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SIXTY-FIFTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Tuesday, March 16, 1993

The Senate was called to order at 8:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Cantu, Hargrove, Niemi, Pelz and Prince. On motion of Senator Oke, Senators Cantu and Prince were excused. On motion of Senator Spanel, Senators Hargrove, Niemi and Pelz were excused.

The Sergeant at Arms Color Guard, consisting of Pages Mandy Haas and Jill Muir, presented the Colors. Reverend Sandra Gillogly Lee, pastor of the Unitarian Universalist Church of Olympia, offered the prayer.

MOTION

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

MESSAGES FROM THE HOUSE

March 13, 1993

MR. PRESIDENT:

The House has passed:

SUBSTITUTE HOUSE BILL NO. 1006,

SUBSTITUTE HOUSE BILL NO. 1072,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1089,

SUBSTITUTE HOUSE BILL NO. 1093,

ENGROSSED HOUSE BILL NO. 1107,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1140,

SUBSTITUTE HOUSE BILL NO. 1144,

SUBSTITUTE HOUSE BILL NO. 1276,

SUBSTITUTE HOUSE BILL NO. 1300,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1309,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1320,

SUBSTITUTE HOUSE BILL NO. 1350,

SUBSTITUTE HOUSE BILL NO. 1356,

SUBSTITUTE HOUSE BILL NO. 1357,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1368,

HOUSE BILL NO. 1419,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1464,

ENGROSSED HOUSE BILL NO. 1621,

SUBSTITUTE HOUSE BILL NO. 1635,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1662,

SUBSTITUTE HOUSE BILL NO. 1667,

SUBSTITUTE HOUSE BILL NO. 1678,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1744,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1771,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1776,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1785,

HOUSE BILL NO. 1790,

SUBSTITUTE HOUSE BILL NO. 1799,

HOUSE BILL NO. 1809,

SUBSTITUTE HOUSE BILL NO. 1928,

HOUSE BILL NO. 1942,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1949,

SUBSTITUTE HOUSE BILL NO. 1969,

HOUSE BILL NO. 1984,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1999,

SUBSTITUTE HOUSE BILL NO. 2036,

ENGROSSED HOUSE BILL NO. 2061,

HOUSE BILL NO. 2073,

HOUSE JOINT MEMORIAL NO. 4016, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

March 13, 1993

MR. PRESIDENT:

The House has passed:

SUBSTITUTE HOUSE BILL NO. 1009,

SUBSTITUTE HOUSE BILL NO. 1080,

HOUSE BILL NO. 1155,

ENGROSSED HOUSE BILL NO. 1261,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1294,

SUBSTITUTE HOUSE BILL NO. 1299,

ENGROSSED HOUSE BILL NO. 1353,

HOUSE BILL NO. 1361,

SUBSTITUTE HOUSE BILL NO. 1389,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1399,

SUBSTITUTE HOUSE BILL NO. 1418,

ENGROSSED HOUSE BILL NO. 1456,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1471,

SUBSTITUTE HOUSE BILL NO. 1504,

SUBSTITUTE HOUSE BILL NO. 1532,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1670,

SUBSTITUTE HOUSE BILL NO. 1703,

HOUSE BILL NO. 1705,

SUBSTITUTE HOUSE BILL NO. 1759,

SUBSTITUTE HOUSE BILL NO. 1837,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2026,

HOUSE BILL NO. 2032,

HOUSE BILL NO. 2069, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

March 15, 1993

MR. PRESIDENT:

The House has passed:

SUBSTITUTE HOUSE BILL NO. 1214,

HOUSE BILL NO. 1224,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1307,

SUBSTITUTE HOUSE BILL NO. 1336,

SUBSTITUTE HOUSE BILL NO. 1396,

SUBSTITUTE HOUSE BILL NO. 1452,

SUBSTITUTE HOUSE BILL NO. 1497,

SUBSTITUTE HOUSE BILL NO. 1545,

HOUSE BILL NO. 1632,

SUBSTITUTE HOUSE BILL NO. 1650,

HOUSE BILL NO. 1677,

HOUSE BILL NO. 1694,

SUBSTITUTE HOUSE BILL NO. 1704,

HOUSE BILL NO. 1713,

SUBSTITUTE HOUSE BILL NO. 1727,

SUBSTITUTE HOUSE BILL NO. 1978, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

INTRODUCTION AND FIRST READING OF HOUSE BILLS

SHB 1006 by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Zellinsky, Brumsickle, Dorn, R. Meyers, Miller, Scott, Sheldon, Wineberry, Ogden, Wood, Schmidt, Ballasiotes, Forner, Cooke, Talcott, Chandler, Leonard, Jacobsen, Eide, Horn and Pruitt)

Enabling public-private transportation initiatives.

Referred to Committee on Transportation.

SHB 1009 by House Committee on Judiciary (originally sponsored by Representatives Appelwick and Riley)

Prescribing liabilities for lis pendens filings.

Referred to Committee on Law and Justice.

SHB 1072 by House Committee on Judiciary (originally sponsored by Representatives Appelwick, Ludwig, Johanson and Ogden)

Changing provisions relating to guardians ad litem.

Referred to Committee on Law and Justice.

SHB 1080 by House Committee on Health Care (originally sponsored by Representatives Valle, Quall, Franklin, Flemming, G. Cole, Eide, Roland and Veloria)

Requiring nursing homes to refund deposits or minimum stay fees when not used by residents.

Referred to Committee on Health and Human Services.

ESHB 1089 by House Committee on Environmental Affairs (originally sponsored by Representatives J. Kohl, Horn, Rust and Pruitt) (by request of Department of Ecology)

Changing air quality operating permit requirements.

Referred to Committee on Ecology and Parks.

SHB 1093 by House Committee on Local Government (originally sponsored by Representatives Zellinsky, R. Fisher, Bray, Springer, Rayburn, Dunshee, Edmondson, Foreman, Brough, Miller and Forner)

Revising provisions relating to compensation of local officials.

Referred to Committee on Government Operations.

EHB 1107 by Representatives R. Fisher and Jacobsen

Requiring yielding right of way to buses.

Referred to Committee on Transportation.

ESHB 1140 by House Committee on Local Government (originally sponsored by Representatives Locke, Horn, H. Myers, Eide, Valle, Rust, Leonard, Basich, Franklin, Shin, Springer and J. Kohl)

Revising provisions relating to metropolitan municipal corporations.

Referred to Committee on Government Operations.

SHB 1144 by House Committee on Environmental Affairs (originally sponsored by Representatives Rust, Linville, Leonard, H. Myers, Campbell, Jacobsen, Valle, R. Fisher, Ogden, J. Kohl and Locke) (by request of Office of Marine Safety)

Establishing a field operations program in the office of marine safety.

Referred to Committee on Ecology and Parks.

HB 1155 by Representatives H. Myers, Appelwick, Ludwig, Chappell, Johanson, Scott, Brough, Horn, Long, Campbell, Karahalios, Wood, Foreman and Silver

Authorizing treatment options for persons convicted of vehicular homicide and vehicular assault.

Referred to Committee on Law and Justice.

SHB 1214 by House Committee on Health Care (originally sponsored by Representative Appelwick)

Concerning health care information disclosure.

Referred to Committee on Health and Human Services.

HB 1224 by Representatives Dellwo, King, Jones, L. Johnson, Flemming and Springer (by request of Department of Social and Health Services)

Eliminating the termination of hospice care and service coverage as medical assistance.

Referred to Committee on Health and Human Services.

EHB 1261 by Representatives Sommers, Dellwo, R. Fisher, Jacobsen, Brough, Wang, Brown, Thibaudeau, Johanson and J. Kohl

Regulating portability of retirement benefits.

Referred to Committee on Ways and Means.

SHB 1276 by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Schmidt, R. Meyers, Brown, Jones, Johanson, Cothern, J. Kohl, Horn and Wood) (by request of Department of Transportation)

Developing a public transportation policy plan.

Referred to Committee on Transportation.

ESHB 1294 by House Committee on Appropriations (originally sponsored by Representatives Locke, Mielke, Orr, Heavey, Scott, Quall, Chappell, R. Fisher, R. Meyers, Ludwig, R. Johnson, Wood, Grant, Riley, King, Mastin, Forner, Franklin, Karahalios, Jacobsen, Zellinsky, Romero, Johanson, Morris, Flemming, Leonard, Brown, Finkbeiner, Holm, Eide, G. Cole, Ogden, Jones, Wang, Sheldon, Bray, G. Fisher, Long, Dellwo, Roland, Tate, Springer, Thibaudeau, L. Johnson, J. Kohl, Veloria, Dunshee, Basich, Campbell, Kessler, H. Myers, Vance, Brough, Dorn, Hansen, Schmidt, Cooke, Casada, Edmondson, Carlson and Brumsickle)

Changing provisions in LEOFF Plan II to allow retirement at age fifty.

Referred to Committee on Ways and Means.

SHB 1299 by House Committee on Judiciary (originally sponsored by Representatives Pruitt, Forner, J. Kohl, Shin, Flemming, Carlson, Peery, Basich, Scott, Cothern, Thibaudeau, Kessler, Holm, Karahalios, Eide, Linville, Johanson, G. Cole, Riley, Van Luven, Jacobsen, Wang, Leonard, Quall, Silver, Brumsickle, Thomas, H. Myers, Rayburn and L. Johnson) (by request of Washington State School Directors Association, Board of Education and Superintendent of Public Instruction)

Prohibiting firearms and dangerous weapons on school premises, with limited exceptions.

Referred to Committee on Education.

SHB 1300 by House Committee on Judiciary (originally sponsored by Representatives Appelwick, Padden, J. Kohl, Riley, Forner, Ballasiotes, Schmidt, Brough, Long, Thibaudeau, Karahalios, Franklin, Johanson, G. Cole, Wood, Casada, Jacobsen, Leonard and H. Myers)

Revising laws relating to discrimination.

Referred to Committee on Law and Justice.

ESHB 1307 by House Committee on Trade, Economic Development and Housing (originally sponsored by Representatives Locke, Eide, Silver, Dunshee, L. Johnson, Pruitt, Brough, Sheldon, Jones, Long, Franklin, Talcott, J. Kohl, Wood, Lemmon, Jacobsen, Wang, Leonard, Quall, Rayburn and King)

Reauthorizing and modifying the Washington service corps.

Referred to Committee on Trade, Technology and Economic Development.

ESHB 1309 by House Committee on Fisheries and Wildlife (originally sponsored by Representatives King, Orr, Scott, G. Cole, Basich, Lemmon, Morris, Jones, Rust, Holm, R. Meyers, Johanson, J. Kohl, Jacobsen and Leonard)

Protecting and recovering wild salmonids.

Referred to Committee on Natural Resources.

ESHB 1320 by House Committee on Natural Resources and Parks (originally sponsored by Representatives Pruitt and R. Johnson)

Modifying the forest fire protection assessment.

Referred to Committee on Natural Resources.

SHB 1336 by House Committee on Revenue (originally sponsored by Representatives Karahalios, Sehlin, Orr, Zellinsky, Dellwo, Hansen, Sheldon, Rayburn, Grant, Bray, Riley, Mastin, Linville, Basich, Campbell, Lemmon, Kremen, Flemming and Ogden)

Allowing property owned by nonprofit organizations to be used for certain activities without loss of property tax exemption.

Referred to Committee on Ways and Means.

SHB 1350 by House Committee on Fisheries and Wildlife (originally sponsored by Representatives King, Fuhrman, Basich, Wood, Orr, Tate, Johanson and Foreman)

Requiring pink shrimp licenses.

Referred to Committee on Natural Resources.

EHB 1353 by Representatives G. Cole, Franklin, Heavey and King (by request of Department of Labor and Industries)

Regulating asbestos disease benefits claims.

Referred to Committee on Labor and Commerce.

SHB 1356 by House Committee on Environmental Affairs (originally sponsored by Representatives Rust, Horn, Roland and Valle) (by request of Department of Health)

Modifying penalties and compliance for public water systems.

Referred to Committee on Ecology and Parks.

SHB 1357 by House Committee on Environmental Affairs (originally sponsored by Representatives Rust, Horn, Roland and Valle) (by request of Department of Health)

Modifying certification of public water supply system operators.

Referred to Committee on Ecology and Parks.

HB 1361 by Representatives H. Myers, Ballasiotes, Forner, Riley, Ludwig, Padden, Chappell, Johanson, Appelwick, Long, Tate, Vance, Roland, Pruitt, Jones, Edmondson, Campbell, Lemmon, Brough, Chandler, Wood, Horn, Quall, Miller, Sheahan, Karahalios, Silver, Flemming, Morris, Talcott, Reams, L. Johnson, Ogden, Casada and Wineberry

Revising the statute of limitations for certain sex offenses.

Referred to Committee on Law and Justice.

ESHB 1368 by House Committee on Judiciary (originally sponsored by Representatives Padden, Appelwick, Johanson, Basich, Jacobsen, Ludwig, Fuhrman, Morris, Morton, Grant, Campbell, Long and Silver)

Allowing for deferral of a judicial determination that a traffic violation was committed.

Referred to Committee on Law and Justice.

SHB 1389 by House Committee on Corrections (originally sponsored by Representative Riley)

Changing provisions relating to work crews.

Referred to Committee on Law and Justice.

SHB 1396 by House Committee on State Government (originally sponsored by Representatives Anderson, Zellinsky, Mielke, Reams, Wineberry and Dellwo)

Creating a department of financial institutions.

Referred to Committee on Labor and Commerce.

ESHB 1399 by House Committee on Energy and Utilities (originally sponsored by Representatives Orr, Grant, Long, Schoesler, Ludwig and Casada)

Prohibiting unauthorized liquified petroleum gas container use.

Referred to Committee on Energy and Utilities.

SHB 1418 by House Committee on Education (originally sponsored by Representatives Ogden, H. Myers, Casada, Morris, Carlson and Jones) (by request of Washington State School for the Blind and Washington State School for the Deaf)

Changing provisions relating to state schools for the blind, deaf, and sensory impaired.

Referred to Committee on Education.

HB 1419 by Representatives G. Fisher, Horn and Rust (by request of Department of Ecology)

Including the water pollution control revolving fund in the funds that will be credited with earnings of investments of surplus funds.

Referred to Committee on Ecology and Parks.

SHB 1452 by House Committee on Human Services (originally sponsored by Representatives Riley, Heavey, Brown, Flemming, Karahalios, Cooke, Wineberry, Valle, Romero, Leonard, G. Cole, Mielke, Anderson and Ballard)

Specifying information that must be made available to parties affected by adoption.

Referred to Committee on Health and Human Services.

EHB 1456 by Representatives King, G. Cole, Lisk, R. Johnson, Horn, Foreman, Sheahan and Chandler

Allowing self-insured employers to close disability claims after July 1990.

Referred to Committee on Labor and Commerce.

ESHB 1464 by House Committee on Local Government (originally sponsored by Representatives Horn, H. Myers, Edmondson, Rayburn, Bray, R. Fisher, Zellinsky and Springer)

Making laws relating to local government office vacancies more uniform.

Referred to Committee on Government Operations.

ESHB 1471 by House Committee on Fisheries and Wildlife (originally sponsored by Representatives King, Basich, Orr, Fuhrman, Brumsickle, Foreman and G. Cole)

Regulating the non-Puget Sound coastal commercial crab fishery.

Referred to Committee on Natural Resources.

SHB 1497 by House Committee on Higher Education (originally sponsored by Representative Dellwo)

Adopting the approved foreign degree-granting institution branch campus act.

Referred to Committee on Higher Education.

SHB 1504 by House Committee on Capital Budget (originally sponsored by Representatives Wang, Jacobsen, Romero, Wolfe and Morris) (by request of Evergreen State College)

Changing the disposition of certain normal school fund revenues.

Referred to Committee on Higher Education.

SHB 1532 by House Committee on Health Care (originally sponsored by Representatives Veloria, Lisk, R. Johnson, Jacobsen, King, Pruitt, Karahalios, Quall, Van Luven, Long, Eide and Anderson)

Creating an interim permit for physical therapist licensure candidates.

Referred to Committee on Health and Human Services.

SHB 1545 by House Committee on Judiciary (originally sponsored by Representative Appelwick)

Changing provisions relating to municipal courts.

Referred to Committee on Law and Justice.

EHB 1621 by Representatives Rayburn, Chandler and Jacobsen (by request of Department of Agriculture)

Modifying the regulation of apiaries.

Referred to Committee on Agriculture.

HB 1632 by Representatives Anderson, Locke, Morton, Grant, Tate, Brough, Thomas and J. Kohl

Modifying funeral expenses of a deceased person.

Referred to Committee on Health and Human Services.

SHB 1635 by House Committee on Transportation (originally sponsored by Representatives Zellinsky, Schmidt, King, Ballard, Dorn, Sehlin, Heavey, Kremen, Brough, Sheldon, Wood, Jones, Jacobsen, J. Kohl, R. Johnson, Karahalios, Holm, Scott, Orr, Kessler, Pruitt, R. Fisher, Wang, Springer, Quall, Conway, Anderson, Shin, Veloria, Leonard, Campbell, R. Meyers, Ballasiotes, Vance, Foreman, Patterson, Valle, Johanson, Miller, Chandler, G. Fisher, Roland, Linville and Cothern)

Establishing procedures for bidding construction of jumbo ferries.

Referred to Committee on Transportation.

SHB 1650 by House Committee on State Government (originally sponsored by Representatives Romero, Campbell, Rayburn, Chappell, Ludwig, Jacobsen, Veloria and Pruitt)

Directing the attorney general to study the implementation of RCW 42.17.325.

Referred to Committee on Government Operations.

ESHB 1662 by House Committee on Trade, Economic Development and Housing (originally sponsored by Representatives Wineberry, Shin, Forner, Sheldon, Wang, Riley, Ogden, Silver, Valle, Jones, Holm, Basich, Rayburn, Jacobsen, Kremen, Cooke and J. Kohl) (by request of Department of Trade and Economic Development)

Reauthorizing the community economic revitalization board.

Referred to Committee on Trade, Technology and Economic Development.

SHB 1667 by House Committee on Environmental Affairs (originally sponsored by Representatives Romero, H. Myers, Heavey, Finkbeiner and Wolfe)

Prohibiting additives for on-site sewage disposal systems.

Referred to Committee on Ecology and Parks.

ESHB 1670 by House Committee on Appropriations (originally sponsored by Representatives Sommers, Heavey, Locke, King, Jacobsen, Vance, Wineberry, Mielke, Linville, Lisk, J. Kohl, Wolfe, Basich, Orr, Valle, Veloria, Anderson, G. Cole, Dorn, Jones, R. Fisher, Holm, Ogden and Kremen)

Providing service credit for periods of paid leave.

Referred to Committee on Labor and Commerce.

HB 1677 by Representatives Brown, Karahalios, Wolfe, Thibaudeau, Campbell, Flemming, Jones, King, Holm, J. Kohl, H. Myers and Anderson

Developing chemical dependency services for victims of sexual assault and domestic violence.

Referred to Committee on Health and Human Services.

SHB 1678 by House Committee on Appropriations (originally sponsored by Representatives Eide, Brough, Wineberry, Pruitt, Valle, Quall and Sheldon)

Continuing funding for Operation New Market.

Referred to Committee on Trade, Technology and Economic Development.

HB 1694 by Representatives Dellwo, Dyer and Morris (by request of Department of Health)

Modifying the examination of health profession candidates for credentialing.

Referred to Committee on Health and Human Services.

SHB 1703 by House Committee on Energy and Utilities (originally sponsored by Representatives Johanson, Grant and Jacobsen) (by request of Utilities and Transportation Commission)

Concerning alternate operator service companies.

Referred to Committee on Energy and Utilities.

SHB 1704 by House Committee on Revenue (originally sponsored by Representatives G. Fisher, Locke, Silver, Talcott and Flemming) (by request of Secretary of State)

Authorizing the secretary of state to set fees by rule.

Referred to Committee on Government Operations.

HB 1705 by Representatives L. Johnson, Cooke, Leonard, Riley, Cothern, King and Johanson

Extending the involuntary treatment act to cover the commitment of chemically dependent adults.

