, whether or not the entity knew of the pendency of the appeal, unless the authorization and sale or lease were stayed pending the appeal.

        NEW SECTION. Sec. 29. A new section is added to chapter 7.60 RCW to read as follows:

        ANCILLARY RECEIVERSHIPS. (1) A receiver appointed in any action pending in the courts of this state, without first seeking approval of the court, may apply to any court outside of this state for appointment as receiver with respect to any property or business of the person over whose property the receiver is appointed constituting estate property which is located in any other jurisdiction, if the appointment is necessary to the receiver's possession, control, management, or disposition of property in accordance with orders of the court.

        (2) A receiver appointed by a court of another state, or by a federal court in any district outside of this state, or any other person having an interest in that proceeding, may obtain appointment by a superior court of this state of that same receiver with respect to any property or business of the person over whose property the receiver is appointed constituting property of the foreign receivership that is located in this jurisdiction, if the person is eligible under section 5 of this act to serve as receiver, and if the appointment is necessary to the receiver's possession, control, or disposition of the property in accordance with orders of the court in the foreign proceeding. The superior court upon the receiver's request shall enter the orders, not offensive to the laws and public policy of this state, necessary to effectuate orders entered by the court in the foreign receivership proceeding. A receiver appointed in an ancillary receivership in this state is required to comply with this chapter requiring notice to creditors or other parties in interest only as may be required by the superior court in the ancillary receivership.

        NEW SECTION. Sec. 30. A new section is added to chapter 7.60 RCW to read as follows:

        RESIGNATION OR REMOVAL OF RECEIVER. (1) The court shall remove or replace the receiver on application of the person over whose property the receiver is appointed, the receiver, or any creditor, or on the court's own motion, if the receiver fails to execute and file the bond required by section 6 of this act, or if the receiver resigns or refuses or fails to serve for any reason, or for other good cause.

        (2) Upon removal, resignation, or death of the receiver, the court shall appoint a successor receiver if the court determines that further administration of the estate is required. Upon executing and filing a bond under section 6 of this act, the successor receiver shall immediately take possession of the estate and assume the duties of receiver.

        (3) Whenever the court is satisfied that the receiver so removed or replaced has fully accounted for and turned over to the successor receiver appointed by the court all of the property of the estate and has filed a report of all receipts and disbursements during the person's tenure as receiver, the court shall enter an order discharging that person from all further duties and responsibilities as receiver after notice and a hearing.

        NEW SECTION. Sec. 31. A new section is added to chapter 7.60 RCW to read as follows:

        TERMINATION OF RECEIVERSHIP. (1) Upon distribution or disposition of all property of the estate, or the completion of the receiver's duties with respect to estate property, the receiver shall move the court to be discharged upon notice and a hearing.

        (2) The receiver's final report and accounting setting forth all receipts and disbursements of the estate shall be annexed to the petition for discharge and filed with the court.

        (3) Upon approval of the final report, the court shall discharge the receiver.

        (4) The receiver's discharge releases the receiver from any further duties and responsibilities as receiver under this chapter.

        (5) Upon motion of any party in interest, or upon the court's own motion, the court has the power to discharge the receiver and terminate the court's administration of the property over which the receiver was appointed. If the court determines that the appointment of the receiver was wrongfully procured or procured in bad faith, the court may assess against the person who procured the receiver's appointment (a) all of the receiver's fees and other costs of the receivership and (b) any other sanctions the court determines to be appropriate.

        NEW SECTION. Sec. 32. A new section is added to chapter 7.60 RCW to read as follows:

        APPLICABILITY. This chapter applies to receivers and receiverships otherwise provided for by the laws of this state except as otherwise expressly provided for by statute or as necessary to give effect to the laws of this state. This chapter does not apply to any proceeding authorized by or commenced under Title 48 RCW.

        Sec. 33. RCW 4.28.320 and 1999 c 233 s 1 are each amended to read as follows:

        ((In an action affecting the title to real property the plaintiff, at the time of filing the complaint, or at any time afterwards, or whenever a writ of attachment of property shall be issued, or at any time afterwards, the plaintiff or a defendant, when he sets up an affirmative cause of action in his answer, and demands substantive relief at the time of filing his answer, or at any time afterwards, if the same be intended to affect real property,)) At any time after an action affecting title to real property has been commenced, or after a writ of attachment with respect to real property has been issued in an action, or after a receiver has been appointed with respect to any real property, the plaintiff, the defendant, or such a receiver may file with the auditor of each county in which the property is situated a notice of the pendency of the action, containing the names of the parties, the object of the action, and a description of the real property in that county affected thereby. From the time of the filing only shall the pendency of the action be constructive notice to a purchaser or encumbrancer of the property affected thereby, and every person whose conveyance or encumbrance is subsequently executed or subsequently recorded shall be deemed a subsequent purchaser or encumbrancer, and shall be bound by all proceedings taken after the filing of such notice to the same extent as if he or she were a party to the action. For the purpose of this section an action shall be deemed to be pending from the time of filing such notice: PROVIDED, HOWEVER, That such notice shall be of no avail unless it shall be followed by the first publication of the summons, or by the personal service thereof on a defendant within sixty days after such filing. And the court in which the said action was commenced may, at its discretion, at any time after the action shall be settled, discontinued or abated, on application of any person aggrieved and on good cause shown and on such notice as shall be directed or approved by the court, order the notice authorized in this section to be canceled of record, in whole or in part, by the county auditor of any county in whose office the same may have been filed or recorded, and such cancellation shall be evidenced by the recording of the court order.

        Sec. 34. RCW 6.32.100 and 1893 c 133 s 10 are each amended to read as follows:

        ((After a receiver has been appointed or a receivership has been extended to the special proceedings, the judge must, by order, direct the sheriff to pay the money, or the proceeds of the property, deducting his fees, to the receiver; or if the case so requires to deliver to the receiver the property in his hands. But if it appears to the satisfaction of the judge that an order appointing a receiver or extending a receivership is not necessary, he may, by an order reciting that fact,)) Unless a receiver has been appointed or extended with respect to money or property in the hands of the sheriff, the judge may direct the sheriff to apply the money ((so paid)), the property, or the proceeds of the property ((so delivered)), upon an execution in favor of the judgment creditor issued either before or after the payment or delivery to the sheriff.

        Sec. 35. RCW 6.32.150 and 1893 c 133 s 15 are each amended to read as follows:

        A special proceeding instituted as prescribed in this chapter may be discontinued at any time upon such terms as justice requires, by an order of the judge made upon the application of the judgment creditor. Where the judgment creditor unreasonably delays or neglects to proceed, or where it appears that ((his)) the judgment has been satisfied, ((his)) the special proceedings may be dismissed upon like terms by a like order made upon the application of the judgment debtor, or of plaintiff in a judgment creditor's action against the debtor, or of a judgment creditor who has instituted either of the special proceedings authorized by this chapter. ((Where an order appointing a receiver or extending a receivership has been made in the course of the special proceeding, notice of the application for an order specified in this section must be given in such manner as the judge deems proper, to all persons interested in the receivership as far as they can conveniently be ascertained.))

        Sec. 36. RCW 7.08.010 and 1893 c 100 s 1 are each amended to read as follows:

        No general assignment of property by an insolvent, or in contemplation of insolvency, for the benefit of creditors, shall be valid unless it be made for the benefit of all ((his)) of the assignor's creditors in proportion to the amount of their respective claims((; and after the payment of the costs and disbursements thereof, including the attorney fees allowed by law in case of judgment, out of the estate of the insolvent, such claim or claims shall be deemed as presented, and shall share pro rata with other claims as hereinafter provided)).

        Sec. 37. RCW 7.08.030 and 1890 p 83 s 3 are each amended to read as follows:

        ((The debtor shall annex to such assignment an inventory, under oath, of all his estate, real and personal, according to the best of his knowledge, and also a list of his creditors, with their post office address and a list of the amount of their respective demands, but such inventory shall not be conclusive as to the amount of the debtor's estate. Every assignment shall be in writing, and duly acknowledged in the same manner as conveyances of real estate, and recorded in the record of deeds of the county where the person making the same resides, or where the business in respect to which the same is made has been carried on.))

        (1) An assignment under this chapter must be in substantially the following form:


ASSIGNMENT


    THIS ASSIGNMENT is made this . . . . day of . . . . . ., . . . ., by and between  . . . . . . . ., with a principal place of business at  . . . . . . . . (hereinafter "assignor"), and  . . . . . . . ., whose address is  . . . . . . . . (hereinafter "assignee").

    WHEREAS, the assignor has been engaged in the business of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

    WHEREAS, the assignor is indebted to creditors, as set forth in Schedule A annexed hereto, is unable to pay debts as they become due, and is desirous of providing for the payment of debts, so far as it is possible by an assignment of all property for that purpose.

    NOW, THEREFORE, the assignor, in consideration of the assignee's acceptance of this assignment, and for other good and valuable consideration, hereby grants, assigns, conveys, transfers, and sets over, unto the assignee, and the assignee's successors and assigns, all of assignor's property, except such property as is exempt by law from levy and sale under an execution (and then only to the extent of such exemption), including, but not limited to, all real property, fixtures, goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general intangibles, bank deposits, cash, promissory notes, cash value and proceeds of insurance policies, claims, and demands belonging to the assignor, wherever such property may be located (hereinafter collectively the "estate"), which property is, to the best knowledge and belief of the assignor, fully and accurately set forth on Schedule B annexed hereto.

    By making this assignment, the assignor consents to the appointment of the assignee as a general receiver with respect to the assignee's property in accordance with Chapter 7.60 RCW.

    The assignee shall take possession and administer the estate, and shall liquidate the estate with reasonable dispatch and convert the estate into money, collect all claims and demands hereby assigned as and to the extent they may be collectible, and pay and discharge all reasonable expenses, costs, and disbursements in connection with the execution and administration of this assignment from the proceeds of such liquidations and collections.

    The assignee shall then pay and discharge in full, to the extent that funds are available in the estate after payment of administrative expenses, costs, and disbursements, all of the debts and liabilities now due from the assignor, including interest on such debts and liabilities in full, according to their priority as established by law, and on a pro rata basis within each class.

    In the event that all debts and liabilities are paid in full, the remainder of the estate shall be returned to the assignor.

    To accomplish the purposes of this assignment, the assignor hereby irrevocably appoints the assignee as the assignor's true and lawful attorney in fact, with full power and authority to do all acts and things which may be necessary to execute and fulfill the assignment hereby created, to the same extent as such acts and things might be done by assignor in the absence of this assignment, including but not limited to the power to demand and recover from all persons all property of the estate; to sue for the recovery of such property; to execute, acknowledge, and deliver all necessary deeds, instruments, and conveyances, and to grant and convey any or all of the real or personal property of the estate pursuant thereto; and to appoint one or more attorneys to assist the assignee in carrying out the assignee's duties hereunder.

    The assignor hereby authorizes the assignee to sign the name of the assignor to any check, draft, promissory note, or other instrument in writing which is payable to the order of the assignor, or to sign the name of the assignor to any instrument in writing, whenever it shall be necessary to do so, to carry out the purposes of this assignment.

    The assignor declares, under penalty of perjury under the laws of the state of Washington, that the attached list of creditors and of the property of the assignor is true and complete to the best of the assignor's knowledge.

    The assignment shall be signed by the assignor and duly acknowledged in the same manner as conveyances of real property before a notary public of this state, and shall include an acceptance of the assignment by the assignee in substantially the following form:

    The assignee hereby accepts the trust created by the foregoing assignment, and agrees faithfully and without delay to carry out the assignee's duties under the foregoing assignment.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Assignor

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Assignee

Dated: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Dated: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

    (2) The assignor shall annex to such assignment schedules in the form provided for by section 11(3) of this act in the case of general receiverships, setting forth the creditors and the property of the assignor.

    (3) Every assignment shall be effective when a petition to appoint the assignee as receiver has been filed by the assignor, by the assignee, or by any creditor of the assignor with the clerk of the superior court in the county of the assignor's residence if the assignor is an individual or a marital community, or in the county of the assignor's principal place of business or registered office within this state if the assignor is any other person. A petition shall set forth the name and address of the assignor and the name and address of the assignee, and shall include a copy of the assignment and the schedules affixed thereto, and a request that the court fix the amount of the receiver's bond to be filed with the clerk of the court.

    (4) A person to whom a general assignment of property for the benefit of creditors has been made shall be appointed as general receiver with respect to the assignor's property by the superior court upon the filing of a petition under subsection (3) of this section. Except as provided for by subsection (5) of this section, following the assignee's appointment as general receiver, all proceedings involving the administration of the assignor's property and the claims of the assignee's creditors shall be governed by the provisions of chapter 7.60 RCW applicable to general receiverships and court rules applicable thereto.

    (5) Upon ((the application)) motion of two or more creditors of ((said debtor therefor, by petition to the judge of the superior court of the county in which such assignment is or should be recorded,)) the assignor served and filed at any time within thirty days ((from the making or recording of such assignment)) following the date upon which notice is mailed to all known creditors under section 22 of this act, it shall be the duty of ((said superior judge)) the court to direct the clerk of ((said superior)) the court to order a meeting of the creditors of ((said debtors)) the assignor, to ((choose an assignee of the estate of said debtor in lieu of)) determine whether a person other than the assignee named ((by the debtor in his)) in the assignment should be appointed as general receiver with respect to the property of the assignor; and thereupon the clerk of ((said)) the court shall ((forthwith)) immediately give notice to all the creditors ((of said debtor)) identified in the schedules affixed to the assignment to meet at ((his)) the clerk's office or at such other location within the county as the clerk may specify, at a time stated((,)) not to exceed fifteen days from the date of such notice, to ((select one or more assignees in the place of the assignee named by the debtor in his assignment)) determine whether a person other than the assignee named in the assignment should be appointed as general receiver with respect to the property of the assignor. ((Such)) The assignor's creditors may appear in person or by proxy at the meeting, and a majority in both number and value of ((said)) claims of the creditors attending ((such)) or represented at the meeting ((shall)) may select ((one or more assignees; and in the event that no one shall receive a majority vote of said creditors who represent at least one-half in amount of all claims represented at such meeting, then, and in that event, said clerk shall certify that fact to the judge of the superior court aforesaid, and thereupon said superior judge shall select and appoint an assignee.

    When such assignee shall have been selected by such creditors, or appointed by the superior judge as herein provided, then the assignee named in the debtor's assignment shall forthwith make to the assignee elected by the creditors or appointed by the superior judge, an assignment and conveyance of all the estate, real and personal, that has been assigned or conveyed to him by said debtor; and such assignee so elected by the creditors or appointed by the superior judge, upon giving the bond required of an assignee by RCW 7.08.010 through 7.08.170, shall possess all the powers, and be subject to all the duties imposed by RCW 7.08.010 through 7.08.170, as fully to all intents and purposes as though named in the debtor's assignment.)) a person other than the assignee named in the assignment to serve as general receiver with respect to the assignor's property, whereupon the court shall appoint the selected person as receiver under subsection (4) of this section if a receiver has not already been appointed, and shall appoint the person to replace the original assignee as receiver if the appointment already has been made, unless the court determines upon good cause shown that the appointment as receiver of the person selected by the creditors would not be in the best interests of creditors in general, in which event the court shall appoint or substitute as the receiver a person selected by the court other than the original assignee. If at least one-third of the number or amount of claims represented in person or by proxy at the meeting of creditors vote for the appointment as receiver of a person or persons other than the assignee named in the assignment, then the court upon motion of any creditor served and filed within ten days following the meeting shall appoint as receiver a person selected by the court other than the original assignee, discharging the original assignee if the person previously was appointed as receiver. A creditor may not vote at any meeting of creditors called for the purpose of determining whether a person other than the assignee named in the assignment should be appointed as receiver, until the creditor has presented to the clerk, who presides at the meeting, a proof of claim in accordance with section 23 of this act.

    (6) From the time ((of the pending of an application to elect an assignee by the creditors, and until the time shall be terminated by an election or appointment as herein provided)) a motion is made to elect a new assignee in accordance with subsection (5) of this section, and until either the meeting of creditors occurs without a selection of a new assignee, or until the court enters an order appointing as receiver a person other than the original assignee if the creditors vote to select a new assignee at that meeting, no property of the ((debtor)) assignor, except perishable property, ((shall)) may be sold or disposed of by ((any)) the assignee, whether or not the assignee has been appointed as receiver; but the same shall be safely and securely kept until ((the election or appointment of an assignee as herein provided. No creditor shall be entitled to vote at any such meeting called for the purpose of electing an assignee, until he shall have presented to the clerk of the superior court, who shall preside at such meeting, a verified statement of his claim against the debtor)) then.

    Sec. 38. RCW 7.56.110 and Code 1881 s 712 are each amended to read as follows:

    If judgment be rendered against any corporation or against any persons claiming to be a corporation, the court may cause the costs to be collected by executions against the persons claiming to be a corporation or by attachment against the directors or other officers of the corporation, and shall restrain the corporation, ((appoint a receiver of its property and effects,)) take an account, and make a distribution thereof among the creditors. The prosecuting attorney shall immediately institute proceedings for that purpose.

    Sec. 39. RCW 11.64.022 and 1989 c 373 s 15 are each amended to read as follows:

    If the surviving partner or partners fail or refuse to furnish an inventory or list of liabilities, to permit an appraisal, or to account to the personal representative, or to furnish a bond when required pursuant to RCW 11.64.016, the court shall order a citation to issue requiring the surviving partner or partners to appear and show cause why they have not furnished an inventory list of liabilities, or permitted an appraisal or why they should not account to the personal representative or file a bond. The citation shall be served not less than ten days before the return day designated therein, or such shorter period as the court upon a showing of good cause deems appropriate. If the surviving partner or partners neglect or refuse to file an inventory or list of liabilities, or to permit an appraisal, or fail to account to the court or to file a bond, after they have been directed to do so, they may be punished for a contempt of court as provided in chapter 7.21 RCW. Where the surviving partner or partners fail to file a bond after being ordered to do so by the court, the court may also appoint a receiver of the partnership estate ((with like powers and duties of receivers in equity)) under chapter 7.60 RCW, and may order the costs and expenses of the proceedings to be paid out of the partnership estate or out of the estate of the decedent, or by the surviving partner or partners personally, or partly by each of the parties.

    Sec. 40. RCW 23B.14.320 and 1989 c 165 s 165 are each amended to read as follows:

    (1) A court in a judicial proceeding brought to dissolve a corporation may appoint one or more receivers to wind up and liquidate, or one or more custodians to manage, the business and affairs of the corporation. The court shall hold a hearing, after notifying all parties to the proceeding and any interested persons designated by the court, before appointing a receiver or custodian. ((The court appointing a receiver or custodian has exclusive jurisdiction over the corporation and all of its property wherever located.))

    (2) The court may appoint an individual or a domestic or foreign corporation, authorized to transact business in this state, as a receiver or custodian. The court may require the receiver or custodian to post bond, with or without sureties, in an amount the court directs.

    (3) The ((court shall describe the powers and duties of the receiver or custodian in its appointing order, which may be amended from time to time. Among other powers:

    (a) The receiver (i) may dispose of all or any part of the assets of the corporation wherever located, at a public or private sale, if authorized by the court, and (ii) may sue and defend in the receiver's own name as receiver of the corporation in all courts of this state; and

    (b) The)) receiver or custodian may exercise all of the powers of the corporation, through or in place of its board of directors or officers, to the extent necessary to manage the affairs of the corporation in the best interests of its shareholders and creditors.

    (4) The court, during a receivership, may redesignate the receiver a custodian, and during a custodianship may redesignate the custodian a receiver, if doing so is in the best interests of the corporation, its shareholders, and creditors.

    (5) The court from time to time during the receivership or custodianship may order compensation paid and expense disbursements or reimbursements made to the receiver or custodian and counsel from the assets of the corporation or proceeds from the sale of the assets.

    Sec. 41. RCW 24.06.305 and 1969 ex.s. c 120 s 61 are each amended to read as follows:

    (1) In proceedings to liquidate the assets and affairs of a corporation the court shall have the power to:

    (a) Issue injunctions;

    (b) Appoint a receiver or receivers pendente lite, with such powers and duties as the court may, from time to time, direct;

    (c) Take such other proceedings as may be requisite to preserve the corporate assets wherever situated; and

    (d) Carry on the affairs of the corporation until a full hearing can be had.

    After a hearing had upon such notice as the court may direct to be given to all parties to the proceedings, and to any other parties in interest designated by the court, the court may appoint a receiver ((with authority to collect the assets of the corporation. Such receiver shall have authority, subject to the order of the court, to sell, convey and dispose of all or any part of the assets of the corporation wherever situated, either at public or private sale. The order appointing such receiver shall state his powers and duties. Such powers and duties may be increased or diminished at any time during the proceedings)).

    (2) The assets of the corporation or the proceeds resulting from the sale, conveyance, or other disposition thereof shall be applied and distributed as follows:

    (a) All costs and expenses of the court proceedings, and all liabilities and obligations of the corporation shall be paid, satisfied and discharged, or adequate provision made therefor;

    (b) Assets held by the corporation upon condition requiring return, transfer, or conveyance, which condition occurs by reason of the dissolution or liquidation, shall be returned, transferred, or conveyed in accordance with such requirements;

    (c) Remaining assets, if any, shall be distributed to the members, shareholders, or others in accordance with the provisions of the articles of incorporation.

    (3) The court shall have power to make periodic allowances, as expenses of the liquidation and compensation to the receivers and attorneys in the proceeding accrue, and to direct the payment thereof from the assets of the corporation or from the proceeds of any sale or disposition of such assets.

    ((A receiver appointed under the provisions of this section shall have authority to sue and defend in all courts in his own name, as receiver of such corporation. The court appointing such receiver shall have exclusive jurisdiction of the corporation and its property, wherever situated.))

    NEW SECTION. Sec. 42. A new section is added to chapter 31.12 RCW to read as follows:

    Except in cases in which a receiver is appointed by a court on a temporary basis under RCW 31.12.721, the provisions of Title 7 RCW generally applicable to receivers and receiverships do not apply to receivers elected or appointed under this chapter.

    NEW SECTION. Sec. 43. A new section is added to chapter 35.07 RCW to read as follows:

    The provisions of Title 7 RCW generally applicable to receivers and receiverships do not apply to receivers elected or appointed under this chapter.

    NEW SECTION. Sec. 44. A new section is added to chapter 35A.15 RCW to read as follows:

    The provisions of Title 7 RCW generally applicable to receivers and receiverships do not apply to receivers elected or appointed under this chapter.

    Sec. 45. RCW 87.56.065 and 1925 ex.s. c 124 s 7 are each amended to read as follows:

    At the time and place fixed in ((said)) the notice the court shall hear the objections of interested persons and shall determine whether the district is insolvent within the provisions of this chapter and whether the district shall be dissolved. If the court concludes that the district shall not dissolve, ((he)) the court shall so find and dismiss the action. If the court concludes that the district should be dissolved, ((he)) the court shall appoint a receiver ((with bond conditioned for faithful performance of his duties in such sum as the court shall determine,)) to take charge of the district assets and to perform such other duties as may be required by the court or by law.

    Sec. 46. RCW 87.56.100 and 1925 ex.s. c 124 s 12 are each amended to read as follows:

    If the owner or holder of a claim of indebtedness against the district not yet due or matured ((shall be entitled to serve upon the receiver and file a statement of his claim with the clerk of the court, as in the case of due and matured indebtedness, and the filing of such claim shall constitute an election on the part of the claimant authorizing the court in its discretion to accelerate the maturity of said indebtedness)) files a claim in any case in which a receiver is appointed under RCW 87.56.065, the maturity of the indebtedness owing to the person by the district shall be accelerated to such date as the court shall determine upon.

    NEW SECTION. Sec. 47. The following acts or parts of acts are each repealed:

    (1) RCW 4.28.081 (Summons, how served--When corporation in hands of receiver) and 1897 c 97 s 1;

    (2) RCW 6.25.200 (Appointment of receiver for property) and 1987 c 442 s 820, 1957 c 9 s 9, & 1886 p 42 s 15;

    (3) RCW 6.32.290 (Appointment of receiver--Notice) and 1893 c 133 s 28;

    (4) RCW 6.32.300 (Effect on pending supplemental proceedings) and 1893 c 133 s 29;

    (5) RCW 6.32.310 (Only one receiver may be appointed--Extending receivership) and 1893 c 133 s 30;

    (6) RCW 6.32.320 (Order, where to be filed) and 1893 c 133 s 31;

    (7) RCW 6.32.330 (Property vested in receiver) and 1893 c 133 s 32;

    (8) RCW 6.32.340 (Receiver's title extends back by relation) and 1893 c 133 s 33;

    (9) RCW 6.32.350 (Records to be kept by clerk) and 2002 c 30 s 2 & 1893 c 133 s 34;

    (10) RCW 7.08.020 (Assent of creditors presumed) and 1890 p 83 s 2;

    (11) RCW 7.08.050 (Inventory by assignee--Bond) and 1890 p 85 s 4;

    (12) RCW 7.08.060 (Notice to creditors) and 1890 p 85 s 5;

    (13) RCW 7.08.070 (List of creditors' claims) and 1890 p 85 s 6;

    (14) RCW 7.08.080 (Exceptions to claims) and 1957 c 9 s 7 & 1890 p 85 s 7;

    (15) RCW 7.08.090 (Dividends--Final account--Compensation) and 1893 c 26 s 1 & 1890 p 86 s 8;

    (16) RCW 7.08.100 (Assignee subject to court's control) and 1890 p 86 s 9;

    (17) RCW 7.08.110 (Assignment not void, when) and 1957 c 9 s 8 & 1890 p 86 s 10;

    (18) RCW 7.08.120 (Additional inventory) and 1890 p 86 s 11;

    (19) RCW 7.08.130 (Procedure on claims not due--Limitation on presentment of claims) and 1890 p 86 s 12;

    (20) RCW 7.08.140 (Authority of assignee to dispose of assets) and 1890 p 87 s 13;

    (21) RCW 7.08.150 (Procedure when assignee dies, fails to act, misapplies estate, or if bond insufficient) and 1890 p 87 s 14;

    (22) RCW 7.08.170 (Discharge of assignor) and 1895 c 151 s 1 & 1890 p 88 s 15;

    (23) RCW 7.08.180 (Sheriff disqualified from acting) and 1893 c 137 s 1;

    (24) RCW 7.08.190 (Right of assignor to exemption) and 1897 c 6 s 1;

    (25) RCW 7.08.200 (Exemption, how claimed--Objections) and 1897 c 6 s 2;

    (26) RCW 7.60.010 (Receiver defined) and 1891 c 52 s 1;

    (27) RCW 7.60.020 (Grounds for appointment) and 1998 c 295 s 18, 1937 c 47 s 1, Code 1881 s 193, 1877 p 40 s 197, 1869 p 48 s 196, & 1854 p 162 s 171;

    (28) RCW 7.60.030 (Oath--Bond) and Code 1881 s 194, 1877 p 41 s 198, 1869 p 48 s 198, & 1854 p 162 s 173;

    (29) RCW 7.60.040 (Powers of receiver) and Code 1881 s 198, 1877 p 41 s 202, 1869 p 49 s 202, & 1854 p 163 s 177;

    (30) RCW 7.60.050 (Order when part of claim admitted) and Code 1881 s 199, 1877 p 41 s 203, 1869 p 49 s 203, & 1854 p 163 s 178;

    (31) RCW 23.72.010 (Definitions) and 1959 c 219 s 1 & 1941 c 103 s 1;

    (32) RCW 23.72.020 (Action to recover--Limitation) and 1941 c 103 s 2;

    (33) RCW 23.72.030 (Preference voidable, when--Recovery) and 1959 c 219 s 2 & 1941 c 103 s 3;

    (34) RCW 23.72.040 (Mutual debts and credits) and 1941 c 103 s 4;

    (35) RCW 23.72.050 (Attorney's fees--Reexamination) and 1941 c 103 s 5;

    (36) RCW 23.72.060 (Setoffs and counterclaims) and 1941 c 103 s 6;

    (37) RCW 24.03.275 (Qualification of receivers--Bond) and 1967 c 235 s 56;

    (38) RCW 24.03.280 (Filing of claims in liquidation proceedings) and 1967 c 235 s 57;

    (39) RCW 24.03.285 (Discontinuance of liquidation proceedings) and 1967 c 235 s 58;

    (40) RCW 24.03.310 (Powers of foreign corporation) and 1967 c 235 s 63;

    (41) RCW 24.03.315 (Corporate name of foreign corporation--Fictitious name) and 1982 c 35 s 98 & 1967 c 235 s 64;

    (42) RCW 24.03.320 (Change of name by foreign corporation) and 1986 c 240 s 44 & 1967 c 235 s 65;

    (43) RCW 87.56.070 (Qualifications, duties, compensation of receiver) and 1925 ex.s. c 124 s 8;

    (44) RCW 87.56.080 (Notice to creditors) and 1985 c 469 s 93 & 1925 ex.s. c 124 s 9;

    (45) RCW 87.56.085 (Notice to creditors--Contents) and 1925 ex.s. c 124 s 10;

    (46) RCW 87.56.090 (Unfiled claims barred--Effect of not filing claim of bond lien) and 1925 ex.s. c 124 s 11;

    (47) RCW 87.56.110 (Collection and disbursement of funds) and 1925 ex.s. c 124 s 13;

    (48) RCW 87.56.120 (Receiver's report--Plan of liquidation) and 1925 ex.s. c 124 s 14;

    (49) RCW 87.56.130 (Time for hearing receiver's report to be fixed--Notice) and 1985 c 469 s 94 & 1925 ex.s. c 124 s 15;

    (50) RCW 87.56.135 (Time for hearing receiver's report to be fixed--Contents) and 1925 ex.s. c 124 s 16;

    (51) RCW 87.56.140 (Objections to report) and 1925 ex.s. c 124 s 17;

    (52) RCW 87.56.145 (Objections to report--Fee) and 1925 ex.s. c 124 s 18;

    (53) RCW 87.56.150 (Hearing--Court's powers and duties) and 1925 ex.s. c 124 s 19; and

    (54) RCW 87.56.155 (Decree--Plan of liquidation) and 1925 ex.s. c 124 s 20.

    NEW SECTION. Sec. 48. Captions used in this act are not part of the law."

    Correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Johnson moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6189.

    Senator Johnson spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Johnson that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6189.

    The motion by Senator Johnson carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6189.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6189, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6189, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SUBSTITUTE SENATE BILL NO. 6189, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 4, 2004


MR. PRESIDENT:


    The House has passed SENATE BILL NO. 6339, with the following amendments{s}.

    On page 1, line 16, after "includes" insert "(a)"

    On page 1, line 18, after "livestock" strike ", and" and insert "; and (b)"

    On page 2, line 2, after "15.49 RCW" insert ", however, any disputes regarding responsibilities for seed clean out are governed exclusively by contracts between the producers of the seed and conditioners or processors of the seed"

    On page 5, after line 23, insert the following:

    "(24) "Seed clean out" means the process of removing impurities from raw seed product."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Swecker moved that the Senate refuse to concur in the House amendment(s) to Senate Bill No, 6339 and asks the House to recede therefrom.

    Senators Swecker and Rasmussen spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Swecker that the Senate refuse to concur in the House amendment(s) to Senate Bill No. 6339 and asks the House to recede therefrom..

    The motion by Senator Swecker carried and the Senate refuses to concur in the House amendment(s) to Senate Bill No. 6339 and asks the House to recede therefrom.


MESSAGE FROM THE HOUSE


March 3, 2004


MR. PRESIDENT:

    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6472, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "Sec. 1. RCW 13.40.010 and 1997 c 338 s 8 are each amended to read as follows:

    (1) This chapter shall be known and cited as the Juvenile Justice Act of 1977.

    (2) It is the intent of the legislature that a system capable of having primary responsibility for, being accountable for, and responding to the needs of youthful offenders and their victims, as defined by this chapter, be established. It is the further intent of the legislature that youth, in turn, be held accountable for their offenses and that communities, families, and the juvenile courts carry out their functions consistent with this intent. To effectuate these policies, the legislature declares the following to be equally important purposes of this chapter:

    (a) Protect the citizenry from criminal behavior;

    (b) Provide for determining whether accused juveniles have committed offenses as defined by this chapter;

    (c) Make the juvenile offender accountable for his or her criminal behavior;

    (d) Provide for punishment commensurate with the age, crime, and criminal history of the juvenile offender;

    (e) Provide due process for juveniles alleged to have committed an offense;

    (f) Provide necessary treatment, supervision, and custody for juvenile offenders;

    (g) Provide for the handling of juvenile offenders by communities whenever consistent with public safety;

    (h) Provide for restitution to victims of crime;

    (i) Develop effective standards and goals for the operation, funding, and evaluation of all components of the juvenile justice system and related services at the state and local levels;

    (j) Provide for a clear policy to determine what types of offenders shall receive punishment, treatment, or both, and to determine the jurisdictional limitations of the courts, institutions, and community services; ((and))

    (k) Provide opportunities for victim participation in juvenile justice process, including court hearings on juvenile offender matters, and ensure that Article I, section 35 of the Washington state Constitution, the victim bill of rights, is fully observed; and

    (l) Encourage the parents, guardian, or custodian of the juvenile to actively participate in the juvenile justice process.