Referred to Committee on Health and Human Services.

HB 1713 by Representatives Bray, R. Fisher, Grant and Mastin

Revising vehicular window tinting labels.

Referred to Committee on Transportation.

SHB 1727 by House Committee on Corrections (originally sponsored by Representatives Morris, Long, G. Cole, Padden, Mastin, Lemmon and L. Johnson) (by request of Department of Corrections)

Providing a procedure for releasing alien offenders for the purpose of deportation.

Referred to Committee on Law and Justice.

ESHB 1744 by House Committee on Appropriations (originally sponsored by Representatives Heavey, G. Cole, Brough and Orr)

Changing provisions relating to the LEOFF system.

Referred to Committee on Ways and Means.

SHB 1759 by House Committee on Judiciary (originally sponsored by Representatives H. Myers, Brough, Johanson, Miller, Locke, Ballasiotes, Chappell, Ludwig, Scott, Jones, Horn, Rayburn, Foreman, Roland, Forner and Wood)

Changing sex offense provisions for perpetrators who are health care providers or persons with supervisory authority.

Referred to Committee on Law and Justice.

ESHB 1771 by House Committee on Fisheries and Wildlife (originally sponsored by Representatives King and Jacobsen)

Taking measures to prevent the destruction of fish protection devices.

Referred to Committee on Natural Resources.

ESHB 1776 by House Committee on Trade, Economic Development and Housing (originally sponsored by Representatives Wineberry, Ballard, Jacobsen, Wood, Finkbeiner, Reams, Ogden, Vance, Peery, Cooke, Dorn, Johanson, R. Meyers, Campbell, Miller, Brough, Horn, Long, Foreman, J. Kohl and Forner)

Creating the office of science and technology.

Referred to Committee on Trade, Technology and Economic Development.

ESHB 1785 by House Committee on Environmental Affairs (originally sponsored by Representatives Locke, J. Kohl, Rust, Jacobsen, Wineberry, Shin, Dunshee, Holm, Pruitt, Jones, Finkbeiner, King, Basich, Quall, Orr, Johanson, Leonard and Anderson)

Creating jobs to restore and enhance Washington's estuaries, waterways, forests, and watersheds.

Referred to Committee on Trade, Technology and Economic Development.

HB 1790 by Representatives Patterson, Ballard, Wood, Ogden, Pruitt, Jones, King, Jacobsen, Basich, Wang, Kremen, Rayburn, Sehlin, Schoesler, Karahalios, Lemmon, H. Myers, Reams, Schmidt, Cooke and Stevens (by request of Department of Community Development)

Authorizing public works board project loans.

Referred to Committee on Ways and Means.

SHB 1799 by House Committee on Capital Budget (originally sponsored by Representatives Wineberry, Forner, Shin, Morris, Springer, Valle and Karahalios)

Changing responsibilities of and expiring the economic development finance authority.

Referred to Committee on Trade, Technology and Economic Development.

HB 1809 by Representatives Locke and Wang

Permitting the pooling of department of natural resources trust management accounts.

Referred to Committee on Natural Resources.

SHB 1837 by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives Kessler, Mielke and Zellinsky) (by request of Insurance Commissioner)

Regulating credit for reinsurance.

Referred to Committee on Labor and Commerce.

SHB 1928 by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Quall, Locke, Roland and Johanson)

Providing for more comprehensive regional transportation planning.

Referred to Committee on Transportation.

HB 1942 by Representatives R. Fisher, Quall, Locke and Johanson

Facilitating state-wide transportation planning.

Referred to Committee on Transportation.

ESHB 1949 by House Committee on Revenue (originally sponsored by Representatives Morris, Wang, Appelwick, Brough, Rust, Foreman, Springer, Peery, Ogden, Dunshee, Sommers, G. Cole, G. Fisher, R. Meyers, Riley, Mastin, Quall, Kessler, Romero, Karahalios, Shin, Basich, Heavey, Zellinsky, Ludwig, Roland, L. Johnson, Orr, Valle, Flemming, Bray, Holm, Hansen, Rayburn, Wolfe, Anderson, Finkbeiner, H. Myers, R. Fisher, Locke, Brown, Sheldon, Johanson, Veloria, Cothern, Scott, Leonard, Jacobsen, R. Johnson, King, Linville, Pruitt, Eide, Campbell, Grant, J. Kohl and Patterson)

Prohibiting tax exempt nonprofit organizations from political activity.

Referred to Committee on Law and Justice.

SHB 1969 by House Committee on Trade, Economic Development and Housing (originally sponsored by Representatives Wang, Locke, Silver, Wineberry, Sommers, Forner, Kremen, Jones, Springer, Patterson, Ogden and J. Kohl)

Creating the "Washington serves" voluntary service program.

Referred to Committee on Government Operations.

SHB 1978 by House Committee on Local Government (originally sponsored by Representatives J. Kohl, G. Cole, Karahalios, Jacobsen, Dorn, Cothern, Roland, Pruitt, Basich, Miller, Forner, L. Johnson, Vance, Cooke, Rust and Hansen)

Allowing counties to permit public libraries on county land used for park and recreation purposes.

Referred to Committee on Government Operations.

HB 1984 by Representatives R. Fisher, Schmidt, Zellinsky, R. Meyers, Orr and Van Luven

Revising pilotage law.

Referred to Committee on Transportation.

ESHB 1999 by House Committee on Energy and Utilities (originally sponsored by Representatives Campbell, Grant, Mastin and Veloria)

Requiring back-up power for public water systems.

Referred to Committee on Energy and Utilities.

ESHB 2026 by House Committee on Commerce and Labor (originally sponsored by Representatives Karahalios, Wood, Leonard and Kessler)

Requiring notice about fetal alcohol syndrome.

Referred to Committee on Labor and Commerce.

HB 2032 by Representatives Appelwick and R. Fisher (by request of Administrator for the Courts)

Authorizing counties with a population of one million or more to have family court and mental health commissioners.

Referred to Committee on Law and Justice.

SHB 2036 by House Committee on Transportation (originally sponsored by Representatives R. Fisher, Locke and Johanson)

Providing multimodal transportation funding.

Referred to Committee on Transportation.

EHB 2061 by Representatives Chappell and King

Changing hunter education provisions.

Referred to Committee on Natural Resources.

HB 2069 by Representatives Mielke and Zellinsky

Allowing institutions of higher education to cash student's and employee's checks.

Referred to Committee on Higher Education.

HB 2073 by Representative Wang

Modifying eligibility requirements for the nonprofit homes for the aging property tax exemption.

Referred to Committee on Health and Human Services.

HJM 4016 by Representatives Valle, Wood, Springer, Shin, Forner, Quall, Casada, Sheldon, Morris, Jacobsen, Wolfe, L. Johnson, Karahalios, Chappell and J. Kohl

Requesting the federal government to enhance the promotion of mathematics, science, and technology.

Referred to Committee on Trade, Technology and Economic Development.

SECOND READING

SENATE BILL NO. 5241, by Senators Vognild, Newhouse, Moore and Prince

Making certain powers and duties of the gambling commission permissive.

The bill was read the second time.

MOTION

On motion of Senator Moore, the rules were suspended, Senate Bill No. 5241 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5241.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5241 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Oke, Owen, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 44.

Excused: Senators Cantu, Hargrove, Niemi, Pelz and Prince - 5.

SENATE BILL NO. 5241, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5689, by Senators Moore, West, Vognild and McCaslin

Establishing a license to sell liquor in motels.

The bill was read the second time.

MOTION

On motion of Senator Moore, the rules were suspended, Senate Bill No. 5689 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5689.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5689 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 5; Absent, 0; Excused, 4.

Voting yea: Senators Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Oke, Owen, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 40.

Voting nay: Senators Amondson, Anderson, Franklin, Hochstatter and Smith, L. - 5.

Excused: Senators Cantu, Niemi, Pelz and Prince - 4.

SENATE BILL NO. 5689, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5636, by Senators Skratek, Pelz, Drew, McAuliffe, A. Smith and M. Rasmussen

Creating the Washington state council for lifelong learning and community involvement in education.

MOTIONS

On motion of Senator Skratek, Substitute Senate Bill No. 5636 was substituted for Senate Bill No. 5636 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Skratek, the rules were suspended, Substitute Senate Bill No. 5636 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5636.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5636 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 6; Absent, 0; Excused, 3.

Voting yea: Senators Amondson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, Williams, Winsley and Wojahn - 40.

Voting nay: Senators Anderson, McCaslin, Newhouse, Oke, Vognild and West - 6.

Excused: Senators Cantu, Niemi and Prince - 3.

SUBSTITUTE SENATE BILL NO. 5636, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5392, by Senators Talmadge, Deccio, Fraser, L. Smith, McCaslin, Moyer, Oke and Winsley

Revising provisions relating to abuse of children and incompetent persons.

MOTIONS

On motion of Senator Talmadge, Substitute Senate Bill No. 5392 was substituted for Senate Bill No. 5392 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Talmadge, the rules were suspended, Substitute Senate Bill No. 5392 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5392.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5392 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

Excused: Senators Cantu, Niemi and Prince - 3.

SUBSTITUTE SENATE BILL NO. 5392, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5632, by Senators Vognild, Prince, Skratek, Winsley, Loveland and Nelson

Establishing a license plate design.

The bill was read the second time.

MOTIONS

On motion of Senator Vognild, the following Committee on Transportation amendment was adopted:

On page 1, line 18, after "1995," strike all material through "section" on page 2, line 2, and insert "all existing license plates that are not of the approved background design, except those plates designated in RCW 46.16.305 (1) and (3), shall be replaced at the time of annual renewal. The cost of the replacement plates shall be in addition to other renewal fees"

On motion of Senator Vognild, the following amendment by Senators Prince and Vognild was adopted:

On page 1, line 17, after "standards." insert "Prior to submitting the single license plate background design to the department, the committee shall consider the fiscal impact of replacing the mountain background design plate which was established for the Washington state centennial celebration."

MOTION

On motion of Senator Vognild, the rules were suspended, Engrossed Senate Bill No. 5632 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator West: "Senator Vognild, there are many distinctive license plates in the state of Washington--Purple Hearts, veterans, Pearl Harbor survivors, National Guard, etc. Is it the intent of this bill to do away with those types of plates or is it simply to establish a uniform background for license plates?"

Senator Vognild: "I believe it is the intent of the committee that they should just look at a uniform background. In fact, the bill is quite specific that certain plates should be allowed."

Senator West: "Thank you, Senator Vognild."

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5632.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5632 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Excused: Senators Cantu, Niemi and Prince - 3.

ENGROSSED SENATE BILL NO. 5632, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5512, by Senators M. Rasmussen, Erwin, Bluechel, Skratek, Sheldon and Snyder

Studying the impact on state businesses of international trade agreements.

MOTIONS

On motion of Senator Rasmussen, Substitute Senate Bill No. 5512 was substituted for Senate Bill No. 5512 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Rasmussen, the rules were suspended, Substitute Senate Bill No. 5512 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5512.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5512 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 45.

Absent: Senator Vognild - 1.

Excused: Senators Cantu, Niemi and Prince - 3.

SUBSTITUTE SENATE BILL NO. 5512, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Spanel, Senator Vognild was excused.

SECOND READING

SENATE BILL NO. 5390, by Senators Sutherland, Hochstatter, Deccio, Haugen and Erwin

Allowing the transfer of payment for conservation measures to successive property owners.

MOTIONS

On motion of Senator Sutherland, Substitute Senate Bill No. 5390 was substituted for Senate Bill No. 5390 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Sutherland, the rules were suspended, Substitute Senate Bill No. 5390 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5390.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5390 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 3; Absent, 0; Excused, 4.

Voting yea: Senators Anderson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 42.

Voting nay: Senators Amondson, McCaslin and Nelson - 3.

Excused: Senators Cantu, Niemi, Prince and Vognild - 4.

SUBSTITUTE SENATE BILL NO. 5390, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5828, by Senators Bauer, Prince, Sheldon and Wojahn

Changing provisions relating to vocational education.

The bill was read the second time.

MOTION

On motion of Senator Bauer, the rules were suspended, Senate Bill No. 5828 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5828.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5828 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 45.

Excused: Senators Cantu, Niemi, Prince and Vognild - 4.

SENATE BILL NO. 5828, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

At 8:55 a.m., on motion of Senator Jesernig, the Senate recessed until 10:00 a.m.

The Senate was called to order at 11:01 a.m. by President Pritchard.

MOTION

On motion of Senator Oke, Senator Hochstatter was excused.

SECOND READING

SENATE BILL NO. 5546, by Senators Prentice and Moore (by request of Employment Security Department)

Regulating unemployment compensation.

The bill was read the second time.

MOTION

On motion of Senator Moore, the rules were suspended, Senate Bill No. 5546 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5546.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5546 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Excused: Senator Hochstatter - 1.

SENATE BILL NO. 5546, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5659, by Senators Prentice, Owen, Sellar, Bauer, Franklin, Moyer, Moore, Prince, Snyder, Sutherland, Fraser, Winsley, M. Rasmussen and von Reichbauer (by request of Employment Security Department)

Regulating the Washington service corps.

The bill was read the second time.

MOTION

On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5659 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5659.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5659 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 49.

SENATE BILL NO. 5659, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5703, by Senators Prentice, Prince, Moore, Amondson and Franklin (by request of Employment Security Department)

Codifying the labor market information and economic analysis responsibilities of the employment security department.

The bill was read the second time.

MOTION

On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5703 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5703.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5703 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

SENATE BILL NO. 5703, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Spanel, Senator Vognild was excused.

SECOND READING

SENATE BILL NO. 5787, by Senators Gaspard, von Reichbauer and Franklin (by request of Professional Athletic Commission)

Regulating professional athletics.

The bill was read the second time.

MOTION

On motion of Senator Moore, the rules were suspended, Senate Bill No. 5787 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5787.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5787 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

Voting nay: Senator Anderson - 1.

Excused: Senator Vognild - 1.

SENATE BILL NO. 5787, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5288, by Senators Fraser, Talmadge and Haugen (by request of Department of Ecology)

Extending the expiration date of the solid waste collection tax.

MOTIONS

On motion of Senator Fraser, Second Substitute Senate Bill No. 5288 was substituted for Senate Bill No. 5288 and the second substitute bill was placed on second reading and read the second time.

On motion of Senator Fraser, the rules were suspended, Second Substitute Senate Bill No. 5288 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator Nelson: "Senator Fraser, in reading the bill, one would be led to believe that the solid waste management account, at the present time, has a surplus or is gaining a surplus of monies above that which we projected. Is that a correct analysis?" Senator Fraser: "Well, I believe the intent of the bill is to fully appropriate the funds that are anticipated to be generated."

Senator Nelson: "So, that the tax that people are paying on their garbage at home and in our businesses is a tax that now is bringing in more money than what we had authorized to be spent up until this time?"

Senator Fraser: "Well, the intent is to appropriate the amount of money estimated. It would seem to me if the revenues are in excess of the amount estimated, then at the next session, we would amend the budget to accommodate that. It is true that it is expected to--the revenues are expected to increase from one year to the next."

Senator Nelson: "Thank you. I had one further question. Why do we have an emergency clause on this bill?"

Senator Fraser: "The tax would take effect July 1, so we might, in the normal course of effective dates of bills, there might be a short gap there."

The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5288.

ROLL CALL

The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5288 and the bill passed the Senate by the following vote: Yeas, 31; Nays, 17; Absent, 0; Excused, 1.

Voting yea: Senators Bauer, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Winsley and Wojahn - 31.

Voting nay: Senators Amondson, Anderson, Barr, Cantu, Deccio, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Roach, Sellar, von Reichbauer, West and Williams - 17.

Excused: Senator Vognild - 1.

SECOND SUBSTITUTE SENATE BILL NO. 5288, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5791, by Senators A. Smith and Rinehart (by request of Attorney General)

Changing child support provisions.

The bill was read the second time.

MOTION

On motion of Senator Adam Smith, the rules were suspended, Senate Bill No. 5791 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5791.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5791 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Excused: Senator Vognild - 1.

SENATE BILL NO. 5791, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5868, by Senators Skratek, Bluechel, Sheldon, Erwin, Deccio, M. Rasmussen, Snyder, Gaspard and Winsley

Creating the department of economic and community development.

MOTIONS

On motion of Senator Skratek, Substitute Senate Bill No. 5868 was substituted for Senate Bill No. 5868 and the substitute bill was placed on second reading and read the second time.

Senator Skratek moved that the following amendment be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the long-term health of the state and its citizens depends upon the availability of family-wage jobs, the flexibility and innovativeness of business firms, the skills and capacity of the work force, local communities that are strong and adaptive, the availability of affordable housing, local and regional planning to anticipate and plan for changing circumstances, and infrastructure to support local social and economic needs, human services, and safe communities. These factors are tied to one another and are all critical to maintaining the state's quality of life and economic health in the face of changing circumstances.

The legislature finds that as a result of the rapid pace of social and economic change, maintaining the quality of life and standard of living for the citizens of the state will require new and inventive responses by communities, businesses, nonprofit institutions, and individuals. The state can play a role in assisting such efforts by reorganizing state assistance efforts to form partnerships with the private and nonprofit sectors, requiring new partnerships at the local level, and facilitating new relations within industries.

The legislature further finds that it is in the interest of the state to create one agency to coordinate and assist self-sufficiency programs for individuals, communities, and industries. The consolidation of the department of trade and economic development and the department of community development into one department will improve the efficiency and effectiveness with which state services are delivered to build the skill and capacity of our citizens, businesses, and local communities to respond to economic change. Such a consolidation will increase accountability to the public, the executive, and the legislature for the performance of community and economic development functions.

It is the intent of the legislature in consolidating the two agencies that the community and economic development functions be merged in a manner that allows the new department to direct state resources of significant scope and scale to (1) communities or groups of communities with the greatest relative economic need and the fewest resources and (2) targeted sectors of the economy that have the greatest potential for either wealth generation through value-added production, or for negative economic impact on the state or its communities. The legislature intends through this consolidation to encourage state actions to build and diversify the economy to encourage long-term, family-wage employment and promote and assist in providing the physical and social infrastructure needed to support the creation and maintenance of such employment. It is also the intent of the legislature to support economic growth that is environmentally sustainable and employment that is derived from maintaining the environment and from sustainable use of natural resources.

It is the further intent of the legislature in this consolidation to maximize the use of local expertise and local community resources in the delivery of economic and community development services, and to ensure that the services offered are the ones desired by the state's community and business customers. The community services and community development services of the department, such as growth management, community services block grants, early childhood education, and the housing trust fund shall be administered in accord with their implementing legislation.

NEW SECTION. Sec. 2. (1) The purpose of this chapter is to establish the broad outline of the structure of the department of community and economic resources, leaving specific details of its internal organization and management to those charged with its administration.

(2) It is also the purpose of this chapter to establish a department of the state to:

(a) Aid in providing financial and technical assistance to the communities of the state, to assist in improving the delivery of federal, state, and local programs, and to provide communities with opportunities for productive and coordinated development beneficial to the well-being of the communities and their residents;

(b) Assist firms and industries increase their competitiveness in the world economy, diversify the state's economy, and increase the environmental sustainability of the state's industries, so that they may provide stable family-wage employment for the state's citizens; and

(c) Support local government and nonprofit institution programs that help families and individuals reach economic self-sufficiency and stabilize the communities in which they live.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Associate development organization" means a local economic development nonprofit corporation.

(2) "Department" means the department of community and economic resources.

(3) "Director" means the director of the department of community and economic resources.

(4) "Small business" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, that has the purpose of making a profit, and that has fifty or fewer employees.

(5) "Distressed area" has the meaning in RCW 43.165.010.

(6) "Impact area" means (a) distressed counties as defined in RCW 43.165.010(3)(a); (b) subcounty areas in those counties which are not covered under (a) of this subsection which are timber impact areas as defined in RCW 43.31.601; (c) urban subcounty areas as defined in RCW 43.165.010(3)(c); and (d) areas not currently experiencing economic distress which the department anticipates as likely to experience distress in the near future, such as areas experiencing defense budget reductions or suffering dislocations from natural resource issues such as salmon recovery.