    Sec. 2. RCW 13.40.020 and 2002 c 237 s 7 and 2002 c 175 s 19 are each reenacted and amended to read as follows:

    For the purposes of this chapter:

    (1) "Community-based rehabilitation" means one or more of the following: Employment; attendance of information classes; literacy classes; counseling, outpatient substance abuse treatment programs, outpatient mental health programs, anger management classes, education or outpatient treatment programs to prevent animal cruelty, or other services; or attendance at school or other educational programs appropriate for the juvenile as determined by the school district. Placement in community-based rehabilitation programs is subject to available funds;

    (2) Community-based sanctions may include one or more of the following:

    (a) A fine, not to exceed five hundred dollars;

    (b) Community restitution not to exceed one hundred fifty hours of community restitution;

    (3) "Community restitution" means compulsory service, without compensation, performed for the benefit of the community by the offender as punishment for committing an offense. Community restitution may be performed through public or private organizations or through work crews;

    (4) "Community supervision" means an order of disposition by the court of an adjudicated youth not committed to the department or an order granting a deferred disposition. A community supervision order for a single offense may be for a period of up to two years for a sex offense as defined by RCW 9.94A.030 and up to one year for other offenses. As a mandatory condition of any term of community supervision, the court shall order the juvenile to refrain from committing new offenses. As a mandatory condition of community supervision, the court shall order the juvenile to comply with the mandatory school attendance provisions of chapter 28A.225 RCW and to inform the school of the existence of this requirement. Community supervision is an individualized program comprised of one or more of the following:

    (a) Community-based sanctions;

    (b) Community-based rehabilitation;

    (c) Monitoring and reporting requirements;

    (d) Posting of a probation bond;

    (5) "Confinement" means physical custody by the department of social and health services in a facility operated by or pursuant to a contract with the state, or physical custody in a detention facility operated by or pursuant to a contract with any county. The county may operate or contract with vendors to operate county detention facilities. The department may operate or contract to operate detention facilities for juveniles committed to the department. Pretrial confinement or confinement of less than thirty-one days imposed as part of a disposition or modification order may be served consecutively or intermittently, in the discretion of the court;

    (6) "Court," when used without further qualification, means the juvenile court judge(s) or commissioner(s);

    (7) "Criminal history" includes all criminal complaints against the respondent for which, prior to the commission of a current offense:

    (a) The allegations were found correct by a court. If a respondent is convicted of two or more charges arising out of the same course of conduct, only the highest charge from among these shall count as an offense for the purposes of this chapter; or

    (b) The criminal complaint was diverted by a prosecutor pursuant to the provisions of this chapter on agreement of the respondent and after an advisement to the respondent that the criminal complaint would be considered as part of the respondent's criminal history. A successfully completed deferred adjudication that was entered before July 1, 1998, or a deferred disposition shall not be considered part of the respondent's criminal history;

    (8) "Department" means the department of social and health services;

    (9) "Detention facility" means a county facility, paid for by the county, for the physical confinement of a juvenile alleged to have committed an offense or an adjudicated offender subject to a disposition or modification order. "Detention facility" includes county group homes, inpatient substance abuse programs, juvenile basic training camps, and electronic monitoring;

    (10) "Diversion unit" means any probation counselor who enters into a diversion agreement with an alleged youthful offender, or any other person, community accountability board, youth court under the supervision of the juvenile court, or other entity except a law enforcement official or entity, with whom the juvenile court administrator has contracted to arrange and supervise such agreements pursuant to RCW 13.40.080, or any person, community accountability board, or other entity specially funded by the legislature to arrange and supervise diversion agreements in accordance with the requirements of this chapter. For purposes of this subsection, "community accountability board" means a board comprised of members of the local community in which the juvenile offender resides. The superior court shall appoint the members. The boards shall consist of at least three and not more than seven members. If possible, the board should include a variety of representatives from the community, such as a law enforcement officer, teacher or school administrator, high school student, parent, and business owner, and should represent the cultural diversity of the local community;

    (11) "Foster care" means temporary physical care in a foster family home or group care facility as defined in RCW 74.15.020 and licensed by the department, or other legally authorized care;

    (12) "Institution" means a juvenile facility established pursuant to chapters 72.05 and 72.16 through 72.20 RCW;

    (13) "Intensive supervision program" means a parole program that requires intensive supervision and monitoring, offers an array of individualized treatment and transitional services, and emphasizes community involvement and support in order to reduce the likelihood a juvenile offender will commit further offenses;

    (14) "Juvenile," "youth," and "child" mean any individual who is under the chronological age of eighteen years and who has not been previously transferred to adult court pursuant to RCW 13.40.110 or who is otherwise under adult court jurisdiction;

    (15) "Juvenile offender" means any juvenile who has been found by the juvenile court to have committed an offense, including a person eighteen years of age or older over whom jurisdiction has been extended under RCW 13.40.300;

    (16) "Local sanctions" means one or more of the following: (a) 0-30 days of confinement; (b) 0-12 months of community supervision; (c) 0-150 hours of community restitution; or (d) $0-$500 fine;

    (17) "Manifest injustice" means a disposition that would either impose an excessive penalty on the juvenile or would impose a serious, and clear danger to society in light of the purposes of this chapter;

    (18) "Monitoring and reporting requirements" means one or more of the following: Curfews; requirements to remain at home, school, work, or court-ordered treatment programs during specified hours; restrictions from leaving or entering specified geographical areas; requirements to report to the probation officer as directed and to remain under the probation officer's supervision; and other conditions or limitations as the court may require which may not include confinement;

    (19) "Offense" means an act designated a violation or a crime if committed by an adult under the law of this state, under any ordinance of any city or county of this state, under any federal law, or under the law of another state if the act occurred in that state;

    (20) "Probation bond" means a bond, posted with sufficient security by a surety justified and approved by the court, to secure the offender's appearance at required court proceedings and compliance with court-ordered community supervision or conditions of release ordered pursuant to RCW 13.40.040 or 13.40.050. It also means a deposit of cash or posting of other collateral in lieu of a bond if approved by the court;

    (21) "Respondent" means a juvenile who is alleged or proven to have committed an offense;

    (22) "Restitution" means financial reimbursement by the offender to the victim, and shall be limited to easily ascertainable damages for injury to or loss of property, actual expenses incurred for medical treatment for physical injury to persons, lost wages resulting from physical injury, and costs of the victim's counseling reasonably related to the offense ((if the offense is a sex offense)). Restitution shall not include reimbursement for damages for mental anguish, pain and suffering, or other intangible losses. Nothing in this chapter shall limit or replace civil remedies or defenses available to the victim or offender;

    (23) "Secretary" means the secretary of the department of social and health services. "Assistant secretary" means the assistant secretary for juvenile rehabilitation for the department;

    (24) "Services" means services which provide alternatives to incarceration for those juveniles who have pleaded or been adjudicated guilty of an offense or have signed a diversion agreement pursuant to this chapter;

    (25) "Sex offense" means an offense defined as a sex offense in RCW 9.94A.030;

    (26) "Sexual motivation" means that one of the purposes for which the respondent committed the offense was for the purpose of his or her sexual gratification;

    (27) "Surety" means an entity licensed under state insurance laws or by the state department of licensing, to write corporate, property, or probation bonds within the state, and justified and approved by the superior court of the county having jurisdiction of the case;

    (28) "Violation" means an act or omission, which if committed by an adult, must be proven beyond a reasonable doubt, and is punishable by sanctions which do not include incarceration;

    (29) "Violent offense" means a violent offense as defined in RCW 9.94A.030;

    (30)"Youth court" means a diversion unit under the supervision of the juvenile court.

    Sec. 3. RCW 13.40.080 and 2002 c 237 s 8 and 2002 c 175 s 21 are each reenacted and amended to read as follows:

    (1) A diversion agreement shall be a contract between a juvenile accused of an offense and a diversion unit whereby the juvenile agrees to fulfill certain conditions in lieu of prosecution. Such agreements may be entered into only after the prosecutor, or probation counselor pursuant to this chapter, has determined that probable cause exists to believe that a crime has been committed and that the juvenile committed it. Such agreements shall be entered into as expeditiously as possible.

    (2) A diversion agreement shall be limited to one or more of the following:

    (a) Community restitution not to exceed one hundred fifty hours, not to be performed during school hours if the juvenile is attending school;

    (b) Restitution limited to the amount of actual loss incurred by any victim;

    (c) Attendance at up to ten hours of counseling and/or up to twenty hours of educational or informational sessions at a community agency. The educational or informational sessions may include sessions relating to respect for self, others, and authority; victim awareness; accountability; self-worth; responsibility; work ethics; good citizenship; literacy; and life skills. For purposes of this section, "community agency" may also mean a community-based nonprofit organization, if approved by the diversion unit. The state shall not be liable for costs resulting from the diversion unit exercising the option to permit diversion agreements to mandate attendance at up to ten hours of counseling and/or up to twenty hours of educational or informational sessions;

    (d) A fine, not to exceed one hundred dollars;

    (e) Requirements to remain during specified hours at home, school, or work, and restrictions on leaving or entering specified geographical areas; and

    (f) Upon request of any victim or witness, requirements to refrain from any contact with victims or witnesses of offenses committed by the juvenile.

    (3) Notwithstanding the provisions of subsection (2) of this section, youth courts are not limited to the conditions imposed by subsection (2) of this section in imposing sanctions on juveniles pursuant to RCW 13.40.630.

    (4) In assessing periods of community restitution to be performed and restitution to be paid by a juvenile who has entered into a diversion agreement, the court officer to whom this task is assigned shall consult with the juvenile's custodial parent or parents or guardian. To the extent possible, the court officer shall advise the victims ((who have contacted the diversion unit)) of the juvenile offender of the diversion process, offer victim impact letter forms and restitution claim forms, and((, to the extent possible, )) involve members of the community. Such members of the community shall meet with the juvenile and advise the court officer as to the terms of the diversion agreement and shall supervise the juvenile in carrying out its terms.

    (5)(a) A diversion agreement may not exceed a period of six months and may include a period extending beyond the eighteenth birthday of the divertee.

    (b) If additional time is necessary for the juvenile to complete restitution to a victim, the time period limitations of this subsection may be extended by an additional six months.

    (c) If the juvenile has not paid the full amount of restitution by the end of the additional six-month period, then the juvenile shall be referred to the juvenile court for entry of an order establishing the amount of restitution still owed to the victim. In this order, the court shall also determine the terms and conditions of the restitution, including a payment plan extending up to ten years if the court determines that the juvenile does not have the means to make full restitution over a shorter period. For the purposes of this subsection (5)(c), the juvenile shall remain under the court's jurisdiction for a maximum term of ten years after the juvenile's eighteenth birthday. Prior to the expiration of the initial ten-year period, the juvenile court may extend the judgment for restitution an additional ten years. The court may ((not require the juvenile)) relieve the juvenile of the requirement to pay full or partial restitution if the juvenile reasonably satisfies the court that he or she does not have the means to make full or partial restitution and could not reasonably acquire the means to pay the restitution over a ten-year period. If the court relieves the juvenile of the requirement to pay full or partial restitution, the court may order an amount of community restitution that the court deems appropriate. The county clerk shall make disbursements to victims named in the order. The restitution to victims named in the order shall be paid prior to any payment for other penalties or monetary assessments. A juvenile under obligation to pay restitution may petition the court for modification of the restitution order.

    (6) The juvenile shall retain the right to be referred to the court at any time prior to the signing of the diversion agreement.

    (7) Divertees and potential divertees shall be afforded due process in all contacts with a diversion unit regardless of whether the juveniles are accepted for diversion or whether the diversion program is successfully completed. Such due process shall include, but not be limited to, the following:

    (a) A written diversion agreement shall be executed stating all conditions in clearly understandable language;

    (b) Violation of the terms of the agreement shall be the only grounds for termination;

    (c) No divertee may be terminated from a diversion program without being given a court hearing, which hearing shall be preceded by:

    (i) Written notice of alleged violations of the conditions of the diversion program; and

    (ii) Disclosure of all evidence to be offered against the divertee;

    (d) The hearing shall be conducted by the juvenile court and shall include:

    (i) Opportunity to be heard in person and to present evidence;

    (ii) The right to confront and cross-examine all adverse witnesses;

    (iii) A written statement by the court as to the evidence relied on and the reasons for termination, should that be the decision; and

    (iv) Demonstration by evidence that the divertee has substantially violated the terms of his or her diversion agreement.

    (e) The prosecutor may file an information on the offense for which the divertee was diverted:

    (i) In juvenile court if the divertee is under eighteen years of age; or

    (ii) In superior court or the appropriate court of limited jurisdiction if the divertee is eighteen years of age or older.

    (8) The diversion unit shall, subject to available funds, be responsible for providing interpreters when juveniles need interpreters to effectively communicate during diversion unit hearings or negotiations.

    (9) The diversion unit shall be responsible for advising a divertee of his or her rights as provided in this chapter.

    (10) The diversion unit may refer a juvenile to community-based counseling or treatment programs.

    (11) The right to counsel shall inure prior to the initial interview for purposes of advising the juvenile as to whether he or she desires to participate in the diversion process or to appear in the juvenile court. The juvenile may be represented by counsel at any critical stage of the diversion process, including intake interviews and termination hearings. The juvenile shall be fully advised at the intake of his or her right to an attorney and of the relevant services an attorney can provide. For the purpose of this section, intake interviews mean all interviews regarding the diversion agreement process.

    The juvenile shall be advised that a diversion agreement shall constitute a part of the juvenile's criminal history as defined by RCW 13.40.020(7). A signed acknowledgment of such advisement shall be obtained from the juvenile, and the document shall be maintained by the diversion unit together with the diversion agreement, and a copy of both documents shall be delivered to the prosecutor if requested by the prosecutor. The supreme court shall promulgate rules setting forth the content of such advisement in simple language.

    (12) When a juvenile enters into a diversion agreement, the juvenile court may receive only the following information for dispositional purposes:

    (a) The fact that a charge or charges were made;

    (b) The fact that a diversion agreement was entered into;

    (c) The juvenile's obligations under such agreement;

    (d) Whether the alleged offender performed his or her obligations under such agreement; and

    (e) The facts of the alleged offense.

    (13) A diversion unit may refuse to enter into a diversion agreement with a juvenile. When a diversion unit refuses to enter a diversion agreement with a juvenile, it shall immediately refer such juvenile to the court for action and shall forward to the court the criminal complaint and a detailed statement of its reasons for refusing to enter into a diversion agreement. The diversion unit shall also immediately refer the case to the prosecuting attorney for action if such juvenile violates the terms of the diversion agreement.

    (14) A diversion unit may, in instances where it determines that the act or omission of an act for which a juvenile has been referred to it involved no victim, or where it determines that the juvenile referred to it has no prior criminal history and is alleged to have committed an illegal act involving no threat of or instance of actual physical harm and involving not more than fifty dollars in property loss or damage and that there is no loss outstanding to the person or firm suffering such damage or loss, counsel and release or release such a juvenile without entering into a diversion agreement. A diversion unit's authority to counsel and release a juvenile under this subsection includes the authority to refer the juvenile to community- based counseling or treatment programs. Any juvenile released under this subsection shall be advised that the act or omission of any act for which he or she had been referred shall constitute a part of the juvenile's criminal history as defined by RCW 13.40.020(7). A signed acknowledgment of such advisement shall be obtained from the juvenile, and the document shall be maintained by the unit, and a copy of the document shall be delivered to the prosecutor if requested by the prosecutor. The supreme court shall promulgate rules setting forth the content of such advisement in simple language. A juvenile determined to be eligible by a diversion unit for release as provided in this subsection shall retain the same right to counsel and right to have his or her case referred to the court for formal action as any other juvenile referred to the unit.

    (15) A diversion unit may supervise the fulfillment of a diversion agreement entered into before the juvenile's eighteenth birthday and which includes a period extending beyond the divertee's eighteenth birthday.

    (16) If a fine required by a diversion agreement cannot reasonably be paid due to a change of circumstance, the diversion agreement may be modified at the request of the divertee and with the concurrence of the diversion unit to convert an unpaid fine into community restitution. The modification of the diversion agreement shall be in writing and signed by the divertee and the diversion unit. The number of hours of community restitution in lieu of a monetary penalty shall be converted at the rate of the prevailing state minimum wage per hour.

    (17) Fines imposed under this section shall be collected and paid into the county general fund in accordance with procedures established by the juvenile court administrator under RCW 13.04.040 and may be used only for juvenile services. In the expenditure of funds for juvenile services, there shall be a maintenance of effort whereby counties exhaust existing resources before using amounts collected under this section.

    Sec. 4. RCW 13.40.160 and 2003 c 378 s 3 and 2003 c 53 s 99 are each reenacted and amended to read as follows:

    (1) The standard range disposition for a juvenile adjudicated of an offense is determined according to RCW 13.40.0357.

    (a) When the court sentences an offender to a local sanction as provided in RCW 13.40.0357 option A, the court shall impose a determinate disposition within the standard ranges, except as provided in subsection (2), (3), (4), (5), or (6) of this section. The disposition may be comprised of one or more local sanctions.

    (b) When the court sentences an offender to a standard range as provided in RCW 13.40.0357 option A that includes a term of confinement exceeding thirty days, commitment shall be to the department for the standard range of confinement, except as provided in subsection (2), (3), (4), (5), or (6) of this section.

    (2) If the court concludes, and enters reasons for its conclusion, that disposition within the standard range would effectuate a manifest injustice the court shall impose a disposition outside the standard range, as indicated in option D of RCW 13.40.0357. The court's finding of manifest injustice shall be supported by clear and convincing evidence.

    A disposition outside the standard range shall be determinate and shall be comprised of confinement or community supervision, or a combination thereof. When a judge finds a manifest injustice and imposes a sentence of confinement exceeding thirty days, the court shall sentence the juvenile to a maximum term, and the provisions of RCW 13.40.030(2) shall be used to determine the range. A disposition outside the standard range is appealable under RCW 13.40.230 by the state or the respondent. A disposition within the standard range is not appealable under RCW 13.40.230.

    (3) When a juvenile offender is found to have committed a sex offense, other than a sex offense that is also a serious violent offense as defined by RCW 9.94A.030, and has no history of a prior sex offense, the court, on its own motion or the motion of the state or the respondent, may order an examination to determine whether the respondent is amenable to treatment.

    The report of the examination shall include at a minimum the following: The respondent's version of the facts and the official version of the facts, the respondent's offense history, an assessment of problems in addition to alleged deviant behaviors, the respondent's social, educational, and employment situation, and other evaluation measures used. The report shall set forth the sources of the evaluator's information.

    The examiner shall assess and report regarding the respondent's amenability to treatment and relative risk to the community. A proposed treatment plan shall be provided and shall include, at a minimum:

    (a)(i) Frequency and type of contact between the offender and therapist;

    (ii) Specific issues to be addressed in the treatment and description of planned treatment modalities;

    (iii) Monitoring plans, including any requirements regarding living conditions, lifestyle requirements, and monitoring by family members, legal guardians, or others;

    (iv) Anticipated length of treatment; and

    (v) Recommended crime-related prohibitions.

    The court on its own motion may order, or on a motion by the state shall order, a second examination regarding the offender's amenability to treatment. The evaluator shall be selected by the party making the motion. The defendant shall pay the cost of any second examination ordered unless the court finds the defendant to be indigent in which case the state shall pay the cost.

    After receipt of reports of the examination, the court shall then consider whether the offender and the community will benefit from use of this special sex offender disposition alternative and consider the victim's opinion whether the offender should receive a treatment disposition under this section. If the court determines that this special sex offender disposition alternative is appropriate, then the court shall impose a determinate disposition within the standard range for the offense, or if the court concludes, and enters reasons for its conclusions, that such disposition would cause a manifest injustice, the court shall impose a disposition under option D, and the court may suspend the execution of the disposition and place the offender on community supervision for at least two years. As a condition of the suspended disposition, the court may impose the conditions of community supervision and other conditions, including up to thirty days of confinement and requirements that the offender do any one or more of the following:

    (b)(i) Devote time to a specific education, employment, or occupation;

    (ii) Undergo available outpatient sex offender treatment for up to two years, or inpatient sex offender treatment not to exceed the standard range of confinement for that offense. A community mental health center may not be used for such treatment unless it has an appropriate program designed for sex offender treatment. The respondent shall not change sex offender treatment providers or treatment conditions without first notifying the prosecutor, the probation counselor, and the court, and shall not change providers without court approval after a hearing if the prosecutor or probation counselor object to the change;

    (iii) Remain within prescribed geographical boundaries and notify the court or the probation counselor prior to any change in the offender's address, educational program, or employment;

    (iv) Report to the prosecutor and the probation counselor prior to any change in a sex offender treatment provider. This change shall have prior approval by the court;

    (v) Report as directed to the court and a probation counselor;

    (vi) Pay all court-ordered legal financial obligations, perform community restitution, or any combination thereof;

    (vii) Make restitution to the victim for the cost of any counseling reasonably related to the offense;

    (viii) Comply with the conditions of any court-ordered probation bond; or

    (ix) The court shall order that the offender ((may)) shall not attend the public or approved private elementary, middle, or high school attended by the victim or the victim's siblings. The parents or legal guardians of the offender are responsible for transportation or other costs associated with the offender's change of school that would otherwise be paid by the school district. The court shall send notice of the disposition and restriction on attending the same school as the victim or victim's siblings to the public or approved private school the juvenile will attend, if known, or if unknown, to the approved private schools and the public school district board of directors of the district in which the juvenile resides or intends to reside. This notice must be sent at the earliest possible date but not later than ten calendar days after entry of the disposition.

    The sex offender treatment provider shall submit quarterly reports on the respondent's progress in treatment to the court and the parties. The reports shall reference the treatment plan and include at a minimum the following: Dates of attendance, respondent's compliance with requirements, treatment activities, the respondent's relative progress in treatment, and any other material specified by the court at the time of the disposition.

    At the time of the disposition, the court may set treatment review hearings as the court considers appropriate.

    Except as provided in this subsection (3), after July 1, 1991, examinations and treatment ordered pursuant to this subsection shall only be conducted by sex offender treatment providers certified by the department of health pursuant to chapter 18.155 RCW. A sex offender therapist who examines or treats a juvenile sex offender pursuant to this subsection does not have to be certified by the department of health pursuant to chapter 18.155 RCW if the court finds that: (A) The offender has already moved to another state or plans to move to another state for reasons other than circumventing the certification requirements; (B) no certified providers are available for treatment within a reasonable geographical distance of the offender's home; and (C) the evaluation and treatment plan comply with this subsection (3) and the rules adopted by the department of health.

    If the offender violates any condition of the disposition or the court finds that the respondent is failing to make satisfactory progress in treatment, the court may revoke the suspension and order execution of the disposition or the court may impose a penalty of up to thirty days' confinement for violating conditions of the disposition. The court may order both execution of the disposition and up to thirty days' confinement for the violation of the conditions of the disposition. The court shall give credit for any confinement time previously served if that confinement was for the offense for which the suspension is being revoked.

    For purposes of this section, "victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the crime charged. "Victim" may also include a known parent or guardian of a victim who is a minor child unless the parent or guardian is the perpetrator of the offense.

    A disposition entered under this subsection (3) is not appealable under RCW 13.40.230.

    (4) If the juvenile offender is subject to a standard range disposition of local sanctions or 15 to 36 weeks of confinement and has not committed an A- or B+ offense, the court may impose the disposition alternative under RCW 13.40.165.

    (5) If a juvenile is subject to a commitment of 15 to 65 weeks of confinement, the court may impose the disposition alternative under RCW 13.40.--- (section 4, chapter 378, Laws of 2003).

    (6) When the offender is subject to a standard range commitment of 15 to 36 weeks and is ineligible for a suspended disposition alternative, a manifest injustice disposition below the standard range, special sex offender disposition alternative, chemical dependency disposition alternative, or mental health disposition alternative, the court in a county with a pilot program under RCW 13.40.--- (section 5, chapter 378, Laws of 2003) may impose the disposition alternative under RCW 13.40.--- (section 5, chapter 378, Laws of 2003).

    (7) RCW 13.40.193 shall govern the disposition of any juvenile adjudicated of possessing a firearm in violation of RCW 9.41.040(2)(a)(iii) or any crime in which a special finding is entered that the juvenile was armed with a firearm.

    (8) Whenever a juvenile offender is entitled to credit for time spent in detention prior to a dispositional order, the dispositional order shall specifically state the number of days of credit for time served.

    (9) Except as provided under subsection (3), (4), (5), or (6) of this section, or option B of RCW 13.40.0357, or RCW 13.40.127, the court shall not suspend or defer the imposition or the execution of the disposition.

    (10) In no case shall the term of confinement imposed by the court at disposition exceed that to which an adult could be subjected for the same offense.

    Sec. 5. RCW 13.40.165 and 2003 c 378 s 6 are each amended to read as follows:

    (1) The purpose of this disposition alternative is to ensure that successful treatment options to reduce recidivism are available to eligible youth, pursuant to RCW 70.96A.520. The court must consider eligibility for the chemical dependency disposition alternative when a juvenile offender is subject to a standard range disposition of local sanctions or 15 to 36 weeks of confinement and has not committed an A- or B+ offense, other than a first time B+ offense under chapter 69.50 RCW. The court, on its own motion or the motion of the state or the respondent if the evidence shows that the offender may be chemically dependent or substance abusing, may order an examination by a chemical dependency counselor from a chemical dependency treatment facility approved under chapter 70.96A RCW to determine if the youth is chemically dependent or substance abusing. The offender shall pay the cost of any examination ordered under this subsection unless the court finds that the offender is indigent and no third party insurance coverage is available, in which case the state shall pay the cost.

    (2) The report of the examination shall include at a minimum the following: The respondent's version of the facts and the official version of the facts, the respondent's offense history, an assessment of drug-alcohol problems and previous treatment attempts, the respondent's social, educational, and employment situation, and other evaluation measures used. The report shall set forth the sources of the examiner's information.

    (3) The examiner shall assess and report regarding the respondent's relative risk to the community. A proposed treatment plan shall be provided and shall include, at a minimum:

    (a) Whether inpatient and/or outpatient treatment is recommended;

    (b) Availability of appropriate treatment;

    (c) Monitoring plans, including any requirements regarding living conditions, lifestyle requirements, and monitoring by family members, legal guardians, or others;

    (d) Anticipated length of treatment; and

    (e) Recommended crime-related prohibitions.

    (4) The court on its own motion may order, or on a motion by the state or the respondent shall order, a second examination. The evaluator shall be selected by the party making the motion. The requesting party shall pay the cost of any examination ordered under this subsection unless the requesting party is the offender and the court finds that the offender is indigent and no third party insurance coverage is available, in which case the state shall pay the cost.

    (5)(a) After receipt of reports of the examination, the court shall then consider whether the offender and the community will benefit from use of this chemical dependency disposition alternative and consider the victim's opinion whether the offender should receive a treatment disposition under this section.

    (b) If the court determines that this chemical dependency disposition alternative is appropriate, then the court shall impose the standard range for the offense, or if the court concludes, and enters reasons for its conclusion, that such disposition would effectuate a manifest injustice, the court shall impose a disposition above the standard range as indicated in option D of RCW 13.40.0357 if the disposition is an increase from the standard range and the confinement of the offender does not exceed a maximum of fifty-two weeks, suspend execution of the disposition, and place the offender on community supervision for up to one year. As a condition of the suspended disposition, the court shall require the offender to undergo available outpatient drug/alcohol treatment and/or inpatient drug/alcohol treatment. For purposes of this section, inpatient treatment may not exceed ninety days. As a condition of the suspended disposition, the court may impose conditions of community supervision and other sanctions, including up to thirty days of confinement, one hundred fifty hours of community restitution, and payment of legal financial obligations and restitution.

    (6) The drug/alcohol treatment provider shall submit monthly reports on the respondent's progress in treatment to the court and the parties. The reports shall reference the treatment plan and include at a minimum the following: Dates of attendance, respondent's compliance with requirements, treatment activities, the respondent's relative progress in treatment, and any other material specified by the court at the time of the disposition.

    At the time of the disposition, the court may set treatment review hearings as the court considers appropriate.

    If the offender violates any condition of the disposition or the court finds that the respondent is failing to make satisfactory progress in treatment, the court may impose sanctions pursuant to RCW 13.40.200 or revoke the suspension and order execution of the disposition. The court shall give credit for any confinement time previously served if that confinement was for the offense for which the suspension is being revoked.

    (7) For purposes of this section, "victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the offense charged. "Victim" may also include a known parent or guardian of a victim who is a minor child or is not a minor child but is incapacitated, incompetent, disabled, or deceased.

    (8) Whenever a juvenile offender is entitled to credit for time spent in detention prior to a dispositional order, the dispositional order shall specifically state the number of days of credit for time served.

    (9) In no case shall the term of confinement imposed by the court at disposition exceed that to which an adult could be subjected for the same offense.

    (10) A disposition under this section is not appealable under RCW 13.40.230.

    Sec. 6. RCW 13.40.190 and 1997 c 338 s 29 and 1997 c 121 s 9 are each reenacted and amended to read as follows:

    (1) In its dispositional order, the court shall require the respondent to make restitution to any persons who have suffered loss or damage as a result of the offense committed by the respondent. In addition, restitution may be ordered for loss or damage if the offender pleads guilty to a lesser offense or fewer offenses and agrees with the prosecutor's recommendation that the offender be required to pay restitution to a victim of an offense or offenses which, pursuant to a plea agreement, are not prosecuted. The payment of restitution shall be in addition to any punishment which is imposed pursuant to the other provisions of this chapter. The court may determine the amount, terms, and conditions of the restitution including a payment plan extending up to ten years if the court determines that the respondent does not have the means to make full restitution over a shorter period. Restitution may include the costs of counseling reasonably related to the offense. If the respondent participated in the crime with another person or other persons, all such participants shall be jointly and severally responsible for the payment of restitution. For the purposes of this section, the respondent shall remain under the court's jurisdiction for a maximum term of ten years after the respondent's eighteenth birthday. Prior to the expiration of the ten-year period, the juvenile court may extend the judgment for the payment of restitution for an additional ten years. At any time, the court may determine that the respondent is not required to pay, or may relieve the respondent of the requirement to pay, full or partial restitution to any insurance provider authorized under Title 48 RCW if the respondent reasonably satisfies the court that he or she does not have the means to make full or partial restitution to the insurance provider and could not reasonably acquire the means to pay the insurance provider the restitution over a ten-year period.

    (2) Regardless of the provisions of subsection (1) of this section, the court shall order restitution in all cases where the victim is entitled to benefits under the crime victims' compensation act, chapter 7.68 RCW. If the court does not order restitution and the victim of the crime has been determined to be entitled to benefits under the crime victims' compensation act, the department of labor and industries, as administrator of the crime victims' compensation program, may petition the court within one year of entry of the disposition order for entry of a restitution order. Upon receipt of a petition from the department of labor and industries, the court shall hold a restitution hearing and shall enter a restitution order.

    (3) If an order includes restitution as one of the monetary assessments, the county clerk shall make disbursements to victims named in the order. The restitution to victims named in the order shall be paid prior to any payment for other penalties or monetary assessments.

    (4) For purposes of this section, "victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the offense charged. "Victim" may also include a known parent or guardian of a victim who is a minor child or is not a minor child but is incapacitated, incompetent, disabled, or deceased.

    (5) A respondent under obligation to pay restitution may petition the court for modification of the restitution order.

    Sec. 7. RCW 13.40.200 and 2002 c 175 s 25 are each amended to read as follows:

    (1) When a respondent fails to comply with an order of restitution, community supervision, penalty assessments, or confinement of less than thirty days, the court upon motion of the prosecutor or its own motion, may modify the order after a hearing on the violation.

    (2) The hearing shall afford the respondent the same due process of law as would be afforded an adult probationer. The court may issue a summons or a warrant to compel the respondent's appearance. The state shall have the burden of proving by a preponderance of the evidence the fact of the violation. The respondent shall have the burden of showing that the violation was not a willful refusal to comply with the terms of the order. If a respondent has failed to pay a fine, penalty assessments, or restitution or to perform community restitution hours, as required by the court, it shall be the respondent's burden to show that he or she did not have the means and could not reasonably have acquired the means to pay the fine, penalty assessments, or restitution or perform community restitution.

    (3) If the court finds that a respondent has willfully violated the terms of an order pursuant to subsections (1) and (2) of this section, it may impose a penalty of up to thirty days' confinement. Penalties for multiple violations occurring prior to the hearing shall not be aggregated to exceed thirty days' confinement. Regardless of the number of times a respondent is brought to court for violations of the terms of a single disposition order, the combined total number of days spent by the respondent in detention shall never exceed the maximum term to which an adult could be sentenced for the underlying offense.

    (4) If a respondent has been ordered to pay a fine or monetary penalty and due to a change of circumstance cannot reasonably comply with the order, the court, upon motion of the respondent, may order that the unpaid fine or monetary penalty be converted to community restitution unless the monetary penalty is the crime victim penalty assessment, which cannot be converted, waived, or otherwise modified, except for schedule of payment. The number of hours of community restitution in lieu of a monetary penalty or fine shall be converted at the rate of the prevailing state minimum wage per hour. The monetary penalties or fines collected shall be deposited in the county general fund. A failure to comply with an order under this subsection shall be deemed a failure to comply with an order of community supervision and may be proceeded against as provided in this section.

    (5) When a respondent has willfully violated the terms of a probation bond, the court may modify, revoke, or retain the probation bond as provided in RCW 13.40.054.

    Sec. 8. RCW 7.69.030 and 1999 c 323 s 2 are each amended to read as follows:

    There shall be a reasonable effort made to ensure that victims, survivors of victims, and witnesses of crimes have the following rights, which apply to any criminal court and/or juvenile court proceeding:

    (1) With respect to victims of violent or sex crimes, to receive, at the time of reporting the crime to law enforcement officials, a written statement of the rights of crime victims as provided in this chapter. The written statement shall include the name, address, and telephone number of a county or local crime victim/witness program, if such a crime victim/witness program exists in the county;

    (2) To be informed by local law enforcement agencies or the prosecuting attorney of the final disposition of the case in which the victim, survivor, or witness is involved;

    (3) To be notified by the party who issued the subpoena that a court proceeding to which they have been subpoenaed will not occur as scheduled, in order to save the person an unnecessary trip to court;

    (4) To receive protection from harm and threats of harm arising out of cooperation with law enforcement and prosecution efforts, and to be provided with information as to the level of protection available;

    (5) To be informed of the procedure to be followed to apply for and receive any witness fees to which they are entitled;

    (6) To be provided, whenever practical, a secure waiting area during court proceedings that does not require them to be in close proximity to defendants and families or friends of defendants;

    (7) To have any stolen or other personal property expeditiously returned by law enforcement agencies or the superior court when no longer needed as evidence. When feasible, all such property, except weapons, currency, contraband, property subject to evidentiary analysis, and property of which ownership is disputed, shall be photographed and returned to the owner within ten days of being taken;

    (8) To be provided with appropriate employer intercession services to ensure that employers of victims, survivors of victims, and witnesses of crime will cooperate with the criminal justice process in order to minimize an employee's loss of pay and other benefits resulting from court appearance;

    (9) To access to immediate medical assistance and not to be detained for an unreasonable length of time by a law enforcement agency before having such assistance administered. However, an employee of the law enforcement agency may, if necessary, accompany the person to a medical facility to question the person about the criminal incident if the questioning does not hinder the administration of medical assistance;

    (10) With respect to victims of violent and sex crimes, to have a crime victim advocate from a crime victim/witness program, or any other support person of the victim's choosing, present at any prosecutorial or defense interviews with the victim, and at any judicial proceedings related to criminal acts committed against the victim. This subsection applies if practical and if the presence of the crime victim advocate or support person does not cause any unnecessary delay in the investigation or prosecution of the case. The role of the crime victim advocate is to provide emotional support to the crime victim;

    (11) With respect to victims and survivors of victims, to be physically present in court during trial, or if subpoenaed to testify, to be scheduled as early as practical in the proceedings in order to be physically present during trial after testifying and not to be excluded solely because they have testified;

    (12) With respect to victims and survivors of victims, to be informed by the prosecuting attorney of the date, time, and place of the trial and of the sentencing hearing for felony convictions upon request by a victim or survivor;

    (13) To submit a victim impact statement or report to the court, with the assistance of the prosecuting attorney if requested, which shall be included in all presentence reports and permanently included in the files and records accompanying the offender committed to the custody of a state agency or institution;

    (14) With respect to victims and survivors of victims, to present a statement personally or by representation, at the sentencing hearing for felony convictions;

    (15) With respect to victims and survivors of victims, to entry of an order of restitution by the court in all felony cases, even when the offender is sentenced to confinement, unless extraordinary circumstances exist which make restitution inappropriate in the court's judgment; and

    (16) With respect to victims and survivors of victims, to present a statement in person, via audio or videotape, in writing or by representation at any hearing conducted regarding an application for pardon or commutation of sentence.

    Sec. 9. RCW 7.69A.030 and 1997 c 283 s 2 are each amended to read as follows:

    In addition to the rights of victims and witnesses provided for in RCW 7.69.030, there shall be every reasonable effort made by law enforcement agencies, prosecutors, and judges to assure that child victims and witnesses are afforded the rights enumerated in this section. Except as provided in RCW 7.69A.050 regarding child victims or child witnesses of violent crimes, sex crimes, or child abuse, the enumeration of rights shall not be construed to create substantive rights and duties, and the application of an enumerated right in an individual case is subject to the discretion of the law enforcement agency, prosecutor, or judge. Child victims and witnesses have the following rights, which apply to any criminal court and/or juvenile court proceeding:

    (1) To have explained in language easily understood by the child, all legal proceedings and/or police investigations in which the child may be involved.

    (2) With respect to child victims of sex or violent crimes or child abuse, to have a crime victim advocate from a crime victim/witness program, or any other support person of the victim's choosing, present at any prosecutorial or defense interviews with the child victim. This subsection applies if practical and if the presence of the crime victim advocate or support person does not cause any unnecessary delay in the investigation or prosecution of the case. The role of the crime victim advocate is to provide emotional support to the child victim and to promote the child's feelings of security and safety.

    (3) To be provided, whenever possible, a secure waiting area during court proceedings and to have an advocate or support person remain with the child prior to and during any court proceedings.

    (4) To not have the names, addresses, nor photographs of the living child victim or witness disclosed by any law enforcement agency, prosecutor's office, or state agency without the permission of the child victim, child witness, parents, or legal guardians to anyone except another law enforcement agency, prosecutor, defense counsel, or private or governmental agency that provides services to the child victim or witness.

    (5) To allow an advocate to make recommendations to the prosecuting attorney about the ability of the child to cooperate with prosecution and the potential effect of the proceedings on the child.

    (6) To allow an advocate to provide information to the court concerning the child's ability to understand the nature of the proceedings.

    (7) To be provided information or appropriate referrals to social service agencies to assist the child and/or the child's family with the emotional impact of the crime, the subsequent investigation, and judicial proceedings in which the child is involved.

    (8) To allow an advocate to be present in court while the child testifies in order to provide emotional support to the child.

    (9) To provide information to the court as to the need for the presence of other supportive persons at the court proceedings while the child testifies in order to promote the child's feelings of security and safety.

    (10) To allow law enforcement agencies the opportunity to enlist the assistance of other professional personnel such as child protection services, victim advocates or prosecutorial staff trained in the interviewing of the child victim.

    (11) With respect to child victims of violent or sex crimes or child abuse, to receive either directly or through the child's parent or guardian if appropriate, at the time of reporting the crime to law enforcement officials, a written statement of the rights of child victims as provided in this chapter. The written statement shall include the name, address, and telephone number of a county or local crime victim/witness program, if such a crime victim/witness program exists in the county.

    Sec. 10. RCW 13.04.040 and 1995 c 312 s 40 are each amended to read as follows:

    The administrator shall, in any county or judicial district in the state, appoint or designate one or more persons of good character to serve as probation counselors during the pleasure of the administrator. The probation counselor shall:

    (1) Receive and examine referrals to the juvenile court for the purpose of considering the filing of a petition or information pursuant to chapter 13.32A or 13.34 RCW or RCW 13.40.070;

    (2) Make recommendations to the court regarding the need for continued detention or shelter care of a child unless otherwise provided in this title;

    (3) Arrange and supervise diversion agreements as provided in RCW 13.40.080, and ensure that the requirements of such agreements are met except as otherwise provided in this title;

    (4) Prepare predisposition studies as required in RCW ((13.34.120 and)) 13.40.130, and be present at the disposition hearing to respond to questions regarding the predisposition study: PROVIDED, That such duties shall be performed by the department for cases relating to dependency or to the termination of a parent and child relationship which is filed by the department unless otherwise ordered by the court; and

    (5) Supervise court orders of disposition to ensure that all requirements of the order are met.

    All probation counselors shall possess all the powers conferred upon sheriffs and police officers to serve process and make arrests of juveniles under their supervision for the violation of any state law or county or city ordinance.

    The administrator may, in any county or judicial district in the state, appoint one or more persons who shall have charge of detention rooms or houses of detention.

    The probation counselors and persons appointed to have charge of detention facilities shall each receive compensation which shall be fixed by the legislative authority of the county, or in cases of joint counties, judicial districts of more than one county, or joint judicial districts such sums as shall be agreed upon by the legislative authorities of the counties affected, and such persons shall be paid as other county officers are paid.

    The administrator is hereby authorized, and to the extent possible is encouraged to, contract with private agencies existing within the community for the provision of services to youthful offenders and youth who have entered into diversion agreements pursuant to RCW 13.40.080.

    The administrator shall establish procedures for the collection of fines assessed under RCW 13.40.080 (2)(((d) and (13))) (c) and (14) and for the payment of the fines into the county general fund.

    NEW SECTION. Sec. 11. This act takes effect July 1, 2004."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Hargrove moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6472.

    Senator Hargrove spoke in favor of the motion.


MOTION


    On motion of Senator Hewitt, Senators Brandland, Deccio and Parlette were excused.


    The President declared the question before the Senate to be the motion by Senator Hargrove that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6472.

    The motion by Senator Hargrove carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6472.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6472, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6472, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Benton, Berkey, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 46.

     Excused: Senators Brandland, Deccio and Parlette - 3.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 6472, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 4, 2004


MR. PRESIDENT:

    The House has passed SUBSTITUTE SENATE BILL NO. 6575, with the following amendments{s}.

    On page 1, at the beginning of line 7, insert "(1)"

    On page 1, line 11, after "project." strike "The" and insert "(2) If necessary because of the use attainability analysis conducted under subsection (1) of this section, the"

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Honeyford moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6575.

    Senators Honeyford and Fraser spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Honeyford that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6575.

    The motion by Senator Honeyford carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6575.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6575, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6575, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Benton, Berkey, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 46.

     Excused: Senators Brandland, Deccio and Parlette - 3.

     SUBSTITUTE SENATE BILL NO. 6575, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 5, 2004


MR. PRESIDENT:


    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5877, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1. PURPOSE. The learning assistance program requirements in this chapter are designed to: (1) Promote the use of assessment data when developing programs to assist underachieving students; and (2) guide school districts in providing the most effective and efficient practices when implementing programs to assist underachieving students. Further, this chapter provides the means by which a school district becomes eligible for learning assistance program funds and the distribution of those funds.

    NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly indicates otherwise the definitions in this section apply throughout this chapter.

    (1) "Approved program" means a program submitted to and approved by the office of the superintendent of public instruction and conducted pursuant to the plan that addresses the required elements as provided for in this chapter.

    (2) "Basic skills areas" means reading, writing, and mathematics as well as readiness associated with these skills.

    (3) "Participating student" means a student in kindergarten through grade eleven who scores below standard for his or her grade level on the statewide assessments and who is identified in the approved plan to receive services. Beginning with the 2007-2008 school year, "participating student" means a student in kindergarten through grade twelve who scores below standard for his or her grade level on the statewide assessments and who is identified in the approved plan to receive services.

    (4) "Statewide assessments" means one or more of the several basic skills assessments administered as part of the state's student assessment system, and assessments in the basic skills areas administered by local school districts.

    (5) "Underachieving students" means students with the greatest academic deficits in basic skills as identified by the statewide assessments.

    NEW SECTION. Sec. 3. PROGRAM PLAN. By July 1st of each year, a participating school district shall submit the district's plan for using learning assistance funds to the office of the superintendent of public instruction for approval. For the 2004-05 school year, school districts must identify the program activities to be implemented from section 4 of this act and are encouraged to implement the elements in subsections (1) through (8) of this section. Beginning in the 2005-06 school year, the program plan must identify the program activities to be implemented from section 4 of this act and implement all of the elements in subsections (1) through (8) of this section. The school district plan shall include the following:

    (1) District and school-level data on reading, writing, and mathematics achievement as reported pursuant to chapter 28A.655 RCW and relevant federal law;

    (2) Processes used for identifying the underachieving students to be served by the program, including the identification of school or program sites providing program activities;

    (3) How accelerated learning plans are developed and implemented for participating students. Accelerated learning plans may be developed as part of existing student achievement plan process such as student plans for achieving state high school graduation standards, individual student academic plans, or the achievement plans for groups of students. Accelerated learning plans shall include:

    (a) Achievement goals for the students;

    (b) Roles of the student, parents, or guardians and teachers in the plan;

    (c) Communication procedures regarding student accomplishment; and

    (d) Plan reviews and adjustments processes;

    (4) How state level and classroom assessments are used to inform instruction;

    (5) How focused and intentional instructional strategies have been identified and implemented;

    (6) How highly qualified instructional staff are developed and supported in the program and in participating schools;

    (7) How other federal, state, district, and school resources are coordinated with school improvement plans and the district's strategic plan to support underachieving students; and

    (8) How a program evaluation will be conducted to determine direction for the following school year.


    NEW SECTION. Sec. 4. PROGRAM ACTIVITIES. Use of best practices magnifies the opportunities for student success. The following are services and activities that may be supported by the learning assistance program:

    (1) Extended learning time opportunities occurring:

    (a) Before or after the regular school day;

    (b) On Saturday; and

    (c) Beyond the regular school year;

    (2) Professional development for certificated and classified staff that focuses on:

    (a) The needs of a diverse student population;

    (b) Specific literacy and mathematics content and instructional strategies; and

    (c) The use of student work to guide effective instruction;

    (3) Consultant teachers to assist in implementing effective instructional practices by teachers serving participating students;

    (4) Tutoring support for participating students; and

    (5) Outreach activities and support for parents of participating students.

    NEW SECTION. Sec. 5. PLAN APPROVAL PROCESS. A participating school district shall annually submit a program plan to the office of the superintendent of public instruction for approval. The program plan must address all of the elements in section 3 of this act and identify the program activities to be implemented from section 4 of this act.

    School districts achieving state reading and mathematics goals as prescribed in chapter 28A.655 RCW shall have their program approved once the program plan and activities submittal is completed.

    School districts not achieving state reading and mathematics goals as prescribed in chapter 28A.655 RCW and that are not in a state or federal program of school improvement shall be subject to program approval once the plan components are reviewed by the office of the superintendent of public instruction for the purpose of receiving technical assistance in the final development of the plan.

    School districts with one or more schools in a state or federal program of school improvement shall have their plans and activities reviewed and approved in conjunction with the state or federal program school improvement program requirements.

    NEW SECTION. Sec. 6. FUNDS--ELIGIBILITY--DISTRIBUTION. Each school district with an approved program is eligible for state funds provided for the learning assistance program. The funds shall be appropriated for the learning assistance program in accordance with the biennial appropriations act. The distribution formula is for school district allocation purposes only. The distribution formula shall be based on an assessment of students and on one or more family income factors measuring economic need. Beginning with the 2005-06 school year, fifty percent of the distribution formula shall be based on an assessment of students and fifty percent shall be based on one or more family income factors measuring economic need.

    NEW SECTION. Sec. 7. MONITORING. To ensure that school districts are meeting the requirements of an approved program, the superintendent of public instruction shall monitor such programs no less than once every four years. Individual student records shall be maintained at the school district.

    NEW SECTION. Sec. 8. RULES. The superintendent of public instruction shall adopt rules in accordance with chapter 34.05 RCW that are necessary to implement this chapter.

    NEW SECTION. Sec. 9. CAPTIONS NOT LAW. Captions used in this act are not any part of the law.

    NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

    (1) RCW 28A.165.010 (Intent) and 1989 c 233 s 1 & 1987 c 478 s 1;

    (2) RCW 28A.165.012 (Program created) and 1987 c 478 s 2;

    (3) RCW 28A.165.030 (Definitions) and 1999 c 78 s 1, 1990 c 33 s 148, & 1987 c 478 s 3;

    (4) RCW 28A.165.040 (Application for state funds--Needs assessment--Plan) and 1990 c 33 s 149, 1989 c 233 s 2, & 1987 c 478 s 4;

    (5) RCW 28A.165.050 (Identification of students--Coordination of use of funds) and 1987 c 478 s 5;

    (6) RCW 28A.165.060 (Services or activities under program) and 1989 c 233 s 3 & 1987 c 478 s 6;

    (7) RCW 28A.165.070 (Eligibility for funds--Distribution of funds--Development of allocation formula) and 1995 1st sp.s. c 13 s 1, 1993 sp.s. c 24 s 520, 1990 c 33 s 150, & 1987 c 478 s 7;

    (8) RCW 28A.165.080 (Monitoring) and 1990 c 33 s 151 & 1987 c 478 s 8; and

    (9) RCW 28A.165.090 (Rules) and 1990 c 33 s 152 & 1987 c 478 s 9.

    NEW SECTION. Sec. 11. Sections 1 through 9 of this act are each added to chapter 28A.165 RCW."

    On page 1, line 1 of the title, after "program;" strike the remainder of the title and insert "adding new sections to chapter 28A.165 RCW; and repealing RCW 28A.165.010, 28A.165.012, 28A.165.030, 28A.165.040, 28A.165.050, 28A.165.060, 28A.165.070, 28A.165.080, and 28A.165.090."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Johnson moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5877.

    Senators Johnson, McAuliffe, Carlson and Brown spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Johnson that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5877.

    The motion by Senator Johnson carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 5877.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5877, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5877, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 5877, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 5, 2004


MR. PRESIDENT:


    The House has passed SECOND SUBSTITUTE SENATE BILL NO. 6599, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.                          A new section is added to chapter 49.17 RCW to read as follows:

    Employers whose employees receive medical monitoring under chapter 296-307 WAC, Part J-1, shall submit records to the department of labor and industries each month indicating the name of each worker tested, the number of hours that each worker handled covered pesticides during the thirty days prior to testing, and the number of hours that each worker handled covered pesticides during the current calendar year. The department of labor and industries shall work with the department of health to correlate this data with each employee's test results. No later than January 1, 2005, the department of labor and industries shall require employers to report this data to the physician or other licensed health care professional and department of health public health laboratory or other approved laboratory when each employee's cholinesterase test is taken. The department shall also require employers to provide each employee who receives medical monitoring with: (1) A copy of the data that the employer reports for that employee upon that employee's request; and (2) access to the records on which the employer's report is based.

    NEW SECTION. Sec.

2.  A new section is added to chapter 49.17 RCW to read as follows:

    By January 1, 2005, January 1, 2006, and January 1, 2007, the department of labor and industries shall report the results of its data collection, correlation, and analysis related to cholinesterase monitoring to the house of representatives committees on agriculture and natural resources and commerce and labor, or their successor committees, and the senate committees on agriculture and commerce and trade, or their successor committees. These reports shall also identify any technical issues regarding the testing of cholinesterase levels or the administration of cholinesterase monitoring.

    NEW SECTION. Sec.

3.  A new section is added to chapter 49.17 RCW to read as follows:

    As specified in any proviso relating to cholinesterase monitoring in the 2003-2005 omnibus operating appropriations act, the department shall make reasonable reimbursements on a quarterly basis.

    NEW SECTION. Sec.

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

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Honeyford moved that the Senate concur in the House amendment(s) to Second Substitute Senate Bill No. 6599.

    Senators Honeyford, Prentice and Rasmussen spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Honeyford that the Senate concur in the House amendment(s) to Second Substitute Senate Bill No. 6599.

    The motion by Senator Honeyford carried and the Senate concurred in the House amendment(s) to Second Substitute Senate Bill No. 6599.

    The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 6599, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 6599, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SECOND SUBSTITUTE SENATE BILL NO. 6599, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


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


SECOND READING


    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2531, by House Committee on Transportation (originally sponsored by Representatives Murray, Wallace, McIntire, Dickerson, Hatfield, Rockefeller, Schual-Berke, Moeller, Chase, Conway and Wood)

 

Expanding authority for regional transportation investment districts.


    The bill was read the second time.


MOTION


    On motion of Senator Horn, the committee striking amendment by the Committee on Highways and Transportation be not adopted:

    Strike everything after the enacting clause and insert the following:


"PART I - TOLLING PROVISIONS


    Sec.

101.           RCW 36.120.020 and 2002 c 56 s 102 are each amended to read as follows:

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

    (1) "Board" means the governing body of a regional transportation investment district.

    (2) "Department" means the Washington state department of transportation.

    (3) "Highway of statewide significance" means an existing or proposed state route or federal interstate designated as a highway of statewide significance by the transportation commission, its successor entity, or the legislature.

    (4) "Lead agency" means a public agency that by law can plan, design, and build a transportation project and has been so designated by the district.

    (5) "Regional transportation investment district" or "district" means a municipal corporation whose boundaries are coextensive with two or more contiguous counties and that has been created by county legislative authorities and a vote of the people under this chapter to implement a regional transportation investment plan.

    (6) "Regional transportation investment district planning committee" or "planning committee" means the advisory committee created under RCW 36.120.030 to create and propose to county legislative authorities a regional transportation investment plan to develop, finance, and construct transportation projects.

    (7) "Regional transportation investment plan" or "plan" means a plan to develop, construct, and finance a transportation project or projects.

    (8) "Transportation project" means:

    (a) A capital improvement or improvements to a highway that has been designated, in whole or in part, as a highway of statewide significance, including an extension, that:

    (i) Adds a lane or new lanes to an existing state or federal highway; or

    (ii) Repairs or replaces a lane or lanes damaged by an event declared an emergency by the governor before January 1, 2002.

    (b) A capital improvement or improvements to all or a portion of a highway of statewide significance, including an extension, and may include the following associated multimodal capital improvements:

    (i) Approaches to highways of statewide significance;

    (ii) High-occupancy vehicle lanes;

    (iii) Flyover ramps;

    (iv) Park and ride lots;

    (v) Bus pullouts;

    (vi) Vans for vanpools;

    (vii) Buses; and

    (viii) Signalization, ramp metering, and other transportation system management improvements.

    (c) A capital improvement or improvements to all or a portion of a city street, county road, or existing highway or the creation of a new highway that intersects with a highway of statewide significance, if all of the following conditions are met:

    (i) The project is included in a plan that makes highway improvement projects that add capacity to a highway or highways of statewide significance;

    (ii) The secretary of transportation determines that the project would better relieve traffic congestion than investing that same money in adding capacity to a highway of statewide significance;

    (iii) Matching money equal to one-third of the total cost of the project is provided by local entities, including but not limited to a metropolitan planning organization, county, city, port, or private entity in which a county participating in a plan is located. Local entities may use federal grants to meet this matching requirement;

    (iv) In no case may the cumulative regional transportation investment district contribution to all projects constructed under this subsection (8)(c) exceed ten percent of the revenues generated by the district;

    (v) In no case may the cumulative regional transportation investment district contribution to all projects constructed under this subsection (8)(c) exceed one billion dollars; and

    (vi) The specific projects are included within the plan and submitted as part of the plan to a vote of the people.

    (d) Operations, preservation, and maintenance are excluded from this definition and may not be included in a regional transportation investment plan. However, operations, preservation, and maintenance of toll-related facilities where toll revenues have been pledged for the payment of contracts is expressly authorized and may be included in a regional transportation investment plan.

    (9) "Weighted vote" means a vote that reflects the population each board or planning committee member represents relative to the population represented by the total membership of the board or planning committee. Population will be determined using the federal 2000 census or subsequent federal census data.

    Sec.

102.           RCW 36.120.050 and 2003 c 350 s 4 are each amended to read as follows:

    (1) A regional transportation investment district planning committee may, as part of a regional transportation investment plan, recommend the imposition of some or all of the following revenue sources, which a regional transportation investment district may impose upon approval of the voters as provided in this chapter:

    (a) A regional sales and use tax, as specified in RCW 82.14.430, of up to 0.5 percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax, upon the occurrence of any taxable event in the regional transportation investment district;

    (b) A local option vehicle license fee, as specified under RCW 82.80.100, of up to one hundred dollars per vehicle registered in the district. As used in this subsection, "vehicle" means motor vehicle as defined in RCW 46.04.320. Certain classes of vehicles, as defined under chapter 46.04 RCW, may be exempted from this fee;

    (c) A parking tax under RCW 82.80.030;

    (d) A local motor vehicle excise tax under RCW 81.100.060 and chapter 81.104 RCW;

    (e) A local option fuel tax under RCW 82.80.120;

    (f) An employer excise tax under RCW 81.100.030; and

    (g) Vehicle tolls on new or reconstructed facilities or, in the case of improvements to a bridge or viaduct, any approaches or connectors to the bridge or viaduct. Unless otherwise specified by law or contract, the department shall administer the collection of vehicle tolls on designated facilities, and the state transportation commission, or its successor, shall be the tolling authority.

    (2) Taxes, fees, and tolls may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the district voting on a ballot proposition as set forth in RCW 36.120.070. Revenues from these taxes and fees may be used only to implement the plan as set forth in this chapter. A district may contract with the state department of revenue or other appropriate entities for administration and collection of any of the taxes or fees authorized in this section.

    (3) Existing statewide motor vehicle fuel and special fuel taxes, at the distribution rates in effect on January 1, 2001, are not intended to be altered by this chapter.

    Sec.

103.           RCW 47.56.076 and 2002 c 56 s 403 are each amended to read as follows:

    Upon approval of a majority of the voters within its boundaries voting on the ballot proposition, and only for the purposes authorized in RCW 36.120.050(1)(((f))) (g), a regional transportation investment district may impose vehicle tolls on state routes where improvements financed in whole or in part by a regional transportation investment district add additional lanes to, or reconstruct lanes on, a highway of statewide significance, and in the case of improving a bridge or viaduct, any approaches or connectors to the bridge or viaduct. The department shall administer the collection of vehicle tolls on designated facilities unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall ((be the tolling authority)) set and impose the tolls in amounts sufficient to implement the plan and issue bonds and maintain and operate the toll facility within the scope and intent of the regional transportation investment plan.

    NEW SECTION. Sec.

104.           A new section is added to chapter 47.56 RCW to read as follows:

    Notwithstanding any provision to the contrary in this chapter, a regional transportation investment district may impose vehicle tolls on either Lake Washington bridge upon approval of a majority of the voters voting on a regional transportation investment plan ballot measure within its boundaries as authorized in chapter 36.120 RCW and RCW 47.56.076.


PART II - BALLOT MEASURES


    Sec.

201.           RCW 36.120.070 and 2002 c 56 s 107 are each amended to read as follows:

    Two or more contiguous county legislative authorities, upon receipt of the regional transportation investment plan under RCW 36.120.040, may ((certify the plan to the ballot, including identification of the tax options)) submit to the voters of the proposed district a single ballot measure that approves formation of the district, approves the regional transportation investment plan, and approves the revenue sources necessary to ((fund)) finance the plan. ((County legislative authorities)) The planning committee may draft ((a ballot title,)) the ballot measure on behalf of the county legislative authorities, and the county legislative authorities may give notice as required by law for ballot measures, and perform other duties as required to ((put the plan before)) submit the measure to the voters of the proposed district for their approval or rejection ((as a single ballot measure that both approves formation of the district and approves the plan)). Counties may negotiate interlocal agreements necessary to implement the plan. The electorate will be the voters voting within the boundaries of the participating counties. A simple majority of the total persons voting on the single ballot measure ((to approve the plan, establish the district, and approve the taxes and fees)) is required for approval of the measure.


PART III - MOTOR VEHICLE SURCHARGE


    Sec.

301.           RCW 81.100.060 and 2002 c 56 s 411 are each amended to read as follows:

    A county with a population of one million or more and a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, having within their boundaries existing or planned high-occupancy vehicle lanes on the state highway system, or a regional transportation investment district for capital improvements, but only to the extent that the surcharge has not already been imposed by the county, may, with voter approval, impose a local surcharge of not more than ((three-tenths)) six-tenths of one percent of the value on vehicles registered to a person residing within the county and not more than 13.64 percent on the state sales and use taxes paid under the rate in RCW 82.08.020(2) on retail car rentals within the county or investment district. A county may impose the surcharge only to the extent that it has not been imposed by the district. No surcharge may be imposed on vehicles licensed under RCW 46.16.070 except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16.079, 46.16.085, or 46.16.090. Additionally, no surcharge may be imposed on new vehicles, except that the surcharge shall apply to the initial registration of a vehicle previously licensed in another jurisdiction.

    Counties or investment districts imposing a tax under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the state department of licensing, and department of revenue, as appropriate, which shall deduct an amount, as provided by contract, for administration and collection expenses incurred by the department. All administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall, insofar as they are applicable to motor vehicle excise taxes, be applicable to surcharges imposed under this section. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW shall, insofar as they are applicable to state sales and use taxes, be applicable to surcharges imposed under this section.

    If the tax authorized in RCW 81.100.030 is also imposed, the total proceeds from tax sources imposed under this section and RCW 81.100.030 each year shall not exceed the maximum amount which could be collected under this section.

    Sec.

302.           RCW 81.100.080 and 1990 c 43 s 19 are each amended to read as follows:

    Funds collected under RCW 81.100.030 or 81.100.060 and any investment earnings accruing thereon shall be used by the county or the regional transportation investment district in a manner consistent with the regional transportation plan only for costs of collection, costs of preparing, adopting, and enforcing agreements under RCW 81.100.030(3), for construction of high occupancy vehicle lanes and related facilities, mitigation of environmental concerns that result from construction or use of high occupancy vehicle lanes and related facilities, payment of principal and interest on bonds issued for the purposes of this section, for high occupancy vehicle programs as defined in RCW 81.100.020(5), and for commuter rail projects in accordance with RCW 81.104.120. Except for funds raised by regional transportation investment districts, no funds collected under RCW 81.100.030 or 81.100.060 after June 30, 2000, may be pledged for the payment or security of the principal or interest on any bonds issued for the purposes of this section. Not more than ten percent of the funds may be used for transit agency high occupancy vehicle programs.

    Priorities for construction of high occupancy vehicle lanes and related facilities shall be as follows:

    (1)(a) To accelerate construction of high occupancy vehicle lanes on the interstate highway system, as well as related facilities;

    (b) To finance or accelerate construction of high occupancy vehicle lanes on the noninterstate state highway system, as well as related facilities.

    (2) To finance construction of high occupancy vehicle lanes on local arterials, as well as related facilities.

    Moneys received by an agency under this chapter shall be used in addition to, and not as a substitute for, moneys currently used by the agency for the purposes specified in this section.

    Counties and regional transportation investment districts may contract with cities or the state department of transportation for construction of high occupancy vehicle lanes and related facilities, and may issue general obligation bonds to fund such construction and use funds received under this chapter to pay the principal and interest on such bonds."

    On page 1, line 1 of the title, after "districts;" strike the remainder of the title and insert "amending RCW 36.120.020, 36.120.050, 47.56.076, 36.120.070, 81.100.060, and 81.100.080; and adding a new section to chapter 47.56 RCW."


MOTION


    Senator Horn moved that the following striking amendment by Senator Horn be adopted:

    Strike everything after the enacting clause and insert the following:


"PART I - TOLLING PROVISIONS


    Sec.

101.           RCW 36.120.020 and 2002 c 56 s 102 are each amended to read as follows:

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

    (1) "Board" means the governing body of a regional transportation investment district.

    (2) "Department" means the Washington state department of transportation.

    (3) "Highway of statewide significance" means an existing or proposed state route or federal interstate designated as a highway of statewide significance by the transportation commission, its successor entity, or the legislature.

    (4) "Lead agency" means a public agency that by law can plan, design, and build a transportation project and has been so designated by the district.

    (5) "Regional transportation investment district" or "district" means a municipal corporation whose boundaries are coextensive with two or more contiguous counties and that has been created by county legislative authorities and a vote of the people under this chapter to implement a regional transportation investment plan.

    (6) "Regional transportation investment district planning committee" or "planning committee" means the advisory committee created under RCW 36.120.030 to create and propose to county legislative authorities a regional transportation investment plan to develop, finance, and construct transportation projects.

    (7) "Regional transportation investment plan" or "plan" means a plan to develop, construct, and finance a transportation project or projects.

    (8) "Transportation project" means:

    (a) A capital improvement or improvements to a highway that has been designated, in whole or in part, as a highway of statewide significance, including an extension, that:

    (i) Adds a lane or new lanes to an existing state or federal highway; or

    (ii) Repairs or replaces a lane or lanes damaged by an event declared an emergency by the governor before January 1, 2002.

    (b) A capital improvement or improvements to all or a portion of a highway of statewide significance, including an extension, and may include the following associated multimodal capital improvements:

    (i) Approaches to highways of statewide significance;

    (ii) High-occupancy vehicle lanes;

    (iii) Flyover ramps;

    (iv) Park and ride lots;

    (v) Bus pullouts;

    (vi) Vans for vanpools;

    (vii) Buses; and

    (viii) Signalization, ramp metering, and other transportation system management improvements.

    (c) A capital improvement or improvements to all or a portion of a city street, county road, or existing highway or the creation of a new highway that intersects with a highway of statewide significance, if all of the following conditions are met:

    (i) The project is included in a plan that makes highway improvement projects that add capacity to a highway or highways of statewide significance;

    (ii) The secretary of transportation determines that the project would better relieve traffic congestion than investing that same money in adding capacity to a highway of statewide significance;

    (iii) Matching money equal to one-third of the total cost of the project is provided by local entities, including but not limited to a metropolitan planning organization, county, city, port, or private entity in which a county participating in a plan is located. Local entities may use federal grants to meet this matching requirement;

    (iv) In no case may the cumulative regional transportation investment district contribution to all projects constructed under this subsection (8)(c) exceed ten percent of the revenues generated by the district;

    (v) In no case may the cumulative regional transportation investment district contribution to all projects constructed under this subsection (8)(c) exceed one billion dollars; and

    (vi) The specific projects are included within the plan and submitted as part of the plan to a vote of the people.

    (d) Operations, preservation, and maintenance are excluded from this definition and may not be included in a regional transportation investment plan. However, operations, preservation, and maintenance of toll-related facilities where toll revenues have been pledged for the payment of contracts is expressly authorized and may be included in a regional transportation investment plan.

    (9) "Weighted vote" means a vote that reflects the population each board or planning committee member represents relative to the population represented by the total membership of the board or planning committee. Population will be determined using the federal 2000 census or subsequent federal census data.

    Sec.

102.           RCW 36.120.050 and 2003 c 350 s 4 are each amended to read as follows:

    (1) A regional transportation investment district planning committee may, as part of a regional transportation investment plan, recommend the imposition of some or all of the following revenue sources, which a regional transportation investment district may impose upon approval of the voters as provided in this chapter:

    (a) A regional sales and use tax, as specified in RCW 82.14.430, of up to 0.5 percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax, upon the occurrence of any taxable event in the regional transportation investment district;

    (b) A local option vehicle license fee, as specified under RCW 82.80.100, of up to one hundred dollars per vehicle registered in the district. As used in this subsection, "vehicle" means motor vehicle as defined in RCW 46.04.320. Certain classes of vehicles, as defined under chapter 46.04 RCW, may be exempted from this fee;

    (c) A parking tax under RCW 82.80.030;

    (d) A local motor vehicle excise tax under RCW 81.100.060, ((and)) chapter 81.104 RCW, and section 302 of this act;

    (e) A local option fuel tax under RCW 82.80.120;

    (f) An employer excise tax under RCW 81.100.030; and

    (g) Vehicle tolls on new or reconstructed facilities or, in the case of improvements to a bridge or viaduct, any approaches or connectors to the bridge or viaduct. Unless otherwise specified by law or contract, the department shall administer the collection of vehicle tolls on designated facilities, and the state transportation commission, or its successor, shall be the tolling authority.