NEW SECTION. Sec. 4. A state department of community and economic resources is created. The department shall be vested with all powers and duties established or transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 5. The executive head of the department shall be the director. The director shall be appointed by the governor with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040.

NEW SECTION. Sec. 6. (1) The director shall supervise and administer the activities of the department and shall advise the governor and the legislature with respect to economic and community development matters affecting the state.

(a) The director may:

(i) Enter into contracts on behalf of the state to carry out the purposes of this chapter;

(ii) Act for the state in the initiation of or participation in any multigovernmental program relative to the purpose of this chapter; and

(iii) Accept gifts and grants, whether such grants be of federal or other funds;

(b) The director shall:

(i) Appoint such deputy directors, assistant directors, and up to seven special assistants as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;

(ii) Prepare and submit for executive and legislative action on the budget for the department;

(iii) Submit recommendations for legislative actions as are deemed necessary to further the purposes of this chapter; and

(iv) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter.

(2) When federal or other funds are received by the department, they shall be promptly transferred to the state treasurer and thereafter expended only upon the approval of the director.

(3) The director may request information and assistance from all other agencies, departments, and officials of the state, and may reimburse such agencies, departments, or officials if such a request imposes any additional expenses upon any such agency, department, or official.

(4) The director shall, in carrying out the responsibilities of office, consult with governmental officials, private groups, and individuals and with officials of other states, and may, if the director deems it desirable, hold public hearings to obtain information to carry out the purposes of this chapter. All state agencies and their officials and the officials of any political subdivision of the state shall cooperate with and give such assistance to the department, including the submission of requested information, to allow the department to carry out its purposes under this chapter.

(5) The director may establish additional advisory or coordinating groups with the legislature, within state government, with state and other governmental units, with the private sector and nonprofit entities or in specialized subject areas as may be necessary to carry out the purposes of this chapter.

NEW SECTION. Sec. 7. The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW.

NEW SECTION. Sec. 8. The department shall be responsible for promoting community and economic development within the state by assisting the state's communities to increase the quality of life of their citizens and their economic vitality, and by assisting the state's businesses to maintain and increase their economic competitiveness, while maintaining a healthy environment. Community and economic development efforts shall include: Efforts to increase economic opportunity; local planning to accommodate growth while maintaining a healthy environment; the promotion and provision of affordable housing and housing-related services; providing public infrastructure; business and trade development; assisting firms and industrial sectors to increase their competitiveness; technology development, transfer, and diffusion; community services; and public safety efforts. The department shall have the following functions and responsibilities:

(1) Provide advisory assistance to the governor, other state agencies, and the legislature on community and economic development matters and issues;

(2) Assist the governor in coordinating the activities of state agencies that have an impact on local government and communities;

(3) Cooperate with the legislature and the governor in the development and implementation of strategic plans for the state's community and economic development efforts;

(4) Cooperate with and provide technical and financial assistance to local governments, businesses and community-based organizations serving the communities of the state for the purpose of aiding and encouraging orderly, productive, and coordinated development of the state, and, unless stipulated otherwise, give priority to local communities with the greatest relative need and the fewest resources;

(5) Solicit private and federal grants for economic and community development programs and administer such programs in conjunction with other programs assigned to the department by the governor or the legislature;

(6) Administer community services programs directed to the poor and infirm through private, nonprofit organizations and units of general purpose local government and coordinate these programs using, to the extent possible, integrated case management methods, with other community and economic development and self-sufficiency efforts of the department;

(7) Undertake business development and retention efforts in coordination with other state agencies, local governments, tribal governments, and public and private local development groups seeking new business investment and the expansion and retention of existing businesses, including providing assistance to local organizations to resolve environmental and natural resource issues related to economic development;

(8) Identify and work with Washington businesses that can use local, state, and federal assistance to increase domestic and foreign exports and that are capable of increasing production of goods and services;

(9) Market the state's products and services internationally in close cooperation with other private and public international trade efforts and act as a centralized location for the assimilation and distribution of trade information;

(10) Assist in the production, development, rehabilitation, preservation, and operation of owner-occupied or rental housing for low and moderate-income persons; operate programs to assist home ownership, offer housing services, and provide special needs housing services and units; and qualify as a participating state agency for all programs of the federal department of housing and urban development or its successor;

(11) Coordinate and administer energy assistance and residential energy rehabilitation programs of the federal and state government through nonprofit organizations, local governments, and housing authorities;

(12) Administer state and federal categorical or block grants in a timely and cost-effective manner;

(13) Administer and coordinate targeted education programs assigned to the department in an integrated manner in order to maximize the case management value of such programs;

(14) Develop, or assist local governments in developing housing plans required by the state or federal government;

(15) Participate with other states or subdivisions thereof in interstate programs and assist cities, counties, municipal corporations, governmental conferences or councils, and regional planning commissions to participate with other states and provinces or their subdivisions;

(16) Hold public hearings and meetings to carry out the purposes of this chapter;

(17) Market and coordinate the attraction of visitors and conventions to the state and the expansion of the tourism industry throughout the state in cooperation with the visitor industry, as well as public and private tourism development organizations;

(18) Promote, market, and encourage growth in the production of films and videos, as well as television commercials, within the state;

(19) Administer family services and programs to promote the state's policy as provided in RCW 74.14A.025;

(20) Conduct research and analysis in furtherance of the state's economic and community development efforts including maintenance of current information on market and economic trends as they affect different industrial sectors, geographic regions, and communities with special economic problems in the state;

(21) Provide support to strengthen local capacity for controlling risk to life and property that may result from fires and emergencies, and provide a comprehensive state-level focus for fire protection services, funding, and policy;

(22) Provide for the identification and preservation of the state's historical and cultural resources;

(23) Coordinate a comprehensive state program for mitigating, preparing for, responding to, and recovering from emergencies and disasters;

(24) Promote volunteerism and citizen service as a means for accomplishing local community and economic development goals and objectives; and

(25) Assist local governments to plan for new growth while preserving environmental quality and open space.

NEW SECTION. Sec. 9. (1) The director of the department of trade and economic development and the director of the department of community development shall, by November 15, 1993, jointly submit a plan to the governor for the consolidation and smooth transition of the department of trade and economic development and the department of community development into the department of community and economic resources so that the departments will operate as a single entity on July 1, 1994.

(2) The plan shall include:

(a) Strategies for a sectoral focus in economic development, a targeted geographic focus in the delivery of economic and community development services, and the integration of community-based approaches in the delivery of economic development services;

(b) Implementation steps for the department's efforts at:

(i) Technology transfer and technology diffusion;

(ii) Linking work force training to its other community and business assistance efforts;

(iii) Assisting local governments in planning and encouraging a balance of economic growth between urban and rural areas;

(iv) Providing small business financial and technical assistance including self-employment assistance and entrepreneurial development;

(v) Marketing and promotion of Washington products and enhancing the participation of the state's businesses in global trade;

(vi) Coordination of federal, state, and local community and economic development efforts with the state and maximizing federal community and economic development resources within the state;

(vii) Leveraging limited state resources and broadening the base of involvement by working collaboratively and forming partnerships with private and public institutes of higher education and other public, private, and nonprofit organizations;

(viii) Addressing the special needs of economically disadvantaged communities and business sectors in transition; and

(ix) Carrying out the policy objectives set forth in section 10 of this act.

(c) The establishment of benchmarks by which to measure progress and the evaluation of the performance and effectiveness of the department's efforts.

(3) In developing this plan, the directors shall consider existing functions and programs of both agencies and make recommendations for any changes in programs and functions.

(4) In developing this plan, the directors shall establish an advisory committee of representatives of groups using services and programs of both departments. The advisory committee shall include representatives of cities, counties, port districts, businesses, associate development organizations, low-income housing interests, Indian tribes, community action programs, public safety groups, community-based nonprofit development organizations, and any other organizations the directors determine should have input to the plan.

NEW SECTION. Sec. 10. In the next four years after the effective date of this section, the department shall pursue the following policy objectives:

(1) Develop, promote, and support partnerships at the local and regional level between local development organizations including local governments, associate development organizations, community action agencies, port districts, private industry councils, community-based nonprofit development organizations, chambers of commerce, community colleges, technical colleges, and other institutions of higher education;

(2) Diversify the state economy in economic sectors that offer the prospect of family-wage employment through (a) the establishment of flexible networks of firms and (b) identification of problems and opportunities in industrial competitiveness;

(3) Encourage development that maintains the health of the state's environment while providing employment.

NEW SECTION. Sec. 11. (1) The local economic development service program is established in the department. This program shall coordinate the delivery of economic development services to local communities or regional areas. It shall promote partnerships between the public and private sectors and between state and local officials to encourage appropriate economic growth in communities throughout the state. The program shall promote local economic development by assisting businesses to start up, maintain, or expand their operations, by encouraging public infrastructure investment and private capital investment in local communities, and by expanding employment opportunities.

(2) The department's local economic development service program shall, among other things, (a) contract with associate development organizations for the delivery of economic development services to local communities or regional areas; (b) enter into interagency agreements with appropriate state agencies, such as the department of agriculture and the employment security department, to coordinate the delivery of economic development services to local communities or regional areas; (c) enter into agreements with other public organizations or institutions that provide economic development services, such as the small business development center, the Washington technology center, community colleges, technical colleges, the University of Washington, Washington State University, four-year colleges and universities, the federal small business administration, ports, and others, to coordinate the delivery of economic development services to local communities and regional areas; and (d) provide training, through contracts with public or private organizations, and other assistance to associate development organizations to the extent resources allow.

(3) The department shall coordinate economic development efforts to minimize program redundancy and maximize accessibility. The department shall work to develop links between the state and service users as well as among the service users themselves.

(4) It is the intent of the legislature that the associate development organizations contracted with under this program shall promote and coordinate, through local service agreements or other methods, the delivery of economic development services in their areas that are provided by public and private organizations, including state agencies.

(5) The legislature encourages local associate development organizations to form partnerships with other associate development organizations in their region to combine resources for better access to available services, to encourage regional delivery of state services, and to more effectively build the local capacity of communities in the region.

(6)(a) The department shall divide the state into service delivery regions. In creating these regions, the department shall consult with associate development organizations, port districts, and other local economic development entities. The department may use a challenge grant process to carry out the purposes of this section. Each region shall meet the following criteria:

(i) Each region shall have a population of no less than one hundred thousand;

(ii) Each region shall contain at least one institution of higher education as defined in RCW 28B.10.016; and

(iii) Each region shall have organizations and resources capable of supporting the delivery of community and economic development services to all parts of the region.

The department shall minimize problems of accessibility to services that result from a geographically large region, and maximize commonalities between the communities in the region.

(b) In each service delivery region the department shall contract with one associate development organization or a consortium of such organizations, or another appropriate locally based organization to coordinate the delivery of economic development services within the region. The contracting organization shall work with local governments, associate development organizations, local chambers of commerce, private industry councils, port districts, labor groups, institutions of higher education, community action programs, and other appropriate private, public, or nonprofit community and economic development groups within the region and shall involve them in the planning for and delivery of economic development services required by this section.

The contracting organization shall designate five traded sectors of the region's economy that represent the five most significant sectors within the region. The contracting organization shall survey businesses and employees in these sectors on an annual basis to gather information on the sector's business needs, expansion plans, relocation decisions, training needs, potential layoffs, financing needs, availability of financing, and other appropriate information about economic trends and specific employer and employee needs in the region. The results of these surveys shall be compiled by the department. The contracting organization shall coordinate methodology for surveying training needs with the work force training and education coordinating board.

The contracting organization shall participate with the work force training and education coordinating board, and any regional entities designated by that board, in providing for the coordination of job skills training within its region. The contracting organization shall inform businesses of training providers within its region, and shall inform training providers as to business training needs within its region.

The contracting organization shall be responsible for coordinating the delivery of those public or private technical assistance services required by the businesses and employees in the targeted sectors within its region, as indicated by survey responses. Such services shall include entrepreneurial training, production process analysis, product development assistance, marketing, and financial and other management services. The contracting organization shall develop a list of individuals, organizations, and firms qualified to meet specialized training or business development needs.

The department's selection of contracting organizations or consortiums shall be based on the sufficiency of the organization's or consortium's proposal to carry out the survey of targeted sectors within its region and coordinate the delivery of technical assistance as required by this section.

NEW SECTION. Sec. 12. The department shall work with private sector organizations, local governments, local economic development organizations, and institutions of higher education to assist in the development of a targeted sectors program. The targeted sectors may include, but are not limited to, software, forest products, biotechnology, environmental industries, aerospace, food processing, tourism, film and video, microelectronics, new materials, robotics, and machine tools. The department shall, on a continuing basis, evaluate the potential return to the state from devoting additional resources to a targeted sectors approach to economic development and including additional sectors in its efforts. The department shall use the sectorial surveys conducted in each service delivery region in formulating its sectorial strategies and in designating new targeted sectors.

In assisting in the development of a targeted sector, the department's activities may include, but are not limited to:

(1) Conducting focus group discussions, facilitating meetings, and conducting studies to identify members of the sector, appraise the current state of the sector, and identify issues of common concern within the sector;

(2) Supporting the formation of industry associations, publications of association directories, and related efforts to create or expand the activities or industry associations;

(3) Assisting in the formation of flexible networks by providing (a) agency employees or private sector consultants trained to act as flexible network brokers and (b) funding for potential flexible network participants for the purpose of organizing or implementing a flexible network;

(4) Helping establish research consortia;

(5) Facilitating joint training and education programs;

(6) Promoting cooperative market development activities;

(7) Analyzing the need, feasibility, and cost of establishing product certification and testing facilities and services; and

(8) Providing for methods of electronic communication and information dissemination among firms and groups of firms to facilitate network activity.

By January 10th of each year, the department shall report in writing on its targeted sector programs to the appropriate legislative committees. The department's report shall include an appraisal of the sector, activities the department has undertaken to assist in the development of each sector, and recommendations to the legislature regarding activities that the state should implement but are currently beyond the scope of the department's program or resources.

NEW SECTION. Sec. 13. (1) The department shall establish a technical assistance and training program. The program shall be designed to increase the economic and community development skills available in local communities by providing training and funding for training for local citizens and businesses. Services shall be provided in impact areas and shall be targeted to those communities most in need of state assistance.

(2) The department shall provide direct technical assistance to local communities to strengthen their role in building their local economies. This assistance shall include, but not be limited to:

(a) Identifying emerging problems in impact areas for businesses, workers, and communities and providing timely assistance;

(b) Evaluating the economic health of a community including its economic base and its strengths, weaknesses, and opportunities;

(c) Assisting communities and nonprofit development entities in developing local economic development strategies, including the technical analysis necessary to carry out the strategies;

(d) Providing assistance to communities in broadening their local economic base, including providing management and financial assistance, entrepreneurial training, and assistance to firms in identifying new markets and introducing new processes;

(e) Assisting communities in responding to economic change, including supporting organizational and leadership development;

(f) Assisting local governments to facilitate the siting of businesses;

(g) Facilitating the formation of flexible networks among groups of businesses; and

(h) Providing technical and managerial assistance to small businesses including assistance in securing available financing and industrial modernization.

(3) The department shall administer a technical assistance funding pool for the delivery to impact areas of technical assistance.

(4) The department shall establish a community development training institute to provide intensive economic and community development skills training to local communities.

(5) The department shall establish an entrepreneurial development institute using a competitive bidding process among educational institutions and nonprofit development organizations.

NEW SECTION. Sec. 14. (1) To provide local communities with flexible sources of funding and community and economic development programs, the department shall establish and operate a local development grant program. The program shall coordinate funding for eligible projects with other federal, state, local, private and nonprofit funding sources. Federal community development block grant funds administered by the state shall be administered in conjunction with this program and the department shall, within federal guidelines, give priority to economic development projects in the use of community development block grant funds.

(2) To be eligible to receive funds under this program an organization must be a local government, community-based organization, nonprofit development organization, port district, or Indian tribe. Any local government, associate development organization, or port district requesting funds shall demonstrate the participation of a cultural, economic, and ethnic cross-section of the local community in the project, including business, labor, nonprofit community-based organizations, and educational institutions.

(3) In awarding grants under this program, preference shall be given to efforts that have the prospect of resulting in long-term, family-wage employment, to development that is environmentally sustainable, and to projects that are developed and supported jointly with nonstate partners. Funds shall not be used for entertainment or hosting. Funds granted for economic development projects require a contribution of local funds or resources to the project. No less than twenty-five percent of available grant funds awarded yearly under this program shall be awarded to nonprofit, community-based organizations, and no less than twenty-five percent of available grant funds awarded yearly under this program shall be awarded to associate development organizations.

(4) The grant program shall include the use of available community development block grant funds, loan fund or reserve fund resources to make grants to local development organizations for the establishment of revolving loan funds for microloans to low-income individuals wishing to become self-employed. Such grants shall be conditioned on the local development organization's (a) operating a structured entrepreneurial training program for its low-income clients and (b) requiring participation in the training program before awarding a microloan to those desiring a microloan.

Sec. 15. RCW 28C.18.060 and 1991 c 238 s 7 are each amended to read as follows:

The board, in cooperation with the operating agencies of the state training system shall:

(1) Concentrate its major efforts on planning, coordination evaluation, policy analysis, and recommending improvements to the state's training system.

(2) Advocate for the state training system and for meeting the needs of employers and the work force for work force education and training.

(3) Establish and maintain an inventory of the programs of the state training system, and related state programs, and perform a biennial assessment of the vocational education, training, and adult basic education and literacy needs of the state; identify ongoing and strategic education needs; and assess the extent to which employment, training, vocational and basic education, rehabilitation services, and public assistance services represent a consistent, integrated approach to meet such needs.

(4) Develop and maintain a state comprehensive plan for work force training and education, including but not limited to, goals, objectives, and priorities for the state training system, and review the state training system for consistency with the state comprehensive plan. In developing the state comprehensive plan for work force training and education, the board shall use, but shall not be limited to: Economic, labor market, and populations trends reports in office of financial management forecasts; joint office of financial management and employment security department labor force, industry employment, and occupational forecasts; the results of scientifically based outcome, net-impact and cost-benefit evaluations; the needs of employers as evidenced in formal employer surveys and other employer input; and the needs of program participants and workers as evidenced in formal surveys and other input from program participants and the labor community.

(5) In consultation with the higher education coordinating board, review and make recommendations to the office of financial management and the legislature on operating and capital facilities budget requests for operating agencies of the state training system for purposes of consistency with the state comprehensive plan for work force training and education.

(6) Provide for coordination among the different operating agencies of the state training system at the state level and at the regional level.

(7) Develop a consistent and reliable data base on vocational education enrollments, costs, program activities, and job placements from publicly funded vocational education programs in this state.

(8) Establish standards for data collection and maintenance for the operating agencies of the state training system in a format that is accessible to use by the board. The board shall require a minimum of common core data to be collected by each operating agency of the state training system.

The board shall develop requirements for minimum common core data in consultation with the office of financial management and the operating agencies of the training system.

(9) Establish minimum standards for program evaluation for the operating agencies of the state training system, including, but not limited to, the use of common survey instruments and procedures for measuring perceptions of program participants and employers of program participants, and monitor such program evaluation.

(10) Every two years administer scientifically based outcome evaluations of the state training system, including, but not limited to, surveys of program participants, surveys of employers of program participants, and matches with employment security department payroll and wage files. Every five years administer scientifically based net-impact and cost-benefit evaluations of the state training system.

(11) In cooperation with the employment security department, provide for the improvement and maintenance of quality and utility in occupational information and forecasts for use in training system planning and evaluation. Improvements shall include, but not be limited to, development of state-based occupational change factors involving input by employers and employees, and delineation of skill and training requirements by education level associated with current and forecasted occupations.

(12) Provide for the development of common course description formats, common reporting requirements, and common definitions for operating agencies of the training system.

(13) Provide for effectiveness and efficiency reviews of the state training system.