    (2) Taxes, fees, and tolls may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the district voting on a ballot proposition as set forth in RCW 36.120.070. Revenues from these taxes and fees may be used only to implement the plan as set forth in this chapter. A district may contract with the state department of revenue or other appropriate entities for administration and collection of any of the taxes or fees authorized in this section.

    (3) Existing statewide motor vehicle fuel and special fuel taxes, at the distribution rates in effect on January 1, 2001, are not intended to be altered by this chapter.

    Sec.

103.           RCW 47.56.076 and 2002 c 56 s 403 are each amended to read as follows:

    Upon approval of a majority of the voters within its boundaries voting on the ballot proposition, and only for the purposes authorized in RCW 36.120.050(1)(((f))) (g), a regional transportation investment district may impose vehicle tolls on state routes where improvements financed in whole or in part by a regional transportation investment district add additional lanes to, or reconstruct lanes on, a highway of statewide significance, and in the case of improving a bridge or viaduct, any approaches or connectors to the bridge or viaduct. The department shall administer the collection of vehicle tolls on designated facilities unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall ((be the tolling authority)) set and impose the tolls in amounts sufficient to implement the plan and issue bonds and maintain and operate the toll facility within the scope and intent of the regional transportation investment plan.

    NEW SECTION. Sec.

104.           A new section is added to chapter 47.56 RCW to read as follows:

    Notwithstanding any provision to the contrary in this chapter, a regional transportation investment district may impose vehicle tolls on either Lake Washington bridge upon approval of a majority of the voters voting on a regional transportation investment plan ballot measure within its boundaries as authorized in chapter 36.120 RCW and RCW 47.56.076.


PART II - BALLOT MEASURES


    Sec.

105.           RCW 36.120.070 and 2002 c 56 s 107 are each amended to read as follows:

    Two or more contiguous county legislative authorities, upon receipt of the regional transportation investment plan under RCW 36.120.040, may ((certify the plan to the ballot, including identification of the tax options)) submit to the voters of the proposed district a single ballot measure that approves formation of the district, approves the regional transportation investment plan, and approves the revenue sources necessary to ((fund)) finance the plan. ((County legislative authorities)) The planning committee may draft ((a ballot title,)) the ballot measure on behalf of the county legislative authorities, and the county legislative authorities may give notice as required by law for ballot measures, and perform other duties as required to ((put the plan before)) submit the measure to the voters of the proposed district for their approval or rejection ((as a single ballot measure that both approves formation of the district and approves the plan)). Counties may negotiate interlocal agreements necessary to implement the plan. The electorate will be the voters voting within the boundaries of the participating counties. A simple majority of the total persons voting on the single ballot measure ((to approve the plan, establish the district, and approve the taxes and fees)) is required for approval of the measure.


PART III - MOTOR VEHICLE SURCHARGE


                Sec.

106.           RCW 81.100.080 and 1990 c 43 s 19 are each amended to read as follows:

    Funds collected under RCW 81.100.030 or 81.100.060 and any investment earnings accruing thereon shall be used by the county or the regional transportation investment district in a manner consistent with the regional transportation plan only for costs of collection, costs of preparing, adopting, and enforcing agreements under RCW 81.100.030(3), for construction of high occupancy vehicle lanes and related facilities, mitigation of environmental concerns that result from construction or use of high occupancy vehicle lanes and related facilities, payment of principal and interest on bonds issued for the purposes of this section, for high occupancy vehicle programs as defined in RCW 81.100.020(5), and for commuter rail projects in accordance with RCW 81.104.120. Except for funds raised by a regional transportation investment district, no funds collected under RCW 81.100.030 or 81.100.060 after June 30, 2000, may be pledged for the payment or security of the principal or interest on any bonds issued for the purposes of this section. Not more than ten percent of the funds may be used for transit agency high occupancy vehicle programs.

    Priorities for construction of high occupancy vehicle lanes and related facilities shall be as follows:

    (1)(a) To accelerate construction of high occupancy vehicle lanes on the interstate highway system, as well as related facilities;

    (b) To finance or accelerate construction of high occupancy vehicle lanes on the noninterstate state highway system, as well as related facilities.

    (2) To finance construction of high occupancy vehicle lanes on local arterials, as well as related facilities.

    Moneys received by an agency under this chapter shall be used in addition to, and not as a substitute for, moneys currently used by the agency for the purposes specified in this section.

    Counties and regional transportation investment districts may contract with cities or the state department of transportation for construction of high occupancy vehicle lanes and related facilities, and may issue general obligation bonds to fund such construction and use funds received under this chapter to pay the principal and interest on such bonds.

    New Section. Sec. 302. A new section is added to chapter 82.80 RCW to read as follows:

    A regional transportation investment district may, with voter approval and as part of a regional transportation investment plan, impose a local option surcharge of not more than three-tenths of one percent of the value on vehicles registered to a person residing within the district. The proceeds collected pursuant to this section shall be used for transportation projects as defined in RCW 36.120.020. No surcharge may be imposed on new vehicles, except that the surcharge shall apply to the initial registration of a vehicle previously licensed in another jurisdiction.

    An investment district imposing a tax under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the state department of licensing, and department of revenue, as appropriate, which shall deduct an amount, as provided by contract, for administration and collection expenses incurred by the department. All administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall insofar as they are applicable to motor vehicle excise taxes, be applicable to surcharges imposed under this section.


PART IV - EXPANDING LOCAL TRANSPORTATION IMPROVEMENT AUTHORITY


    NEW SECTION. Sec. 401. A new section is added to chapter 36.73 RCW to read as follows:

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

    (1) "District" means a transportation benefit district created under this chapter.

    (2) "City" means a city or town.

    (3) "Transportation improvement" means:

    (a) A capital improvement or improvements relating to, or in support of, all or a portion of a highway that has been designated, in whole or in part, as a highway of statewide significance, and may include the following associated capital improvements:

    (i) Approaches to highways of statewide significance;

    (ii) High-occupancy vehicle lanes;

    (iii) Flyover ramps;

    (iv) Park and ride lots;

    (v) Bus pullouts;

    (vi) Vans for vanpools;

    (vii) Buses; and

    (viii) Signalization, ramp metering, and other transportation system management improvements.

    (b) A capital improvement or improvements to all or a portion of a city street, county road, existing highway, or the creation of a new highway that intersects with a highway of statewide significance, but only if the cumulative transportation benefit district contribution to all projects constructed under this subsection (3)(b) does not exceed twenty percent of the revenues generated by the district, or forty percent of the revenues generated by the district for projects in a rural county. For purposes of this subsection (3)(b), "rural county" means a county smaller than two hundred twenty-five square miles or as defined in RCW 43.168.020.

    (4) Operations, preservation, and maintenance are excluded from the definition of transportation improvements under subsection (3) of this section, except for operation, preservation, and maintenance costs of tolled facilities, including the costs of collecting the tolls, if toll revenues have been pledged for the payment of contracts.

    (5) "Highway of statewide significance" means an existing or proposed state route or federal interstate designated as a highway of statewide significance by the transportation commission, its successor entity, or the legislature.

    Sec. 402. RCW 36.73.020 and 1989 c 53 s 1 are each amended to read as follows:

    (1) Subject to subsection (6) of this section, the legislative authority of a county or city may establish ((one or more)) a transportation benefit district((s)) within the county or city area or within the area specified in subsection (2) of this section, for the purpose of acquiring, constructing, improving, providing, and funding ((any city street, county road, or state highway)) a transportation improvement within the district that is (((1))) consistent with any existing state, regional, and local transportation plans((, (2))) and necessitated by existing or reasonably foreseeable congestion levels ((attributable to economic growth, and (3) partially funded by local government or private developer contributions, or a combination of such contributions)). ((Such)) The transportation improvements shall be owned by the county of jurisdiction if located in an unincorporated area, by the city of jurisdiction if located in an incorporated area, or by the state in cases where the transportation improvement is or becomes a state highway((; and all such)). However, if deemed appropriate by the governing body of the transportation benefit district, a transportation improvement may be owned by a participating port district or transit district, unless otherwise prohibited by law. Transportation improvements shall be administered and maintained as other public streets, roads, ((and)) highways, and capital improvements. ((The district may not include any area within the corporate limits of a city unless the city legislative authority has agreed to the inclusion pursuant to chapter 39.34 RCW. The agreement shall specify the area and such powers as may be granted to the benefit district.))

    (2) Subject to subsection (6) of this section, the district may include area within more than one county, city, port district, county transportation authority, or public transportation benefit area, if the legislative authority of each participating jurisdiction has agreed to the inclusion as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW. However, the boundaries of the district shall include all territory within the boundaries of the participating jurisdictions comprising the district.

    (3) The members of the ((county)) legislative authority proposing to establish the district, acting ex officio and independently, shall ((compose)) constitute the governing body of the district: PROVIDED, That where a ((transportation benefit)) district includes ((any portion of an incorporated city, town, or another county, the district may be governed as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW)) area within more than one jurisdiction under subsection (2) of this section, the district shall be governed under an interlocal agreement adopted pursuant to chapter 39.34 RCW. However, the governing body shall be composed of at least five members including at least one elected official from the legislative authority of each participating jurisdiction.

    (4) The ((county)) treasurer of the jurisdiction proposing to establish the district shall act as the ex officio treasurer of the district, unless an interlocal agreement states otherwise.

    (5) The electors of the district shall all be registered voters residing within the district. ((For purposes of this section, the term "city" means both cities and towns.))

    (6) The authority under this section, regarding the establishment of or the participation in a district, shall not apply to:

    (a) Counties with a population greater than one million five hundred thousand persons and any adjoining counties with a population greater than five hundred thousand persons;

    (b) Cities with any area within the counties under (a) of this subsection; and

    (c) Other jurisdictions with any area within the counties under (a) of this subsection.

    Sec. 403. RCW 36.73.040 and 1989 c 53 s 3 are each amended to read as follows:

    (1) A transportation benefit district is a quasi-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.

    (2) A transportation benefit district constitutes a body corporate and possesses 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, to acquire, hold, and dispose of real and personal property, and to sue and be sued. Public works contract limits applicable to the jurisdiction that established the district ((shall)) apply to the district.

    (3) To carry out the purposes of this chapter, and subject to the provisions of section 418 of this act, a district is authorized to impose the following taxes, fees, charges, and tolls:

    (a) A sales and use tax in accordance with section 414 of this act;

    (b) A local option fuel tax in accordance with section 415 of this act;

    (c) A vehicle fee in accordance with section 416 of this act;

    (d) An employer excise tax in accordance with section 417 of this act;

    (e) A fee or charge in accordance with RCW 36.73.120. However, if a county or city within the district area is levying a fee or charge for a transportation improvement, the fee or charge shall be credited against the amount of the fee or charge imposed by the district. Developments consisting of less than twenty residences are exempt from the fee or charge under RCW 36.73.120; and

    (f)(i) Vehicle tolls on state routes or federal highways, city streets, or county roads, within the boundaries of the district, unless otherwise prohibited by law. The department of transportation shall administer the collection of vehicle tolls on state routes or federal highways, unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement finance plan. The district shall administer the collection of vehicle tolls on city streets or county roads, and shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement plan.

    (ii) Tolls may only be imposed under this section on a new transportation improvement made by the district, and revenue from the tolls may only be used to support that transportation improvement.

    Sec. 404. RCW 36.73.050 and 1987 c 327 s 5 are each amended to read as follows:

    (1) ((A city or county)) The legislative ((authority)) authorities proposing to establish a ((transportation benefit)) district, or to modify the boundaries of an existing district, or to dissolve an existing district((,)) shall conduct a hearing at the time and place specified in a notice published at least once, not less than ten days before the hearing, in a newspaper of general circulation within the proposed district. Subject to the provisions of section 420 of this act, the legislative ((authority)) authorities shall make provision for a district to be automatically dissolved when all indebtedness of the district has been retired and anticipated responsibilities have been satisfied. This notice shall be in addition to any other notice required by law to be published. The notice shall, where applicable, specify the functions or activities proposed to be provided or funded, or the additional functions or activities proposed to be provided or funded, by the district. Additional notice of the hearing may be given by mail, by posting within the proposed district, or in any manner the ((city or county)) legislative ((authority deems)) authorities deem necessary to notify affected persons. All hearings shall be public and the ((city or county)) legislative ((authority)) authorities shall hear objections from any person affected by the formation, modification of the boundaries, or dissolution of the district.

    (2) Following the hearing held pursuant to subsection (1) of this section, the ((city or county)) legislative ((authority)) authorities may establish a ((transportation benefit)) district, modify the boundaries or functions of an existing district, or dissolve an existing district, if the ((city or county)) legislative ((authority finds)) authorities find the action to be in the public interest and ((adopts)) adopt an ordinance providing for the action. The ordinance establishing a district shall specify the functions or activities to be exercised or funded and establish the boundaries of the district. ((A district shall include only those areas which can reasonably be expected to benefit from improvements to be funded by the district.)) Subject to the provisions of section 419 of this act, functions or activities proposed to be provided or funded by the district may not be expanded beyond those specified in the notice of hearing, unless additional notices are made, further hearings on the expansion are held, and further determinations are made that it is in the public interest to so expand the functions or activities proposed to be provided or funded.

    (((3) At any time before the city or county legislative authority establishes a transportation benefit district pursuant to this section, all further proceedings shall be terminated upon the filing of a verified declaration of termination signed by the owners of real property consisting of at least sixty percent of the assessed valuation in the proposed district.))

    Sec. 405. RCW 36.73.060 and 1987 c 327 s 6 are each amended to read as follows:

    (1) A ((transportation benefit)) district may levy an ad valorem property tax in excess of the one percent limitation upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

    (2) A district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies in excess of the one percent limitation whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

    Sec. 406. RCW 36.73.070 and 1987 c 327 s 7 are each amended to read as follows:

    (1) To carry out the purposes of this chapter and notwithstanding RCW 39.36.020(1), a ((transportation benefit)) district may issue general obligation bonds, not to exceed an amount, together with any other outstanding nonvoter-approved general obligation indebtedness, equal to ((three-eighths of)) one and one-half percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. A district may additionally issue general obligation bonds for capital purposes only, together with any outstanding general obligation indebtedness, not to exceed an amount equal to ((one and one-fourth)) five percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the district pursuant to Article VIII, section 6 of the state Constitution, and ((to)) may also provide for the retirement thereof by excess property tax levies as provided in RCW 36.73.060(2). The district may, if applicable, submit a single proposition to the voters that, if approved, authorizes both the issuance of the bonds and the bond retirement property tax levies.

    (2) General obligation bonds with a maturity in excess of forty years shall not be issued. The governing body of the ((transportation benefit)) district shall by resolution determine for each general obligation bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, callable provisions, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. Refunding general obligation bonds may be issued in the same manner as general obligation bonds are issued.

    (3) Whenever general obligation bonds are issued to fund specific projects or enterprises that generate revenues, charges, user fees, or special assessments, the ((transportation benefit)) district ((which issues the bonds)) may specifically pledge all or a portion of the revenues, charges, user fees, or special assessments to refund the general obligation bonds. The district may also pledge any other revenues that may be available to the district.

    (4) In addition to general obligation bonds, a district may issue revenue bonds to be issued and sold in accordance with chapter 39.46 RCW.

    Sec. 407. RCW 36.73.080 and 1987 c 327 s 8 are each amended to read as follows:

    (1) A ((transportation benefit)) district may form a local improvement district to provide any transportation improvement it has the authority to provide, impose special assessments on all property specially benefited by the transportation improvements, and issue special assessment bonds or revenue bonds to fund the costs of the transportation improvement. Local improvement districts shall be created and administered, and assessments shall be made and collected, in the manner and to the extent provided by law to cities and towns pursuant to chapters 35.43, 35.44, 35.49, 35.50, 35.51, 35.53, and 35.54 RCW. However, the duties devolving upon the city or town treasurer under these chapters shall be imposed upon the district treasurer for the purposes of this section. A local improvement district may only be formed under this section pursuant to the petition method under RCW 35.43.120 and 35.43.125.

    (2) The governing body of a ((transportation benefit)) district shall by resolution establish for each special assessment bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. The maximum term of any special assessment bonds shall not exceed thirty years beyond the date of issue. Special assessment bonds issued pursuant to this section shall not be an indebtedness of the ((transportation benefit)) district issuing the bonds, and the interest and principal on the bonds shall only be payable from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund that the ((transportation benefit)) district has created. The owner or bearer of a special assessment bond or any interest coupon issued pursuant to this section shall not have any claim against the ((transportation benefit)) district arising from the bond or coupon except for the payment from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund the ((transportation benefit)) district has created. The district issuing the special assessment bonds is not liable to the owner or bearer of any special assessment bond or any interest coupon issued pursuant to this section for any loss occurring in the lawful operation of its local improvement guaranty fund. The substance of the limitations included in this subsection (2) shall be plainly printed, written, or engraved on each special assessment bond issued pursuant to this section.

    (3) Assessments shall reflect any credits given by a ((transportation benefit)) district for real property or property right donations made pursuant to RCW 47.14.030.

    (4) The governing body may establish, administer, and pay ((moneys)) money into a local improvement guaranty fund, in the manner and to the extent provided by law to cities and towns under chapter 35.54 RCW, to guarantee special assessment bonds issued by the ((transportation benefit)) district.

    Sec. 408. RCW 36.73.100 and 1987 c 327 s 10 are each amended to read as follows:

    (1) The proceeds of any bond issued pursuant to RCW 36.73.070 or 36.73.080 may be used to pay costs incurred on ((such)) a bond issue related to the sale and issuance of the bonds. ((Such)) These costs include payments for fiscal and legal expenses, obtaining bond ratings, printing, engraving, advertising, and other similar activities.

    (2) In addition, proceeds of bonds used to fund capital projects may be used to pay the necessary and related engineering, architectural, planning, and inspection costs.

    Sec. 409. RCW 36.73.110 and 1987 c 327 s 11 are each amended to read as follows:

    A ((transportation benefit)) district may accept and expend or use gifts, grants, and donations.

    Sec. 410. RCW 36.73.120 and 1988 c 179 s 7 are each amended to read as follows:

    (1) ((A transportation benefit)) Subject to the provisions in section 418 of this act, a district may impose a fee or charge on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance ((thereto)), or on the development, subdivision, classification, or reclassification of land, only if done in accordance with chapter 39.92 RCW.

    (2) Any fee or charge imposed under this section shall be used exclusively for transportation improvements constructed by a ((transportation benefit)) district. The fees or charges ((so)) imposed must be reasonably necessary as a result of the impact of development, construction, or classification or reclassification of land on identified transportation needs.

    (3) ((When fees or charges are imposed by a district within which there is more than one city or both incorporated and unincorporated areas, the legislative authority for each city in the district and the county legislative authority for the unincorporated area must approve the imposition of such fees or charges before they take effect.)) If a county or city within the district area is levying a fee or charge for a transportation improvement, the fee or charge shall be credited against the amount of the fee or charge imposed by the district.

    (4) Developments consisting of less than twenty residences are exempt from the fee or charge under this section.

    Sec. 411. RCW 36.73.130 and 1987 c 327 s 13 are each amended to read as follows:

    A ((transportation benefit)) district may exercise the power of eminent domain to obtain property for its authorized purposes in the same manner as authorized for the city or county legislative authority that established the district.

    Sec. 412. RCW 36.73.140 and 1987 c 327 s 14 are each amended to read as follows:

    A ((transportation benefit)) district has the same powers as a county or city to contract for street, road, or state highway improvement projects and to enter into reimbursement contracts provided for in chapter 35.72 RCW.

    Sec. 413. RCW 36.73.150 and 1987 c 327 s 15 are each amended to read as follows:

    The department of transportation, counties, ((and)) cities, and other jurisdictions may give funds to ((transportation benefit)) districts for the purposes of financing ((street, road, or highway)) transportation improvements ((projects)) under this chapter.

    NEW SECTION. Sec. 414. A new section is added to chapter 82.14 RCW to read as follows:

    (1) Subject to the provisions in section 418 of this act, a transportation benefit district under chapter 36.73 RCW may fix and impose a sales and use tax in accordance with the terms of this chapter. The tax authorized in this section is in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the boundaries of the district. The rate of tax shall not exceed five-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.

    (2) Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.

    NEW SECTION. Sec. 415. A new section is added to chapter 82.80 RCW to read as follows:

    (1) For purposes of this section:

    (a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county;

    (b) "Person" has the same meaning as in RCW 82.04.030; and

    (c) "District" means a transportation benefit district under chapter 36.73 RCW.

    (2) A transportation benefit district under chapter 36.73 RCW, subject to the conditions of this section and the provisions of section 418 of this act, may levy additional excise taxes equal to ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025 on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the district. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the district's fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The tax imposed under this section may not be levied less than one month from the date the election results under section 418 of this act are certified. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.

    (3) The local option motor vehicle fuel tax under this section on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.

    (4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of the district to a retail outlet, bulk fuel user, or ultimate user of the fuel.

    (5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.

    (6) Before the effective date of the imposition of the fuel taxes under this section, a district shall contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.

    (7) The state treasurer shall distribute the proceeds of the additional taxes under this section on a monthly basis to the district levying the tax, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b).

    (8) The proceeds of the additional taxes levied by a district under this section must be used in accordance with chapter 36.73 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.

    (9) A district may only levy the tax under this section if the district is comprised of boundaries identical to the boundaries of a county or counties. A district may not levy the tax under this section if a member county is levying the tax under RCW 82.80.010.

    NEW SECTION. Sec. 416. A new section is added to chapter 82.80 RCW to read as follows:

    (1) Subject to the provisions of section 418 of this act, a transportation benefit district under chapter 36.73 RCW may fix and impose an annual vehicle fee, not to exceed one hundred dollars per vehicle registered in the district, for each vehicle subject to license tab. fees under RCW 46.16.0621 and for each vehicle subject to gross weight fees under RCW 46.16.070 with an unladen weight of six thousand pounds or less.

    (2) The department of licensing shall administer and collect the fee. The department shall deduct a percentage amount, as provided by contract, not to exceed one percent of the fees collected, for administration and collection expenses incurred by it. The department shall remit remaining proceeds to the custody of the state treasurer. The state treasurer shall distribute the proceeds to the district on a monthly basis.

    (3) No fee under this section may be collected until six months after approval by the district voters under section 418 of this act.

    (4) The vehicle fee under this section applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.

    (5) The following vehicles are exempt from the fee under this section:

    (a) Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181;

    (b) Off-road and nonhighway vehicles as defined in RCW 46.09.020;

    (c) Vehicles registered under chapter 46.87 RCW and the international registration plan; and

    (d) Snowmobiles as defined in RCW 46.10.010.

    NEW SECTION. Sec. 417. A new section is added to chapter 82.80 RCW to read as follows:

    (1)(a) Subject to the provisions of section 418 of this act, a transportation benefit district under chapter 36.73 RCW may impose an excise tax, for the privilege of engaging in business, of up to two dollars per employee per month on all employers or any class or classes of employers, public and private, including the state located in the agency's jurisdiction, measured by the number of full-time equivalent employees. In no event may the total taxes imposed under this section exceed two dollars per employee per month for any single employer. The district imposing the tax authorized in this section may provide for exemptions from the tax for such educational, cultural, health, charitable, or religious organizations as it deems appropriate.

    (b) Transportation benefit districts may contract with the state department of revenue or other appropriate entities for administration and collection of the tax. Such contract shall provide for deduction of an amount for administration and collection expenses, not to exceed one percent of the fees collected.

    (2) The tax shall not apply to employment of a person when the employer has paid for at least half of the cost of a transit pass issued by a transit agency for that employee, valid for the period for which the tax would otherwise be owed.

    (3)(a) A transportation benefit district shall adopt rules that exempt an employer, who enters into an agreement under (b) of this subsection, from all or a portion of the tax under subsection (1)(a) of this section.

    (b) A transportation benefit district may enter into an agreement, designed to reduce the number of employees who drive in single-occupant vehicles during peak commuting periods, with employers subject to the tax under subsection (1)(a) of this section. The agreement shall include a list of specific actions that the employer will undertake to be entitled to the exemption. Employers having an exemption from all or part of the tax through this subsection shall annually certify to the district that the employer is fulfilling the terms of the agreement. The exemption continues as long as the employer is in compliance with the agreement.

    (4) The tax under this section may be imposed only to the extent the tax has not been imposed by a county within the district area.

    NEW SECTION. Sec. 418. A new section is added to chapter 36.73 RCW to read as follows:

    (1) Taxes, fees, charges, and tolls may not be imposed by a district without approval of a majority of the voters in the district voting on a proposition at a general or special election. The proposition must include a specific description of the transportation improvement or improvements proposed by the district and the proposed taxes, fees, charges, and tolls imposed by the district to raise revenue to fund the improvement or improvements.

    (2) Voter approval under this section shall be accorded substantial weight regarding the validity of a transportation improvement as defined in section 401 of this act.

    (3) A district may not increase any taxes, fees, charges, or tolls imposed under this chapter once the taxes, fees, charges, or tolls take effect, unless authorized by the district voters pursuant to section 419 of this act.

    NEW SECTION. Sec. 419. A new section is added to chapter 36.73 RCW to read as follows:

    (1) If a transportation improvement cost exceeds its original cost by more than twenty percent as identified in a district's original finance plan, the district governing body shall submit to the voters in the district a ballot measure that redefines the scope of the transportation improvement, its schedule, its costs or changes in the revenue sources. If a majority of the voters of the district fail to approve the redefined transportation improvement, the district shall, to the extent practicable, continue to work on and complete the transportation improvement that was originally approved by the voters, and take reasonable steps to use, preserve, or connect any improvement already constructed. If a majority of the district voters approve the redefined transportation improvement, the district shall work on and complete the projects under the redefined plan.

    (2) A district shall issue an annual report, indicating the status of transportation improvement costs, transportation improvement expenditures, revenues, and construction schedules, to the public and to newspapers of record in the district.

    NEW SECTION. Sec. 420. A new section is added to chapter 36.73 RCW to read as follows:

    Within thirty days of the completion of the construction of the transportation improvement or series of improvements authorized by a district, the district shall terminate day-to-day operations and exist solely as a limited entity that oversees the collection of revenue and the payment of debt service or financing still in effect, if any. The district shall accordingly adjust downward its employees, administration, and overhead expenses. Any taxes, fees, charges, or tolls imposed by the district terminate when the financing or debt service on the transportation improvement or series of improvements constructed is completed and paid, thirty days from which point the district shall dissolve itself and cease to exist. If there is no debt outstanding, then the district shall dissolve within thirty days from completion of construction of the transportation improvement or series of improvements authorized by the district. Notice of dissolution must be published in newspapers of general circulation within the district at least three times in a period of thirty days. Creditors must file claims for payment of claims due within thirty days of the last published notice or the claim is extinguished.

    Sec. 421. RCW 82.14.050 and 2003 c 168 s 201 and 2003 c 83 s 208 are each reenacted and amended to read as follows:

    The counties, cities, and transportation authorities under RCW 82.14.045, public facilities districts under chapters 36.100 and 35.57 RCW, public transportation benefit areas under RCW 82.14.440, ((and)) regional transportation investment districts, and transportation benefit districts under chapter 36.73 RCW shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by this chapter that is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Moneys in the local sales and use tax account may be spent only for distribution to counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, ((and)) regional transportation investment districts, and transportation benefit districts imposing a sales and use tax. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter. Counties, cities, transportation authorities, public facilities districts, and regional transportation investment districts may not conduct independent sales or use tax audits of sellers registered under the streamlined sales tax agreement. Except as provided in RCW 43.08.190, all earnings of investments of balances in the local sales and use tax account shall be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, ((and)) regional transportation investment districts, and transportation benefit districts monthly.

    Sec. 422. RCW 82.14.060 and 1991 c 207 s 3 are each amended to read as follows:

    Monthly the state treasurer shall make distribution from the local sales and use tax account to the counties, cities, transportation authorities, ((and)) public facilities districts, and transportation benefit districts the amount of tax collected on behalf of each taxing authority, less the deduction provided for in RCW 82.14.050. The state treasurer shall make the distribution under this section without appropriation.

    In the event that any ordinance or resolution imposes a sales and use tax at a rate in excess of the applicable limits contained herein, such ordinance or resolution shall not be considered void in toto, but only with respect to that portion of the rate which is in excess of the applicable limits contained herein.

    Sec. 423. RCW 35.21.225 and 1989 c 53 s 2 are each amended to read as follows:

    The legislative authority of a city may establish ((one or more transportation benefit districts within a city for the purpose of acquiring, constructing, improving, providing, and funding any city street, county road, or state highway improvement that is (1) consistent with state, regional, and local transportation plans, (2) necessitated by existing or reasonably foreseeable congestion levels attributable to economic growth, and (3) partially funded by local government or private developer contributions, or a combination of such contributions. Such transportation improvements shall be owned by the city of jurisdiction if located in an incorporated area, by the county of jurisdiction if located in an unincorporated area, or by the state in cases where the transportation improvement is or becomes a state highway; and all such transportation improvements shall be administered as other public streets, roads, and highways. The district may include any area within the corporate limits of another city if that city has agreed to the inclusion pursuant to chapter 39.34 RCW. The district may include any unincorporated area if the county legislative authority has agreed to the inclusion pursuant to chapter 39.34 RCW. The agreement shall specify the area and such other powers as may be granted to the benefit district.

    The members of the city legislative authority, acting ex officio and independently, shall compose the governing body of the district. The city treasurer shall act as the ex officio treasurer of the district: PROVIDED, That where a transportation benefit district includes any unincorporated area or portion of another city, the district may be governed as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW. The electors of the district shall all be registered voters residing within the district. For the purposes of this section, the term "city" means both cities and towns)) a transportation benefit district subject to the provisions of chapter 36.73 RCW.

    Sec. 424. RCW 47.56.075 and 2002 c 56 s 404 are each amended to read as follows:

    The department shall approve for construction only such toll roads as the legislature specifically authorizes or such toll facilities as are specifically sponsored by a regional transportation investment district, transportation benefit district, city, town, or county.

    Sec. 425. RCW 82.80.030 and 2002 c 56 s 412 are each amended to read as follows:

    (1) Subject to the conditions of this section, the legislative authority of a county, city, or district may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction. A city or county may impose the tax only to the extent that it has not been imposed by the district, and a district may impose the tax only to the extent that it has not been imposed by a city or county. The jurisdiction of a county, for purposes of this section, includes only the unincorporated area of the county. The jurisdiction of a city or district includes only the area within its boundaries.

    (2) In lieu of the tax in subsection (1) of this section, a city, a county in its unincorporated area, or a district may fix and impose a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.

    The city, county, or district may provide that:

    (a) The tax is paid by the operator or owner of the motor vehicle;

    (b) The tax applies to all parking for which a fee is paid, whether paid or leased, including parking supplied with a lease of nonresidential space;

    (c) The tax is collected by the operator of the facility and remitted to the city, county, or district;

    (d) The tax is a fee per vehicle or is measured by the parking charge;

    (e) The tax rate varies with zoning or location of the facility, the duration of the parking, the time of entry or exit, the type or use of the vehicle, or other reasonable factors; and

    (f) Tax exempt carpools, vehicles with handicapped decals, or government vehicles are exempt from the tax.

    (3) "Commercial parking business" as used in this section, means the ownership, lease, operation, or management of a commercial parking lot in which fees are charged. "Commercial parking lot" means a covered or uncovered area with stalls for the purpose of parking motor vehicles.

    (4) The rate of the tax under subsection (1) of this section may be based either upon gross proceeds or the number of vehicle stalls available for commercial parking use. The rates charged must be uniform for the same class or type of commercial parking business.

    (5) The county, city, or district levying the tax provided for in subsection (1) or (2) of this section may provide for its payment on a monthly, quarterly, or annual basis. Each local government may develop by ordinance or resolution rules for administering the tax, including provisions for reporting by commercial parking businesses, collection, and enforcement.

    (6) The proceeds of the commercial parking tax fixed and imposed by a city or county under subsection (1) or (2) of this section shall be used ((strictly)) for transportation purposes in accordance with RCW 82.80.070 or for transportation improvements in accordance with chapter 36.73 RCW. The proceeds of the parking tax imposed by a district must be used as provided in chapter 36.120 RCW.

    NEW SECTION. Sec. 426. A new section is added to chapter 47.56 RCW to read as follows:

    Subject to the provisions under chapter 36.73 RCW, a transportation benefit district may impose vehicle tolls on state routes or federal highways, city streets, or county roads, within the boundaries of the district, unless otherwise prohibited by law. The department of transportation shall administer the collection of vehicle tolls on state routes or federal highways, unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement finance plan. The district shall administer the collection of vehicle tolls on city streets or county roads, and shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement plan. However, tolls may only be imposed under this section on a new transportation improvement made by the district, and revenue from the tolls may only be used to support that transportation improvement."

    Senator Horn spoke in favor of adoption of the committee striking amendment.


    Senator Esser moved that the Senate defer further consideration of Engrossed Substitute House Bill No. 2531 and the bill hold it’s place on the second reading calendar.


SECOND READING


    SENATE BILL NO. 6448, by Senators Zarelli, Prentice and Winsley; by request of Department of Revenue

 

Transferring responsibility for collecting certain telephone program excise taxes from the department of social and health services to the department of revenue.


    The bill was read the second time.


MOTION


    On motion of Senator Hewitt, the rules were suspended, Senate Bill No. 6448 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senator Hewitt spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 6448.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6448 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 2; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Absent: Senators Carlson and Deccio - 2.

    SENATE BILL NO. 6448, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6490, by Senators Zarelli and Kline; by request of Department of General Administration and Department of Revenue

 

Exempting fuel cells from sales and use taxes.


    The bill was read the second time.


MOTION


    On motion of Senator Zarelli, the rules were suspended, Senate Bill No. 6490 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Zarelli and Prentice spoke in favor of passage of the bill.


MOTION


    On motion of Senator Murray, Senator Deccio was excused.


    The President declared the question before the Senate to be the final passage of Senate Bill No. 6490.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6490 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Deccio - 1.

     SENATE BILL NO. 6490, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


    SENATE BILL NO. 6515, by Senators Zarelli, Regala and Winsley; by request of Department of Revenue

 

Correcting errors in and omissions from chapter 168, Laws of 2003, which implemented portions of the streamlined sales and use tax agreement.


    The bill was read the second time.


MOTIONS


    Senator Zarelli moved that the substitute bill be not adopted.


MOTION


    On motion of Senator Zarelli, the rules were suspended, Senate Bill No. 6515 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Zarelli and Prentice spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Senate Bill No. 6515.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6515 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Winsley and Zarelli - 48.

     Voting nay: Senator Thibaudeau - 1.

    SENATE BILL NO. 6515, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.



SECOND READING


    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2693, by House Committee on Finance (originally sponsored by Representatives Hinkle, McIntire, Cairnes, Fromhold and Holmquist)

 

Modifying the taxation of timber on publicly owned land.


    The bill was read the second time.


MOTION


    On motion of Senator Zarelli, the rules were suspended, Engrossed Substitute House Bill No. 2693 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Zarelli, Prentice and Sheldon, T. spoke in favor of passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 2693.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2693 and the bill passed the Senate by the following vote:Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2693, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


    There being no objection, the Senate resumed consideration of Engrossed Substittue House Bill No. 2531 which was held on the second reading calendar earlier in the day.


MOTION


    Senator Kline moved that the following amendment by Senators Kline, Poulsen, Kohl-Welles and Thibaudeau on page 7, after used on line 3 to the striking amendment be adopted:

    On page 7, after "used for" on line 3, delete "transportation projects as defined in RCW 36.120.020" and insert the following:

    "any transportation project in an approved state or regional transportation plan"

    Senators Kline, Thibaudeau, Kohl-Welles spoke in favor of the adoption of the amendment to the striking amendment.

    Senators Horn, Haugen and Esser spoke against the adoption of the amendment by Senators Kline, Poulsen, Kohl-Welles and Thibaudeau on page 7, after used on line 3 to the striking amendment.

    The President declared the question before the Senate to be the adoption of the amendment to the striking amendment by Senators Kline, Poulsen, Kohl-Welles and Thibaudeau on page 7, line 3 to Engrossed Substitute House Bill No. 2531.

    The motion by Senator Kline failed and the amendment was not adopted by voice vote.

    The President declared the question before the Senate to be the adoption of the striking amendment.

    The motion by Senator Horn carried and the striking amendment was adopted by voice vote.


    There being no objection, the following title amendment was adopted:

    On page 1, line 1 of the title, after "districts;" strike the remainder of the title and insert "amending RCW 36.120.020, 36.120.050, 47.56.076, 36.120.070, 81.100.080, 36.73.020, 36.73.040, 36.73.050, 36.73.060, 36.73.070, 36.73.080, 36.73.100, 36.73.110, 36.73.120, 36.73.130, 36.73.140, 36.73.150, 82.14.060, 35.21.225, 47.56.075, and 82.80.030; reenacting and amending RCW 82.14.050; adding new sections to chapter 47.56 RCW; adding new sections to chapter 82.80 RCW; adding new sections to chapter 36.73 RCW; and adding a new section to chapter 82.14 RCW."


MOTION


    On motion of Senator Horn, the rules were suspended, Engrossed Substitute House Bill No. 2531, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    Senators Horn and Haugen spoke in favor of passage of the bill.

    Senator Kline spoke against passage of the bill.

    The President declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 2531, as amended by the Senate.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2531, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 5; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Swecker, Winsley and Zarelli - 44.

     Voting nay: Senators Kline, Kohl-Welles, Poulsen, Stevens and Thibaudeau - 5.

    ENGROSSED SUBSTITUTE HOUSE BILL NO. 2531, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


    On motion of Senator Esser, Engrossed Substitute House Bill No. 2531 was immediately transmitted to the House of Representatives.


MOTION


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


MESSAGE FROM THE HOUSE


March 4, 2004


MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE BILL NO. 6601, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec.

1.  A new section is added to chapter 7.72 RCW to read as follows:

    (1) Any manufacturer, packer, distributor, carrier, holder, marketer, or seller of a food or nonalcoholic beverage intended for human consumption, or an association of one or more such entities, shall not be subject to civil liability in an action brought by a private party based on an individual's purchase or consumption of food or nonalcoholic beverages in cases where liability is premised upon the individual's weight gain, obesity, or a health condition associated with the individual's weight gain or obesity and resulting from the individual's long-term purchase or consumption of a food or nonalcoholic beverage.

    (2) For the purposes of this section, the term "long-term consumption" means the cumulative effect of the consumption of food or nonalcoholic beverages, and not the effect of a single instance of consumption.

    NEW SECTION. Sec.

2.  This act may be cited as the commonsense consumption act."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator McCaslin moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6601.

    Senator McCaslin spoke in favor of the motion.


MOTION


    On motion of Senator Murray, Senator Hewitt was excused.


    The President declared the question before the Senate to be the motion by Senator McCaslin that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6601.

    The motion by Senator McCaslin carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6601.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6601, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6601, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 48.

     Excused: Senator Hewitt - 1.

     SUBSTITUTE SENATE BILL NO. 6601, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 5, 2004


MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE BILL NO. 6636, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:


    "NEW SECTION. Sec.

1.  (1) An interagency work group shall be formed by the departments of health, agriculture, and ecology to develop a comprehensive state policy on proper methods for disposing of animal carcasses in a manner that protects other animals and humans.

    (2) In developing the state policy, the interagency work group shall include the involvement of:

    (a) Local health departments;

    (b) Other state and federal agencies that have an interest or expertise in the issues to be reviewed by the work group;

    (c) University scientists;

    (d) Representatives of meat processors;

    (e) Representatives of animal feeding operations; and

    (f) Other affected constituency groups.

    (3) In developing the comprehensive state policy, the interagency work group shall:

    (a) Include a review of existing rules for their adequacy in protecting public health and animal health from possible transmission of diseases including, but not limited to, various forms of transmissible spongiform encephalopathies;

    (b) Examine the possible vectors of disease transmission including air, land, water, birds, and scavengers;

    (c) Evaluate any applicable existing or proposed federal regulations and applicable draft technical guides, including, but not limited to, RCW 16.68.020, WAC 246-203-120(3), and guidance from the United States department of agriculture; and

    (d) Develop an educational component that will provide information and technical guidance to governmental entities, animal owners, and the public on how to comply with the state policy and associated rules.

    (4) The comprehensive state policy may include references to federal regulations and guidance documents, and the work group shall strive for a high degree of consistency between jurisdictions.

    (5) The interagency work group shall provide a written report to the appropriate standing committees of the legislature by December 17, 2004, and December 16, 2005, that summarizes the actions of the work group and its findings and recommendations, including any recommendations for legislation to amend statutes that are necessary to implement the state policy developed under this section or to adjust any inconsistent state policies.

    Sec.

2.  RCW 16.68.020 and 1949 c 100 s 2 are each amended to read as follows:

    ((Every)) (1) Except as provided by the department of agriculture in emergency rules adopted pursuant to section 3 of this act, a person owning or having in charge ((any)) an animal that has died or been killed on account of disease shall immediately bury the carcass ((thereof)) of the animal to such a depth that no part of the carcass shall be nearer than three feet from the surface of the ground.

    (2) Any animal found dead shall be presumed to have died from and on account of disease.

    NEW SECTION. Sec.

3.  Until December 30, 2005, the department of agriculture may issue emergency rules for the disposal of diseased animal carcasses that are supplemental to, or contrary to, RCW 16.68.020, if the director of the department of agriculture deems that such rules are appropriate for the disposal of a large number of animals.

    NEW SECTION. Sec.

4.  If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2004, in the omnibus appropriations act, this act is null and void.

    NEW SECTION. Sec.

5.  This act expires December 30, 2005.

    NEW SECTION. Sec.

6.  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."

    Correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Swecker moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6636.

    Senators Swecker and Rasmussen spoke in favor of the motion.


MOTION


    On motion of Senator Eide, Senator Prentice was excused.


    The President declared the question before the Senate to be the motion by Senator Swecker that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6636.

    The motion by Senator Swecker carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6636.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6636, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6636, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Excused: Senators Hewitt and Prentice - 2.

     SUBSTITUTE SENATE BILL NO. 6636, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 9, 2004


MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE BILL NO. 6112, with the following amendments{s}.

    On page 4, line 1, after "establishes to the" strike "reasonable"

    On page 4, after line 25, insert the following:

    "(5) In this state, the arrangement provides or arranges benefits for health care services in compliance with RCW 48.43.500 through 48.43.535, 48.43.545, and 48.43.550;"

    Renumber the remaining subsections consecutively and correct internal references accordingly.

    Beginning on page 16, line 35, after "these arrangements" strike all language through "authority." on page 17, line 3, and insert ". If there has not been a final determination by the United States department of labor or a federal court that the taxes are not preempted by federal law, the taxes provided for in this section become effective on March 1, 2005, or thirty days following the issuance of a certificate of authority, whichever is later. During the time period between March 1, 2005, or thirty days following the issuance of a certificate of authority, whichever is later, and the final determination by the United States department of labor or a federal court, any taxes shall be deposited in an interest bearing escrow account maintained by the multiple employer welfare arrangement. Upon a final determination that the taxes are not preempted by the employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq., all funds in the interest bearing escrow account shall be transferred to the state treasurer."

    On page 17, after line 3, insert the following:

    "Sec.

25.             RCW 48.41.030 and 2001 c 196 s 2 are each amended to read as follows:

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

    (1) "Accounting year" means a twelve-month period determined by the board for purposes of record-keeping and accounting. The first accounting year may be more or less than twelve months and, from time to time in subsequent years, the board may order an accounting year of other than twelve months as may be required for orderly management and accounting of the pool.

    (2) "Administrator" means the entity chosen by the board to administer the pool under RCW 48.41.080.

    (3) "Board" means the board of directors of the pool.

    (4) "Commissioner" means the insurance commissioner.

    (5) "Covered person" means any individual resident of this state who is eligible to receive benefits from any member, or other health plan.

    (6) "Health care facility" has the same meaning as in RCW 70.38.025.

    (7) "Health care provider" means any physician, facility, or health care professional, who is licensed in Washington state and entitled to reimbursement for health care services.

    (8) "Health care services" means services for the purpose of preventing, alleviating, curing, or healing human illness or injury.

    (9) "Health carrier" or "carrier" has the same meaning as in RCW 48.43.005.

    (10) "Health coverage" means any group or individual disability insurance policy, health care service contract, and health maintenance agreement, except those contracts entered into for the provision of health care services pursuant to Title XVIII of the Social Security Act, 42 U.S.C. Sec. 1395 et seq. The term does not include short-term care, long-term care, dental, vision, accident, fixed indemnity, disability income contracts, limited benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of the worker's compensation or similar law, automobile medical payment insurance, or insurance under which benefits are payable with or without regard to fault and which is statutorily required to be contained in any liability insurance policy or equivalent self-insurance.

    (11) "Health plan" means any arrangement by which persons, including dependents or spouses, covered or making application to be covered under this pool, have access to hospital and medical benefits or reimbursement including any group or individual disability insurance policy; health care service contract; health maintenance agreement; uninsured arrangements of group or group-type contracts including employer self-insured, cost-plus, or other benefit methodologies not involving insurance or not governed by Title 48 RCW; coverage under group-type contracts which are not available to the general public and can be obtained only because of connection with a particular organization or group; and coverage by medicare or other governmental benefits. This term includes coverage through "health coverage" as defined under this section, and specifically excludes those types of programs excluded under the definition of "health coverage" in subsection (10) of this section.

    (12) "Medical assistance" means coverage under Title XIX of the federal Social Security Act (42 U.S.C., Sec. 1396 et seq.) and chapter 74.09 RCW.

    (13) "Medicare" means coverage under Title XVIII of the Social Security Act, (42 U.S.C. Sec. 1395 et seq., as amended).

    (14) "Member" means any commercial insurer which provides disability insurance or stop loss insurance, any health care service contractor, ((and)) any health maintenance organization licensed under Title 48 RCW, and any self-funded multiple employer welfare arrangement as defined in section 3 of this act. "Member" also means the Washington state health care authority as issuer of the state uniform medical plan. "Member" shall also mean, as soon as authorized by federal law, employers and other entities, including a self-funding entity and employee welfare benefit plans that provide health plan benefits in this state on or after May 18, 1987. "Member" does not include any insurer, health care service contractor, or health maintenance organization whose products are exclusively dental products or those products excluded from the definition of "health coverage" set forth in subsection (10) of this section.

    (15) "Network provider" means a health care provider who has contracted in writing with the pool administrator or a health carrier contracting with the pool administrator to offer pool coverage to accept payment from and to look solely to the pool or health carrier according to the terms of the pool health plans.

    (16) "Plan of operation" means the pool, including articles, by- laws, and operating rules, adopted by the board pursuant to RCW 48.41.050.

    (17) "Point of service plan" means a benefit plan offered by the pool under which a covered person may elect to receive covered services from network providers, or nonnetwork providers at a reduced rate of benefits.

    (18) "Pool" means the Washington state health insurance pool as created in RCW 48.41.040.

    Sec.

26.             RCW 48.41.060 and 2000 c 79 s 9 are each amended to read as follows:

    (1) The board shall have the general powers and authority granted under the laws of this state to insurance companies, health care service contractors, and health maintenance organizations, licensed or registered to offer or provide the kinds of health coverage defined under this title. In addition thereto, the board shall:

    (a) Designate or establish the standard health questionnaire to be used under RCW 48.41.100 and 48.43.018, including the form and content of the standard health questionnaire and the method of its application. The questionnaire must provide for an objective evaluation of an individual's health status by assigning a discreet measure, such as a system of point scoring to each individual. The questionnaire must not contain any questions related to pregnancy, and pregnancy shall not be a basis for coverage by the pool. The questionnaire shall be designed such that it is reasonably expected to identify the eight percent of persons who are the most costly to treat who are under individual coverage in health benefit plans, as defined in RCW 48.43.005, in Washington state or are covered by the pool, if applied to all such persons;

    (b) Obtain from a member of the American academy of actuaries, who is independent of the board, a certification that the standard health questionnaire meets the requirements of (a) of this subsection;

    (c) Approve the standard health questionnaire and any modifications needed to comply with this chapter. The standard health questionnaire shall be submitted to an actuary for certification, modified as necessary, and approved at least every eighteen months. The designation and approval of the standard health questionnaire by the board shall not be subject to review and approval by the commissioner. The standard health questionnaire or any modification thereto shall not be used until ninety days after public notice of the approval of the questionnaire or any modification thereto, except that the initial standard health questionnaire approved for use by the board after March 23, 2000, may be used immediately following public notice of such approval;

    (d) Establish appropriate rates, rate schedules, rate adjustments, expense allowances, claim reserve formulas and any other actuarial functions appropriate to the operation of the pool. Rates shall not be unreasonable in relation to the coverage provided, the risk experience, and expenses of providing the coverage. Rates and rate schedules may be adjusted for appropriate risk factors such as age and area variation in claim costs and shall take into consideration appropriate risk factors in accordance with established actuarial underwriting practices consistent with Washington state individual plan rating requirements under RCW 48.44.022 and 48.46.064;

    (e) Assess members of the pool in accordance with the provisions of this chapter, and make advance interim assessments as may be reasonable and necessary for the organizational or interim operating expenses. Any interim assessments will be credited as offsets against any regular assessments due following the close of the year. Self-funded multiple employer welfare arrangements are subject to assessment under this subsection only in the event that assessments are not preempted by the employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq. The arrangements and the commissioner shall initially request an advisory opinion from the United States department of labor or obtain a declaratory ruling from a federal court on the legality of imposing assessments on these arrangements before imposing the assessment. If there has not been a final determination by the United States department of labor or a federal court that the assessments are not preempted by federal law, the assessments provided for in this subsection become effective on March 1, 2005, or thirty days following the issuance of a certificate of authority, whichever is later. During the time period between March 1, 2005, or thirty days following the issuance of a certificate of authority, whichever is later, and the final determination by the United States department of labor or a federal court, any assessments shall be deposited in an interest bearing escrow account maintained by the multiple employer welfare arrangement. Upon a final determination that the assessments are not preempted by the employee retirement income security act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq., all funds in the interest bearing escrow account shall be transferred to the board;

    (f) Issue policies of health coverage in accordance with the requirements of this chapter;

    (g) Establish procedures for the administration of the premium discount provided under RCW 48.41.200(3)(a)(iii);

    (h) Contract with the Washington state health care authority for the administration of the premium discounts provided under RCW 48.41.200(3)(a) (i) and (ii);

    (i) Set a reasonable fee to be paid to an insurance agent licensed in Washington state for submitting an acceptable application for enrollment in the pool; and

    (j) Provide certification to the commissioner when assessments will exceed the threshold level established in RCW 48.41.037.

    (2) In addition thereto, the board may:

    (a) Enter into contracts as are necessary or proper to carry out the provisions and purposes of this chapter including the authority, with the approval of the commissioner, to enter into contracts with similar pools of other states for the joint performance of common administrative functions, or with persons or other organizations for the performance of administrative functions;

    (b) Sue or be sued, including taking any legal action as necessary to avoid the payment of improper claims against the pool or the coverage provided by or through the pool;

    (c) Appoint appropriate legal, actuarial, and other committees as necessary to provide technical assistance in the operation of the pool, policy, and other contract design, and any other function within the authority of the pool; and

    (d) Conduct periodic audits to assure the general accuracy of the financial data submitted to the pool, and the board shall cause the pool to have an annual audit of its operations by an independent certified public accountant.

    (3) Nothing in this section shall be construed to require or authorize the adoption of rules under chapter 34.05 RCW."

    Renumber remaining sections consecutively and correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Benton moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6112.

    Senator Benton spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Benton that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6112.

    The motion by Senator Benton carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6112.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6112, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6112, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 6112, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 9, 2004


MR. PRESIDENT:


    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6415, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec.

1.  (1) The legislature finds that the federal permit program under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., and the state water pollution control laws provide numerous environmental and public health benefits to the citizens of Washington and to the state. The legislature also finds that failure to prevent and control pollution discharges, including those associated with storm water runoff, can degrade water quality and damage the environment, public health, and industries dependent on clean water such as shellfish production.

    (2) The legislature finds the nature of storm water presents unique challenges and difficulties in meeting the permitting requirements under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., including compliance with technology and water quality-based standards.

    (3) The legislature finds that the federal clean water act, 33 U.S.C. Sec. 1251 et seq., requires certain larger construction sites and industrial facilities to obtain storm water permits under the national pollutant discharge elimination system permit program. The legislature also finds that under phase two of this program, smaller construction sites are also required to obtain storm water permits for their discharges.

    (4) The legislature finds the department of ecology has been using general permits to permit categories of similar dischargers, including storm water associated with industrial and construction activities. The legislature also finds general permits must comply with all applicable requirements of the federal clean water act, 33 U.S.C. Sec. 1251 et seq., and the state water pollution control act including technology and water quality-based permitting requirements. The legislature further finds general permits may not always be the best solution for an individual discharger, especially when establishing water quality-based permitting requirements.

    (5) The legislature finds that where sources within a specific category or subcategory of dischargers are subject to water quality-based limits imposed under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., the sources in that specific category or subcategory must be subject to the same water quality-based limits.

    (6) For this reason, the legislature encourages, to the extent allowed under existing state and federal law, an adaptive management approach to permitting storm water discharges.

    (7) The legislature finds that storm water management must satisfy state and federal water quality requirements while also providing for flexibility in meeting such requirement to help ensure cost-effective storm water management.

    (8) The legislature finds that the permitting of new and existing dischargers into waters listed under 33 U.S.C. Sec. 1313(d) (section 303(d) of the federal clean water act) presents specific challenges and is subject to additional permitting restrictions under the federal clean water act, 33 U.S.C. Sec. 1251 et seq.

    (9) The legislature declares that general permits can be an effective and efficient permitting mechanism for permitting large numbers of similar dischargers.

    (10) The legislature declares that an inspection and technical assistance program for industrial and construction storm water general permits is needed to ensure an effective permitting program. The legislature also declares that such a program should be fully funded to ensure its success.

    NEW SECTION. Sec.

2.  A new section is added to chapter 90.48 RCW to read as follows:

    The provisions of this section apply to the construction and industrial storm water general permits issued by the department pursuant to the federal clean water act, 33 U.S.C. Sec. 1251 et seq., and this chapter.

    (1) Effluent limitations shall be included in construction and industrial storm water general permits as required under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., and its implementing regulations. In accordance with federal clean water act requirements, pollutant specific, water quality-based effluent limitations shall be included in construction and industrial storm water general permits if there is a reasonable potential to cause or contribute to an excursion of a state water quality standard.

    (2) Subject to the provisions of this section, both technology and water quality-based effluent limitations may be expressed as:

    (a) Numeric effluent limitations;

    (b) Narrative effluent limitations; or

    (c) A combination of numeric and narrative effluent discharge limitations.

    (3) The department must condition storm water general permits for industrial and construction activities issued under the national pollutant discharge elimination system of the federal clean water act to require compliance with numeric effluent discharge limits when such discharges are subject to:

    (a) Numeric effluent limitations established in federally adopted, industry-specific effluent guidelines;

    (b) State developed, industry-specific performance-based numeric effluent limitations;

    (c) Numeric effluent limitations based on a completed total maximum daily load analysis or other pollution control measures; or

    (d) A determination by the department that:

    (i) The discharges covered under either the construction or industrial storm water general permits have a reasonable potential to cause or contribute to violation of state water quality standards; and

    (ii) Effluent limitations based on nonnumeric best management practices are not effective in achieving compliance with state water quality standards.

    (4) In making a determination under subsection (3)(d) of this section, the department shall use procedures that account for:

    (a) Existing controls on point and nonpoint sources of pollution;

    (b) The variability of the pollutant or pollutant parameter in the storm water discharge; and

    (c) As appropriate, the dilution of the storm water in the receiving waters.

    (5) Narrative effluent limitations requiring both the implementation of best management practices, when designed to satisfy the technology and water quality-based requirements of the federal clean water act, 33 U.S.C. Sec. 1251 et seq., and compliance with water quality standards, shall be used for construction and industrial storm water general permits, unless the provisions of subsection (3) of this section apply.

    (6) Compliance with water quality standards shall be presumed, unless discharge monitoring data or other site specific information demonstrates that a discharge causes or contributes to violation of water quality standards, when the permittee is:

    (a) In full compliance with all permit conditions, including planning, sampling, monitoring, reporting, and recordkeeping conditions; and

    (b)(i) Fully implementing storm water best management practices contained in storm water technical manuals approved by the department, or practices that are demonstrably equivalent to practices contained in storm water technical manuals approved by the department, including the proper selection, implementation, and maintenance of all applicable and appropriate best management practices for on-site pollution control.

    (ii) For the purposes of this section, "demonstrably equivalent" means that the technical basis for the selection of all storm water best management practices are documented within a storm water pollution prevention plan. The storm water pollution prevention plan must document:

    (A) The method and reasons for choosing the storm water best management practices selected;

    (B) The pollutant removal performance expected from the practices selected;

    (C) The technical basis supporting the performance claims for the practices selected, including any available existing data concerning field performance of the practices selected;

    (D) An assessment of how the selected practices will comply with state water quality standards; and

    (E) An assessment of how the selected practices will satisfy both applicable federal technology-based treatment requirements and state requirements to use all known, available, and reasonable methods of prevention, control, and treatment.

    (7)(a) The department shall modify the industrial storm water general permit to require compliance by May 1, 2009, with appropriately derived numeric water quality-based effluent limitations for existing discharges to water bodies listed as impaired according to 33 U.S.C. Sec. 1313(d) (Sec. 303(d) of the federal clean water act, 33 U.S.C. Sec. 1251 et seq.).

    (b) No later than September 1, 2008, the department shall report to the appropriate committees of the legislature specifying how the numeric effluent limitation in (a) of this subsection would be implemented. The report shall identify the number of dischargers to impaired water bodies and provide an assessment of anticipated compliance with the numeric effluent limitation established by (a) of this subsection.

    (8)(a) Construction and industrial storm water general permits issued by the department shall include an enforceable adaptive management mechanism that includes appropriate monitoring, evaluation, and reporting. The adaptive management mechanism shall include elements designed to result in permit compliance and shall include, at a minimum, the following elements:

    (i) An adaptive management indicator, such as monitoring benchmarks;

    (ii) Monitoring;

    (iii) Review and revisions to the storm water pollution prevention plan;

    (iv) Documentation of remedial actions taken; and

    (v) Reporting to the department.

    (b) Construction and industrial storm water general permits issued by the department also shall include the timing and mechanisms for implementation of treatment best management practices.

    (9) Construction and industrial storm water discharges authorized under general permits must not cause or have the reasonable potential to cause or contribute to a violation of an applicable water quality standard. Where a discharge has already been authorized under a national pollutant discharge elimination system storm water permit and it is later determined to cause or have the reasonable potential to cause or contribute to the violation of an applicable water quality standard, the department may notify the permittee of such a violation.

    (10) Once notified by the department of a determination of reasonable potential to cause or contribute to the violation of an applicable water quality standard, the permittee must take all necessary actions to ensure future discharges do not cause or contribute to the violation of a water quality standard and document those actions in the storm water pollution prevention plan and a report timely submitted to the department. If violations remain or recur, coverage under the construction or industrial storm water general permits may be terminated by the department, and an alternative general permit or individual permit may be issued. Compliance with the requirements of this subsection does not preclude any enforcement activity provided by the federal clean water act, 33 U.S.C. Sec. 1251 et seq., for the underlying violation.

    (11) Receiving water sampling shall not be a requirement of an industrial or construction storm water general permit except to the extent that it can be conducted without endangering the health and safety of persons conducting the sampling.

    (12) The department may authorize mixing zones only in compliance with and after making determinations mandated by the procedural and substantive requirements of applicable laws and regulations.

    NEW SECTION. Sec.

3.  A new section is added to chapter 90.48 RCW to read as follows:

    The provisions of this section apply to the construction and industrial storm water general permits issued by the department pursuant to the federal clean water act, 33 U.S.C. Sec. 1251 et seq., and this chapter.

    (1) By January 1, 2005, the department shall initiate an inspection and compliance program for all permittees covered under the construction and industrial storm water general permits. The program shall include, but may not be limited to, the:

    (a) Provision of compliance assistance and survey for evidence of permit violations and violations of water quality standards;

    (b) Identification of corrective actions for actual or imminent discharges that violate or could violate the state's water quality standards;

    (c) Monitoring of the development and implementation of storm water pollution prevention plans and storm water monitoring plans;

    (d) Identification of dischargers who would benefit from follow-up inspection or compliance assistance programs; and

    (e) Collection and analysis of discharge and receiving water samples whenever practicable and when deemed appropriate by the department, and other evaluation of discharges to determine the potential for causing or contributing to violations of water quality standards.

    (2) The department's inspections under this section shall be conducted without prior notice to permittees whenever practicable.

    (3) Follow-up inspections shall be conducted by the department to ensure that corrective and other actions as identified in the course of initial inspections are being carried out. The department shall also take such additional actions as are necessary to ensure compliance with state and federal water quality requirements, provided that all permittees must be inspected once within two years of the start of this program and each permittee must be inspected at least once each permit cycle thereafter.

    (4) Permittees must be prioritized for inspection based on the development of criteria that include, but are not limited to, the following factors:

    (a) Compliance history, including submittal or nonsubmittal of discharge monitoring reports;

    (b) Monitoring results in relationship to permit benchmarks; and

    (c) Discharge to impaired waters of the state.

    (5) Nothing in this section shall be construed to limit the department's enforcement discretion.

    NEW SECTION. Sec.

4.  No later than December 31, 2006, the department of ecology shall submit a report to the appropriate committees of the legislature regarding methods to improve the effectiveness of permit monitoring requirements in construction and industrial storm water general permits. The department of ecology shall study and evaluate how monitoring requirements could be improved to determine the effectiveness of storm water best management practices and compliance with state water quality standards. In this study the department also shall evaluate monitoring requirements that are necessary for determining compliance or noncompliance with state water quality standards and shall evaluate the feasibility of including such monitoring in future permits. When conducting this study, the department shall consult with experts in the fields of monitoring, storm water management, and water quality, and when necessary the department shall conduct field work to evaluate the practicality and usefulness of alternative monitoring proposals.

    NEW SECTION. Sec.

5.  A new section is added to chapter 90.48 RCW to read as follows:

    (1) The department shall establish permit fees for construction and industrial storm water general permits as necessary to fund the provisions of sections 2 and 3 of this act. When calculating appropriate fee amounts, the department shall take into consideration differences between large and small businesses and the economic impacts caused by permit fees on those businesses. Fees established under this section shall be adopted in accordance with chapter 34.05 RCW.

    (2) In its biennial discharge fees progress report required by RCW 90.48.465, the department shall include a detailed accounting regarding the method used to establish permit fees, the amount of permit fees collected, and the expenditure of permit fees. The detailed accounting shall include data on inspections conducted and the staff hired to implement the provisions of sections 2 and 3 of this act.

    NEW SECTION. Sec.

6.  If any portion of sections 2 and 3 of this act are found to be in conflict with the federal clean water act, that portion alone is void.

    NEW SECTION. Sec.

7.  This act expires January 1, 2015.

    NEW SECTION. Sec.

8.  If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2004, in the omnibus appropriations act, this act is null and void."

    Correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Fraser moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6415.

    Senators Fraser, Morton and Doumit spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Fraser that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6415.

    The motion by Senator Fraser carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6415.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6415, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6415, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 6415, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


PERSONAL PRIVILEGE


    Senator Thibaudeau: “I just needed to say that some months ago, this is a bill that Willy O’Neil told me that I wasn’t going to like. I understand due to the parties, members of this legislature it worked out and an acceptable compromise and I’m delighted to say so and I hope Willy is listening. Thank you Mr. President.”


MESSAGE FROM THE HOUSE


March 9, 2004


MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8418, with the following amendment{s}.

    Beginning on page 1, line 1, strike the entire concurrent resolution and insert the following:

    "WHEREAS, The complexity of federal, state, and local permitting processes present coordinating challenges to regulators, project sponsors, and interested stakeholders; and

    WHEREAS, A more simple, coordinated, and efficient permit system could promote economic development, support state and local land use requirements, and provide environmental protections; and

    WHEREAS, A comprehensive review of permitting processes by a diverse group of stakeholders that includes each major caucus in the legislature and the governor is necessary to make recommendations for changes;

    NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, the House of Representatives concurring, That a joint select legislative task force be established to evaluate and make recommendations to the legislature regarding the processes established by certain local governments, identified by the task force as being generally representative of other local governments in the state, for issuing permits to comply with: (1) Development regulations adopted pursuant to the growth management act, chapter 36.70A RCW; and (2) the requirements of the shoreline management act, chapter 90.58 RCW; and

    BE IT FURTHER RESOLVED, That the evaluation and recommendations of the joint select legislative task force be limited to the permit processes established by counties subject to the requirements of RCW 36.70A.215 and the cities within those counties with at least fifty thousand residents as of the adoption date of this resolution; and

    BE IT FURTHER RESOLVED, That the joint select legislative task force must invite the governor to join the task force for the purpose of forming a "Five-Corners Task Force"; and

    BE IT FURTHER RESOLVED, That the joint select legislative task force be composed of the chair and ranking minority member of the senate land use and planning committee and the chair and ranking minority member of the house of representatives local government committee or their designees; and

    BE IT FURTHER RESOLVED, That the task force gather information that the task force considers appropriate for the evaluation of permit processes established by the local governments identified by the task force; and

    BE IT FURTHER RESOLVED, That an advisory committee be established to provide assistance to the task force, upon request of the task force, that is limited to the specific scope and content requested by the task force; and

    BE IT FURTHER RESOLVED, That the advisory committee shall be composed of the following members or their designees: The director of the department of community, trade, and economic development; the director of the department of ecology; the director of the office of regulatory assistance; a representative of a county, selected by the Washington state association of counties; a representative of a city, selected by the association of Washington cities; a representative from the business community; two representatives from the environmental community, one selected by 1000 Friends of Washington, and one selected by the Washington Environmental Council; a representative from the property rights community; a representative from agriculture; a representative from labor; and a representative from federally recognized Indian tribes; and

    BE IT FURTHER RESOLVED, That the advisory committee shall select a chair from among its members for the purpose of conducting meetings and transmitting information from the advisory committee as a group to the task force; and

    BE IT FURTHER RESOLVED, That in developing its recommendations, the task force may consult with the advisory committee; and

    BE IT FURTHER RESOLVED, That staff support for the task force and the advisory committee shall be provided by senate committee services and the house of representatives office of program research; and

    BE IT FURTHER RESOLVED, That the task force must invite staff from the department of community, trade, and economic development, the department of ecology, and the office of regulatory assistance to provide additional staff support for the task force and the advisory committee; and

    BE IT FURTHER RESOLVED, That the task force shall report its evaluations and recommendations to the appropriate legislative committees by January 1, 2006."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Berkey moved that the Senate concur in the House amendment(s) to Substitute Senate Concurrent Resolution No. 8418.