(14) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between institutions of the state training system, and encourage articulation agreements for programs encompassing two years of secondary work force education and two years of postsecondary work force education.

(15) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between private training institutions and institutions of the state training system.

(16) Participate in the development of coordination criteria for activities under the job training partnership act with related programs and services provided by state and local education and training agencies.

(17) Make recommendations to the commission of student assessment, the state board of education, and the superintendent of public instruction, concerning basic skill competencies and essential core competencies for K-12 education. Basic skills for this purpose shall be reading, writing, computation, speaking, and critical thinking, essential core competencies for this purpose shall be English, math, science/technology, history, geography, and critical thinking. The board shall monitor the development of and provide advice concerning secondary curriculum which integrates vocational and academic education.

(18) Establish and administer programs for marketing and outreach to businesses and potential program participants.

(19) Facilitate the location of support services, including but not limited to, child care, financial aid, career counseling, and job placement services, for students and trainees at institutions in the state training system, and advocate for support services for trainees and students in the state training system.

(20) Facilitate private sector assistance for the state training system, including but not limited to: Financial assistance, rotation of private and public personnel, and vocational counseling.

(21) Facilitate programs for school-to-work transition that combine classroom education and on-the-job training in industries and occupations without a significant number of apprenticeship programs.

(22) Encourage and assess progress for the equitable representation of racial and ethnic minorities, women, and people with disabilities among the students, teachers, and administrators of the state training system. Equitable, for this purpose, shall mean substantially proportional to their percentage of the state population in the geographic area served. This function of the board shall in no way lessen more stringent state or federal requirements for representation of racial and ethnic minorities, women, and people with disabilities.

(23) Participate in the planning and policy development of governor set-aside grants under P.L. 97-300, as amended.

(24) Administer veterans' programs, licensure of private vocational schools, the job skills program, and the Washington award for vocational excellence.

(25) Allocate funding from the state job training trust fund.

(26) Work with the director of the department of community and economic resources to ensure coordination between work force training priorities and that department's technology diffusion, self-employment, and business assistance efforts.

(27) Adopt rules as necessary to implement this chapter.

The board may delegate to the director any of the functions of this section.

Sec. 16. RCW 43.17.010 and 1989 1st ex.s. c 9 s 810 are each amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of wildlife, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of ((trade)) community and economic ((development)) resources, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, and (15) ((the department of community development, and (16))) the department of health, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 17. RCW 43.17.020 and 1989 1st ex.s. c 9 s 811 are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of wildlife, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of ((trade)) community and economic ((development)) resources, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, (14) the secretary of corrections, and (15) ((the director of community development, and (16))) the secretary of health.

Such officers, except the secretary of transportation, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The director of wildlife, however, shall be appointed according to the provisions of RCW 77.04.080. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. A temporary director of wildlife shall not serve more than one year. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.

NEW SECTION. Sec. 18. The department of community development is hereby abolished and its powers, duties, and functions are hereby transferred to the department of community and economic resources.

NEW SECTION. Sec. 19. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of community development shall be delivered to the custody of the department of community and economic resources. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of community development shall be made available to the department of community and economic resources. All funds, credits, or other assets held by the department of community development shall be assigned to the department of community and economic resources.

Any appropriations made to the department of community development shall, on the effective date of this section, be transferred and credited to the department of community and economic resources.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 20. All employees of the department of community development are transferred to the jurisdiction of the department of community and economic resources. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of community and economic resources to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 21. All rules and all pending business before the department of community development shall be continued and acted upon by the department of community and economic resources. All existing contracts and obligations shall remain in full force and shall be performed by the department of community and economic resources.

NEW SECTION. Sec. 22. The transfer of the powers, duties, functions, and personnel of the department of community development shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 23. If apportionments of budgeted funds are required because of the transfers directed by sections 19 through 22 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 24. Nothing contained in sections 18 through 23 of this act 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 by action of the personnel board as provided by law.

NEW SECTION. Sec. 25. The department of trade and economic development is hereby abolished and its powers, duties, and functions are hereby transferred to the department of community and economic resources.

NEW SECTION. Sec. 26. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of trade and economic development shall be delivered to the custody of the department of community and economic resources. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of trade and economic development shall be made available to the department of community and economic resources. All funds, credits, or other assets held by the department of trade and economic development shall be assigned to the department of community and economic resources.

Any appropriations made to the department of trade and economic development shall, on the effective date of this section, be transferred and credited to the department of community and economic resources.

NEW SECTION. Sec. 27. All employees of the department of trade and economic development are transferred to the jurisdiction of the department of community and economic resources. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of community and economic resources to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 28. All rules and all pending business before the department of trade and economic development shall be continued and acted upon by the department of community and economic resources. All existing contracts and obligations shall remain in full force and shall be performed by the department of community and economic resources.

NEW SECTION. Sec. 29. The transfer of the powers, duties, functions, and personnel of the department of trade and economic development shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 30. If apportionments of budgeted funds are required because of the transfers directed by sections 26 through 29 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 31. Nothing contained in sections 25 through 30 of this act 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 by action of the personnel board as provided by law.

Sec. 32. RCW 19.85.020 and 1989 c 374 s 1 are each amended to read as follows:

Unless the context clearly indicates otherwise, the definitions in this section apply through this chapter.

(1) "Small business" has the meaning given in ((RCW 43.31.025(4))) section 3 of this act.

(2) "Small business economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030.

(3) "Industry" means all of the businesses in this state in any one three-digit standard industrial classification as published by the United States department of commerce.

Sec. 33. RCW 42.17.310 and 1992 c 139 s 5 and 1992 c 71 s 12 are each reenacted and amended to read as follows:

(1) The following are exempt from public inspection and copying:

(a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

(b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

(c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

(d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

(e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

(f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

(g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

(h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

(i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

(j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

(k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

(l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

(m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070.

(n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

(o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW.

(p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.

(q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

(r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapters 43.163 ((RCW and chapters 43.31, 43.63A)), 43.-- (sections 1 through 8, 10 through 14, and 76 of this act), and 43.168 RCW.

(s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

(t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

(u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

(v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

(w) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

(x) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

(y) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

(z) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

(aa) Financial and valuable trade information under RCW 51.36.120.

(bb) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or a rape crisis center as defined in RCW 70.125.030.

(cc) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

(dd) Business related information protected from public inspection and copying under RCW 15.86.110.

(2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

(3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

(4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.

Sec. 34. RCW 42.17.319 and 1989 c 312 s 7 are each amended to read as follows:

Notwithstanding the provisions of RCW 42.17.260 through 42.17.340, no financial or proprietary information supplied by investors or entrepreneurs under chapter ((43.31)) 43.-- RCW (sections 1 through 8, 10 through 14, and 76 of this act) shall be made available to the public.

Sec. 35. RCW 43.17.065 and 1991 c 314 s 28 are each amended to read as follows:

(1) Where power is vested in a department to issue permits, licenses, certifications, contracts, grants, or otherwise authorize action on the part of individuals, businesses, local governments, or public or private organizations, such power shall be exercised in an expeditious manner. All departments with such power shall cooperate with officials of the business assistance center of the department of ((trade)) community and economic ((development)) resources, and any other state officials, when such officials request timely action on the part of the issuing department.

(2) After August 1, 1991, any agency to which subsection (1) of this section applies shall, with regard to any permits or other actions that are necessary for economic development in timber impact areas, as defined in RCW 43.31.601, respond to any completed application within forty-five days of its receipt; any response, at a minimum, shall include:

(a) The specific steps that the applicant needs to take in order to have the application approved; and

(b) The assistance that will be made available to the applicant by the agency to expedite the application process.

(3) The agency timber task force established in RCW 43.31.621 shall oversee implementation of this section.

(4) Each agency shall define what constitutes a completed application and make this definition available to applicants.

Sec. 36. RCW 43.20A.750 and 1992 c 21 s 4 are each amended to read as follows:

(1) The department of social and health services shall help families and workers in timber impact areas make the transition through economic difficulties and shall provide services to assist workers to gain marketable skills. The department, as a member of the agency timber task force and in consultation with the economic recovery coordination board, and, where appropriate, under an interagency agreement with the department of community ((development)) and economic resources, shall provide grants through the office of the secretary for services to the unemployed in timber impact areas, including providing direct or referral services, establishing and operating service delivery programs, and coordinating delivery programs and delivery of services. These grants may be awarded for family support centers, reemployment centers, or other local service agencies.

(2) The services provided through the grants may include, but need not be limited to: Credit counseling; social services including marital counseling; psychotherapy or psychological counseling; mortgage foreclosures and utilities problems counseling; drug and alcohol abuse services; medical services; and residential heating and food acquisition.

(3) Funding for these services shall be coordinated through the economic recovery coordination board which will establish a fund to provide child care assistance, mortgage assistance, and counseling which cannot be met through current programs. No funds shall be used for additional full-time equivalents for administering this section.

(4)(a) Grants for family support centers are intended to provide support to families by responding to needs identified by the families and communities served by the centers. Services provided by family support centers may include parenting education, child development assessments, health and nutrition education, counseling, and information and referral services. Such services may be provided directly by the center or through referral to other agencies participating in the interagency team.

(b) The department shall consult with the council on child abuse or neglect regarding grants for family support centers.

(5) "Timber impact area" means:

(a) A county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (i) A lumber and wood products employment location quotient at or above the state average; (ii) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (iii) an annual unemployment rate twenty percent or more above the state average; or

(b) Additional communities as the economic recovery coordinating board, established in RCW 43.31.631, designates based on a finding by the board that each designated community is socially and economically integrated with areas that meet the definition of a timber impact area under (a) of this subsection.

Sec. 37. RCW 43.31.057 and 1986 c 183 s 2 are each amended to read as follows:

The department of ((trade)) community and economic ((development)) resources is directed to develop and promote means to stimulate the expansion of the market for Washington products and shall have the following powers and duties:

(1) To develop a pamphlet for state-wide circulation which will encourage the purchase of items produced in the state of Washington;

(2) To include in the pamphlet a listing of products of Washington companies which individuals can examine when making purchases so they may have the opportunity to select one of those products in support of this program;

(3) To distribute the pamphlets on the broadest possible basis through local offices of state agencies, business organizations, chambers of commerce, or any other means the department deems appropriate;

(4) In carrying out these powers and duties the department shall cooperate and coordinate with other agencies of government and the private sector.

Sec. 38. RCW 43.31.085 and 1989 c 430 s 2 are each amended to read as follows:

The business assistance center shall:

(1) Serve as the state's lead agency and advocate for the development and conservation of businesses.

(2) Coordinate the delivery of state programs to assist businesses.

(3) Provide comprehensive referral services to businesses requiring government assistance.

(4) Serve as the business ombudsman within state government and advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs to assist businesses.

(5) Aggressively promote business awareness of the state's business programs and distribute information on the services available to businesses.

(6) Develop, in concert with local economic development and business assistance organizations, coordinated processes that complement both state and local activities and services.

(7) The business assistance center shall work with other federal, state, and local agencies and organizations to ensure that business assistance services including small business, trade services, and distressed area programs are provided in a coordinated and cost-effective manner.

(8) In collaboration with the child care coordinating committee in the department of social and health services, prepare and disseminate information on child care options for employers and the existence of the program. As much as possible, and through interagency agreements where necessary, such information should be included in the routine communications to employers from (a) the department of revenue, (b) the department of labor and industries, (c) ((the department of community development, (d))) the employment security department, (((e))) (d) the department of ((trade)) community and economic ((development)) resources, (((f))) (e) the small business development center, and (((g))) (f) the department of social and health services.

(9) In collaboration with the child care coordinating committee in the department of social and health services, compile information on and facilitate employer access to individuals, firms, organizations, and agencies that provide technical assistance to employers to enable them to develop and support child care services or facilities.

(10) Actively seek public and private money to support the child care facility fund described in RCW 43.31.502, staff and assist the child care facility fund committee as described in RCW 43.31.504, and work to promote applications to the committee for loan guarantees, loans, and grants.

Sec. 39. RCW 43.31.205 and 1992 c 228 s 2 are each amended to read as follows:

In an effort to enhance the economy of the Tri-Cities area, the department of ((trade)) community and economic ((development)) resources is directed to promote the existence of the lease between the state of Washington and the federal government executed September 10, 1964, covering one thousand acres of land lying within the Hanford reservation near Richland, Washington, and the opportunity of subleasing the land to entities for nuclear-related industry, in agreement with the terms of the lease. When promoting the existence of the lease, the department shall work in cooperation with any associate development organization((s)) located in or near the Tri-Cities area.

Sec. 40. RCW 43.31.409 and 1989 c 312 s 3 are each amended to read as follows:

There is created in the business assistance center of the department of ((trade)) community and economic ((development)) resources the Washington investment opportunities office.

Sec. 41. RCW 43.31.411 and 1989 c 312 s 4 are each amended to read as follows:

The Washington investment opportunities office shall:

(1) Maintain a list of all entrepreneurs engaged in manufacturing, wholesaling, transportation services, development of destination tourism resorts, or traded services throughout the state seeking capital resources and interested in the services of the investment opportunities office.

(2) Maintain a file on each entrepreneur which may include the entrepreneur's business plan and any other information which the entrepreneur offers for review by potential investors.

(3) Assist entrepreneurs in procuring the managerial and technical assistance necessary to attract potential investors. Such assistance shall include the automatic referral to the small business innovators opportunity program of any entrepreneur with a new product meriting the services of the program.

(4) Provide entrepreneurs with information about potential investors and provide investors with information about those entrepreneurs which meet the investment criteria of the investor.

(5) Promote small business securities financing.

(6) Remain informed about investment trends in capital markets and preferences of individual investors or investment firms throughout the nation through literature surveys, conferences, and private meetings.

(7) Publicize the services of the investment opportunities office through public meetings throughout the state, appropriately targeted media, and private meetings. Whenever practical, the office shall use the existing services of local associate development organizations in outreach and identification of entrepreneurs and investors.

(8) Report to the ways and means committees and ((commerce and labor)) appropriate economic development committees of the senate and the house of representatives by December 1, 1989, and each year thereafter, on the accomplishments of the office. Such reports shall include:

(a) The number of entrepreneurs on the list referred to in subsection (1) of this section, segregated by standard industrial classification codes;

(b) The number of investments made in entrepreneurs, segregated as required by (a) of this subsection, as a result of contact with the investment opportunities office, the dollar amount of each such investment, the source, by state or nation, of each investment, and the number of jobs created as a result of each investment;

(c) The number of entrepreneurs on the list referred to in subsection (1) of this section segregated by counties, the number of investments, the dollar amount of investments, and the number of jobs created through investments in each county as a result of contact with the investment opportunities office;

(d) A categorization of jobs created through investments made as a result of contact with the investment opportunities office, the number of jobs created in each such category, and the average pay scale for jobs created in each such category;

(e) The results of client satisfaction surveys distributed to entrepreneurs and investors using the services of the investment opportunities office; and

(f) Such other information as the managing director finds appropriate.

Sec. 42. RCW 43.31.422 and 1991 c 272 s 19 are each amended to read as follows:

The Hanford area economic investment fund is established in the custody of the state treasurer. Moneys in the fund shall only be used pursuant to the recommendations of the committee created in RCW 43.31.425 and the approval of the director of the department of ((trade)) community and economic ((development)) resources for Hanford area revolving loan funds, Hanford area infrastructure projects, or other Hanford area economic development and diversification projects, but may not be used for government or nonprofit organization operating expenses. Up to five percent of moneys in the fund may be used for program administration. For the purpose of this chapter "Hanford area" means Benton and Franklin counties. Disbursements from the fund shall be on the authorization of the director of ((trade)) community and economic ((development)) resources or the director's designee after an affirmative vote of at least six members of the committee created in RCW 43.31.425 on any recommendations by the committee created in RCW 43.31.425. The fund is subject to the allotment procedures under chapter 43.88 RCW, but no appropriation is required for disbursements. The legislature intends to establish similar economic investment funds for areas that develop low-level radioactive waste disposal facilities.

Sec. 43. RCW 43.31.504 and 1989 c 430 s 4 are each amended to read as follows:

The child care facility fund committee is established within the business assistance center of the department of ((trade)) community and economic ((development)) resources. The committee shall administer the child care facility fund, with review by the director of the department of ((trade)) community and economic ((development)) resources.

(1) The committee shall have five members. The director of the department of ((trade)) community and economic ((development)) resources shall appoint the members, who shall include:

(a) Two persons experienced in investment finance and having skills in providing capital to new businesses, in starting and operating businesses, and providing professional services to small or expanding businesses;

(b) One person representing a philanthropic organization with experience in evaluating funding requests;

(d) One early childhood development expert.

In making these appointments, the director shall give careful consideration to ensure that the various geographic regions of the state are represented and that members will be available for meetings and are committed to working cooperatively to address child care needs in Washington state.

(2) The committee shall elect officers from among its membership and shall adopt policies and procedures specifying the lengths of terms, methods for filling vacancies, and other matters necessary to the ongoing functioning of the committee.

(3) Committee members shall serve without compensation, but may request reimbursement for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(4) Committee members shall not be liable to the state, to the child care facility fund, or to any other person as a result of their activities, whether ministerial or discretionary, as members except for willful dishonesty or intentional violation of the law. The department of ((trade)) community and economic ((development)) resources may purchase liability insurance for members and may indemnify these persons against the claims of others.

Sec. 44. RCW 43.31.522 and 1990 c 57 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.31.524 and 43.31.526:

(1) "Department" means the department of ((trade)) community and economic ((development)) resources.

(2) "Center" means the business assistance center established under RCW 43.31.083.

(3) "Director" means the director of ((trade)) community and economic ((development)) resources.

(4) "Local nonprofit organization" means a local nonprofit organization organized to provide economic development or community development services, including but not limited to associate development organizations, economic development councils, and community development corporations.

Sec. 45. RCW 43.31.524 and 1990 c 57 s 3 are each amended to read as follows:

There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083. The program shall assist businesses to competitively meet their needs for goods and services within Washington state by providing information relating to the replacement of imports or the fulfillment of new requirements with Washington products produced in Washington state. The program shall place special emphasis on strengthening rural economies in economically distressed areas of the state meeting the criteria of an "eligible area" as defined in RCW 82.60.020(3). ((The Washington marketplace program shall consult with the community revitalization team established pursuant to chapter 43.165 RCW.))

Sec. 46. RCW 43.31.526 and 1990 c 57 s 4 are each amended to read as follows:

(1) The department shall contract with local nonprofit organizations in at least three economically distressed areas of the state that meet the criteria of an "eligible area" as defined in RCW 82.60.020(3) to implement the Washington marketplace program in these areas. The department, in order to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas, may enter into joint contracts with multiple nonprofit organizations. Contracts with economic development organizations to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas shall be structured by the department and the distressed area marketplace programs. Contracts with economic development organizations shall:

(a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;

(b) Give preference to nonprofit organizations representing a broad spectrum of community support; and

The department may require that contractors contribute at least twenty percent local funding.

(2) The contracts with local nonprofit organizations shall be for, but not limited to, the performance of the following services for the Washington marketplace program:

(a) Contacting Washington state businesses to identify goods and services they are currently buying or are planning in the future to buy out-of-state and determine which of these goods and services could be purchased on competitive terms within the state;

(b) Identifying locally sold goods and services which are currently provided by out-of-state businesses;

(c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;

(d) Advertising market opportunities described in (c) of this subsection; and

(e) Receiving bid responses from potential suppliers and sending them to that business for final selection.

(3) Contracts may include provisions for charging service fees of businesses that profit as a result of participation in the program.

(4) The center shall also perform the following activities in order to promote the goals of the program:

(a) Prepare promotional materials or conduct seminars to inform communities and organizations about the Washington marketplace program;

(b) Provide technical assistance to communities and organizations interested in developing an import replacement program;

(d) Provide continuing management and technical assistance to local contractors; and

(e) Report by December 31 of each year to the ((senate)) appropriate economic development ((and labor committee and to)) committees of the senate and the house of representatives ((trade and economic development committee)) describing the activities of the Washington marketplace program.