    Senators Berkey and Morton spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Berkey that the Senate concur in the House amendment(s) to Substitute Senate Concurrent Resolution No. 8418.

    The motion by Senator Berkey carried and the Senate concurred in the House amendment(s) to Substitute Senate Concurrent No. 8418.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Concurrent No. 8418, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Concurrent Resolution No. 8418, as amended by the House, and the resolution passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8418, as amended by the House, having received the constitutional majority, was declared passed.


MESSAGE FROM THE HOUSE


March 9, 2004

MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE BILL NO. 6240, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec.

1.  A new section is added to chapter 82.04 RCW to read as follows:

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

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

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

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

    (4)(a) The credit under this section shall equal one thousand dollars for each new qualified employment position created after January 1, 2004, in an eligible area. A credit is earned for the calendar year the person is hired to fill the position. Additionally a credit is earned for each year the position is maintained over the subsequent consecutive years, up to four years. The county must meet the definition of a rural county at the time the position is filled. If the county does not have a rural county status the following year or years, the position is still eligible for the remaining years if all other conditions are met.

    (b) Participants who claimed credit under RCW 82.04.4456 for qualified employment positions created before December 31, 2003, are eligible to earn credit for each year the position is maintained over the subsequent consecutive years, for up to four years, which four years include any years claimed under RCW 82.04.4456 Those persons who did not receive a credit under RCW 82.04.4456 before December 31, 2003, are not eligible to earn credit for qualified employment positions created before December 31, 2003.

    (c) Credit is authorized for new employees hired for new qualified employment positions created on or after January 1, 2004. New qualified employment positions filled by existing employees are eligible for the credit under this section only if the position vacated by the existing employee is filled by a new hire. A business that is a sole proprietorship without any employees is equivalent to one employee position and this type of business is eligible to receive credit for one position.

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

    (5) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section. This information includes information relating to description of qualifying activity conducted in the rural county and outside the rural county by the person as well as detailed records on positions and employees.

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

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

    (8) Transfer of ownership does not affect credit eligibility. However, the successive credits are available to the successor for remaining periods in the five years only if the eligibility conditions of this section are met.

    (9) A person taking tax credits under this section shall make an annual report to the department. The report shall be in a letter form and shall include the following information: Number of positions for which credit is being claimed, type of position for which credit is being claimed, type of activity in which the person is engaged in the county, how long the person has been located in the county, and taxpayer name and registration number. The report must be filed by January 30th of each year for which credit was claimed during the previous year. Failure to file a report will not result in the loss of eligibility under this section. However, the department, through its research division, shall contact taxpayers who have not filed the report and obtain the data from the taxpayer or assist the taxpayer in the filing of the report, so that the data and information necessary to measure the program's effectiveness is maintained.

    (10) As used in this section:

    (a) "Computer software" has the meaning as defined in RCW 82.04.215 after June 30, 2004, and includes "software" as defined in RCW 82.04.215 before July 1, 2004.

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

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

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

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

    (f) "Rural county" means the same as in RCW 82.14.370.

    (11) No credit may be taken or accrued under this section on or after January 1, 2011.

    (12) This section expires January 1, 2011.

    NEW SECTION. Sec.

2.  A new section is added to chapter 82.04 RCW to read as follows:

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

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

    (3) The amount of the tax credit for persons engaged in the activity of providing information technology help desk services in rural counties shall be equal to one hundred percent of the amount of tax due under this chapter that is attributable to providing the services from the rural county. In order to qualify for the credit under this subsection, the county must meet the definition of rural county at the time the person begins to conduct qualifying business in the county.

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

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

    (6) The credit under this section may be used against any tax due under this chapter, but in no case may a credit earned during one calendar year be carried over to be credited against taxes incurred in a subsequent calendar year. No refunds may be granted for credits under this section.

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

    (8) A person taking tax credits under this section shall make an annual report to the department. The report shall be in a letter form and shall include the following information: Type of activity in which the person is engaged in the county, number of employees in the rural county, how long the person has been located in the county, and taxpayer name and registration number. The report must be filed by January 30th of each year for which credit was claimed during the previous year. Failure to file a report will not result in the loss of eligibility under this section. However, the department, through its research division, shall contact taxpayers who have not filed the report and obtain the data from the taxpayer or assist the taxpayer in the filing of the report, so that the data and information necessary to measure the program's effectiveness is maintained.

    (9) As used in this section:

    (a) "Information technology help desk services" means the following services performed using electronic and telephonic communication:

    (i) Software and hardware maintenance;

    (ii) Software and hardware diagnostics and troubleshooting;

    (iii) Software and hardware installation;

    (iv) Software and hardware repair;

    (v) Software and hardware information and training; and

    (vi) Software and hardware upgrade.

    (b) "Rural county" means the same as in RCW 82.14.370.

    (10) This section expires January 1, 2011.

    Sec.

3.  RCW 82.60.020 and 1999 sp.s. c 9 s 2 are each amended to read as follows:

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

    (1) "Applicant" means a person applying for a tax deferral under this chapter.

    (2) "Department" means the department of revenue.

    (3) "Eligible area" means a ((county with fewer than one hundred persons per square mile as determined annually by the office of financial management and published by the department of revenue effective for the period July 1st through June 30th)) rural county as defined in RCW 82.14.370.

    (4)(a) "Eligible investment project" means an investment project in an eligible area as defined in subsection (3) of this section.

    (b) The ((lessor/owner)) lessor or owner of a qualified building is not eligible for a deferral unless:

    (i) The underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person((,)); or ((unless))

    (ii)(A) The lessor by written contract agrees to pass the economic benefit of the deferral to the lessee ((in the form of reduced rent payments));

    (B) The lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual survey required under RCW 82.60.070; and

    (C) The economic benefit of the deferral passed to the lessee is no less than the amount of tax deferred by the lessor and is evidenced by written documentation of any type of payment, credit, or other financial arrangement between the lessor or owner of the qualified building and the lessee.

    (c) "Eligible investment project" does not include any portion of an investment project undertaken by a light and power business as defined in RCW 82.16.010(5), other than that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part, or investment projects which have already received deferrals under this chapter.

    (5) "Investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction of the project.

    (6) "Manufacturing" means the same as defined in RCW 82.04.120. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.

    (7) "Person" has the meaning given in RCW 82.04.030.

    (8) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity used for manufacturing and research and development activities, including plant offices and warehouses or other facilities for the storage of raw material or finished goods if such facilities are an essential or an integral part of a factory, mill, plant, or laboratory used for manufacturing or research and development. If a building is used partly for manufacturing or research and development and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.

    (9) "Qualified employment position" means a permanent full-time employee employed in the eligible investment project during the entire tax year. The term "entire tax year" means a full-time position that is filled for a period of twelve consecutive months. The term "full-time" means at least thirty-five hours a week, four hundred fifty-five hours a quarter, or one thousand eight hundred twenty hours a year.

    (10) "Qualified machinery and equipment" means all new industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a manufacturing or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.

    (((10))) (11) "Recipient" means a person receiving a tax deferral under this chapter.

    (((11))) (12) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.

    Sec.

4.  RCW 82.60.040 and 1999 c 164 s 302 are each amended to read as follows:

    (1) The department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each eligible investment project that is located in an eligible area as defined in RCW 82.60.020.

    (2) The department shall keep a running total of all deferrals granted under this chapter during each fiscal biennium.

    (3) This section expires July 1, ((2004)) 2010.

    Sec.

5.  RCW 82.60.049 and 2000 c 106 s 8 are each amended to read as follows:

    (1) For the purposes of this section:

    (a) "Eligible area" also means a designated community empowerment zone approved under RCW ((43.63A.700)) 43.31C.020 or a county containing a community empowerment zone.

    (b) "Eligible investment project" also means an investment project in an eligible area as defined in this section.

    (((c) "Qualified employment position" means a permanent full-time employee employed in the eligible investment project during the entire year.))

    (2) In addition to the provisions of RCW 82.60.040, the department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, on each eligible investment project that is located in an eligible area, if the applicant establishes that at the time the project is operationally complete:

    (a) The applicant will hire at least one qualified employment position for each seven hundred fifty thousand dollars of investment ((on)) for which a deferral is requested; and

    (b) The positions will be filled by persons who at the time of hire are residents of the community empowerment zone. As used in this subsection, "resident" means the person makes his or her home in the community empowerment zone. A mailing address alone is insufficient to establish that a person is a resident for the purposes of this section. The persons must be hired after the date the application is filed with the department.

    (3) All other provisions and eligibility requirements of this chapter apply to applicants eligible under this section.

    (4) The qualified employment position must be filled by the end of the calendar year following the year in which the project is certified as operationally complete. If a person does not meet the requirements for qualified employment positions by the end of the second calendar year following the year in which the project is certified as operationally complete, all deferred taxes are immediately due.

    Sec.

6.  RCW 82.60.050 and 1994 sp.s. c 1 s 7 are each amended to read as follows:

    RCW 82.60.030 and 82.60.040 shall expire July 1, ((2004)) 2010.

    Sec.

7.  RCW 82.60.070 and 1999 c 164 s 303 are each amended to read as follows:

    (1)(a) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources the legislature needs information on how a tax incentive is used.

    (b) Each recipient of a deferral granted under this chapter after June 30, 1994, shall ((submit a report to the department on December 31st of the year in which the investment project is certified by the department as having been operationally completed, and on December 31st of each of the seven succeeding calendar years. The report shall contain information, as required by the department, from which the department may determine whether the recipient is meeting the requirements of this chapter. If the recipient fails to submit a report or submits an inadequate report, the department may declare the amount of deferred taxes outstanding to be immediately assessed and payable)) complete an annual survey. If the economic benefits of the deferral are passed to a lessee as provided in RCW 82.60.020(4), the lessee shall agree to complete the annual survey and the applicant is not required to complete the annual survey. The survey is due by March 31st of the year following the calendar year in which the investment project is certified by the department as having been operationally complete and the seven succeeding calendar years. The survey shall include the amount of tax deferred, the number of new products or research projects by general classification, and the number of trademarks, patents, and copyrights associated with activities at the investment project. The survey shall also include the following information for employment positions in Washington:

    (i) The number of total employment positions;

    (ii) Full-time, part-time, and temporary employment positions as a percent of total employment;

    (iii) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and

    (iv) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.

    (c) The department may request additional information necessary to measure the results of the deferral program, to be submitted at the same time as the survey.

    (d) All information collected under this subsection, except the amount of the tax deferral taken, is deemed taxpayer information under RCW 82.32.330 and is not disclosable. Information on the amount of tax deferral taken is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

    (e) The department shall use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers shall be included in any category. The department shall report these statistics to the legislature each year by September 1st.

    (f) The department shall also use the information to study the tax deferral program authorized under this chapter. The department shall report to the legislature by December 1, 2009. The report shall measure the effect of the program on job creation, the number of jobs created for residents of eligible areas, company growth, the introduction of new products, the diversification of the state's economy, growth in research and development investment, the movement of firms or the consolidation of firms' operations into the state, and such other factors as the department selects.

    (2)(a) If, on the basis of a ((report)) survey under this section or other information, the department finds that an investment project is not eligible for tax deferral under this chapter, the amount of deferred taxes outstanding for the project shall be immediately due.

    (b) If a recipient of the deferral fails to complete the annual survey required under subsection (1) of this section by the date due, twelve and one-half percent of the deferred tax shall be immediately due. If the economic benefits of the deferral are passed to a lessee as provided in RCW 82.60.020(4), the lessee shall be responsible for payment to the extent the lessee has received the economic benefit.

    (3) Notwithstanding any other subsection of this section, deferred taxes need not be repaid on machinery and equipment for lumber and wood products industries, and sales of or charges made for labor and services, of the type which qualifies for exemption under RCW 82.08.02565 or 82.12.02565 to the extent the taxes have not been repaid before July 1, 1995.

    (4) Notwithstanding any other subsection of this section, deferred taxes on the following need not be repaid:

    (a) Machinery and equipment, and sales of or charges made for labor and services, which at the time of purchase would have qualified for exemption under RCW 82.08.02565; and

    (b) Machinery and equipment which at the time of first use would have qualified for exemption under RCW 82.12.02565.

    NEW SECTION. Sec.

8.  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 April 1, 2004."

    Correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Sheldon, T. moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6240.

    Senator Sheldon, T. spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Sheldon, T. that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6240.

    The motion by Senator Sheldon, T. carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6240.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6240, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 6240, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SUBSTITUTE SENATE BILL NO. 6240, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 5, 2004


MR. PRESIDENT:


    The House has passed THIRD SUBSTITUTE SENATE BILL NO. 5412, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec.

1.  The legislature finds that identity theft and the other types of fraud is a significant problem in the state of Washington, costing our citizens and businesses millions each year. The most common method of accomplishing identity theft and other fraudulent activity is by securing a fraudulently issued driver's license. It is the purpose of this act to significantly reduce identity theft and other fraud by preventing the fraudulent issuance of driver's licenses and identicards.

    Sec.

2.  RCW 9.35.020 and 2003 c 53 s 22 are each amended to read as follows:

    (1) No person may knowingly obtain, possess, use, or transfer a means of identification or financial information of another person, living or dead, with the intent to commit, or to aid or abet, any crime.

    (2) Violation of this section when the accused or an accomplice uses the victim's means of identification or financial information and obtains an aggregate total of credit, money, goods, services, or anything else of value in excess of one thousand five hundred dollars in value shall constitute identity theft in the first degree. Identity theft in the first degree is a class B felony punishable according to chapter 9A.20 RCW.

    (3) Violation of this section when the accused or an accomplice uses the victim's means of identification or financial information and obtains an aggregate total of credit, money, goods, services, or anything else of value that is less than one thousand five hundred dollars in value, or when no credit, money, goods, services, or anything of value is obtained shall constitute identity theft in the second degree. Identity theft in the second degree is a class C felony punishable according to chapter 9A.20 RCW.

    (4) A person who violates this section is liable for civil damages of ((five hundred)) one thousand dollars or actual damages, whichever is greater, including costs to repair the victim's credit record, and reasonable attorneys' fees as determined by the court.

    (5) In a proceeding under this section, the crime will be considered to have been committed in any locality where the person whose means of identification or financial information was appropriated resides, or in which any part of the offense took place, regardless of whether the defendant was ever actually in that locality.

    (6) The provisions of this section do not apply to any person who obtains another person's driver's license or other form of identification for the sole purpose of misrepresenting his or her age.

    (7) In a proceeding under this section in which a person's means of identification or financial information was used without that person's authorization, and when there has been a conviction, the sentencing court may issue such orders as are necessary to correct a public record that contains false information resulting from a violation of this section.

    NEW SECTION. Sec.

3.  A new section is added to chapter 46.20 RCW to read as follows:

    (1) No later than January 1, 2006, the department shall implement a voluntary biometric matching system for driver's licenses and identicards. The biometric matching system shall be used only to verify the identity of an applicant for a renewal or duplicate driver's license or identicard by matching a biometric identifier submitted by the applicant against the biometric identifier submitted when the license was last issued. This project requires a full review by the information services board using the criteria for projects of the highest visibility and risk.

    (2) The biometric matching system selected by the department shall be capable of highly accurate matching, and shall be compliant with biometric standards established by the American association of motor vehicle administrators.

    (3) The biometric matching system selected by the department must incorporate a process that allows the owner of a driver's license or identicard to present a personal identification number or other code along with the driver's license or identicard before the information may be verified by a third party.

    (4) Upon the establishment of a biometric driver's license and identicard system as described in this section, the department shall allow every person applying for an original, renewal, or duplicate driver's license or identicard to voluntarily submit a biometric identifier. Each applicant shall be informed of all ways in which the biometric identifier may be used, all parties to whom the identifier may be disclosed and the conditions of disclosure, the expected error rates for the biometric matching system which shall be regularly updated as the technology changes or empirical data is collected, and the potential consequences of those errors. The department shall adopt rules to allow applicants to verify the accuracy of the system at the time that biometric information is submitted, including the use of at least two separate devices.

    (5) The department may not disclose biometric information to the public or any governmental entity except when authorized by court order.

    (6) All biometric information shall be stored with appropriate safeguards, including but not limited to encryption.

    (7) The department shall develop procedures to handle instances in which the biometric matching system fails to verify the identity of an applicant for a renewal or duplicate driver's license or identicard. These procedures shall allow an applicant to prove identity without using a biometric identifier.

    (8) Any person who has voluntarily submitted a biometric identifier may choose to discontinue participation in the biometric matching program at any time, provided that the department utilizes a secure procedure to prevent fraudulent requests for a renewal or duplicate driver's license or identicard. When the person discontinues participation, any previously collected biometric information shall be destroyed.

    (9) If Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681 is enacted into law, this section does not apply when an applicant renews his or her driver's license or identicard by mail or electronic commerce.

    NEW SECTION. Sec.

4.  A new section is added to chapter 46.20 RCW to read as follows:

    (1) The department is authorized to charge persons opting to submit a biometric identifier under section 3 of this act an additional fee of no more than two dollars at the time of application for an original, renewal, or duplicate driver's license or identicard issued by the department. This fee shall be used exclusively to defray the cost of implementation and ongoing operation of a biometric security system.

    (2) The biometric security account is created in the state treasury. All receipts from subsection (1) of this section shall be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used only for the purpose of defraying the cost of implementation and ongoing operation of a biometric security system.

    NEW SECTION. Sec.

5.  This act takes effect July 1, 2004.

    NEW SECTION. Sec.

6.  If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2004, in the omnibus transportation appropriations act, sections 1, 3, 4, and 5 of this act are null and void."

    Correct the title.

and the same is/are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Brandland moved that the Senate concur in the House amendment(s) to Third Substitute Senate Bill No. 5412.

    Senators Brandland and Kline spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Brandland that the Senate concur in the House amendment(s) to Third Substitute Senate Bill No. 5412.

    The motion by Senator Brandland carried and the Senate concurred in the House amendment(s) to Third Substitute Senate Bill No. 5412.

    The President declared the question before the Senate to be the roll call on the final passage of Third Substitute Senate Bill No. 5412, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Third Substitute Senate Bill No. 5412, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 2; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Voting nay: Senators Franklin and Kohl-Welles - 2.

     THIRD SUBSTITUTE SENATE BILL NO. 5412, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 3, 2004


MR. PRESIDENT:


    The House has passed SENATE BILL NO. 6356, with the following amendments{s}.

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

    "NEW SECTION. Sec.

1.  A new section is added to chapter 51.28 RCW to read as follows:

    Physician assistants practicing with physician supervision as required by chapters 18.57A and 18.71A RCW may assist workers who suffer simple industrial injuries in making application for compensation under this title as specified in RCW 51.28.020. Physician assistants may not rate a worker's permanent partial disability under RCW 51.32.055, or determine a worker's entitlement to benefits under chapter 51.32 RCW. The department shall adopt rules necessary to implement this section, including rules identifying simple industrial injuries using diagnosis codes and other relevant criteria."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Honeyford moved that the Senate concur in the House amendment(s) to Senate Bill No. 6356.

    Senator Honeyford spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Honeyford that the Senate concur in the House amendment(s) to Senate Bill No. 6356.

    The motion by Senator Honeyford carried and the Senate concurred in the House amendment(s) to Senate Bill No. 6356.

    The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6356, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Bill No. 6356, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SENATE BILL NO. 6356, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 3, 2004


MR. PRESIDENT:


    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6210, with the following amendments{s}.

    On page 2, line 26, after "program." insert "Any rules necessary to implement this section shall meet the requirements of applicable federal and state privacy laws."

    On page 5, line 29, after "program." insert "Any rules necessary to implement this section shall meet the requirements of applicable federal and state privacy laws."

    On page 9, line 5, after "program." insert "Any rules necessary to implement this section shall meet the requirements of applicable federal and state privacy laws."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Keiser moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6210.

    Senators Keiser and Deccio spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Keiser that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6210.

    The motion by Senator Keiser carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6210.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6210, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6210, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 6210, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 3, 2004


MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE BILL NO. 5733, with the following amendments{s}.

    Strike everything after the enacting clause and insert the following:

    "Sec.

1.  RCW 18.20.050 and 2003 c 231 s 4 are each amended to read as follows:

    (1) Upon receipt of an application for license, if the applicant and the boarding home facilities meet the requirements established under this chapter, the department shall issue a license. If there is a failure to comply with the provisions of this chapter or the standards and rules adopted pursuant thereto, the department may in its discretion issue to an applicant for a license, or for the renewal of a license, a provisional license which will permit the operation of the boarding home for a period to be determined by the department, but not to exceed twelve months, which provisional license shall not be subject to renewal. The department may also place conditions on the license under RCW 18.20.190. At the time of the application for or renewal of a license or provisional license the licensee shall pay a license fee as established by the department under RCW 43.20B.110. All licenses issued under the provisions of this chapter shall expire on a date to be set by the department, but no license issued pursuant to this chapter shall exceed twelve months in duration. However, when the annual license renewal date of a previously licensed boarding home is set by the department on a date less than twelve months prior to the expiration date of a license in effect at the time of reissuance, the license fee shall be prorated on a monthly basis and a credit be allowed at the first renewal of a license for any period of one month or more covered by the previous license. All applications for renewal of a license shall be made not later than thirty days prior to the date of expiration of the license. Each license shall be issued only for the premises and persons named in the application, and no license shall be transferable or assignable. Licenses shall be posted in a conspicuous place on the licensed premises.

    (2) A licensee who receives notification of the department's initiation of a denial, suspension, nonrenewal, or revocation of a boarding home license may, in lieu of appealing the department's action, surrender or relinquish the license. The department shall not issue a new license to or contract with the licensee, for the purposes of providing care to vulnerable adults or children, for a period of twenty years following the surrendering or relinquishment of the former license. The licensing record shall indicate that the licensee relinquished or surrendered the license, without admitting the violations, after receiving notice of the department's initiation of a denial, suspension, nonrenewal, or revocation of a license.

    (3) The department shall establish, by rule, the circumstances requiring a change in licensee, which include, but are not limited to, a change in ownership or control of the boarding home or licensee, a change in the licensee's form of legal organization, such as from sole proprietorship to partnership or corporation, and a dissolution or merger of the licensed entity with another legal organization. The new licensee is subject to the provisions of this chapter, the rules adopted under this chapter, and other applicable law. In order to ensure that the safety of residents is not compromised by a change in licensee, the new licensee is responsible for correction of all violations that may exist at the time of the new license.

    (4) The department may deny, suspend, modify, revoke, or refuse to renew a license when the department finds that the applicant or licensee or any partner, officer, director, managerial employee, or majority owner of the applicant or licensee:

    (a) Operated a boarding home without a license or under a revoked or suspended license; or

    (b) Knowingly or with reason to know made a false statement of a material fact (i) in an application for license or any data attached to the application, or (ii) in any matter under investigation by the department; or

    (c) Refused to allow representatives or agents of the department to inspect (i) the books, records, and files required to be maintained, or (ii) any portion of the premises of the boarding home; or

    (d) Willfully prevented, interfered with, or attempted to impede in any way (i) the work of any authorized representative of the department, or (ii) the lawful enforcement of any provision of this chapter; or

    (e) Has a history of significant noncompliance with federal or state regulations in providing care or services to vulnerable adults or children. In deciding whether to deny, suspend, modify, revoke, or refuse to renew a license under this section, the factors the department considers shall include the gravity and frequency of the noncompliance.

    (5) The department shall serve upon the applicant a copy of the decision granting or denying an application for a license. An applicant shall have the right to contest denial of his or her application for a license as provided in chapter 34.05 RCW by requesting a hearing in writing within twenty-eight days after receipt of the notice of denial.

    Sec.

2.  RCW 18.20.110 and 2003 c 280 s 1 are each amended to read as follows:

    The department shall make or cause to be made, at least every eighteen months with an annual average of fifteen months, an inspection and investigation of all boarding homes. However, the department may delay an inspection to twenty-four months if the boarding home has had three consecutive inspections with no written notice of violations and has received no written notice of violations resulting from complaint investigation during that same time period. The department may at anytime make an unannounced inspection of a licensed home to assure that the licensee is in compliance with this chapter and the rules adopted under this chapter. Every inspection shall focus primarily on actual or potential resident outcomes, and may include an inspection of every part of the premises and an examination of all records (((other than financial records))), methods of administration, the general and special dietary, and the stores and methods of supply; however, the department shall not have access to financial records or to other records, except that financial records of the boarding home may be examined when the department has reasonable cause to believe that a financial obligation related to resident care or services will not be met, such as a complaint that staff wages or utility costs have not been paid, or when necessary for the department to investigate alleged financial exploitation of a resident. Following such an inspection or inspections, written notice of any violation of this law or the rules adopted hereunder shall be given to the applicant or licensee and the department. The department may prescribe by rule that any licensee or applicant desiring to make specified types of alterations or additions to its facilities or to construct new facilities shall, before commencing such alteration, addition, or new construction, submit plans and specifications ((therefor)) to the agencies responsible for plan reviews for preliminary inspection and approval or recommendations with respect to compliance with the rules and standards herein authorized.

    Sec.

3.  RCW 70.128.060 and 2001 c 193 s 9 are each amended to read as follows:

    (1) An application for license shall be made to the department upon forms provided by it and shall contain such information as the department reasonably requires.

    (2) Subject to the provisions of this section, the department shall issue a license to an adult family home if the department finds that the applicant and the home are in compliance with this chapter and the rules adopted under this chapter, unless (a) the applicant or a person affiliated with the applicant has prior violations of this chapter relating to the adult family home subject to the application or any other adult family home, or of any other law regulating residential care facilities within the past five years that resulted in revocation, suspension, or nonrenewal of a license or contract with the department; or (b) the applicant or a person affiliated with the applicant has a history of significant noncompliance with federal, state, or local laws, rules, or regulations relating to the provision of care or services to vulnerable adults or to children. A person is considered affiliated with an applicant if the person is listed on the license application as a partner, officer, director, resident manager, or majority owner of the applying entity, or is the spouse of the applicant.

    (3) The license fee shall be submitted with the application.

    (4) The department shall serve upon the applicant a copy of the decision granting or denying an application for a license. An applicant shall have the right to contest denial of his or her application for a license as provided in chapter 34.05 RCW by requesting a hearing in writing within twenty-eight days after receipt of the notice of denial.

    (5) The department shall not issue a license to a provider if the department finds that the provider or spouse of the provider or any partner, officer, director, managerial employee, or majority owner ((of five percent or more if the provider)) has a history of significant noncompliance with federal or state regulations, rules, or laws in providing care or services to vulnerable adults or to children.

    (6) The department shall license an adult family home for the maximum level of care that the adult family home may provide. The department shall define, in rule, license levels based upon the education, training, and caregiving experience of the licensed provider or staff.

    (7) The department shall establish, by rule, standards used to license nonresident providers and multiple facility operators.

    (8) The department shall establish, by rule, for multiple facility operators educational standards substantially equivalent to recognized national certification standards for residential care administrators.

    (9) The license fee shall be set at fifty dollars per year for each home. A fifty dollar processing fee shall also be charged each home when the home is initially licensed.

    (10) A provider who receives notification of the department's initiation of a denial, suspension, nonrenewal, or revocation of an adult family home license may, in lieu of appealing the department's action, surrender or relinquish the license. The department shall not issue a new license to or contract with the provider, for the purposes of providing care to vulnerable adults or children, for a period of twenty years following the surrendering or relinquishment of the former license. The licensing record shall indicate that the provider relinquished or surrendered the license, without admitting the violations, after receiving notice of the department's initiation of a denial, suspension, nonrenewal, or revocation of a license.

    (11) The department shall establish, by rule, the circumstances requiring a change in the licensed provider, which include, but are not limited to, a change in ownership or control of the adult family home or provider, a change in the provider's form of legal organization, such as from sole proprietorship to partnership or corporation, and a dissolution or merger of the licensed entity with another legal organization. The new provider is subject to the provisions of this chapter, the rules adopted under this chapter, and other applicable law. In order to ensure that the safety of residents is not compromised by a change in provider, the new provider is responsible for correction of all violations that may exist at the time of the new license.

    Sec.

4.  RCW 18.20.125 and 2003 c 231 s 5 are each amended to read as follows:

    (1) Inspections must be outcome based and responsive to resident complaints and based on a clear set of health, quality of care, and safety standards that are easily understandable and have been made available to facilities, residents, and other interested parties. This includes that when conducting licensing inspections, the department shall interview an appropriate percentage of residents, family members, and advocates in addition to interviewing appropriate staff.

    (2) Prompt and specific enforcement remedies shall also be implemented without delay, consistent with RCW 18.20.190, for facilities found to have delivered care or failed to deliver care resulting in problems that are serious, recurring, or uncorrected, or that create a hazard that is causing or likely to cause death or serious harm to one or more residents. These enforcement remedies may also include, when appropriate, reasonable conditions on a license. In the selection of remedies, the safety, health, and well-being of residents shall be of paramount importance.

    (3) To the extent funding is available, the licensee, administrator, and their staff should be screened through background checks in a uniform and timely manner to ensure that they do not have a criminal history that would disqualify them from working with vulnerable adults. Employees may be provisionally hired pending the results of the background check if they have been given three positive references.

    (4) No licensee, administrator, or staff, or prospective licensee, administrator, or staff, with a stipulated finding of fact, conclusion of law, and agreed order, or finding of fact, conclusion of law, or final order issued by a disciplining authority, a court of law, or entered into the state registry finding him or her guilty of abuse, neglect, exploitation, or abandonment of a minor or a vulnerable adult as defined in chapter 74.34 RCW shall be employed in the care of and have unsupervised access to vulnerable adults.

    Sec.

5.  RCW 18.20.195 and 2001 c 193 s 7 are each amended to read as follows:

    (1) The licensee or its designee has the right to an informal dispute resolution process to dispute any violation found or enforcement remedy imposed by the department during a licensing inspection or complaint investigation. The purpose of the informal dispute resolution process is to provide an opportunity for an exchange of information that may lead to the modification, deletion, or removal of a violation, or parts of a violation, or enforcement remedy imposed by the department.

    (2) The informal dispute resolution process provided by the department shall include, but is not necessarily limited to, an opportunity for review by a department employee who did not participate in, or oversee, the determination of the violation or enforcement remedy under dispute. The department shall develop, or further develop, an informal dispute resolution process consistent with this section.

    (3) A request for an informal dispute resolution shall be made to the department within ten working days from the receipt of a written finding of a violation or enforcement remedy. The request shall identify the violation or violations and enforcement remedy or remedies being disputed. The department shall convene a meeting, when possible, within ten working days of receipt of the request for informal dispute resolution, unless by mutual agreement a later date is agreed upon.

    (4) If the department determines that a violation or enforcement remedy should not be cited or imposed, the department shall delete the violation or immediately rescind or modify the enforcement remedy. If the department determines that a violation should have been cited or an enforcement remedy imposed, the department shall add the citation or enforcement remedy. Upon request, the department shall issue a clean copy of the revised report, statement of deficiencies, or notice of enforcement action.

    (5) The request for informal dispute resolution does not delay the effective date of any enforcement remedy imposed by the department, except that civil monetary fines are not payable until the exhaustion of any formal hearing and appeal rights provided under this chapter. The licensee shall submit to the department, within the time period prescribed by the department, a plan of correction to address any undisputed violations, and including any violations that still remain following the informal dispute resolution.

    Sec.

6.  RCW 74.39A.050 and 2000 c 121 s 10 are each amended to read as follows:

    The department's system of quality improvement for long-term care services shall use the following principles, consistent with applicable federal laws and regulations:

    (1) The system shall be client-centered and promote privacy, independence, dignity, choice, and a home or home-like environment for consumers consistent with chapter 392, Laws of 1997.

    (2) The goal of the system is continuous quality improvement with the focus on consumer satisfaction and outcomes for consumers. This includes that when conducting licensing or contract inspections, the department shall interview an appropriate percentage of residents, family members, resident case managers, and advocates in addition to interviewing providers and staff.

    (3) Providers should be supported in their efforts to improve quality and address identified problems initially through training, consultation, technical assistance, and case management.

    (4) The emphasis should be on problem prevention both in monitoring and in screening potential providers of service.

    (5) Monitoring should be outcome based and responsive to consumer complaints and based on a clear set of health, quality of care, and safety standards that are easily understandable and have been made available to providers, residents, and other interested parties.

    (6) Prompt and specific enforcement remedies shall also be implemented without delay, pursuant to RCW 74.39A.080, RCW 70.128.160, chapter 18.51 RCW, or chapter 74.42 RCW, for providers found to have delivered care or failed to deliver care resulting in problems that are serious, recurring, or uncorrected, or that create a hazard that is causing or likely to cause death or serious harm to one or more residents. These enforcement remedies may also include, when appropriate, reasonable conditions on a contract or license. In the selection of remedies, the safety, health, and well-being of residents shall be of paramount importance.

    (7) To the extent funding is available, all long-term care staff directly responsible for the care, supervision, or treatment of vulnerable persons should be screened through background checks in a uniform and timely manner to ensure that they do not have a criminal history that would disqualify them from working with vulnerable persons. Whenever a state conviction record check is required by state law, persons may be employed or engaged as volunteers or independent contractors on a conditional basis according to law and rules adopted by the department.

    (8) No provider or staff, or prospective provider or staff, with a stipulated finding of fact, conclusion of law, an agreed order, or finding of fact, conclusion of law, or final order issued by a disciplining authority, a court of law, or entered into a state registry finding him or her guilty of abuse, neglect, exploitation, or abandonment of a minor or a vulnerable adult as defined in chapter 74.34 RCW shall be employed in the care of and have unsupervised access to vulnerable adults.