Sec. 47. RCW 43.31.621 and 1991 c 314 s 4 are each amended to read as follows:

(1) There is established the agency timber task force. The task force shall be chaired by the timber recovery coordinator. It shall be the responsibility of the coordinator that all directives of chapter 314, Laws of 1991 are carried out expeditiously by the agencies represented in the task force. The task force shall consist of the directors, or representatives of the directors, of the following agencies: The department of ((trade)) community and economic ((development, department of community development)) resources, employment security department, department of social and health services, state board for community college education, state board for vocational education, or its replacement entity, department of natural resources, department of transportation, state energy office, department of wildlife, University of Washington center for international trade in forest products, and department of ecology. The task force may consult and enlist the assistance of the following: The higher education coordinating board, University of Washington college of forest resources, Washington State University school of forestry, Northwest policy center, state superintendent of public instruction, the Evergreen partnership, Washington association of counties, and rural development council.

(2) This section shall expire June 30, 1993.

Sec. 48. RCW 43.31.641 and 1991 c 314 s 7 are each amended to read as follows:

The department of ((trade)) community and economic ((development)) resources, as a member of the agency timber task force and in consultation with the board, shall:

(1) Implement an expanded value-added forest products development industrial extension program. The department shall provide technical assistance to small and medium-sized forest products companies to include:

(a) Secondary manufacturing product development;

(b) Plant and equipment maintenance;

(d) Building products export development assistance;

(e) At-risk business development assistance;

(f) Business network development; and

(g) Timber impact area industrial diversification.

(2) Provide local contracts for small and medium-sized forest product companies, start-ups, and business organizations for business feasibility, market development, and business network contracts that will benefit value-added production efforts in the industry.

(3) Contract with local business organizations in timber impact areas for development of programs to promote industrial diversification. ((In addition, the department shall develop an interagency agreement with the department of community development for local capacity-building grants to local governments and community-based organizations in timber impact areas, which may include long-range planning and needs assessments.))

(4) Implement a community assistance program to enable communities to build local capacity for sustainable economic development efforts. The program shall provide resources and technical assistance to timber impact areas.

(5) Develop and administer a program for local capacity-building grants for local governments and community-based organizations in timber impact areas that may include assistance for long-range planning and needs assessments.

For the 1991-93 biennium, the department of ((trade)) community and economic ((development)) resources shall use funds appropriated for this section for contracts and for no more than two additional staff positions.

Sec. 49. RCW 43.31.830 and 1987 c 195 s 7 are each amended to read as follows:

(1) It shall be the duty of the director of community and economic resources to certify, from the applications received, the state international trade fair or fairs qualified and entitled to receive funds under RCW ((43.31.790 through 43.31.850 and)) 67.16.100, ((as now or hereafter amended)) and under rules established by the director. (2) To be eligible for state financed aid an organization shall:

(a) Have had at least two or more years of experience in the presentation of or participation in state international trade fairs; and

(b) Be able to provide, from its own resources derived from general admission or otherwise, funds sufficient to match at least one-half of the amount of state financial aid allotted.

(3) The director shall make annual allotments to state international trade fairs determined qualified to be entitled to participate in the state trade fair fund and shall fix times for the division of and payment from the state trade fair fund: PROVIDED, That total payment to any one state international trade fair shall not exceed sixty thousand dollars in any one year, where participation or presentation occurs within the United States, and eighty thousand dollars in any one year, where participation or presentation occurs outside the United States: PROVIDED FURTHER, That a state international trade fair may qualify for the full allotment of funds under either category. Upon certification of the allotment and division of fair funds by the director ((of trade and economic development)) the treasurer shall proceed to pay the same to carry out the purposes of RCW ((43.31.790 through 43.31.850 and)) 67.16.100((, as now or hereafter amended)).

Sec. 50. RCW 43.31.840 and 1975 1st ex.s. c 292 s 6 are each amended to read as follows:

The director of community and economic resources shall at the end of each year for which an annual allotment has been made, ((cause to be conducted,)) conduct a post audit of all of the books and records of each state international trade fair participating in the state trade fair fund. The purpose of such post audit shall be to determine how and to what extent each participating state international trade fair has expended all of its funds.

The audit required by this section shall be a condition to future allotments of money from the state international trade fair fund, and the director shall make a report of the findings of each post audit and shall use such report as a consideration in an application for any future allocations.

Sec. 51. RCW 43.31.850 and 1987 c 195 s 9 are each amended to read as follows:

State international trade fair as used in RCW ((43.31.790 through 43.31.840 and)) 67.16.100((, as now or hereafter amended,)) shall mean a fair supported by public agencies basically for the purpose of introducing and promoting the sale of manufactured or cultural products and services of a given area, whether presented in this state, the United States or its territories, or in a foreign country.

Sec. 52. RCW 43.160.020 and 1992 c 21 s 3 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the community economic revitalization board.

(2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.

(3) "Department" means the department of ((trade)) community and economic ((development or its successor with respect to the powers granted by this chapter)) resources.

(4) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.

(5) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.

(6) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.

(7) "Local government" means any port district, county, city, or town.

(8) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.

(9) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.

(10) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.

(11) "Timber impact area" means:

Sec. 53. RCW 43.168.020 and 1991 c 314 s 19 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Committee" means the Washington state development loan fund committee.

(2) "Department" means the department of community ((development)) and economic resources.

(3) "Director" means the director of the department of community ((development)) and economic resources.

(4) "Distressed area" means: (a) A county which has an unemployment rate which is twenty percent above the state average for the immediately previous three years; (b) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent. Applications under this subsection (4)(b) shall be filed by April 30, 1989; (c) an area within a county, which area: (i) Is composed of contiguous census tracts; (ii) has a minimum population of five thousand persons; (iii) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (iv) has an unemployment rate which is at least forty percent higher than the county's unemployment rate; or (d) a county designated as a timber impact area under RCW 43.31.601 if an application is filed by July 1, 1993. For purposes of this definition, "families and unrelated individuals" has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development and neighborhood revitalization projects.

(5) "Fund" means the Washington state development loan fund.

(6) "Local development organization" means a nonprofit organization which is organized to operate within an area, demonstrates a commitment to a long-standing effort for an economic development program, and makes a demonstrable effort to assist in the employment of unemployed or underemployed residents in an area.

(7) "Project" means the establishment of a new or expanded business in an area which when completed will provide employment opportunities. "Project" also means the retention of an existing business in an area which when completed will provide employment opportunities.

Sec. 54. RCW 43.210.110 and 1991 c 314 s 12 are each amended to read as follows:

(1) The small business export finance assistance center has the following powers and duties when exercising its authority under RCW 43.210.100(3):

(a) Solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other public or private sources to carry out its purposes;

(b) Offer comprehensive export assistance and counseling to manufacturers relatively new to exporting with gross annual revenues less than twenty-five million dollars. As close to ninety percent as possible of each year's new cadre of clients must have gross annual revenues of less than five million dollars at the time of their initial contract. At least fifty percent of each year's new cadre of clients shall be from timber impact areas as defined in RCW 43.31.601. Counseling may include, but not be limited to, helping clients obtain debt or equity financing, in constructing competent proposals, and assessing federal guarantee and/or insurance programs that underwrite exporting risk; assisting clients in evaluating their international marketplace by developing marketing materials, assessing and selecting targeted markets; assisting firms in finding foreign customers by conducting foreign market research, evaluating distribution systems, selecting and assisting in identification of and/or negotiations with foreign agents, distributors, retailers, and by promoting products through attending trade shows abroad; advising companies on their products, guarantees, and after sales service requirements necessary to compete effectively in a foreign market; designing a competitive strategy for a firm's products in targeted markets and methods of minimizing their commercial and political risks; securing for clients specific assistance as needed, outside the center's field of expertise, by referrals to other public or private organizations. The Pacific Northwest export assistance project shall focus its efforts on facilitating export transactions for its clients, and in doing so, provide such technical services as are appropriate to accomplish its mission either with staff or outside consultants;

(c) Sign three-year counseling agreements with its clients that provide for termination if adequate funding for the Pacific Northwest export assistance project is not provided in future appropriations. Counseling agreements shall not be renewed unless there are compelling reasons to do so, and under no circumstances shall they be renewed for more than two additional years. A counseling agreement may not be renewed more than once. The counseling agreements shall have mutual performance clauses, that if not met, will be grounds for releasing each party, without penalty, from the provisions of the agreement. Clients shall be immediately released from a counseling agreement with the Pacific Northwest export assistance project, without penalty, if a client wishes to switch to a private export management service and produces a valid contract signed with a private export management service, or if the president of the small business export finance assistance center determines there are compelling reasons to release a client from the provisions of the counseling agreement;

(d) May contract with private or public international trade education services to provide Pacific Northwest export assistance project clients with training in international business. The president and board of directors shall decide the amount of funding allocated for educational services based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;

(e) May contract with the Washington state international trade fair to provide services for Pacific Northwest export assistance project clients to participate in one trade show annually. The president and board of directors shall decide the amount of funding allocated for trade fair assistance based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;

(f) Provide biennial assessments of its performance. Project personnel shall work with the department of revenue and employment security department to confidentially track the performance of the project's clients in increasing tax revenues to the state, increasing gross sales revenues and volume of products destined to foreign clients, and in creating new jobs for Washington citizens. A biennial report shall be prepared for the governor and legislature to assess the costs and benefits to the state from creating the project. The president of the small business export finance assistance center shall design an appropriate methodology for biennial assessments in consultation with the director of the department of ((trade)) community and economic ((development)) resources and the director of the Washington state department of agriculture. The department of revenue and the employment security department shall provide data necessary to complete this biennial evaluation, if the data being requested is available from existing data bases. Client-specific information generated from the files of the department of revenue and the employment security department for the purposes of this evaluation shall be kept strictly confidential by each department and the small business export finance assistance center;

(g) Take whatever action may be necessary to accomplish the purposes set forth in RCW 43.210.070 and 43.210.100 through 43.210.120; and

(h) Limit its assistance to promoting the exportation of value-added manufactured goods. The project shall not provide counseling or assistance, under any circumstances, for the importation of foreign made goods into the United States.

(2) The Pacific Northwest export assistance project shall not, under any circumstances, assume ownership or take title to the goods of its clients.

(3) The Pacific Northwest export assistance project may not use any Washington state funds which come from the public treasury of the state of Washington to make loans or to make any payment under a loan guarantee agreement. Under no circumstances may the center use any funds received under RCW 43.210.050 to make or assist in making any loan or to pay or assist in paying any amount under a loan guarantee agreement. Debts of the center shall be center debts only and may be satisfied only from the resources of the center. The state of Washington shall not in any way be liable for such debts.

(4) The Pacific Northwest export assistance project shall make every effort to seek nonstate funds to supplement its operations.

(5) The Pacific Northwest export assistance project shall take whatever steps are necessary to provide its services, if requested, to the states of Oregon, Idaho, Montana, Alaska, and the Canadian provinces of British Columbia and Alberta. Interstate services shall not be provided by the Pacific Northwest export assistance project during its first biennium of operation. The provision of services may be temporary and subject to the payment of fees, or each state may request permanent services contingent upon a level of permanent funding adequate for services provided. Temporary services and fees may be negotiated by the small business export finance assistance center's president subject to approval of the board of directors. The president of the small business export finance assistance center may enter into negotiations with neighboring states to contract for delivery of the project's services. Final contracts for providing the project's counseling and services outside of the state of Washington on a permanent basis shall be subject to approval of the governor, appropriate legislative oversight committees, and the small business export finance assistance center's board of directors.

(6) The small business export finance assistance center may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the Pacific Northwest export assistance project and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

(7) The president of the small business export finance assistance center, in consultation with the board of directors, may use the following formula in determining the number of clients that can be reasonably served by the Pacific Northwest export assistance project relative to its appropriation. Divide the amount appropriated for administration of the Pacific Northwest export assistance project by the marginal cost of adding each additional Pacific Northwest export assistance project client. For the purposes of this calculation, and only for the first biennium of operation, the biennial marginal cost of adding each additional Pacific Northwest export assistance project client shall be fifty-seven thousand ninety-five dollars. The biennial marginal cost of adding each additional client after the first biennium of operation shall be established from the actual operating experience of the Pacific Northwest export assistance project.

(8) All receipts from the Pacific Northwest export assistance project shall be deposited into the general fund.

Sec. 55. RCW 43.63A.066 and 1990 c 33 s 579 are each amended to read as follows:

The department of community ((development)) and economic resources shall have primary responsibility for providing child abuse and neglect prevention training to preschool age children participating in the federal head start program or the early childhood education and assistance program established under RCW 28A.215.010 through 28A.215.200 and 28A.215.900 through 28A.215.908.

Sec. 56. RCW 43.63A.075 and 1985 c 466 s 53 are each amended to read as follows:

The department shall establish a community development finance program. Pursuant to this program, the department shall: (1) Develop expertise in federal, state, and local community and economic development programs; and (2) assist communities and businesses to secure available financing((; and (3) work closely with the department of trade and economic development on financial and technical assistance programs available to small and medium sized businesses)). To the extent permitted by federal law, the department is encouraged to use federal community block grant funds to make urban development action grants to communities which have not been eligible to receive such grants prior to June 30, 1984.

Sec. 57. RCW 43.63A.115 and 1990 c 156 s 1 are each amended to read as follows:

(1) The community action agency network, established initially under the federal economic opportunity act of 1964 and subsequently under the federal community services block grant program of 1981, as amended, shall be a delivery system for federal and state anti-poverty programs in this state, including but not limited to the community services block grant program, the low-income energy assistance program, and the federal department of energy weatherization program.

(2) Local community action agencies comprise the community action agency network. The community action agency network shall serve low-income persons in the counties. Each community action agency and its service area shall be designated in the state federal community service block grant plan as prepared by the department of community ((development)) and economic resources.

(3) Funds for anti-poverty programs may be distributed to the community action agencies by the department of community ((development)) and economic resources and other state agencies in consultation with the authorized representatives of community action agency networks.

Sec. 58. RCW 43.63A.155 and 1989 c 225 s 5 are each amended to read as follows:

The department of community ((development)) and economic resources shall retain the bond information it receives under RCW 39.44.210 and 39.44.230 and shall publish summaries of local government bond issues at least once a year.

The department of community ((development)) and economic resources shall adopt rules under chapter 34.05 RCW to implement RCW 39.44.210 and 39.44.230.

Sec. 59. RCW 43.63A.220 and 1987 c 505 s 34 are each amended to read as follows:

(1) The department of community ((development)) and economic resources is directed to undertake a study as to the best means of providing encouragement and assistance to the formulation of employee stock ownership plans providing for the partial or total acquisition, through purchase, distribution in lieu of compensation, or a combination of these means or any other lawful means, of shares of stock or other instruments of equity in facilities by persons employed at these facilities in cases in which operations at these facilities would, absent employee equity ownership, be terminated, relocated outside of the state, or so reduced in volume as to entail the permanent layoff of a substantial number of the employees.

(2) In conducting its study, the department shall:

(a) Consider federal and state law relating directly or indirectly to plans proposed under subsection (1) of this section, and to the organization and operation of any trusts established pursuant to the plans, including but not limited to, the federal internal revenue code and any regulations promulgated under the internal revenue code, the federal securities act of 1933 as amended and other federal statutes providing for regulation of the issuance of securities, the federal employee retirement income and security act of 1974 as amended, the Chrysler loan guarantee legislation enacted by the United States congress in 1979, and other federal and state laws relating to employment, compensation, taxation, and retirement;

(b) Consult with relevant persons in the public sector, relevant persons in the private sector, including trustees of any existing employee stock ownership trust, and employees of any firm operating under an employee stock ownership trust, and with members of the academic community and of relevant branches of the legal profession;

(c) Examine the experience of trusts organized pursuant to an employee stock ownership plan in this state or in any other state; and

(d) Make other investigations as it may deem necessary in carrying out the purposes of this section.

(3) Pursuant to the findings and conclusions of the study conducted under subsection (2) of this section, the department of community ((development)) and economic resources shall develop a plan to encourage and assist the formulation of employee stock ownership plans providing for the acquisition of stock by employees of facilities in this state which are subject to closure or drastically curtailed operation. The department shall determine the amount of any costs of implementing the plan.

(4) The director of community ((development)) and economic resources shall, within one year of July 28, 1985, report the findings and conclusion of the study, together with details of the plan developed pursuant to the study, to the legislature, and shall include in the report any recommendations for legislation which the director deems appropriate.

(5) The department of community ((development)) and economic resources shall carry out its duties under this section using available resources.

Sec. 60. RCW 43.63A.230 and 1988 c 186 s 17 are each amended to read as follows:

(1) The department of community ((development)) and economic resources shall integrate an employee ownership program within its existing technical assistance programs. The employee ownership program shall provide technical assistance to cooperatives authorized under chapter 23.78 RCW and conduct educational programs on employee ownership and self-management. The department shall include information on the option of employee ownership wherever appropriate in its various programs.

(2) The department shall maintain a list of firms and individuals with expertise in the field of employee ownership and utilize such firms and individuals, as appropriate, in delivering and coordinating the delivery of technical, managerial, and educational services. In addition, the department shall work with and rely on the services of ((the department of trade and economic development,)) the employment security department((,)) and state institutions of higher education to promote employee ownership.

(3) The department shall report to the governor, the ((trade and)) appropriate economic development ((committee of)) committees of the senate and the house of representatives, ((the commerce and labor committee of the senate,)) and the ways and means committees of each house by December 1 of 1988, and each year thereafter, on the accomplishments of the employee-ownership program. Such reports shall include the number and types of firms assisted, the number of jobs created by such firms, the types of services, the number of workshops presented, the number of employees trained, and the results of client satisfaction surveys distributed to those using the services of the program.

(4) For purposes of this section, an employee stock ownership plan qualifies as a cooperative if at least fifty percent, plus one share, of its voting shares of stock are voted on a one-person-one-vote basis.

Sec. 61. RCW 43.63A.245 and 1992 c 63 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.63A.240 through 43.63A.270.

"Agency" means one of the agencies or organizations participating in the activities of the senior environmental corps.

"Coordinator" means the person designated by the director of the department of community ((development)) and economic resources with the advice of the council to administer the activities of the senior environmental corps.

"Corps" means the senior environmental corps.

"Council" means the senior environmental corps coordinating council.

"Department" means the department of community ((development)) and economic resources.

"Director" means the director of the department of community ((development)) and economic resources or the director's authorized representative.

"Representative" means the person who represents an agency on the council and is responsible for the activities of the senior environmental corps in his or her agency.

"Senior" means any person who is fifty-five years of age or over.

"Volunteer" means a person who is willing to work without expectation of salary or financial reward, and who chooses where he or she provides services and the type of services he or she provides.

Sec. 62. RCW 43.63A.247 and 1992 c 63 s 3 are each amended to read as follows:

The senior environmental corps is created within the department of community ((development)) and economic resources. The departments of agriculture, community ((development)) and economic resources, employment security, ecology, fisheries, health, natural resources, and wildlife, the parks and recreation commission, and the Puget Sound water quality authority shall participate in the administration and implementation of the corps and shall appoint representatives to the council.

Sec. 63. RCW 43.63A.260 and 1992 c 63 s 5 are each amended to read as follows:

The department shall convene a senior environmental corps coordinating council to meet as needed to establish and assess policies, define standards for projects, evaluate and select projects, develop recruitment, training, and placement procedures, receive and review project status and completion reports, and provide for recognition of volunteer activity. The council shall include representatives appointed by the departments of agriculture, community ((development)) and economic resources, ecology, fisheries, health, natural resources, and wildlife, the parks and recreation commission, and the Puget Sound water quality authority. The council shall develop bylaws, policies and procedures to govern its activities.

The council shall advise the director on distribution of available funding for corps activities.

Sec. 64. RCW 43.63A.275 and 1992 c 65 s 2 are each amended to read as follows:

(1) Each biennium the department of community ((development)) and economic resources shall distribute such funds as are appropriated for retired senior volunteer programs (RSVP) as follows:

(a) At least sixty-five percent of the moneys may be distributed according to formulae and criteria to be determined by the department of community ((development)) and economic resources in consultation with the RSVP directors association.