    (9) The department shall establish, by rule, a state registry which contains identifying information about personal care aides identified under this chapter who have substantiated findings of abuse, neglect, financial exploitation, or abandonment of a vulnerable adult as defined in RCW 74.34.020. The rule must include disclosure, disposition of findings, notification, findings of fact, appeal rights, and fair hearing requirements. The department shall disclose, upon request, substantiated findings of abuse, neglect, financial exploitation, or abandonment to any person so requesting this information.

    (10) The department shall by rule develop training requirements for individual providers and home care agency providers. Effective March 1, 2002, individual providers and home care agency providers must satisfactorily complete department-approved orientation, basic training, and continuing education within the time period specified by the department in rule. The department shall adopt rules by March 1, 2002, for the implementation of this section based on the recommendations of the community long-term care training and education steering committee established in RCW 74.39A.190. The department shall deny payment to an individual provider or a home care provider who does not complete the training requirements within the time limit specified by the department by rule.

    (11) In an effort to improve access to training and education and reduce costs, especially for rural communities, the coordinated system of long-term care training and education must include the use of innovative types of learning strategies such as internet resources, videotapes, and distance learning using satellite technology coordinated through community colleges or other entities, as defined by the department.

    (12) The department shall create an approval system by March 1, 2002, for those seeking to conduct department-approved training. In the rule-making process, the department shall adopt rules based on the recommendations of the community long-term care training and education steering committee established in RCW 74.39A.190.

    (13) The department shall establish, by rule, training, background checks, and other quality assurance requirements for personal aides who provide in-home services funded by medicaid personal care as described in RCW 74.09.520, community options program entry system waiver services as described in RCW 74.39A.030, or chore services as described in RCW 74.39A.110 that are equivalent to requirements for individual providers.

    (14) Under existing funds the department shall establish internally a quality improvement standards committee to monitor the development of standards and to suggest modifications.

    (15) Within existing funds, the department shall design, develop, and implement a long-term care training program that is flexible, relevant, and qualifies towards the requirements for a nursing assistant certificate as established under chapter 18.88A RCW. This subsection does not require completion of the nursing assistant certificate training program by providers or their staff. The long-term care teaching curriculum must consist of a fundamental module, or modules, and a range of other available relevant training modules that provide the caregiver with appropriate options that assist in meeting the resident's care needs. Some of the training modules may include, but are not limited to, specific training on the special care needs of persons with developmental disabilities, dementia, mental illness, and the care needs of the elderly. No less than one training module must be dedicated to workplace violence prevention. The nursing care quality assurance commission shall work together with the department to develop the curriculum modules. The nursing care quality assurance commission shall direct the nursing assistant training programs to accept some or all of the skills and competencies from the curriculum modules towards meeting the requirements for a nursing assistant certificate as defined in chapter 18.88A RCW. A process may be developed to test persons completing modules from a caregiver's class to verify that they have the transferable skills and competencies for entry into a nursing assistant training program. The department may review whether facilities can develop their own related long-term care training programs. The department may develop a review process for determining what previous experience and training may be used to waive some or all of the mandatory training. The department of social and health services and the nursing care quality assurance commission shall work together to develop an implementation plan by December 12, 1998.

    NEW SECTION. Sec.

7.  RCW 18.20.120 (Information disclosure) and 2000 c 47 s 5, 1994 c 214 s 25, & 1957 c 253 s 12 are each repealed."

    On page 1, line 2 of the title, after "homes;" strike the remainder of the title and insert "amending RCW 18.20.050, 18.20.110, 70.128.060, 18.20.125, 18.20.195, and 74.39A.050; and repealing RCW 18.20.120."

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Winsley moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5733.

    Senators Winsley and Thibaudeau spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Winsley that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5733.

    The motion by Senator Winsley carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 5733.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5733, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5733, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 49.

     SUBSTITUTE SENATE BILL NO. 5733, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 4, 2004


MR. PRESIDENT:


    The House has passed SUBSTITUTE SENATE BILL NO. 5732, with the following amendments{s}.

    On page 4, after line 13, insert the following:

    "Sec.

2.  RCW 74.09.520 and 2003 c 279 s 1 are each amended to read as follows:

    (1) The term "medical assistance" may include the following care and services: (a) Inpatient hospital services; (b) outpatient hospital services; (c) other laboratory and x-ray services; (d) nursing facility services; (e) physicians' services, which shall include prescribed medication and instruction on birth control devices; (f) medical care, or any other type of remedial care as may be established by the secretary; (g) home health care services; (h) private duty nursing services; (i) dental services; (j) physical and occupational therapy and related services; (k) prescribed drugs, dentures, and prosthetic devices; and eyeglasses prescribed by a physician skilled in diseases of the eye or by an optometrist, whichever the individual may select; (l) personal care services, as provided in this section; (m) hospice services; (n) other diagnostic, screening, preventive, and rehabilitative services; and (o) like services when furnished to a child by a school district in a manner consistent with the requirements of this chapter. For the purposes of this section, the department may not cut off any prescription medications, oxygen supplies, respiratory services, or other life-sustaining medical services or supplies.

    "Medical assistance," notwithstanding any other provision of law, shall not include routine foot care, or dental services delivered by any health care provider, that are not mandated by Title XIX of the social security act unless there is a specific appropriation for these services.

    (2) The department shall amend the state plan for medical assistance under Title XIX of the federal social security act to include personal care services, as defined in 42 C.F.R. 440.170(f), in the categorically needy program.

    (3) The department shall adopt, amend, or rescind such administrative rules as are necessary to ensure that Title XIX personal care services are provided to eligible persons in conformance with federal regulations.

    (a) These administrative rules shall include financial eligibility indexed according to the requirements of the social security act providing for medicaid eligibility.

    (b) The rules shall require clients be assessed as having a medical condition requiring assistance with personal care tasks. Plans of care for clients requiring health-related consultation for assessment and service planning may be reviewed by a nurse.

    (c) The department shall determine by rule which clients have a health-related assessment or service planning need requiring registered nurse consultation or review. This definition may include clients that meet indicators or protocols for review, consultation, or visit.

    (4) The department shall design and implement a means to assess the level of functional disability of persons eligible for personal care services under this section. The personal care services benefit shall be provided to the extent funding is available according to the assessed level of functional disability. Any reductions in services made necessary for funding reasons should be accomplished in a manner that assures that priority for maintaining services is given to persons with the greatest need as determined by the assessment of functional disability.

    (5) Effective July 1, 1989, the department shall offer hospice services in accordance with available funds.

    (6) For Title XIX personal care services administered by aging and ((adult)) disability services administration of the department, the department shall contract with area agencies on aging:

    (a) To provide case management services to individuals receiving Title XIX personal care services in their own home; and

    (b) To reassess and reauthorize Title XIX personal care services or other home and community services as defined in RCW 74.39A.009 in home or in other settings for individuals consistent with the intent of this section:

    (i) Who have been initially authorized by the department to receive Title XIX personal care services or other home and community services as defined in RCW 74.39A.009; and

    (ii) Who, at the time of reassessment and reauthorization, are receiving such services in their own home.

    (7) In the event that an area agency on aging is unwilling to enter into or satisfactorily fulfill a contract ((to provide these services)) or an individual consumer's need for case management services will be met through an alternative delivery system, the department is authorized to:

    (a) Obtain the services through competitive bid; and

    (b) Provide the services directly until a qualified contractor can be found.

    Sec.

3.  RCW 74.39A.090 and 1999 c 175 s 2 are each amended to read as follows:

    (1) The legislature intends that any staff reassigned by the department as a result of shifting of the reauthorization responsibilities by contract outlined in this section shall be dedicated for discharge planning and assisting with discharge planning and information on existing discharge planning cases. Discharge planning, as directed in this section, is intended for residents and patients identified for discharge to long-term care pursuant to RCW 70.41.320, 74.39A.040, and 74.42.058. The purpose of discharge planning is to protect residents and patients from the financial incentives inherent in keeping residents or patients in a more expensive higher level of care and shall focus on care options that are in the best interest of the patient or resident.

    (2) The department shall contract with area agencies on aging:

    (a) To provide case management services to consumers receiving home and community services in their own home; and

    (b) To reassess and reauthorize home and community services in home or in other settings for consumers consistent with the intent of this section:

    (i) Who have been initially authorized by the department to receive home and community services; and

    (ii) Who, at the time of reassessment and reauthorization, are receiving home and community services in their own home.

    (3) In the event that an area agency on aging is unwilling to enter into or satisfactorily fulfill a contract ((to provide these services)) or an individual consumer's need for case management services will be met through an alternative delivery system, the department is authorized to:

    (a) Obtain the services through competitive bid; and

    (b) Provide the services directly until a qualified contractor can be found.

    (4) The department shall include, in its oversight and monitoring of area agency on aging performance, assessment of case management roles undertaken by area agencies on aging in this section. The scope of oversight and monitoring ((must be expanded to)) includes, but is not limited to, assessing the degree and quality of the case management performed by area agency on aging staff for elderly and disabled persons in the community.

    (5) Area agencies on aging shall assess the quality of the in-home care services provided to consumers who are receiving services under the medicaid personal care, community options programs entry system or chore services program through an individual provider or home care agency. Quality indicators may include, but are not limited to, home care consumers satisfaction surveys, how quickly home care consumers are linked with home care workers, and whether the plan of care under RCW 74.39A.095 has been honored by the agency or the individual provider.

    (6) The department shall develop model language for the plan of care established in RCW 74.39A.095. The plan of care shall be in clear language, and written at a reading level that will ensure the ability of consumers to understand the rights and responsibilities expressed in the plan of care."

    Correct the title.

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Parlette moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5732.

    Senator Parlette spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Parlette that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5732.

    The motion by Senator Parlette carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 5732.

    The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5732, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute Senate Bill No. 5732, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau and Zarelli - 48.

     Absent: Senator Winsley - 1.

     SUBSTITUTE SENATE BILL NO. 5732, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MESSAGE FROM THE HOUSE


March 9, 2004


MR. PRESIDENT:

The House has passed the following bill:

    ENGROSSED SENATE BILL NO. 6411,

and the same is herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MESSAGE FROM THE HOUSE


March 4, 2004


MR. PRESIDENT:

The House has passed the following bills:

    SENATE BILL NO. 6091,

    SUBSTITUTE SENATE BILL NO. 6103,

    SENATE BILL NO. 6143,

    SUBSTITUTE SENATE BILL NO. 6261,

    SUBSTITUTE SENATE BILL NO. 6325,

    SENATE BILL NO. 6326,

    SUBSTITUTE SENATE BILL NO. 6501,

    SUBSTITUTE SENATE BILL NO. 6581,

    SUBSTITUTE SENATE BILL NO. 6688

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


SIGNED BY THE PRESIDENT

The President signed:

    SENATE BILL NO. 6091,

    SUBSTITUTE SENATE BILL NO. 6103,

    SENATE BILL NO. 6143,

    SUBSTITUTE SENATE BILL NO. 6261,

    SUBSTITUTE SENATE BILL NO. 6325,

    SENATE BILL NO. 6326,

    SUBSTITUTE SENATE BILL NO. 6501,

    SUBSTITUTE SENATE BILL NO. 6581,

    SUBSTITUTE SENATE BILL NO. 6688


SIGNED BY THE PRESIDENT

The President signed:

    ENGROSSED SENATE BILL NO. 6411.


SIGNED BY THE PRESIDENT

The President signed:

    ENGROSSED SENATE BILL NO. 5083,

    SUBSTITUTE SENATE BILL NO. 5168,

    SUBSTITUTE SENATE BILL NO. 5436,

    SUBSTITUTE SENATE BILL NO. 5677,

    ENGROSSED SENATE BILL NO. 6158,

    SUBSTITUTE SENATE BILL NO. 6341,

    ENGROSSED SUBSTITUTE SENATE BILL NO. 6401,

    SENATE BILL NO. 6493


INTRODUCTIONS OF SPECIAL GUESTS


    The President introduced a delegation from the People’s Republic of China: Ambassador Peng Keyu, the newly-appointed Consul General of the People’s Republic of China. Ambassador Peng was accompanied by Deputy Consul General Tian and Consul Hone Lei, all of whom were seated in the Gallery.


MOTION


    At 11:55 a.m., on motion of Senator Esser, the Senate was declared to be at ease subject to the Call of the President.


    The Senate was called to order at 3:34 p.m. by President Owen.


MESSAGE FROM THE HOUSE


March 3, 2004


MR. PRESIDENT:


    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6554, with the following amendments{s}.

    On page 11, after line 14, insert the following:

    "NEW SECTION. Sec.

15.             Sections 13 and 14 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."

    On page 1, line 5 of the title, strike "and creating a new section" and insert "creating a new section; and declaring an emergency"

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Franklin moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6554.

    Senator Franklin spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Franklin that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6554.

    The motion by Senator Franklin carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6554.

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6554, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6554, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 2; Excused, 0.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Absent: Senators Deccio and Finkbeiner - 2.

     ENGROSSED SUBSTITUTE SENATE BILL NO. 6554, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


    On motion of Senator Hewitt, Senators Deccio and Finkbeiner were excused.


MESSAGE FROM THE HOUSE


March 3, 2004


MR. PRESIDENT:


    The House has passed SENATE CONCURRENT RESOLUTION NO. 8419, with the following amendments{s}.

    On page 2, line 20, strike all material beginning with "the entire" through "serve" on line 21 and insert "consumers have more choice among health care providers"

    On page 2, line 22, after "ways to" strike "enumerate" and insert "encourage review of"

    On page 1, line 2, after "among" insert "women and"

    On page 1, after line 8, insert the following: "WHEREAS, Women may express signs and symptoms of diseases, including heart disease, differently than men, and until recently, little attention has been given to the detection, treatment, and prevention of diseases specifically related to the unique needs and experiences of women; and"

    On page 1, line 20, after "disparities" insert "among women and"

    On page 2, line 11, after "disparities" insert "among women and"

    On page 2, line 15, after "status of" insert "women and"

    On page 2, line 16, after "barriers to" insert "gender-appropriate and"

    On page 2, line 18, after "number of" insert "female and"

    On page 2, line 22, after "enumerate the" insert "gender,"

    On page 2, line 26, after "on" insert "women and"

and the same are herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    Senator Franklin moved that the Senate concur in the House amendment(s) to Senate Concurrent Resolution No. 8419.

    Senator Franklin spoke in favor of the motion.

    The President declared the question before the Senate to be the motion by Senator Franklin that the Senate concur in the House amendment(s) to Senate Bill No. 8419.

    The motion by Senator Franklin carried and the Senate concurred in the House amendment(s) to Senate Concurrent Resolution No. 8419.

    The President declared the question before the Senate to be the roll call on the final passage of Senate Concurrent Resolution No. 8419, as amended by the House.


ROLL CALL


    The Secretary called the roll on the final passage of Senate Concurrent Resolution No. 8419, as amended by the House, and the resolution passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Excused: Senators Deccio and Finkbeiner - 2.

      SENATE CONCURRENT RESOLUTION NO. 8419, as amended by the House, having received the constitutional majority, was declared passed.


MESSAGE FROM THE HOUSE


March 8, 2004


MR. PRESIDENT:


    The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2452 and asks the Senate to recede therefrom.

and the same is herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTIONS


    On motion of Senator Mulliken, the Senate receded from it's amendment(s) to Substitute House Bill No. 2452.

    On motion of Senator Mulliken, the rules were suspended, Substitute House Bill No. 2452 was returned to second reading and read the second time.


MOTION


    Senator Morton moved that the following striking amendment by Senator Morton be adopted:

    Strike everything after the enacting clause and insert the following:

    "Sec.

1.  RCW 58.17.040 and 2002 c 44 s 1 are each amended to read as follows:

    The provisions of this chapter shall not apply to:

    (1) Cemeteries and other burial plots while used for that purpose;

    (2) Divisions of land into lots or tracts each of which is one-one hundred twenty-eighth of a section of land or larger, or five acres or larger if the land is not capable of description as a fraction of a section of land, unless the governing authority of the city, town, or county in which the land is situated shall have adopted a subdivision ordinance requiring plat approval of such divisions: PROVIDED, That for purposes of computing the size of any lot under this item which borders on a street or road, the lot size shall be expanded to include that area which would be bounded by the center line of the road or street and the side lot lines of the lot running perpendicular to such center line;

    (3) Divisions made by testamentary provisions, or the laws of descent;

    (4) Divisions of land into lots or tracts classified for industrial or commercial use when the city, town, or county has approved a binding site plan for the use of the land in accordance with local regulations;

    (5) A division for the purpose of lease when no residential structure other than mobile homes or travel trailers are permitted to be placed upon the land when the city, town, or county has approved a binding site plan for the use of the land in accordance with local regulations;

    (6) A division made for the purpose of alteration by adjusting boundary lines, between platted or unplatted lots or both, which does not create any additional lot, tract, parcel, site, or division nor create any lot, tract, parcel, site, or division which contains insufficient area and dimension to meet minimum requirements for width and area for a building site;

    (7) Divisions of land into lots or tracts if: (a) Such division is the result of subjecting a portion of a parcel or tract of land to either chapter 64.32 or 64.34 RCW subsequent to the recording of a binding site plan for all such land; (b) the improvements constructed or to be constructed thereon are required by the provisions of the binding site plan to be included in one or more condominiums or owned by an association or other legal entity in which the owners of units therein or their owners' associations have a membership or other legal or beneficial interest; (c) a city, town, or county has approved the binding site plan for all such land; (d) such approved binding site plan is recorded in the county or counties in which such land is located; and (e) the binding site plan contains thereon the following statement: "All development and use of the land described herein shall be in accordance with this binding site plan, as it may be amended with the approval of the city, town, or county having jurisdiction over the development of such land, and in accordance with such other governmental permits, approvals, regulations, requirements, and restrictions that may be imposed upon such land and the development and use thereof. Upon completion, the improvements on the land shall be included in one or more condominiums or owned by an association or other legal entity in which the owners of units therein or their owners' associations have a membership or other legal or beneficial interest. This binding site plan shall be binding upon all now or hereafter having any interest in the land described herein." The binding site plan may, but need not, depict or describe the boundaries of the lots or tracts resulting from subjecting a portion of the land to either chapter 64.32 or 64.34 RCW. A site plan shall be deemed to have been approved if the site plan was approved by a city, town, or county: (i) In connection with the final approval of a subdivision plat or planned unit development with respect to all of such land; or (ii) in connection with the issuance of building permits or final certificates of occupancy with respect to all of such land; or (iii) if not approved pursuant to (i) and (ii) of this subsection (7)(e), then pursuant to such other procedures as such city, town, or county may have established for the approval of a binding site plan; ((and))

    (8) A division for the purpose of leasing land for facilities providing personal wireless services while used for that purpose. "Personal wireless services" means any federally licensed personal wireless service. "Facilities" means unstaffed facilities that are used for the transmission or reception, or both, of wireless communication services including, but not necessarily limited to, antenna arrays, transmission cables, equipment shelters, and support structures; and

    (9) A division of land into lots or tracts of less than three acres that is recorded in accordance with chapter 58.09 RCW and is used or to be used for the purpose of establishing a site for construction and operation of consumer-owned or investor-owned electric utility facilities. For purposes of this subsection, "electric utility facilities" means unstaffed facilities, except for the presence of security personnel, that are used for or in connection with or to facilitate the transmission, distribution, sale, or furnishing of electricity including, but not limited to, electric power substations. This subsection does not exempt a division of land from the zoning and permitting laws and regulations of cities, towns, counties, and municipal corporations. Furthermore, this subsection only applies to electric utility facilities that will be placed into service to meet the electrical needs of a utility's existing and new customers. New customers are defined as electric service locations not already in existence as of the date that electric utility facilities subject to the provisions of this subsection are planned and constructed."

    Senator Morton spoke in favor of adoption of the striking amendment.


POINT OF INQUIRY


    Senator Kline: “Would Senator Morton yield to a question? Senator, I’m just seeing this language for the first time and it looks very much like a bill that you and I discussed on the Senate Land Use Committee and one that we agreed upon. I’m seeing that it refers only to consumer-owned or investor-owned electric utilities as opposed to publicly-owned investor utilities, publicly-owned utilities. And, further, that there was no requirement that the-none that I can see quickly-that requires that the property not be staffed or not have staff working on it on a regular basis. Which both of those, as I recall, were clearly specified in the language that you and I agreed to in Land Use.”

    Senator Morton: “Thank you Senator Kline. The latter is still in here. I can’t put my finger on the line number and page right now, but its my understanding that it’s there, that’s it an uninhabited parcel of land. Page 3, line 10, I guess, I’d start at! To be used for the purpose of establishing a site for construction and operation of consumer-owned or investor-owned electric utility for the purpose of substation. It means that its an unstaffed facility, except for the presence of security personnel. Remember, we talked about that, in case of the terrorism problem, we have where they could have guards, if they needed at the substation location.”


    Senators Kline, Mulliken and Fraser spoke in favor of adoption of the striking amendment.

    The President declared the question before the Senate to be the adoption of the striking amendment by Senator Morton to Substitute House Bill No. 2452.

    The motion by Senator Morton carried and the striking amendment was adopted by voice vote.


    There being no objection, the following title amendment was adopted:

    On page 1, line 2 of the title, after "facilities;" strike the remainder of the title and insert "and amending RCW 58.17.040."


MOTION


    On motion of Senator Mulliken, the rules were suspended, Substitute House Bill No. 2452, as amended by the Senate under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

    The President declared the question before the Senate to be the final passage of Substitute House Bill No. 2452, as amended by the Senate under suspension of the rules.


ROLL CALL


    The Secretary called the roll on the final passage of Substitute House Bill No. 2452, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Berkey, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Murray, Oke, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Zarelli - 47.

     Excused: Senators Deccio and Finkbeiner - 2.

    SUBSTITUTE HOUSE BILL NO. 2452, as amended by the Senate under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


    On motion of Senator Esser, Substitute House Bill No. 2452 was immediately transmitted to the House of Representatives.


MESSAGE FROM THE HOUSE


March 8, 2004


MR. PRESIDENT:



    The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2660 and asks the Senate to recede therefrom.

and the same is herewith transmitted.


RICHARD NAFZIGER, Chief Clerk


MOTION


    On motion of Senator McCaslin, the Senate receded from its amendment(s) to Substitute House Bill No. 2660.

    On motion of Senator McCaslin, the rules were suspended, Substitute House Bill No. 2660 was returned to second reading and read the second time.


MOTION


    Senator McCaslin moved that the following striking amendment by Senator McCaslin be adopted:

    Strike everything after the enacting clause and insert the following:

    "Sec.

1.  RCW 10.05.140 and 2003 c 220 s 2 are each amended to read as follows:

    As a condition of granting a deferred prosecution petition, the court shall order that the petitioner shall not operate a motor vehicle upon the public highways without a valid operator's license and proof of liability insurance. The amount of liability insurance shall be established by the court at not less than that established by RCW 46.29.490. As a condition of granting a deferred prosecution petition on any alcohol-dependency based case, the court shall also order the installation of an ignition interlock ((or other device)) under RCW 46.20.720 ((for a petitioner who has previously been convicted of a violation of RCW 46.61.502 or 46.61.504 or an equivalent local ordinance or a petitioner who has been charged with such an offense and had an alcohol concentration of at least .15, or by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration. For any other petitioner, the court may order the installation of an interlock device under RCW 46.20.720(1) as a condition of granting a deferred prosecution petition)). The required periods of use of the interlock shall be not less than the periods provided for in RCW 46.20.720(2) (a), (b), and (c). As a condition of granting a deferred prosecution petition, the court may order the petitioner to make restitution and to pay costs as defined in RCW 10.01.160. To help ensure continued sobriety and reduce the likelihood of reoffense, the court may order reasonable conditions during the period of the deferred prosecution including, but not limited to, attendance at self-help recovery support groups for alcoholism or drugs, complete abstinence from alcohol and all nonprescribed mind-altering drugs, periodic urinalysis or breath analysis, and maintaining law-abiding behavior. The court may terminate the deferred prosecution program upon violation of the deferred prosecution order.

    Sec.

2.  RCW 46.20.308 and 2004 c ... (Substitute House Bill No. 3055) s 2 are each amended to read as follows:

    (1) Any person who operates a motor vehicle within this state is deemed to have given consent, subject to the provisions of RCW 46.61.506, to a test or tests of his or her breath or blood for the purpose of determining the alcohol concentration or presence of any drug in his or her breath or blood if arrested for any offense where, at the time of the arrest, the arresting officer has reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug or was in violation of RCW 46.61.503. Neither consent nor this section precludes a police officer from obtaining a search warrant for a person's breath or blood.

    (2) The test or tests of breath shall be administered at the direction of a law enforcement officer having reasonable grounds to believe the person to have been driving or in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or any drug or the person to have been driving or in actual physical control of a motor vehicle while having alcohol in a concentration in violation of RCW 46.61.503 in his or her system and being under the age of twenty-one. However, in those instances where the person is incapable due to physical injury, physical incapacity, or other physical limitation, of providing a breath sample or where the person is being treated in a hospital, clinic, doctor's office, emergency medical vehicle, ambulance, or other similar facility or where the officer has reasonable grounds to believe that the person is under the influence of a drug, a blood test shall be administered by a qualified person as provided in RCW 46.61.506(5). The officer shall inform the person of his or her right to refuse the breath or blood test, and of his or her right to have additional tests administered by any qualified person of his or her choosing as provided in RCW 46.61.506. The officer shall warn the driver, in substantially the following language, that:

    (a) If the driver refuses to take the test, the driver's license, permit, or privilege to drive will be revoked or denied for at least one year; and

    (b) ((If the driver refuses to take the test, the driver will not be eligible for an occupational permit; and

    (c))) If the driver refuses to take the test, the driver's refusal to take the test may be used in a criminal trial; and

    (((d))) (c) If the driver submits to the test and the test is administered, the driver's license, permit, or privilege to drive will be suspended, revoked, or denied for at least ninety days if the driver is age twenty-one or over and the test indicates the alcohol concentration of the driver's breath or blood is 0.08 or more, or if the driver is under age twenty-one and the test indicates the alcohol concentration of the driver's breath or blood is 0.02 or more, or if the driver is under age twenty-one and the driver is in violation of RCW 46.61.502 or 46.61.504.

    (3) Except as provided in this section, the test administered shall be of the breath only. If an individual is unconscious or is under arrest for the crime of vehicular homicide as provided in RCW 46.61.520 or vehicular assault as provided in RCW 46.61.522, or if an individual is under arrest for the crime of driving while under the influence of intoxicating liquor or drugs as provided in RCW 46.61.502, which arrest results from an accident in which there has been serious bodily injury to another person, a breath or blood test may be administered without the consent of the individual so arrested.

    (4) Any person who is dead, unconscious, or who is otherwise in a condition rendering him or her incapable of refusal, shall be deemed not to have withdrawn the consent provided by subsection (1) of this section and the test or tests may be administered, subject to the provisions of RCW 46.61.506, and the person shall be deemed to have received the warnings required under subsection (2) of this section.

    (5) If, following his or her arrest and receipt of warnings under subsection (2) of this section, the person arrested refuses upon the request of a law enforcement officer to submit to a test or tests of his or her breath or blood, no test shall be given except as authorized under subsection (3) or (4) of this section.

    (6) If, after arrest and after the other applicable conditions and requirements of this section have been satisfied, a test or tests of the person's blood or breath is administered and the test results indicate that the alcohol concentration of the person's breath or blood is 0.08 or more if the person is age twenty-one or over, or 0.02 or more if the person is under the age of twenty-one, or the person refuses to submit to a test, the arresting officer or other law enforcement officer at whose direction any test has been given, or the department, where applicable, if the arrest results in a test of the person's blood, shall:

    (a) Serve notice in writing on the person on behalf of the department of its intention to suspend, revoke, or deny the person's license, permit, or privilege to drive as required by subsection (7) of this section;

    (b) Serve notice in writing on the person on behalf of the department of his or her right to a hearing, specifying the steps he or she must take to obtain a hearing as provided by subsection (8) of this section;

    (c) Mark the person's Washington state driver's license or permit to drive, if any, in a manner authorized by the department;

    (d) Serve notice in writing that the marked license or permit, if any, is a temporary license that is valid for sixty days from the date of arrest or from the date notice has been given in the event notice is given by the department following a blood test, or until the suspension, revocation, or denial of the person's license, permit, or privilege to drive is sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first. No temporary license is valid to any greater degree than the license or permit that it replaces; and

    (e) Immediately notify the department of the arrest and transmit to the department within seventy-two hours, except as delayed as the result of a blood test, a sworn report or report under a declaration authorized by RCW 9A.72.085 that states:

    (i) That the officer had reasonable grounds to believe the arrested person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or drugs, or both, or was under the age of twenty-one years and had been driving or was in actual physical control of a motor vehicle while having an alcohol concentration in violation of RCW 46.61.503;

    (ii) That after receipt of the warnings required by subsection (2) of this section the person refused to submit to a test of his or her blood or breath, or a test was administered and the results indicated that the alcohol concentration of the person's breath or blood was 0.08 or more if the person is age twenty-one or over, or was 0.02 or more if the person is under the age of twenty-one; and

    (iii) Any other information that the director may require by rule.

    (7) The department of licensing, upon the receipt of a sworn report or report under a declaration authorized by RCW 9A.72.085 under subsection (6)(e) of this section, shall suspend, revoke, or deny the person's license, permit, or privilege to drive or any nonresident operating privilege, as provided in RCW 46.20.3101, such suspension, revocation, or denial to be effective beginning sixty days from the date of arrest or from the date notice has been given in the event notice is given by the department following a blood test, or when sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first.

    (8) A person receiving notification under subsection (6)(b) of this section may, within thirty days after the notice has been given, request in writing a formal hearing before the department. The person shall pay a fee of one hundred dollars as part of the request. If the request is mailed, it must be postmarked within thirty days after receipt of the notification. Upon timely receipt of such a request for a formal hearing, including receipt of the required one hundred dollar fee, the department shall afford the person an opportunity for a hearing. The department may waive the required one hundred dollar fee if the person is an indigent as defined in RCW 10.101.010. Except as otherwise provided in this section, the hearing is subject to and shall be scheduled and conducted in accordance with RCW 46.20.329 and 46.20.332. The hearing shall be conducted in the county of the arrest, except that all or part of the hearing may, at the discretion of the department, be conducted by telephone or other electronic means. The hearing shall be held within sixty days following the arrest or following the date notice has been given in the event notice is given by the department following a blood test, unless otherwise agreed to by the department and the person, in which case the action by the department shall be stayed, and any valid temporary license marked under subsection (6)(c) of this section extended, if the person is otherwise eligible for licensing. For the purposes of this section, the scope of the hearing shall cover the issues of whether a law enforcement officer had reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or any drug or had been driving or was in actual physical control of a motor vehicle within this state while having alcohol in his or her system in a concentration of 0.02 or more if the person was under the age of twenty-one, whether the person was placed under arrest, and (a) whether the person refused to submit to the test or tests upon request of the officer after having been informed that such refusal would result in the revocation of the person's license, permit, or privilege to drive, or (b) if a test or tests were administered, whether the applicable requirements of this section were satisfied before the administration of the test or tests, whether the person submitted to the test or tests, or whether a test was administered without express consent as permitted under this section, and whether the test or tests indicated that the alcohol concentration of the person's breath or blood was 0.08 or more if the person was age twenty-one or over at the time of the arrest, or 0.02 or more if the person was under the age of twenty-one at the time of the arrest. The sworn report or report under a declaration authorized by RCW 9A.72.085 submitted by a law enforcement officer is prima facie evidence that the officer had reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or drugs, or both, or the person had been driving or was in actual physical control of a motor vehicle within this state while having alcohol in his or her system in a concentration of 0.02 or more and was under the age of twenty-one and that the officer complied with the requirements of this section.

    A hearing officer shall conduct the hearing, may issue subpoenas for the attendance of witnesses and the production of documents, and shall administer oaths to witnesses. The hearing officer shall not issue a subpoena for the attendance of a witness at the request of the person unless the request is accompanied by the fee required by RCW 5.56.010 for a witness in district court. The sworn report or report under a declaration authorized by RCW 9A.72.085 of the law enforcement officer and any other evidence accompanying the report shall be admissible without further evidentiary foundation and the certifications authorized by the criminal rules for courts of limited jurisdiction shall be admissible without further evidentiary foundation. The person may be represented by counsel, may question witnesses, may present evidence, and may testify. The department shall order that the suspension, revocation, or denial either be rescinded or sustained.

    (9) If the suspension, revocation, or denial is sustained after such a hearing, the person whose license, privilege, or permit is suspended, revoked, or denied has the right to file a petition in the superior court of the county of arrest to review the final order of revocation by the department in the same manner as an appeal from a decision of a court of limited jurisdiction. Notice of appeal must be filed within thirty days after the date the final order is served or the right to appeal is waived. Notwithstanding RCW 46.20.334, RALJ 1.1, or other statutes or rules referencing de novo review, the appeal shall be limited to a review of the record of the administrative hearing. The appellant must pay the costs associated with obtaining the record of the hearing before the hearing officer. The filing of the appeal does not stay the effective date of the suspension, revocation, or denial. A petition filed under this subsection must include the petitioner's grounds for requesting review. Upon granting petitioner's request for review, the court shall review the department's final order of suspension, revocation, or denial as expeditiously as possible. The review must be limited to a determination of whether the department has committed any errors of law. The superior court shall accept those factual determinations supported by substantial evidence in the record: (a) That were expressly made by the department; or (b) that may reasonably be inferred from the final order of the department. The superior court may reverse, affirm, or modify the decision of the department or remand the case back to the department for further proceedings. The decision of the superior court must be in writing and filed in the clerk's office with the other papers in the case. The court shall state the reasons for the decision. If judicial relief is sought for a stay or other temporary remedy from the department's action, the court shall not grant such relief unless the court finds that the appellant is likely to prevail in the appeal and that without a stay the appellant will suffer irreparable injury. If the court stays the suspension, revocation, or denial it may impose conditions on such stay.

    (10) If a person whose driver's license, permit, or privilege to drive has been or will be suspended, revoked, or denied under subsection (7) of this section, other than as a result of a breath or blood test refusal, and who has not committed an offense for which he or she was granted a deferred prosecution under chapter 10.05 RCW, petitions a court for a deferred prosecution on criminal charges arising out of the arrest for which action has been or will be taken under subsection (7) of this section, the court may direct the department to stay any actual or proposed suspension, revocation, or denial for at least forty-five days but not more than ninety days. If the court stays the suspension, revocation, or denial, it may impose conditions on such stay. If the person is otherwise eligible for licensing, the department shall issue a temporary license, or extend any valid temporary license marked under subsection (6) of this section, for the period of the stay. If a deferred prosecution treatment plan is not recommended in the report made under RCW 10.05.050, or if treatment is rejected by the court, or if the person declines to accept an offered treatment plan, or if the person violates any condition imposed by the court, then the court shall immediately direct the department to cancel the stay and any temporary marked license or extension of a temporary license issued under this subsection.

    A suspension, revocation, or denial imposed under this section, other than as a result of a breath or blood test refusal, shall be stayed if the person is accepted for deferred prosecution as provided in chapter 10.05 RCW for the incident upon which the suspension, revocation, or denial is based. If the deferred prosecution is terminated, the stay shall be lifted and the suspension, revocation, or denial reinstated. If the deferred prosecution is completed, the stay shall be lifted and the suspension, revocation, or denial canceled.

    (11) When it has been finally determined under the procedures of this section that a nonresident's privilege to operate a motor vehicle in this state has been suspended, revoked, or denied, the department shall give information in writing of the action taken to the motor vehicle administrator of the state of the person's residence and of any state in which he or she has a license.

    Sec.

3.  RCW 46.20.311 and 2003 c 366 s 2 are each amended to read as follows:

    (1)(a) The department shall not suspend a driver's license or privilege to drive a motor vehicle on the public highways for a fixed period of more than one year, except as specifically permitted under RCW 46.20.267, 46.20.342, or other provision of law.

    (b) Except for a suspension under RCW 46.20.267, 46.20.289, 46.20.291(5), 46.61.740, or 74.20A.320, whenever the license or driving privilege of any person is suspended by reason of a conviction, a finding that a traffic infraction has been committed, pursuant to chapter 46.29 RCW, or pursuant to RCW 46.20.291 or 46.20.308, the suspension shall remain in effect until the person gives and thereafter maintains proof of financial responsibility for the future as provided in chapter 46.29 RCW.

    (c) If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reinstatement until enrollment and participation in an approved program has been established and the person is otherwise qualified. If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, and the person is required pursuant to RCW 46.20.720 to drive only a motor vehicle equipped with a functioning ignition interlock ((or other biological or technical device)), the department shall determine the person's eligibility for licensing based upon written verification by a company doing business in the state that it has installed the required device on a vehicle owned ((and/or)) or operated by the person seeking reinstatement. If, based upon notification from the interlock provider or otherwise, the department determines that an interlock required under RCW 46.20.720 is no longer installed or functioning as required, the department shall suspend the person's license or privilege to drive. Whenever the license or driving privilege of any person is suspended or revoked as a result of noncompliance with an ignition interlock requirement, the suspension shall remain in effect until the person provides notice issued by a company doing business in the state that a vehicle owned or operated by the person is equipped with a functioning ignition interlock device.

    (d) Whenever the license or driving privilege of any person is suspended as a result of certification of noncompliance with a child support order under chapter 74.20A RCW or a residential or visitation order, the suspension shall remain in effect until the person provides a release issued by the department of social and health services stating that the person is in compliance with the order.

    (((b))) (e)(i) The department shall not issue to the person a new, duplicate, or renewal license until the person pays a reissue fee of twenty dollars.

    (ii) If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, or is the result of administrative action under RCW 46.20.308, the reissue fee shall be one hundred fifty dollars.

    (2)(a) Any person whose license or privilege to drive a motor vehicle on the public highways has been revoked, unless the revocation was for a cause which has been removed, is not entitled to have the license or privilege renewed or restored until: (i) After the expiration of one year from the date the license or privilege to drive was revoked; (ii) after the expiration of the applicable revocation period provided by RCW 46.20.3101 or 46.61.5055; (iii) after the expiration of two years for persons convicted of vehicular homicide; or (iv) after the expiration of the applicable revocation period provided by RCW 46.20.265.

    (b)(i) After the expiration of the appropriate period, the person may make application for a new license as provided by law together with a reissue fee in the amount of twenty dollars.

    (ii) If the revocation is the result of a violation of RCW 46.20.308, 46.61.502, or 46.61.504, the reissue fee shall be one hundred fifty dollars. If the revocation is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reissuance of a license, permit, or privilege to drive until enrollment and participation in an approved program has been established and the person is otherwise qualified. If the revocation is the result of a violation of RCW 46.61.502 or 46.61.504, and the person is required pursuant to RCW 46.20.720 to drive only a motor vehicle equipped with a functioning ignition interlock or other biological or technical device, the department shall determine the person's eligibility for licensing based upon written verification by a company doing business in the state that it has installed the required device on a vehicle owned ((and/or)) or operated by the person applying for a new license. If, following issuance of a new license, the department determines, based upon notification from the interlock provider or otherwise, that an interlock required under RCW 46.20.720 is no longer functioning, the department shall suspend the person's license or privilege to drive until the department has received written verification from an interlock provider that a functioning interlock is installed.

    (c) Except for a revocation under RCW 46.20.265, the department shall not then issue a new license unless it is satisfied after investigation of the driving ability of the person that it will be safe to grant the privilege of driving a motor vehicle on the public highways, and until the person gives and thereafter maintains proof of financial responsibility for the future as provided in chapter 46.29 RCW. For a revocation under RCW 46.20.265, the department shall not issue a new license unless it is satisfied after investigation of the driving ability of the person that it will be safe to grant that person the privilege of driving a motor vehicle on the public highways.

    (3)(a) Whenever the driver's license of any person is suspended pursuant to Article IV of the nonresident violators compact or RCW 46.23.020 or 46.20.289 or 46.20.291(5), the department shall not issue to the person any new or renewal license until the person pays a reissue fee of twenty dollars.

    (b) If the suspension is the result of a violation of the laws of this or any other state, province, or other jurisdiction involving (i) the operation or physical control of a motor vehicle upon the public highways while under the influence of intoxicating liquor or drugs, or (ii) the refusal to submit to a chemical test of the driver's blood alcohol content, the reissue fee shall be one hundred fifty dollars.

    Sec.

4.  RCW 46.20.3101 and 1998 c 213 s 2, 1998 c 209 s 2, and 1998 c 207 s 8 are each reenacted and amended to read as follows:

    Pursuant to RCW 46.20.308, the department shall suspend, revoke, or deny the arrested person's license, permit, or privilege to drive as follows:

    (1) In the case of a person who has refused a test or tests:

    (a) For a first refusal within seven years, where there has not been a previous incident within seven years that resulted in administrative action under this section, revocation or denial for one year;

    (b) For a second or subsequent refusal within seven years, or for a first refusal where there has been one or more previous incidents within seven years that have resulted in administrative action under this section, revocation or denial for two years or until the person reaches age twenty-one, whichever is longer. ((A revocation imposed under this subsection (1)(b) shall run consecutively to the period of any suspension, revocation, or denial imposed pursuant to a criminal conviction arising out of the same incident.))

    (2) In the case of an incident where a person has submitted to or been administered a test or tests indicating that the alcohol concentration of the person's breath or blood was 0.08 or more:

    (a) For a first incident within seven years, where there has not been a previous incident within seven years that resulted in administrative action under this section, suspension for ninety days;

    (b) For a second or subsequent incident within seven years, revocation or denial for two years.

    (3) In the case of an incident where a person under age twenty-one has submitted to or been administered a test or tests indicating that the alcohol concentration of the person's breath or blood was in violation of RCW 46.61.502, 46.61.503, or 46.61.504:

    (a) For a first incident within seven years, suspension or denial for ninety days;

    (b) For a second or subsequent incident within seven years, revocation or denial for one year or until the person reaches age twenty-one, whichever is longer.

    (4) The department shall grant credit on a day-for-day basis for any portion of a suspension, revocation, or denial already served under this section for a suspension, revocation, or denial imposed under RCW 46.61.5055 arising out of the same incident.

    Sec.

5.  RCW 46.20.342 and 2001 c 325 s 3 are each amended to read as follows:

    (1) It is unlawful for any person to drive a motor vehicle in this state while that person is in a suspended or revoked status or when his or her privilege to drive is suspended or revoked in this or any other state. Any person who has a valid Washington driver's license is not guilty of a violation of this section.

    (a) A person found to be an habitual offender under chapter 46.65 RCW, who violates this section while an order of revocation issued under chapter 46.65 RCW prohibiting such operation is in effect, is guilty of driving while license suspended or revoked in the first degree, a gross misdemeanor. Upon the first such conviction, the person shall be punished by imprisonment for not less than ten days. Upon the second conviction, the person shall be punished by imprisonment for not less than ninety days. Upon the third or subsequent conviction, the person shall be punished by imprisonment for not less than one hundred eighty days. If the person is also convicted of the offense defined in RCW 46.61.502 or 46.61.504, when both convictions arise from the same event, the minimum sentence of confinement shall be not less than ninety days. The minimum sentence of confinement required shall not be suspended or deferred. A conviction under this subsection does not prevent a person from petitioning for reinstatement as provided by RCW 46.65.080.

    (b) A person who violates this section while an order of suspension or revocation prohibiting such operation is in effect and while the person is not eligible to reinstate his or her driver's license or driving privilege, other than for a suspension for the reasons described in (c) of this subsection, is guilty of driving while license suspended or revoked in the second degree, a gross misdemeanor. This subsection applies when a person's driver's license or driving privilege has been suspended or revoked by reason of:

    (i) A conviction of a felony in the commission of which a motor vehicle was used;

    (ii) A previous conviction under this section;

    (iii) A notice received by the department from a court or diversion unit as provided by RCW 46.20.265, relating to a minor who has committed, or who has entered a diversion unit concerning an offense relating to alcohol, legend drugs, controlled substances, or imitation controlled substances;

    (iv) A conviction of RCW 46.20.410, relating to the violation of restrictions of an occupational or a temporary restricted driver's license;

    (v) A conviction of RCW 46.20.345, relating to the operation of a motor vehicle with a suspended or revoked license;

    (vi) A conviction of RCW 46.52.020, relating to duty in case of injury to or death of a person or damage to an attended vehicle;

    (vii) A conviction of RCW 46.61.024, relating to attempting to elude pursuing police vehicles;

    (viii) A conviction of RCW 46.61.500, relating to reckless driving;

    (ix) A conviction of RCW 46.61.502 or 46.61.504, relating to a person under the influence of intoxicating liquor or drugs;

    (x) A conviction of RCW 46.61.520, relating to vehicular homicide;

    (xi) A conviction of RCW 46.61.522, relating to vehicular assault;

    (xii) A conviction of RCW 46.61.527(4), relating to reckless endangerment of roadway workers;

    (xiii) A conviction of RCW 46.61.530, relating to racing of vehicles on highways;

    (xiv) A conviction of RCW 46.61.685, relating to leaving children in an unattended vehicle with motor running;

    (xv) A conviction of RCW 46.61.740, relating to theft of motor vehicle fuel;

    (xvi) A conviction of RCW 46.64.048, relating to attempting, aiding, abetting, coercing, and committing crimes;

    (xvii) An administrative action taken by the department under chapter 46.20 RCW; or

    (xviii) A conviction of a local law, ordinance, regulation, or resolution of a political subdivision of this state, the federal government, or any other state, of an offense substantially similar to a violation included in this subsection.

    (c) A person who violates this section when his or her driver's license or driving privilege is, at the time of the violation, suspended or revoked solely because (i) the person must furnish proof of satisfactory progress in a required alcoholism or drug treatment program, (ii) the person must furnish proof of financial responsibility for the future as provided by chapter 46.29 RCW, (iii) the person has failed to comply with the provisions of chapter 46.29 RCW relating to uninsured accidents, (iv) the person has failed to respond to a notice of traffic infraction, failed to appear at a requested hearing, violated a written promise to appear in court, or has failed to comply with the terms of a notice of traffic infraction or citation, as provided in RCW 46.20.289, (v) the person has committed an offense in another state that, if committed in this state, would not be grounds for the suspension or revocation of the person's driver's license, (vi) the person has been suspended or revoked by reason of one or more of the items listed in (b) of this subsection, but was eligible to reinstate his or her driver's license or driving privilege at the time of the violation, or (vii) the person has received traffic citations or notices of traffic infraction that have resulted in a suspension under RCW 46.20.267 relating to intermediate drivers' licenses, or any combination of (i) through (vii), is guilty of driving while license suspended or revoked in the third degree, a misdemeanor.

    (2) Upon receiving a record of conviction of any person or upon receiving an order by any juvenile court or any duly authorized court officer of the conviction of any juvenile under this section, the department shall:

    (a) For a conviction of driving while suspended or revoked in the first degree, as provided by subsection (1)(a) of this section, extend the period of administrative revocation imposed under chapter 46.65 RCW for an additional period of one year from and after the date the person would otherwise have been entitled to apply for a new license or have his or her driving privilege restored; or

    (b) For a conviction of driving while suspended or revoked in the second degree, as provided by subsection (1)(b) of this section, not issue a new license or restore the driving privilege for an additional period of one year from and after the date the person would otherwise have been entitled to apply for a new license or have his or her driving privilege restored; or

    (c) Not extend the period of suspension or revocation if the conviction was under subsection (1)(c) of this section. If the conviction was under subsection (1)(a) or (b) of this section and the court recommends against the extension and the convicted person has obtained a valid driver's license, the period of suspension or revocation shall not be extended.

    Sec.

6.  RCW 46.20.380 and 1985 ex.s. c 1 s 6 are each amended to read as follows:

    No person may file an application for an occupational or a temporary restricted driver's license as provided in RCW 46.20.391 unless he or she first pays to the director or other person authorized to accept applications and fees for driver's licenses a fee of ((twenty- five)) one hundred dollars. The applicant shall receive upon payment an official receipt for the payment of such fee. All such fees shall be forwarded to the director who shall transmit such fees to the state treasurer in the same manner as other driver's license fees.

    Sec.

7.  RCW 46.20.391 and 1999 c 274 s 4 and 1999 c 272 s 1 are each reenacted and amended to read as follows:

    (1)(a) Any person licensed under this chapter who is convicted of an offense relating to motor vehicles for which suspension or revocation of the driver's license is mandatory, other than vehicular homicide or vehicular assault, or who has had his or her license suspended, revoked, or denied under RCW 46.20.3101 (((2)(a) or (3)(a))), may submit to the department an application for ((an occupational)) a temporary restricted driver's license. The department, upon receipt of the prescribed fee and upon determining that the petitioner is ((engaged in an occupation or trade that makes it essential that the petitioner operate a motor vehicle)) eligible to receive the license, may issue ((an occupational)) a temporary restricted driver's license and may set definite restrictions as provided in RCW 46.20.394. No person may petition for, and the department shall not issue, ((an occupational)) a temporary restricted driver's license that is effective during the first thirty days of any suspension or revocation imposed ((either)) for a violation of RCW 46.61.502 or 46.61.504 or ((under RCW 46.20.3101 (2)(a) or (3)(a), or for both a violation of RCW 46.61.502 or 46.61.504 and under RCW 46.20.3101 (2)(a) or (3)(a) where the action arises from the same incident. A person aggrieved by the decision of the department on the application for an occupational driver's license may request a hearing as provided by rule of the department)), for a suspension, revocation, or denial imposed under RCW 46.20.3101, during the required minimum portion of the periods of suspension, revocation, or denial established under (c) of this subsection.

    (b) An applicant under this subsection whose driver's license is suspended or revoked for an alcohol-related offense shall provide proof to the satisfaction of the department that a functioning ignition interlock device has been installed on a vehicle owned or operated by the person.

    (i) The department shall require the person to maintain such a device on a vehicle owned or operated by the person and shall restrict the person to operating only vehicles equipped with such a device, for the remainder of the period of suspension, revocation, or denial.

    (ii) Subject to any periodic renewal requirements established by the department pursuant to this section and subject to any applicable compliance requirements under this chapter or other law, a temporary restricted driver's license granted after a suspension or revocation under RCW 46.61.5055 or 46.20.3101 extends through the remaining portion of any concurrent or consecutive suspension or revocation that may be imposed as the result of administrative action and criminal conviction arising out of the same incident.

    (iii) The time period during which the person is licensed under this section shall apply on a day-for-day basis toward satisfying the period of time the ignition interlock device restriction is required under RCW 46.20.720 (1) and (2) (a), (b), and (c).

    (c) The department shall provide by rule the minimum portions of the periods of suspension, revocation, or denial set forth in RCW 46.20.3101 after which a person may apply for a temporary restricted driver's license under this section. In establishing the minimum portions of the periods of suspension, revocation, or denial, the department shall consider the requirements of federal law regarding state eligibility for grants or other funding, and shall establish such periods so as to ensure that the state will maintain its eligibility, or establish eligibility, to obtain incentive grants or any other federal funding.

    (2)(a) A person licensed under this chapter whose driver's license is suspended administratively due to failure to appear or pay a traffic ticket under RCW 46.20.289; a violation of the financial responsibility laws under chapter 46.29 RCW; or for multiple violations within a specified period of time under RCW 46.20.291, may apply to the department for an occupational driver's license ((if the applicant demonstrates to the satisfaction of the department that one of the following additional conditions are met:

    (i) The applicant is in an apprenticeship program or an on-the-job training program for which a driver's license is required;

    (ii) The applicant presents evidence that he or she has applied for a position in an apprenticeship or on-the-job training program and the program has certified that a driver's license is required to begin the program, provided that a license granted under this provision shall be in effect no longer than fourteen days;

    (iii) The applicant is in a program that assists persons who are enrolled in a WorkFirst program pursuant to chapter 74.08A RCW to become gainfully employed and the program requires a driver's license; or

    (iv) The applicant is undergoing substance abuse treatment or is participating in meetings of a twelve-step group such as alcoholics anonymous)).

    (b) If the suspension is for failure to respond, pay, or comply with a notice of traffic infraction or conviction, the applicant must enter into a payment plan with the court.

    (c) An occupational driver's license issued to an applicant described in (a) of this subsection shall be valid for the period of the suspension or revocation ((but not more than two years)).

    (((d) Upon receipt of evidence that a holder of an occupational driver's license granted under this subsection is no longer enrolled in an apprenticeship or on-the-job training program, the director shall give written notice by first class mail to the driver that the occupational driver's license shall be canceled. The effective date of cancellation shall be fifteen days from the date of mailing the notice. If at any time before the cancellation goes into effect the driver submits evidence of continued enrollment in the program, the cancellation shall be stayed. If the cancellation becomes effective, the driver may obtain, at no additional charge, a new occupational driver's license upon submittal of evidence of enrollment in another program that meets the criteria set forth in this subsection.

    (e) The department shall not issue an occupational driver's license under (a)(iv) of this subsection if the applicant is able to receive transit services sufficient to allow for the applicant's participation in the programs referenced under (a)(iv) of this subsection.))

    (3) An applicant for an occupational or temporary restricted driver's license who qualifies under subsection (1) or (2) of this section is eligible to receive such license only if:

    (a) ((Within one year immediately preceding the date of the offense that gave rise to the present conviction, the applicant has not committed any offense relating to motor vehicles for which suspension or revocation of a driver's license is mandatory; and

    (b))) Within seven years immediately preceding the date of the offense that gave rise to the present conviction or incident, the applicant has not committed ((any of the following offenses: (i) Driving or being in actual physical control of a motor vehicle while under the influence of intoxicating liquor; (ii))) vehicular homicide under RCW 46.61.520((;)) or (((iii))) vehicular assault under RCW 46.61.522; and

    (((c))) (b) The applicant demonstrates that it is necessary for him or her to operate a motor vehicle because he or she:

    (i) Is engaged in an occupation or trade that makes it essential that he or she operate a motor vehicle((, except as allowed under subsection (2)(a) of this section));

    (ii) Is undergoing continuing health care or providing continuing care to another who is dependent upon the applicant;

    (iii) Is enrolled in an educational institution and pursuing a course of study leading to a diploma, degree, or other certification of successful educational completion;

    (iv) Is undergoing substance abuse treatment or is participating in meetings of a twelve-step group such as Alcoholics Anonymous that requires the petitioner to drive to or from the treatment or meetings;

    (v) Is fulfilling court-ordered community service responsibilities;

    (vi) Is in a program that assists persons who are enrolled in a WorkFirst program pursuant to chapter 74.08A RCW to become gainfully employed and the program requires a driver's license;

    (vii) Is in an apprenticeship, on-the-job training, or welfare-to-work program; or

    (viii) Presents evidence that he or she has applied for a position in an apprenticeship or on-the-job training program for which a driver's license is required to begin the program, provided that a license granted under this provision shall be in effect for no longer than fourteen days; and

    (((d))) (c) The applicant files satisfactory proof of financial responsibility under chapter 46.29 RCW; and

    (d) Upon receipt of evidence that a holder of an occupational driver's license granted under this subsection is no longer enrolled in an apprenticeship or on-the-job training program, the director shall give written notice by first class mail to the driver that the occupational driver's license shall be canceled. The effective date of cancellation shall be fifteen days from the date of mailing the notice. If at any time before the cancellation goes into effect the driver submits evidence of continued enrollment in the program, the cancellation shall be stayed. If the cancellation becomes effective, the driver may obtain, at no additional charge, a new occupational driver's license upon submittal of evidence of enrollment in another program that meets the criteria set forth in this subsection; and

    (e) The department shall not issue an occupational driver's license under (b)(iv) of this subsection if the applicant is able to receive transit services sufficient to allow for the applicant's participation in the programs referenced under (b)(iv) of this subsection.

    (4) A person aggrieved by the decision of the department on the application for an occupational or temporary restricted driver's license may request a hearing as provided by rule of the department.

    (5) The director shall cancel an occupational or temporary restricted driver's license upon receipt of notice that the holder thereof has been convicted of operating a motor vehicle in violation of its restrictions, or of a separate offense that under chapter 46.20 RCW would warrant suspension or revocation of a regular driver's license. The cancellation is effective as of the date of the conviction, and continues with the same force and effect as any suspension or revocation under this title.

    Sec.

8.  RCW 46.20.394 and 1999 c 272 s 2 are each amended to read as follows:

    In issuing an occupational or a temporary restricted driver's license under RCW 46.20.391, the department shall describe the type of ((occupation permitted)) qualifying circumstances for the license and shall set forth in detail the specific hours of the day during which the person may drive to and from his ((place of work)) or her residence, which may not exceed twelve hours in any one day; the days of the week during which the license may be used; and the general routes over which the person may travel. In issuing an occupational or temporary restricted driver's license that meets the qualifying circumstance under RCW 46.20.391 (((2)(a)(iv))) (3)(b)(iv), the department shall set forth in detail the specific hours during which the person may drive to and from substance abuse treatment or meetings of a twelve-step group such as alcoholics anonymous, the days of the week during which the license may be used, and the general routes over which the person may travel. These restrictions shall be prepared in written form by the department, which document shall be carried in the vehicle at all times and presented to a law enforcement officer under the same terms as the occupational or temporary restricted driver's license. Any violation of the restrictions constitutes a violation of RCW 46.20.342 and subjects the person to all procedures and penalties therefor.

    Sec.

9.  RCW 46.20.400 and 1967 c 32 s 33 are each amended to read as follows:

    If an occupational or a temporary restricted driver's license is issued and is not revoked during the period for which issued the licensee may obtain a new driver's license at the end of such period, but no new driver's ((permit shall)) license may be issued to such person until he or she surrenders his or her occupational or temporary restricted driver's license and his or her copy of the order, and the director is satisfied that ((he)) the person complies with all other provisions of law relative to the issuance of a driver's license.

    Sec.

10.             RCW 46.20.410 and 1967 c 32 s 34 are each amended to read as follows:

    Any person convicted for violation of any restriction of an occupational or a temporary restricted driver's license shall in addition to the immediate revocation of such license and any other penalties provided by law be fined not less than fifty nor more than two hundred dollars or imprisoned for not more than six months or both such fine and imprisonment.

    Sec.

11.             RCW 46.20.720 and 2003 c 366 s 1 are each amended to read as follows:

    (1) The court may order that after a period of suspension, revocation, or denial of driving privileges, and for up to as long as the court has jurisdiction, any person convicted of any offense involving the use, consumption, or possession of alcohol while operating a motor vehicle may drive only a motor vehicle equipped with a functioning ignition interlock ((or other biological or technical device)). The court shall establish a specific calibration setting at which the interlock will prevent the vehicle from being started. The court shall also establish the period of time for which interlock use will be required.

    (2)(((a))) The department shall require that, after any applicable period of suspension, revocation, or denial of driving privileges, a person may drive only a motor vehicle equipped with a functioning ignition interlock ((or other biological or technical)) device if the person is convicted of ((a)) an alcohol-related violation of RCW 46.61.502 or 46.61.504 or an equivalent local ordinance ((and it is:

    (i) The person's first conviction or a deferred prosecution under chapter 10.05 RCW and his or her alcohol concentration was at least 0.15, or by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration;

    (ii) The person's second or subsequent conviction; or

    (iii) The person's first conviction and the person has a previous deferred prosecution under chapter 10.05 RCW or it is a deferred prosecution under chapter 10.05 RCW and the person has a previous conviction)).

    (((b))) The department may waive the requirement for the use of such a device if it concludes that such devices are not reasonably available in the local area. ((Nothing in this section may be interpreted as entitling a person to more than one deferred prosecution.

    (3) In the case of a person under subsection (1) of this section, the court shall establish a specific calibration setting at which the ignition interlock or other biological or technical device will prevent the motor vehicle from being started and the period of time that the person shall be subject to the restriction. In the case of a person under subsection (2) of this section,)) The device is not necessary on vehicles owned by a person's employer and driven as a requirement of employment during working hours.

    The ignition interlock ((or other biological or technical)) device shall be calibrated to prevent the motor vehicle from being started when the breath sample provided has an alcohol concentration of 0.025 or more((, and)). The period of time of the restriction will be as follows:

    (a) For a person (((i) who is subject to RCW 46.61.5055 (1)(b), (2), or (3), or who is subject to a deferred prosecution program under chapter 10.05 RCW; and (ii))) who has not previously been restricted under this section, a period of one year;

    (b) For a person who has previously been restricted under (a) of this subsection, a period of five years;

    (c) For a person who has previously been restricted under (b) of this subsection, a period of ten years.

    ((For purposes of this section, "convicted" means being found guilty of an offense or being placed on a deferred prosecution program under chapter 10.05 RCW.))

    Sec.

12.             RCW 46.20.740 and 2001 c 55 s 1 are each amended to read as follows:

    (1) The department shall attach or imprint a notation on the driving record of any person restricted under RCW 46.20.720 stating that the person may operate only a motor vehicle equipped with ((an)) a functioning ignition interlock ((or other biological or technical)) device. The department shall determine the person's eligibility for licensing based upon written verification by a company doing business in the state that it has installed the required device on a vehicle owned or operated by the person seeking reinstatement. If, based upon notification from the interlock provider or otherwise, the department determines that an ignition interlock required under this section is no longer installed or functioning as required, the department shall suspend the person's license or privilege to drive. Whenever the license or driving privilege of any person is suspended or revoked as a result of noncompliance with an ignition interlock requirement, the suspension shall remain in effect until the person provides notice issued by a company doing business in the state that a vehicle owned or operated by the person is equipped with a functioning ignition interlock device.

    (2) It is a misdemeanor for a person with such a notation on his or her driving record to operate a motor vehicle that is not so equipped.

    Sec.

13.             RCW 46.61.5055 and 2003 c 103 s 1 are each amended to read as follows:

    (1) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has no prior offense within seven years shall be punished as follows:

    (a) In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) By imprisonment for not less than one day nor more than one year. Twenty-four consecutive hours of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based. In lieu of the mandatory minimum term of imprisonment required under this subsection (1)(a)(i), the court may order not less than fifteen days of electronic home monitoring. The offender shall pay the cost of electronic home monitoring. The county or municipality in which the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device to include an alcohol detection breathalyzer, and the court may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring; and

    (ii) By a fine of not less than three hundred fifty dollars nor more than five thousand dollars. Three hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; or

    (b) In the case of a person whose alcohol concentration was at least 0.15, or for whom by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) By imprisonment for not less than two days nor more than one year. Two consecutive days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based. In lieu of the mandatory minimum term of imprisonment required under this subsection (1)(b)(i), the court may order not less than thirty days of electronic home monitoring. The offender shall pay the cost of electronic home monitoring. The county or municipality in which the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device to include an alcohol detection breathalyzer, and the court may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring; and

    (ii) By a fine of not less than five hundred dollars nor more than five thousand dollars. Five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent((; and

    (iii) By a court-ordered restriction under RCW 46.20.720)).

    (2) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has one prior offense within seven years shall be punished as follows:

    (a) In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) By imprisonment for not less than thirty days nor more than one year and sixty days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. Thirty days of imprisonment and sixty days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

    (ii) By a fine of not less than five hundred dollars nor more than five thousand dollars. Five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; ((and

    (iii) By a court-ordered restriction under RCW 46.20.720;)) or

    (b) In the case of a person whose alcohol concentration was at least 0.15, or for whom by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) By imprisonment for not less than forty-five days nor more than one year and ninety days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. Forty-five days of imprisonment and ninety days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

    (ii) By a fine of not less than seven hundred fifty dollars nor more than five thousand dollars. Seven hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent((; and

    (iii) By a court-ordered restriction under RCW 46.20.720)).

    (3) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has two or more prior offenses within seven years shall be punished as follows:

    (a) In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) By imprisonment for not less than ninety days nor more than one year and one hundred twenty days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. Ninety days of imprisonment and one hundred twenty days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

    (ii) By a fine of not less than one thousand dollars nor more than five thousand dollars. One thousand dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent((; and

    (iii) By a court-ordered restriction under RCW 46.20.720)); or

    (b) In the case of a person whose alcohol concentration was at least 0.15, or for whom by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) By imprisonment for not less than one hundred twenty days nor more than one year and one hundred fifty days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. One hundred twenty days of imprisonment and one hundred fifty days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

    (ii) By a fine of not less than one thousand five hundred dollars nor more than five thousand dollars. One thousand five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent((; and

    (iii) By a court-ordered restriction under RCW 46.20.720)).

    (4) If a person who is convicted of a violation of RCW 46.61.502 or 46.61.504 committed the offense while a passenger under the age of sixteen was in the vehicle, the court shall:

    (a) In any case in which the installation and use of an interlock or other device is not mandatory under RCW 46.20.720 or other law, order the use of such a device for not less than sixty days following the restoration of the person's license, permit, or nonresident driving privileges; and

    (b) In any case in which the installation and use of such a device is otherwise mandatory, order the use of such a device for an additional sixty days.

    (5) In exercising its discretion in setting penalties within the limits allowed by this section, the court shall particularly consider the following:

    (a) Whether the person's driving at the time of the offense was responsible for injury or damage to another or another's property; and

    (b) Whether at the time of the offense the person was driving or in physical control of a vehicle with one or more passengers.

    (6) An offender punishable under this section is subject to the alcohol assessment and treatment provisions of RCW 46.61.5056.

    (7) The license, permit, or nonresident privilege of a person convicted of driving or being in physical control of a motor vehicle while under the influence of intoxicating liquor or drugs must:

    (a) If the person's alcohol concentration was less than 0.15, or if for reasons other than the person's refusal to take a test offered under RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

    (i) Where there has been no prior offense within seven years, be suspended or denied by the department for ninety days;

    (ii) Where there has been one prior offense within seven years, be revoked or denied by the department for two years; or

    (iii) Where there have been two or more prior offenses within seven years, be revoked or denied by the department for three years;

    (b) If the person's alcohol concentration was at least 0.15((, or if by reason of the person's refusal to take a test offered under RCW 46.20.308 there is no test result indicating the person's alcohol concentration)):

    (i) Where there has been no prior offense within seven years, be revoked or denied by the department for one year;

    (ii) Where there has been one prior offense within seven years, be revoked or denied by the department for nine hundred days; or

    (iii) Where there have been two or more prior offenses within seven years, be revoked or denied by the department for four years; or

    (c) If by reason of the person's refusal to take a test offered under RCW 46.20.308, there is no test result indicating the person's alcohol concentration:

    (i) Where there have been no prior offenses within seven years, be revoked or denied by the department for two years;

    (ii) Where there has been one prior offense within seven years, be revoked or denied by the department for three years; or

    (iii) Where there have been two or more previous offenses within seven years, be revoked or denied by the department for four years.

    The department shall grant credit on a day-for-day basis for any portion of a suspension, revocation, or denial already served under this subsection for a suspension, revocation, or denial imposed under RCW 46.20.3101 arising out of the same incident.

    For purposes of this subsection (7), the department shall refer to the driver's record maintained under RCW 46.52.120 when determining the existence of prior offenses.

    (8) After expiration of any period of suspension, revocation, or denial of the offender's license, permit, or privilege to drive required by this section, the department shall place the offender's driving privilege in probationary status pursuant to RCW 46.20.355.

    (9)(a) In addition to any nonsuspendable and nondeferrable jail sentence required by this section, whenever the court imposes less than one year in jail, the court shall also suspend but shall not defer a period of confinement for a period not exceeding five years. The court shall impose conditions of probation that include: (i) Not driving a motor vehicle within this state without a valid license to drive and proof of financial responsibility for the future; (ii) not driving