(b) Up to twenty percent of the moneys may be distributed by competitive grant process to develop RSVP projects in counties not presently being served, or to expand existing RSVP services into counties not presently served.

(c) Ten percent of the moneys may be used by the department of community ((development)) and economic resources for administration, monitoring of the grants, and providing technical assistance to the RSVP projects.

(d) Up to five percent of the moneys may be used to support projects that will benefit RSVPs state-wide.

(2) Grants under subsection (1) of this section shall give priority to programs in the areas of education, tutoring, English as a second language, combating of and education on drug abuse, housing and homeless, and respite care, and shall be distributed in accordance with the following:

(a) None of the grant moneys may be used to displace any paid employee in the area being served.

(b) Grants shall be made for programs that focus on:

(i) Developing new roles for senior volunteers in nonprofit and public organizations with special emphasis on areas targeted in section 1, chapter 65, Laws of 1992. The roles shall reflect the diversity of the local senior population and shall respect their life experiences;

(ii) Increasing the expertise of volunteer managers and RSVP managers in the areas of communication, recruitment, motivation, and retention of today's over-sixty population;

(iii) Increasing the number of senior citizens recruited, referred, and placed with nonprofit and public organizations; and

(iv) Providing volunteer support such as: Mileage to and from the volunteer assignment, recognition, and volunteer insurance.

Sec. 65. RCW 43.63A.300 and 1986 c 266 s 54 are each amended to read as follows:

The legislature finds that fire protection services at the state level are provided by different, independent state agencies. This has resulted in a lack of a comprehensive state-level focus for state fire protection services, funding, and policy. It is the intent of the legislature to consolidate fire protection services into a single state agency and to create a state board with the responsibility of (1) establishing a comprehensive state policy regarding fire protection services and (2) advising the director of community ((development)) and economic resources and the director of fire protection on matters relating to their duties under state law. It is also the intent of the legislature that the fire protection services program created herein will assist local fire protection agencies in program development without encroaching upon their historic autonomy.

Sec. 66. RCW 43.63A.320 and 1986 c 266 s 56 are each amended to read as follows:

Except for matters relating to the statutory duties of the director of community ((development)) and economic resources which are to be carried out through the director of fire protection, the board shall have the responsibility of developing a comprehensive state policy regarding fire protection services. In carrying out its duties, the board shall:

(1) Adopt a state fire protection master plan;

(2) Monitor fire protection in the state and develop objectives and priorities to improve fire protection for the state's citizens;

(3) Establish and promote state arson control programs and ensure development of local arson control programs;

(4) Provide representation for local fire protection services to the governor in state-level fire protection planning matters such as, but not limited to, hazardous materials;

(5) Seek and solicit grants, gifts, bequests, devices, and matching funds for use in furthering the objectives and duties of the board, and establish procedures for administering them;

(6) Promote mutual aid and disaster planning for fire services in this state;

(7) Assure the dissemination of information concerning the amount of fire damage including that damage caused by arson, and its causes and prevention;

(8) Submit annually a report to the governor containing a statement of its official acts pursuant to this chapter, and make such studies, reports, and recommendations to the governor and the legislature as are requested;

(9) Adopt a state fire training and education master plan;

(10) Develop and adopt a master plan for the construction, equipping, maintaining, and operation of necessary fire service training and education facilities, but the authority to construct, equip, and maintain such facilities is subject to chapter 43.19 RCW;

(11) Develop and adopt a master plan for the purchase, lease, or other acquisition of real estate necessary to establish and operate fire service training and education facilities in a manner provided by law;

(12) Adopt standards for state-wide fire service training and education courses including courses in arson detection and investigation for personnel of fire, police, and prosecutor's departments;

(13) Assure the administration of any legislation enacted by the legislature in pursuance of the aims and purposes of any acts of Congress insofar as the provisions thereof may apply;

(14) Cooperate with the common schools, community colleges, institutions of higher education, and any department or division of the state, or of any county or municipal corporation in establishing and maintaining instruction in fire service training and education in accordance with any act of Congress and legislation enacted by the legislature in pursuance thereof and in establishing, building, and operating training and education facilities.

This section does not apply to forest fire service personnel and programs. Industrial fire departments and private fire investigators may participate in training and education programs under this chapter for a reasonable fee established by rule.

Sec. 67. RCW 43.63A.330 and 1986 c 266 s 57 are each amended to read as follows:

In regards to the statutory duties of the director of community ((development)) and economic resources which are to be carried out through the director of fire protection, the board shall serve in an advisory capacity in order to enhance the continuity of state fire protection services. In this capacity, the board shall:

(1) Advise the director of community ((development)) and economic resources and the director of fire protection on matters pertaining to their duties under law; and

(2) Advise the director of community ((development)) and economic resources and the director of fire protection on all budgeting and fiscal matters pertaining to the duties of the director of fire protection and the board.

Sec. 68. RCW 43.63A.340 and 1986 c 266 s 58 are each amended to read as follows:

(1) Wherever the term state fire marshal appears in the Revised Code of Washington or the Washington Administrative Code it shall mean the director of fire protection.

(2) The director of community ((development)) and economic resources shall appoint an assistant director who shall be known as the director of fire protection. The board, after consulting with the director, shall prescribe qualifications for the position of director of fire protection. The board shall submit to the director a list containing the names of three persons whom the board believes meet its qualifications. If requested by the director, the board shall submit one additional list of three persons whom the board believes meet its qualifications. The appointment shall be from one of the lists of persons submitted by the board.

(3) The director of fire protection may designate one or more deputies and may delegate to those deputies his or her duties and authorities as deemed appropriate.

(4) The director of community ((development)) and economic resources, through the director of fire protection, shall, after consultation with the board, prepare a biennial budget pertaining to fire protection services. Such biennial budget shall be submitted as part of the department's budget request.

(5) The director of community ((development)) and economic resources, through the director of fire protection, shall implement and administer, within the constraints established by budgeted resources, the policies of the board and all duties of the director of community ((development)) and economic resources which are to be carried out through the director of fire protection.

(6) The director of community ((development)) and economic resources, through the director of fire protection, shall seek the advice of the board in carrying out his or her duties under law.

Sec. 69. RCW 43.63A.400 and 1987 c 308 s 2 are each amended to read as follows:

The department of community ((development)) and economic resources shall distribute grants to eligible public radio and television broadcast stations under RCW 43.63A.410 and 43.63A.420 to assist with programming, operations, and capital needs.

Sec. 70. RCW 43.63A.410 and 1987 c 308 s 3 are each amended to read as follows:

(1) Eligibility for grants under this section shall be limited to broadcast stations which are:

(a) Licensed to Washington state organizations, nonprofit corporations, or other entities under section 73.621 of the regulations of the federal communications commission; and

(b) Qualified to receive community service grants from the federally chartered corporation for public broadcasting. Eligibility shall be established as of February 28th of each year.

(2) The formula in this subsection shall be used to compute the amount of each eligible station's grant under this section.

(a) Appropriations under this section shall be divided into a radio fund, which shall be twenty-five percent of the total appropriation under this section, and a television fund, which shall be seventy-five percent of the total appropriation under this section. Each of the two funds shall be divided into a base grant pool, which shall be fifty percent of the fund, and an incentive grant pool, which shall be the remaining fifty percent of the fund.

(b) Each eligible participating public radio station shall receive an equal share of the radio base grant pool, plus a share of the radio incentive grant pool equal to the proportion its nonfederal financial support bears to the sum of all participating radio stations' nonfederal financial support as most recently reported to the corporation for public broadcasting.

(c) Each eligible participating public television station shall receive an equal share of the television base grant pool, plus a share of the television incentive grant pool equal to the proportion its nonfederal financial support bears to the sum of all participating television stations' nonfederal financial support as most recently reported to the corporation for public broadcasting.

(3) Annual financial reports to the corporation for public broadcasting by eligible stations shall also be submitted by the stations to the department of community ((development)) and economic resources.

Sec. 71. RCW 43.63A.440 and 1989 c 424 s 7 are each amended to read as follows:

(1) The department of community ((development)) and economic resources shall provide technical and financial assistance to communities adversely impacted by reductions in timber harvested from federal lands. This assistance shall include the formation and implementation of community economic development plans. The department of community ((development)) and economic resources shall utilize existing state technical and financial assistance programs, and shall aid communities in seeking private and federal financial assistance for the purposes of this section. The department may contract for services provided for under this section.

(2) The sum of four hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of community ((development)) and economic resources for the biennium ending June 30, 1991, for the purposes of subsection (1) of this section.

Sec. 72. RCW 43.63A.450 and 1990 c 278 s 2 are each amended to read as follows:

The community diversification program is created in the department of community ((development)) and economic resources. The program shall include:

(1) The monitoring and forecasting of shifts in the economic prospects of major defense employers in the state. This shall include but not be limited to the monitoring of defense contract expenditures, other federal contracts, defense employment shifts, the aircraft and aerospace industry, computer products, and electronics;

(2) The identification of cities, counties, or regions within the state that are primarily dependent on defense or other federal contracting and the identification of firms dependent on federal defense contracts;

(3) Assistance to communities in broadening the local economic base through the provision of management assistance, assistance in financing, entrepreneurial training, and assistance to businesses in using off-the-shelf technology to start new production processes or introduce new products;

(4) Formulating a state plan for diversification in defense dependent communities in collaboration with the employment security department((, the department of trade and economic development,)) and the office of financial management. The plan shall use the information made available through carrying out subsections (1) and (2) of this section; and

(5) The identification of diversification efforts conducted by other states, the federal government, and other nations, and the provision of information on these efforts, as well as information gained through carrying out subsections (1) and (2) of this section, to firms, communities, and ((workforces)) work forces that are defense dependent.

The department shall, beginning January 1, 1992, report annually to the governor and the legislature on the activities of the community diversification program.

Sec. 73. RCW 43.63A.460 and 1990 c 176 s 2 are each amended to read as follows:

Beginning on July 1, 1991, the department of community ((development)) and economic resources shall be responsible for performing all the consumer complaint and related functions of the state administrative agency that are required for purposes of complying with the regulations established by the federal department of housing and urban development for manufactured housing, including the preparation and submission of the state administrative plan.

The department of community ((development)) and economic resources may enter into state or local interagency agreements to coordinate site inspection activities with record monitoring and complaint handling. The interagency agreement may also provide for the reimbursement for cost of work that an agency performs. The department may include other related areas in any interagency agreements which are necessary for the efficient provision of services.

The department of labor and industries shall transfer all records, files, books, and documents necessary for the department of community ((development)) and economic resources to assume these new functions.

The directors of the department of community ((development)) and economic resources and the department of labor and industries shall immediately take such steps as are necessary to ensure that this act is implemented on June 7, 1990.

Sec. 74. RCW 43.63A.600 and 1991 c 315 s 23 are each amended to read as follows:

(1) The department of community ((development)) and economic resources, as a member of the agency timber task force and in consultation with the economic recovery coordination board, shall establish and administer the emergency mortgage and rental assistance program. The department shall identify the communities most adversely affected by reductions in timber harvest levels and shall prioritize assistance under this program to these communities. The department shall work with the department of social and health services and the timber recovery coordinator to develop the program in timber impact areas. Organizations eligible to receive funds for distribution under the program are those organizations that are eligible to receive assistance through the Washington housing trust fund.

(2) The goals of the program are to:

(a) Provide temporary emergency mortgage or rental assistance loans on behalf of dislocated forest products workers in timber impact areas who are unable to make current mortgage or rental payments on their permanent residences and are subject to immediate eviction for nonpayment of mortgage installments or nonpayment of rent;

(b) Prevent the dislocation of individuals and families from their permanent residences and their communities; and

Sec. 75. RCW 43.105.020 and 1990 c 208 s 3 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise, the following definitions shall apply:

(1) "Department" means the department of information services;

(2) "Board" means the information services board;

(3) "Local governments" includes all municipal and quasi municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately;

(4) "Director" means the director of the department;

(5) "Purchased services" means services provided by a vendor to accomplish routine, continuing, and necessary functions. This term includes, but is not limited to, services acquired for equipment maintenance and repair, operation of a physical plant, security, computer hardware and software installation and maintenance, data entry, keypunch services, programming services, and computer time-sharing;

(6) "Backbone network" means the shared high-density portions of the state's telecommunications transmission facilities. It includes specially conditioned high-speed communications carrier lines, multiplexors, switches associated with such communications lines, and any equipment and software components necessary for management and control of the backbone network;

(7) "Telecommunications" means the transmission of information by wire, radio, optical cable, electromagnetic, or other means;

(8) "Information processing" means the electronic capture, collection, storage, manipulation, transmission, retrieval, and presentation of information in the form of data, text, voice, or image and includes telecommunications and office automation functions;

(9) "Information services" means data processing, telecommunications, and office automation;

(10) "Equipment" means the machines, devices, and transmission facilities used in information processing, such as computers, word processors, terminals, telephones, and cables;

(11) "Proprietary software" means that software offered for sale or license;

(12) "Video telecommunications" means the electronic interconnection of two or more sites for the purpose of transmitting and/or receiving visual and associated audio information. Video telecommunications shall not include existing public television broadcast stations as currently designated by the department of community ((development)) and economic resources under chapter ((43.63A)) 43.-- RCW (sections 1 through 8, 10 through 14, and 76 of this act).

NEW SECTION. Sec. 76. (1) All references to the director or department of community development in the Revised Code of Washington shall be construed to mean the director or department of community and economic resources.

(2) All references to the director or department of trade and economic development in the Revised Code of Washington shall be construed to mean the director or department of community and economic resources.

Sec. 77. RCW 43.31.091 and 1990 c 297 s 9 are each amended to read as follows:

The business assistance center and its powers and duties shall be terminated on June 30, ((1993)) 1995, as provided in RCW 43.31.092.

Sec. 78. RCW 43.31.092 and 1990 c 297 s 10 are each amended to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((1994)) 1996:

(1) Section 2, chapter 348, Laws of 1987 and RCW 43.31.083;

(2) Section 11, chapter 466, Laws of 1985, section 3, chapter 348, Laws of 1987, section 2, chapter 430, Laws of 1989 and RCW 43.31.085;

(3) Section 4, chapter 348, Laws of 1987 and RCW 43.31.087; and

(4) Section 5, chapter 348, Laws of 1987 and RCW 43.31.089.

NEW SECTION. Sec. 79. The following acts or parts of acts are each repealed:

(1) RCW 43.31.005 and 1990 1st ex.s. c 17 s 68 & 1985 c 466 s 1;

(2) RCW 43.31.015 and 1985 c 466 s 2;

(3) RCW 43.31.025 and 1987 c 348 s 8 & 1985 c 466 s 3;

(4) RCW 43.31.035 and 1990 1st ex.s. c 17 s 69 & 1985 c 466 s 4;

(5) RCW 43.31.045 and 1985 c 466 s 5;

(6) RCW 43.31.055 and 1985 c 466 s 6;

(7) RCW 43.31.065 and 1985 c 466 s 9;

(8) RCW 43.31.075 and 1985 c 466 s 10;

(9) RCW 43.31.095 and 1985 c 466 s 12;

(10) RCW 43.31.097 and 1990 1st ex.s. c 17 s 71;

(11) RCW 43.31.105 and 1985 c 466 s 13;

(12) RCW 43.31.115 and 1985 c 466 s 14;

(13) RCW 43.31.130 and 1975-'76 2nd ex.s. c 34 s 110 & 1965 c 8 s 43.31.130;

(14) RCW 43.31.135 and 1987 c 505 s 30 & 1985 c 466 s 17;

(15) RCW 43.31.373 and 1988 c 35 s 1, 1985 c 466 s 24, & 1984 c 175 s 1;

(16) RCW 43.31.375 and 1985 c 466 s 25 & 1984 c 175 s 2;

(17) RCW 43.31.377 and 1988 c 35 s 2, 1985 c 466 s 26, & 1984 c 175 s 3;

(18) RCW 43.31.379 and 1988 c 35 s 3, 1985 c 466 s 27, & 1984 c 175 s 4;

(19) RCW 43.31.381 and 1988 c 35 s 4, 1985 c 466 s 28, & 1984 c 175 s 5;

(20) RCW 43.31.383 and 1985 c 466 s 29 & 1984 c 175 s 6;

(21) RCW 43.31.387 and 1985 c 466 s 31 & 1984 c 175 s 8;

(22) RCW 43.31.430 and 1989 c 423 s 2;

(23) RCW 43.31.432 and 1989 c 423 s 3;

(24) RCW 43.31.434 and 1989 c 423 s 6;

(25) RCW 43.31.436 and 1989 c 423 s 7;

(26) RCW 43.31.438 and 1989 c 423 s 8;

(27) RCW 43.31.440 and 1989 c 423 s 9;

(28) RCW 43.31.442 and 1989 c 423 s 10;

(29) RCW 43.31.651 and 1991 c 314 s 9;

(30) RCW 43.31.790 and 1975 1st ex.s. c 292 s 2 & 1965 c 148 s 1;

(31) RCW 43.31.800 and 1987 c 195 s 4 & 1965 c 148 s 2;

(32) RCW 43.31.810 and 1987 c 195 s 5, 1975 1st ex.s. c 292 s 3, & 1965 c 148 s 3;

(33) RCW 43.31.820 and 1987 c 195 s 6, 1975 1st ex.s. c 292 s 4, & 1965 c 148 s 4;

(34) RCW 43.63A.020 and 1986 c 266 s 136, 1984 c 125 s 2, & 1967 c 74 s 2;

(35) RCW 43.63A.030 and 1984 c 125 s 1 & 1967 c 74 s 3;

(36) RCW 43.63A.040 and 1984 c 125 s 3, 1975 c 40 s 10, & 1967 c 74 s 4;

(37) RCW 43.63A.050 and 1967 c 74 s 5;

(38) RCW 43.63A.060 and 1987 c 505 s 32, 1984 c 125 s 4, & 1967 c 74 s 6;

(39) RCW 43.63A.065 and 1992 c 198 s 7, 1990 1st ex.s. c 17 s 70, 1986 c 266 s 137, & 1984 c 125 s 5;

(40) RCW 43.63A.078 and 1987 c 505 s 33 & 1984 c 125 s 7;

(41) RCW 43.63A.095 and 1984 c 125 s 8;

(42) RCW 43.63A.100 and 1984 c 125 s 9 & 1967 c 74 s 10;

(43) RCW 43.63A.130 and 1983 c 52 s 6, 1981 c 157 s 6, & 1967 c 74 s 13;

(44) RCW 43.63A.140 and 1967 c 74 s 14;

(45) RCW 43.63A.210 and 1985 c 85 s 1;

(46) RCW 43.63A.560 and 1990 1st ex.s. c 17 s 67;

(47) RCW 43.165.020 and 1985 c 229 s 2;

(48) RCW 43.165.030 and 1987 c 195 s 13 & 1985 c 229 s 3;

(49) RCW 43.165.040 and 1985 c 229 s 4;

(50) RCW 43.165.050 and 1985 c 229 s 5;

(51) RCW 43.165.060 and 1985 c 229 s 6;

(52) RCW 43.165.070 and 1985 c 229 s 7;

(53) RCW 43.165.080 and 1987 c 195 s 14 & 1985 c 229 s 8;

(54) RCW 43.165.090 and 1985 c 229 s 9;

(55) RCW 43.165.100 and 1985 c 229 s 10;

(56) RCW 43.165.900 and 1985 c 229 s 14; and

(57) RCW 43.165.901 and 1985 c 229 s 15.

NEW SECTION. Sec. 80. Sections 1 through 8, 10 through 14, and 76 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 81. Sections 1 through 8 and 10 through 80 of this act shall take effect July 1, 1994.

NEW SECTION. Sec. 82. 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."

POINT OF INQUIRY

Senator Bluechel: "Senator Skratek, what is the difference in this striking amendment that you are proposing with the substitute bill that we passed out of committee?"

Senator Skratek: "The primary difference--what we are trying to accomplish as this particular piece of legislation emerges--is to make sure that there is a balance between the economic and community development aspects of each of the agencies. We are also trying to address the concerns that are being raised by many of the current stakeholders in the existing agencies to make sure that we are not through this legislation essentially saying, 'this should be eliminated, this should be added,' but rather that we allow the agency heads to be making that determination, as they move toward the development of their plan. Then, we do change the title to 'Community and Economic Resources.' In the original version, it was, 'Community and Economic Development.'"

Senator Bluechel: "Senator Skratek, a further question, if you would. Could you give us some specifics other than the name change that are different than what we studied in committee?"

Senator Skratek: "Quite frankly, Senator Bluechel, I don't think substantively there have been major changes. We still maintain the elements that we had in the committee bill--about the economic development perspectives. We have balanced it by including more of the community development perspectives. We still require a strategic plan to be developed by the agencies. We've done some fine-tuning, as to who will participate in the development of that plan, including the stakeholders, which was always intended in the original version of the bill."

POINT OF INQUIRY

Senator Cantu: "Senator Skratek, it is a fairly substantial change, I mean in terms of the volume of the striking amendment. Has that been worked with the, for example, the new appointed director of the Department of Trade and Economic Development and some of the people that are going to be affected by it?"

Senator Skratek: "Yes, the agency heads have been involved in the development of the evolving legislation and actually, although it is a very thick document, the major substantive changes take place in the first few sections of the document. The rest of the document is simply clean-up language, changing the name from the currently existing name to the Community and Economic Resources."

Senator Cantu: "Thank you. Most of us have had an opportunity to meet with our new director and think we understand what the intent is, and I just wanted to insure myself, at least, that this striking amendment was something that had been worked in cooperation with, and a full understanding, by the appropriate people."

Senator Skratek: "Absolutely, and they will continue to be involved in the process as this legislation continues to, I am sure evolve, as it moves through the House of Representatives."

The President declared the question before the Senate to be the adoption of the striking amendment by Senator Skratek to Substitute Senate Bill No. 5868.

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

MOTIONS

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

On page 1, line 1 of the title, after "agencies;" strike the remainder of the title and insert "amending RCW 28C.18.060, 43.17.010, 43.17.020, 19.85.020, 42.17.319, 43.17.065, 43.20A.750, 43.31.057, 43.31.085, 43.31.205, 43.31.409, 43.31.411, 43.31.422, 43.31.504, 43.31.522, 43.31.524, 43.31.526, 43.31.621, 43.31.641, 43.31.830, 43.31.840, 43.31.850, 43.160.020, 43.168.020, 43.210.110, 43.63A.066, 43.63A.075, 43.63A.115, 43.63A.155, 43.63A.220, 43.63A.230, 43.63A.245, 43.63A.247, 43.63A.260, 43.63A.275, 43.63A.300, 43.63A.320, 43.63A.330, 43.63A.340, 43.63A.400, 43.63A.410, 43.63A.440, 43.63A.450, 43.63A.460, 43.63A.600, 43.105.020, 43.31.091, and 43.31.092; reenacting and amending RCW 42.17.310; adding a new chapter to Title 43 RCW; creating new sections; repealing RCW 43.31.005, 43.31.015, 43.31.025, 43.31.035, 43.31.045, 43.31.055, 43.31.065, 43.31.075, 43.31.095, 43.31.097, 43.31.105, 43.31.115, 43.31.130, 43.31.135, 43.31.373, 43.31.375, 43.31.377, 43.31.379, 43.31.381, 43.31.383, 43.31.387, 43.31.430, 43.31.432, 43.31.434, 43.31.436, 43.31.438, 43.31.440, 43.31.442, 43.31.651, 43.31.790, 43.31.800, 43.31.810, 43.31.820, 43.63A.020, 43.63A.030, 43.63A.040, 43.63A.050, 43.63A.060, 43.63A.065, 43.63A.078, 43.63A.095, 43.63A.100, 43.63A.130, 43.63A.140, 43.63A.210, 43.63A.560, 43.165.020, 43.165.030, 43.165.040, 43.165.050, 43.165.060, 43.165.070, 43.165.080, 43.165.090, 43.165.100, 43.165.900, and 43.165.901; and providing an effective date."

On motion of Senator Skratek, Engrossed Substitute Senate Bill No. 5868 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5868.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5868 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 3; Absent, 0; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Hochstatter, Jesernig, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 46.

Voting nay: Senators Haugen, Loveland and McCaslin - 3.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5868, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

STATEMENT FOR THE JOURNAL

I would like the Journal to reflect that the reason for my excused vote on Engrossed Substitute Senate Bill No. 5050 was due to timely negotiations on Senate Bill No. 5305, relating to school/library elections and Senate Joint Resolution No. 8209, also relating to school/library elections.

If you need further clarification or information, please let me know.

Thank you for your assistance.

SENATOR DEAN SUTHERLAND, 17th District

SECOND READING

SENATE BILL NO. 5050, by Senator Haugen

Revising reimbursement provisions for local government officials.

MOTIONS

On motion of Senator Haugen, Substitute Senate Bill No. 5050 was substituted for Senate Bill No. 5050 and the substitute bill was placed on second reading and read the second time.

Senator West moved that the following amendment be adopted:

On page 20, line 10, after "planning." insert the following:

"NEW SECTION. Sec. 31. A new section is added to chapter 36.100 RCW to read as follows:

The board of directors of the district shall adopt a resolution to establish methods and amounts of reimbursement payable to such district officials and employees for travel and other business expenses incurred on behalf of the district. The resolution shall, among other things, establish procedures for approving such expenses; the form of the travel and expense voucher; and requirements governing the use of credit cards issued in the name of the district. Such resolution may also establish procedures for payment of per diem to board members. The state auditor shall, as provided by general law, cooperate with the district in establishing adequate procedures for regulating and auditing the reimbursement of all such expenses.

NEW SECTION. Sec. 32. A new section is added to chapter 36.100 RCW to read as follows:

The board of directors may authorize payment of actual and necessary expenses of officers and employees for lodging, meals, and travel-related costs incurred when attending meetings or conferences on behalf of the district and strictly in the public interest and for public purposes. Officers and employees may be advanced sufficient sums to cover their anticipated expenses in accordance with rules and regulations promulgated by the state auditor and which shall substantially conform to the procedures provided in RCW 43.03.150 through 43.03.210.

NEW SECTION. Sec. 33. A new section is added to chapter 36.100 RCW to read as follows:

Each member of the board of directors of the district may receive compensation of sixty-six dollars per day for attending meetings or conferences on behalf of the district, not to exceed three thousand dollars per year, if the district board of directors has authorized by board resolution, at a regularly scheduled meeting, the provision of such compensation. Any director may waive all or any portion of his or her compensation under this section as to any month or months during his or her term of office, by a written waiver filed with the district. The compensation provided in this section shall be in addition to any reimbursement for expenses paid to such directors by the district.

NEW SECTION. Sec. 34. A new section is added to chapter 36.100 RCW to read as follows:

The board of directors of the district may purchase liability insurance with such limits as they may deem reasonable for the purpose of protecting and holding personally harmless district officers and employees against liability for personal or bodily injuries and property damage arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

NEW SECTION. Sec. 35. A new section is added to chapter 36.100 RCW to read as follows:

Whenever any action, claim or proceeding is instituted against any person who is or was an officer or employee of the district arising out of the performance of duties for or employment with the district, the district may grant a request by such person that the attorney of the district's choosing be authorized to defend said claim, suit or proceeding, and the costs of defense, attorney's fees, and any obligation for payments arising from such action may be paid from the district's funds: PROVIDED, That costs of defense and/or judgment or settlement against such person shall not be paid in any case where the court has found that such person was not acting in good faith or within the scope of employment with or duties for the district.

NEW SECTION. Sec. 36. A new section is added to chapter 36.100 RCW to read as follows:

The district shall have authority to create and fill positions, to fix wages, salaries and bonds therefor, to pay costs involved in securing or arranging to secure employees, and to establish such benefits for employees, including holiday pay, vacations or vacation pay, retirement benefits, medical, life, accident, or health disability insurance, as approved by the board. District board members, at their own expense, shall be entitled to medical, life, accident or health disability insurance: PROVIDED, That said insurance for employees and board members shall not be considered compensation. District coverage for the board is not to exceed that provided district employees."

Renumber the remaining sections accordingly.

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senator West on page 20, line 10, to Substitute Senate Bill No. 5050.

The motion by Senator West carried and the amendment was adopted.

MOTIONS

On motion of Senator Pelz, the following amendment was adopted:

On page 20, after line 36, insert the following:

"Sec. 32. RCW 43.52.374 and 1983 1st ex.s. c 3 s 3 are each amended to read as follows:

(1) With the exception of the powers and duties of the board of directors described in RCW 43.52.370(2), the management and control of an operating agency constructing, operating, terminating, or decommissioning a nuclear power plant under a site certification agreement under chapter 80.50 RCW is vested in an executive board established under this subsection and consisting of eleven members.

(a) Five members of the executive board shall be elected to four-year terms by the board of directors from among the members of the board of directors. The board of directors may provide by rule for the composition of the five members of the executive board elected from among the members of the board of directors so as to reflect the member public utility districts' and cities' participation in the joint operating agency's projects. Members elected to the executive board from the board of directors are ineligible for continued membership on the executive board if they cease to be members of the board of directors. The board of directors may also provide by rule for the removal of a member of the executive board, except for the outside directors. Members of the board of directors may be elected to serve successive terms on the executive board. Members elected to the executive board from the board of directors shall receive a salary of one thousand eighty-five dollars per month from the operating agency ((at a rate set by the board of directors)). Members of the executive board are entitled to reimbursement for reasonable expenses actually incurred in connection with official business, including subsistence and lodging while away from each member's place of residence, and mileage for use of a privately owned vehicle, in accordance with chapter 42.24 RCW. Due to the additional responsibilities of the chairperson of the executive board, the chairperson shall be entitled to twice the salary and compensation available to other board members.

(b) Six members of the executive board shall be outside directors. Three shall be selected and appointed by the board of directors, and three shall be selected and appointed by the governor and confirmed by the senate. All outside directors shall:

(i) Serve four-year terms on the executive board. However, of the initial members of the executive board, the board of directors and the governor shall each appoint one outside director to serve a two-year term, one outside director to serve a three-year term, and one outside director to serve a four-year term. Thereafter, all outside directors shall be appointed for four-year terms. All outside directors are eligible for reappointment;

(ii) Receive travel expenses on the same basis as the five members elected from the board of directors. The outside directors shall also receive a salary from the operating agency ((as fixed by the governor)) of one thousand eighty-five dollars per month;

(iii) Not be an officer or employee of, or in any way affiliated with, the Bonneville power administration or any electric utility conducting business in the states of Washington, Oregon, Idaho, or Montana;

(iv) Not be involved in the financial affairs of the operating agency as an underwriter or financial adviser of the operating agency or any of its members or any of the participants in any of the operating agency's plants; and

(v) Be representative of policy makers in business, finance, or science, or have expertise in the construction or management of such facilities as the operating agency is constructing or operating, or have expertise in the termination, disposition, or liquidation of corporate assets.

(c) The governor may remove outside directors from the executive board for incompetency, misconduct, or malfeasance in office in the same manner as state appointive officers under chapter 43.06 RCW. For purposes of this subsection, misconduct shall include, but not be limited to, nonfeasance and misfeasance.

(2) In addition to salary, the board of directors of the operating agency may provide by resolution for the payment of per diem compensation to each member of the executive board at a rate of sixty-six dollars for each day or major part thereof devoted to the business of the operating agency and days upon which he or she attends meetings on behalf of the operating agency, but such compensation paid during any one year to a member of the executive board shall not exceed nine thousand nine hundred dollars.

(3) Nothing in this chapter shall be construed to mean that an operating agency is in any manner an agency of the state. Nothing in this chapter alters or destroys the status of an operating agency as a separate municipal corporation or makes the state liable in any way or to any extent for any preexisting or future debt of the operating agency or any present or future claim against the agency.

(((3))) (4) The eleven members of the executive board shall be selected with the objective of establishing an executive board which has the resources to effectively carry out its responsibilities. All members of the executive board shall conduct their business in a manner which in their judgment is in the interest of all ratepayers affected by the joint operating agency and its projects.

(((4))) (5) The executive board shall elect from its members a chairman, vice chairman, and secretary, who shall serve at the pleasure of the executive board. The executive board shall adopt rules for the conduct of its meetings and the carrying out of its business. All proceedings shall be by motion or resolution and shall be recorded in the minute book, which shall be a public record. A majority of the executive board shall constitute a quorum for the transaction of business.

(((5))) (6) With respect to any operating agency existing on April 20, 1982, to which the provisions of this section are applicable:

(a) The board of directors shall elect five members to the executive board no later than sixty days after April 20, 1982; and

(b) The board of directors and the governor shall select and appoint the initial outside directors and the executive board shall hold its organizational meeting no later than sixty days after April 20, 1982, and the powers and duties prescribed in this chapter shall devolve upon the executive board at that time.

(((6))) (7) The executive board shall select and employ a managing director of the operating agency and may delegate to the managing director such authority for the management and control of the operating agency as the executive board deems appropriate. The managing director's employment is terminable at the will of the executive board.

(((7))) (8) Members of the executive board shall be immune from civil liability for mistakes and errors of judgment in the good faith performance of acts within the scope of their official duties involving the exercise of judgment and discretion. This grant of immunity shall not be construed as modifying the liability of the operating agency.

The operating agency shall undertake the defense of and indemnify each executive board member made a party to any civil proceeding including any threatened, pending, or completed action, suit, or proceeding, whether civil, administrative, or investigative, by reason of the fact he or she is or was a member of the executive board, against judgments, penalties, fines, settlements, and reasonable expenses, actually incurred by him or her in connection with such proceeding if he or she had conducted himself or herself in good faith and reasonably believed his or her conduct to be in the best interest of the operating agency.

In addition members of the executive board who are utility employees shall not be fired, forced to resign, or demoted from their utility jobs for decisions they make while carrying out their duties as members of the executive board involving the exercise of judgment and discretion."

Renumber the remaining sections consecutively and correct any internal references accordingly.

Senator Linda Smith moved that the following amendment be adopted:

On page 20, after line 36, insert the following:

"NEW SECTION. Sec. 32. It is the policy of the legislature that citizens have a right to know the total compensation that is paid to local government officials.

NEW SECTION. Sec. 33. A new section is added to chapter 42.16 RCW to read as follows:

(1) All local agencies shall fully disclose at least annually the total compensation paid (a) to members of the legislative authority, council or commission of the agency, (b) to managers and directors of the agency, and (c) to each employee whose total compensation exceeds one hundred thousand dollars in any one calendar year. The disclosure must include the employee's name, title, and a list of the compensation elements and their respective dollar amounts or values.

(2) Compensation or changes to compensation must be the subject of open public meetings and must be published at least annually in each local government's newspaper or newspapers of record. Disclosure must occur at an open public meeting held within sixty days after the end of the local governments' fiscal year.

(3) Compensation includes, but is not limited to, the dollar value of the following cash and noncash compensation.

(a) Base salary and benefits;

(b) Additional income earned, paid, or received for services to the local government, including, but not limited to:

(i) Perquisites and other personal benefits;

(ii) Deferred compensation;

(iii) Deferred tax annuities;

(iv) Performance incentives;

(v) Trust contributions;

(c) An amount paid, payable, or accrued in connection with a hiring, resignation, retirement, or termination of employment;

(d) A signing bonus;

(e) Contributions to trusts that are paid on behalf of the employee;

(f) Insurance premiums paid;

(g) Vehicle allowances or vehicles furnished to the employee;

(h) Tax or financial planning services;

(i) Health and recreation membership dues;

(j) Annuities;

(k) Child and elder care services;

(l) Moving and relocation expenses.

(4) For purposes of this section, "local agency" includes every county, city, town, municipal corporation, quasi-municipal corporation, or special purpose district, or any office, department, division, bureau, board, commission, or agency thereof, or other public agency."

Renumber remaining sections accordingly.

Debate ensued.

Senator Linda Smith demanded a roll call and the demand was sustained.

The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Linda Smith on page 20, after line 36, to Substitute Senate Bill No. 5050.

ROLL CALL

The Secretary called the roll and the amendment was not adopted by the following vote: Yeas, 17; Nays, 31; Absent, 1; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Roach, Smith, L. and Sutherland - 17.

Voting nay: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Talmadge, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 31.

Absent: Senator West - 1.

MOTIONS

On motion of Senator Haugen, the following title amendments were considered simultaneously and were adopted:

On page 1, line 5 of the title, after "41.04.180," insert "43.52.374,"

On page 1, line 13 of the title, after "35.63 RCW;" strike "and" and after "36.17 RCW" insert "; and adding new sections to chapter 36.100 RCW"

On motion of Senator Haugen, the rules were suspended, Engrossed Substitute Senate Bill No. 5050 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator Linda Smith: "Senator Haugen, I am going to read to you just a part of a contract that was given to the commissioners in my area and I'll ask you a question about the contract and whether it applies to this bill. 'The three commissioners are provided with extra group term insurance. The amounts are fifty thousand dollars plus cash. This group insurance coverage is higher than that available to other employees.'

"Now, setting aside the issue of the manager, because we have already decided that he doesn't have to disclose. Senator Haugen, in Section 37 of your bill, there is language that provides that the amount and type of insurance made available to PUD commissioners may not exceed the insurance made available to employees except for liability insurance. My question is whether or not the language at page 26 of your bill would prevent the extraordinary situation that has occurred in Clark County with the commissioners giving themselves side cash payments?"

Senator Haugen: "Well, first of all, I'm not an attorney. I can't make any judgements on any contracts. Being I haven't seen it, I can't tell you what that contract says. As far as what I can tell you what it says in here, it says that they have to give the same--they cannot give any more insurance than they give employees. I guess my answer to you is that I really can't say that. I would ask that you speak to a counsel, an attorney, who could probably give you a better definition."

Senator Linda Smith: "I would like to clarify the question, Senator Haugen. If I could just ask one more and then maybe it is still the same answer. The commissioners currently have a contract and it is only like the managers, otherwise only the PUD manager has any contract like this where you have a side pocket where you take cash. Given that information, would the manager's one contract that is higher that the rest of the employees qualify as an employee that they would have the same as?"

Senator Haugen: "Well, Senator Smith, again, not being an attorney, I cannot answer that. At this point, it does say 'employees.' It has an 's' on the end and I assume that that is employees. We all know how attorneys interpret things and sometimes they do differently than we do, so I would say just read the bill and it has to be the same as you offer all employees."

Senator Linda Smith: "Thank you, Senator Haugen."

Further debate ensued.

MOTIONS

On motion of Senator Spanel, Senator Sutherland was excused.

On motion of Senator Oke, Senator Moyer was excused.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5050.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5050 and the bill passed the Senate by the following vote: Yeas, 35; Nays, 11; Absent, 1; Excused, 2.

Voting yea: Senators Barr, Bauer, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Newhouse, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Talmadge, West, Williams and Winsley - 35.

Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, McCaslin, Nelson, Oke, Roach, Smith, L., von Reichbauer and Wojahn - 11.

Absent: Senator Vognild - 1.

Excused: Senators Moyer and Sutherland - 2.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5050, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

At 12:17 p.m., on motion of Senator Jesernig, the Senate recessed until 1:30 p.m.

The Senate was called to order at 1:36 p.m. by President Pritchard.

STATEMENT FOR THE JOURNAL

Due to a meeting on health care reform, I missed the vote on Substitute Senate Bill No. 5736. I would have voted 'aye.'

SENATOR PHIL TALMADGE, 34th District

MOTIONS

On motion of Senator Spanel, Senator Skratek was excused.

On motion of Senator Oke, Senators McDonald, Moyer and West were excused.

SECOND READING

SENATE BILL NO. 5736, by Senators Moore, Pelz and Fraser

Regulating chiropractic care for industrial insurance.

MOTIONS

On motion of Senator Moore, Substitute Senate Bill No. 5736 was substituted for Senate Bill No. 5736 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Moore, the rules were suspended, Substitute Senate Bill No. 5736 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5736.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5736 and the bill passed the Senate by the following vote: Yeas, 38; Nays, 4; Absent, 3; Excused, 4.

Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, Moore, Nelson, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Smith, A., Smith, L., Snyder, Spanel, Sutherland, von Reichbauer, Williams and Winsley - 38.

Voting nay: Senators Barr, Cantu, McCaslin and Wojahn - 4.

Absent: Senators Niemi, Talmadge and Vognild - 3.

Excused: Senators McDonald, Moyer, Skratek and West - 4.

SUBSTITUTE SENATE BILL NO. 5736, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5044, by Senators Haugen and Winsley

Revising incorporation procedures for cities and towns.

MOTIONS

On motion of Senator Haugen, Substitute Senate Bill No. 5044 was substituted for Senate Bill No. 5044 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Haugen, the rules were suspended, Substitute Senate Bill No. 5044 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator Roach: "Senator Haugen, I am just reading in the summary and it allows that the term 'qualified voters' is changed to 'registered voters.' I am wondering the reason for that Senator Haugen."

Senator Haugen: "I think we are just trying to make language uniform in the laws, with others."

Senator Roach: "I think if a person is registered to vote, they should be a qualified voter and that there are some people who are registered to vote who are, in fact, not qualified voters. I was wondering if it would be objectionable to you or to the members of the body to change it back?"

Senator Haugen: "We'll certainly talk to the House when the bill gets over there."

Senator Roach: "I'd appreciate it. Thank you very much."

Senator Haugen: "Thank you."

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5044.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5044 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Excused: Senator Moyer - 1.

SUBSTITUTE SENATE BILL NO. 5044, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5910, by Senator Sutherland

Assisting public drinking water systems.

MOTIONS

On motion of Senator Sutherland, Substitute Senate Bill No. 5910 was substituted for Senate Bill No. 5910 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Williams, the following amendment by Senators Williams, Sutherland, Newhouse and Hochstatter was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that a state-wide assessment of water systems has shown that public drinking water systems have a critical need for financial assistance to assure safe, reliable, and viable water supplies, meet the requirements of the federal safe drinking water act, provide for comprehensive planning and regional planning of public water systems, assess the status of the state's drinking water quality, develop least-cost solutions to public water systems through consolidation of small systems into larger and financially viable utilities, and implement demand management strategies to more effectively use the state's financial resources and water resources.

The federal government has indicated an intention to provide new funding for water system needs on a national basis within a program of federal investment in infrastructure intended to provide a significant number of jobs nation-wide this year. The state of Washington does not have the broad-based authority and ability to promptly receive and disburse federal assistance to eligible water systems.

It is the intent of the legislature to provide for a system of grants and/or loans, in addition to existing state financial assistance programs, that will: (1) Receive and utilize federal funding to provide assistance for planning, design, acquisition, construction, consolidation, and improvement of public water systems facilities and activities; (2) meet the short-term and long-term needs identified and prioritized in the state-wide assessment; and (3) encourage responsible and efficient water system management throughout the state.

It is the further intent of the legislature to use existing state funding programs for the administrative and financial mechanisms necessary to ensure prompt and coordinated delivery of the financial assistance to public water systems authorized under this chapter.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the public works board.

(2) "Department" means the department of health.

(3) "Private water purveyor" means a public water system not owned by a governmental body.

(4) "Public water purveyor" means a governmental body, including a public or quasi-public organization, that owns and operates a public water system, or the authorized agent of such an entity.

(5) "Public water system" has the meaning prescribed in the Washington state safe drinking water act, chapter 70.119A RCW.

NEW SECTION. Sec. 3. The drinking water assistance account is established in the state treasury. Money may be placed in the account from the proceeds of bonds when authorized by the legislature, transfers from other state funds or accounts, federal financial assistance, or any other lawful source. Moneys from the account may be spent only by the secretary of health or the public works board after appropriation. Expenditures from the account may be used only to meet the purposes of this chapter.

NEW SECTION. Sec. 4. The department shall, by January 1, 1994, in consultation with the board, purveyors, local health departments, and other interested parties, establish guidelines and requirements for the provision of grants and/or loans to public water systems that are consistent with the findings and intent contained in section 1 of this act. The department shall ensure that guidelines and requirements:

(1) Utilize, to the maximum extent, all available federal financial assistance;

(2) Are consistent with existing water resource planning and management, including coordinated water supply plans, regional water resource plans, and comprehensive plans under the growth management act, chapter 36.70A RCW;

(3) Prioritize least-cost solutions, including consolidation and restructuring of small systems into more economical units and the provision of regional facilities;

(4) Assure implementation of water conservation and other demand management measures consistent with state guidelines for water utilities;

(5) Provide assistance for the necessary planning and engineering to assure that consistency, coordination, and proper professional review are incorporated into projects or activities proposed for funding;

(6) Include minimum standards for financial viability and water system planning;

(7) Provide for testing and evaluation of the water quality of the state's public water systems to assure that priority for financial assistance is provided to systems and areas with threats to public health from contaminated supplies and reduce in appropriate cases the substantial increases in costs and rates that customers of small systems would otherwise incur under the monitoring and testing requirements of the federal safe drinking water act; and

(8) Are coordinated, to the maximum extent possible, with other state programs that provide financial assistance to public water systems and state programs that address existing or potential water quality or drinking water contamination problems.

NEW SECTION. Sec. 5. The board shall develop a financial assistance program using appropriated funds from the drinking water assistance account to meet the purposes and implement the guidelines authorized in this chapter. The board shall consult with the department and water purveyors in developing the financial assistance program.

The board shall develop criteria for grants and/or loans to be made to public water systems. The criteria shall emphasize public water systems with the most critical public health needs; the capacity of the water system to effectively manage its resources; the ability to promptly commence the project; and the relative benefit to the community served. Priority shall be given to those systems that are ready to proceed, that will provide water system improvements to the greatest number of people, and any other criteria that the board shall develop in consultation with the department and water system purveyors.

NEW SECTION. Sec. 6. The department and the board shall be entitled to reasonable administrative expenses in developing and implementing the programs authorized under this chapter.

In all cases where the department, board, and any other department, agency, board, or commission of state government interact or provide service under this chapter, the administering government body shall endeavor to provide cost-effective services. The provision of services shall include: (1) The use of policy statements or guidelines instead of administrative rules; (2) using existing management mechanisms rather than creating new administrative structures; (3) investigating the use of service contracts, either with other governmental entities or with nongovernmental service providers; (4) the use of joint or combined financial assistance applications; and (5) any other method or practice designed to streamline the delivery of services.

NEW SECTION. Sec. 7. 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 shall take effect immediately.

NEW SECTION. Sec. 8. Sections 1 through 6 of this act shall constitute a new chapter in Title 70 RCW."

MOTIONS

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

On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "adding a new chapter to Title 70 RCW; and declaring an emergency."

On motion of Senator Sutherland, the rules were suspended, Engrossed Substitute Senate Bill No. 5910 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5910.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5910 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5910, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5191, by Senators Moore and Prentice

Regulating impaired or insolvent life and disability insurers.

MOTIONS

On motion of Senator Moore, Substitute Senate Bill No. 5191 was substituted for Senate Bill No. 5191 and the substitute bill was placed on second reading and read the second time.

Senator Moore moved that the following amendment be adopted:

On page 11, after line 24, insert:

"NEW SECTION. Sec. 9. The amendatory language contained in this act shall expire July 1, 1996."

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senator Moore on page 11, line 24, to Substitute Senate Bill No. 5191.

The motion by Senator Moore carried and the amendment was adopted.

MOTION

On motion of Senator Moore, the rules were suspended, Engrossed Substitute Senate Bill No. 5191 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

POINT OF INQUIRY

Senator Wojahn: "Senator Amondson, I noticed on the bill report from the Committee on Commerce and Labor that you signed the bill out. I wondered if you could explain why you signed it out and now why you are speaking against it on the floor?"

Senator Amondson: "I'd be happy to, Senator Wojahn. There is an opportunity for this issue to be resolved among the insurance companies themselves, which would not require a bill or legislation by the state. This issue can be resolved amongst themselves without us taking any action."

Further debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5191.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5191 and the bill failed to pass the Senate by the following vote: Yeas, 23; Nays, 26; Absent, 0; Excused, 0.

Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Loveland, McAuliffe, Moore, Niemi, Pelz, Prentice, Quigley, Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Talmadge, Vognild, Williams and Wojahn - 23.

Voting nay: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Haugen, Hochstatter, Jesernig, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Owen, Prince, Rasmussen, M., Roach, Sellar, Smith, L., Sutherland, von Reichbauer, West and Winsley - 26.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5191, having failed to receive the constitutional majority, was declared lost.

NOTICE FOR RECONSIDERATION

Having voted on the prevailing side, Senator Jesernig served notice that he would move to reconsider the vote by which Engrossed Substitute Senate Bill No. 5191 failed to pass the Senate.

MOTION

At 2:12 p.m., on motion of Senator Jesernig, the Senate was declared to be at ease.

The Senate was called to order at 3:38 p.m. by President Pritchard.

SECOND READING

SENATE BILL NO. 5779, by Senators Haugen, Drew, Owen, Deccio and Oke (by request of Productivity Board)

Clarifying productivity awards programs.

The bill was read the second time.

MOTION

On motion of Senator Haugen, the rules were suspended, Senate Bill No. 5779 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5779.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5779 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 49.

SENATE BILL NO. 5779, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5514, by Senators Sheldon, Bluechel, Williams, Erwin, Skratek, M. Rasmussen, Deccio and Snyder

Creating the economic development grants program.

MOTIONS

On motion of Senator Sheldon, Second Substitute Senate Bill No. 5514 was substituted for Senate Bill No. 5514 and the second substitute bill was placed on second reading and read the second time.

On motion of Senator Sheldon, the rules were suspended, Second Substitute Senate Bill No. 5514 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5514.

ROLL CALL

The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5514 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Voting nay: Senator McCaslin - 1.

SECOND SUBSTITUTE SENATE BILL NO. 5514, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE JOINT MEMORIAL NO. 8009, by Senators Bluechel, Snyder, Sellar, Skratek, M. Rasmussen, Erwin, Gaspard, Fraser, McDonald, Franklin, Winsley and Oke

Supporting Guam in its quest for commonwealth status.

MOTIONS

On motion of Senator Skratek, Substitute Senate Joint Memorial No. 8009 was substituted for Senate Joint Memorial No. 8009 and the substitute joint memorial was placed on second reading and read the second time.

On motion of Senator Skratek, the rules were suspended, Substitute Senate Joint Memorial No. 8009 was advanced to third reading, the second reading considered the third and the joint memorial was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Joint Memorial No. 8009.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Joint Memorial No. 8009 and the joint memorial passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Absent: Senator Rinehart - 1.

SUBSTITUTE SENATE JOINT MEMORIAL NO. 8009, having received the constitutional majority, was declared passed.

POINT OF INFORMATION

Senator Talmadge: "Mr. President, a point of information. Substitute Senate Joint Memorial No. 8009, did that originate in the Committee on Foreign Relations?"

REPLY BY THE PRESIDENT

President Pritchard: "It probably did in somebody's mind, yes."

Senator Talmadge: "Will we be soon seeing the Treaty of Non-Aggression with the Republic of Botswana, as well?"

President Pritchard: "Well, I don't know. We'll probably have to have a few trips to those areas to see."

SECOND READING

SENATE BILL NO. 5652, by Senators Hargrove, A. Smith and Nelson (by request of Department of Corrections)

Revising provisions relating to offenders under the jurisdiction of the department of corrections.

MOTIONS

On motion of Senator Adam Smith, Substitute Senate Bill No. 5652 was substituted for Senate Bill No. 5652 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Hargrove, the rules were suspended, Substitute Senate Bill No. 5652 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5652.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5652 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

SUBSTITUTE SENATE BILL NO. 5652, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5896, by Senators M. Rasmussen, Amondson, Haugen, Winsley, Sheldon, Gaspard and Snyder

Authorizing counties to use the hotel-motel tax for public restroom facilities.

MOTIONS

On motion of Senator Haugen, Substitute Senate Bill No. 5896 was substituted for Senate Bill No. 5896 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Haugen, the rules were suspended, Substitute Senate Bill No. 5896 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5896.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5896 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 2; Absent, 0; Excused, 0.

Voting yea: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

Voting nay: Senators Barr and Smith, L. - 2.

SUBSTITUTE SENATE BILL NO. 5896, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5221, by Senators Skratek, Erwin, M. Rasmussen, Deccio and Barr

Establishing the Washington rural development council.

MOTIONS

On motion of Senator Skratek, Substitute Senate Bill No. 5221 was substituted for Senate Bill No. 5221 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Skratek, the rules were suspended, Substitute Senate Bill No. 5221 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5221.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5221 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

SUBSTITUTE SENATE BILL NO. 5221, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5324, by Senator Pelz (by request of Law Revision Commission)

Correcting a double amendment related to reimbursement of school transportation costs.

The bill was read the second time.

MOTION

On motion of Senator Pelz, the rules were suspended, Senate Bill No. 5324 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5324.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5324 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

SENATE BILL NO. 5324, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5329, by Senators Haugen, A. Smith and Talmadge

Changing provisions relating to port districts.

MOTIONS

On motion of Senator Haugen, Substitute Senate Bill No. 5329 was substituted for Senate Bill No. 5329 and the substitute bill was placed on second reading and read the second time.

Senator Talmadge moved that the following amendment be adopted:

On page 9, after line 2, insert the following:

"NEW SECTION. Sec. 10. A new section is added to chapter 53.12 RCW to read as follows:

(1) Resolutions of port districts with a population of one million or more shall not go into effect before thirty days from the time of final passage and are subject to referendum during the interim except:

(a) Resolutions necessary for the immediate preservation of the public peace, health, or safety that contain a statement of urgency and are passed by unanimous vote of the commission;

(b) Resolutions providing for local improvement districts;

(d) Resolutions providing for the compensation of or working conditions of port employees; and

(e) Resolutions authorizing or repealing the levy of taxes.

(2)(a) If within the thirty-day period a petition is filed with the county auditor containing the signatures of fifteen percent of the registered voters of the district who voted in the last general election of the jurisdiction, the county auditor shall canvass the signatures in the same manner as prescribed in RCW 29.79.200 and certify their sufficiency to the port commission within thirty days. The operation of the resolution shall be suspended until the results of the special election are certified.

(b) Immediately after the auditor's certificate of sufficiency is issued, the auditor shall call a special election on the date specified in RCW 29.13.020 that immediately follows a forty-five day period beginning on the date the certificate of sufficiency is issued. The special election shall be conducted as provided by law. If a majority of the voters voting on the resolution favor the resolution, it shall become effective immediately upon certification of the election.

(3) This section does not apply to resolutions subject to the election procedures in RCW 53.36.100 or 53.54.040."

Renumber the remaining sections consecutively and correct any internal references accordingly.

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senator Talmadge on page 9, after line 2, to Substitute Senate Bill No. 5329.

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

MOTION

On motion of Senator Haugen, the rules were suspended, Substitute Senate Bill No. 5329 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5329.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5329 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Voting nay: Senator Talmadge - 1.

SUBSTITUTE SENATE BILL NO. 5329, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5341, by Senators A. Smith, Quigley, McCaslin, Vognild, Winsley, Deccio, von Reichbauer, M. Rasmussen, Roach and Oke

Providing for confiscation of registration and license plates and forfeiture of the vehicle upon conviction for driving while under the influence of intoxicating liquor or drugs.

MOTIONS

On motion of Senator Adam Smith, Substitute Senate Bill No. 5341 was substituted for Senate Bill No. 5341 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Adam Smith, the following amendments were considered simultaneously and were adopted:

On page 2, line 1, after "shall" insert "immediately"

On page 2, at the beginning of line 3, strike "vehicle registrations" and insert "vehicle registration"

On page 4, line 10, after "secured party" strike all material through "omission" on line 12

MOTIONS

Senator Nelson moved that the following amendment be adopted:

On page 4, after line 12, insert the following:

"NEW SECTION. Sec. 2. The purpose of sections 2 through 16 of this act is:

(1) To provide safety for all persons using the highways of this state by quickly suspending or revoking the driving privilege of those persons who have shown themselves to be safety hazards by driving with an excessive concentration of alcohol in their bodies; and

(2) To guard against the potential for any erroneous deprivation of the driving privilege by providing an opportunity for administrative review prior to the effective date of the suspension or revocation.

NEW SECTION. Sec. 3. A new section is added to chapter 46.04 RCW to read as follows:

"Alcohol concentration" means (1) the grams of alcohol per two hundred ten liters of a person's breath, or (2) the percent by weight of alcohol in a person's blood.

NEW SECTION. Sec. 4. A new section is added to chapter 46.04 RCW to read as follows:

"Test" means the test of a person's breath for alcohol concentration by infrared test method consisting of the person insufflating deep lung air samples at least twice into the instrument sufficient to allow two separate measurements. There must be sufficient time between the provision of each sample by the person to permit the instrument to measure each sample individually. The two breath samples supplied by the individual shall constitute one test. An accurate test is presumed if the results of each measurement is within plus or minus ten percent of the average of the two measurements.

Sec. 5. RCW 46.04.580 and 1990 c 250 s 22 are each amended to read as follows:

"Suspend," in all its forms, means invalidation for any period less than one calendar year and thereafter until reinstatement. However, under RCW 46.61.515 and section 7 of this act the invalidation may last for more than one calendar year.

Sec. 6. RCW 46.20.308 and 1989 c 337 s 8 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 alcoholic content of 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.

(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. However, in those instances where: (((a))) The person is incapable due to physical injury, physical incapacity, or other physical limitation, of providing a breath sample; or (((b) as a result of a traffic accident)) the person is being treated for a medical condition in a hospital, clinic, doctor's office, or other similar facility in which a breath testing instrument is not present, a blood test shall be administered by a qualified person as provided in RCW 46.61.506(4). 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 that (a) his or her privilege to drive will be revoked or denied if he or she refuses to submit to the test, ((and)) (b) ((that)) his or her privilege to drive will be suspended, revoked, or denied if the test is administered and the test indicates the alcohol concentration of the person's breath or blood meets or exceeds the limits set forth in RCW 46.61.502 (1) and (2), and (c) his or her refusal to take the test may be used in a criminal trial.

(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 another person has been injured and there is a reasonable likelihood that such other person may die as a result of injuries sustained in the accident, 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 0.10 or more, 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 if the arrest is the result of a blood test, 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. Within ten days after the notice has been given, the person may, in writing, request a formal hearing as provided by subsection (8) of this section. If such request is made by mail it must be postmarked within ten days after the notice has been given;

(d) Issue a temporary license to be effective twelve hours after the time of arrest and valid for forty-five days from the date of arrest 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;

(e) Immediately notify the department of licensing of the arrest and transmit to the department of licensing any confiscated license or permit and a sworn report 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;

(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 0.10 or more; and

(iii) Any other information that the director may require by rule or regulation.

(7) The department of licensing, upon the receipt of a sworn report of the law enforcement officer 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 and that (a) the person had refused to submit to the test or tests upon the request of the law enforcement officer after being informed that refusal would result in the revocation of the person's privilege to drive, or (b) a test was administered and the results indicated that the alcohol concentration of the person's breath or blood was 0.10 or more, shall suspend, revoke, or deny the person's license or permit to drive or any nonresident operating privilege, such suspension, revocation, or denial to be effective forty-five days from the date of arrest or when sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first.

(((7) Upon revoking the license or permit to drive or the nonresident operating privilege of any person, the department shall immediately notify the person involved in writing by personal service or by certified mail of its decision and the grounds therefor, and of the person's right to a hearing, specifying the steps he or she must take to obtain a hearing. Within fifteen days after the notice has been given, the person may, in writing, request a formal hearing.))

(8) Upon timely receipt of ((such)) a request for a formal hearing, the department shall afford the person an opportunity for a hearing as provided in 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. For the purposes of this section, the scope of ((such)) 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, whether the person was placed under arrest, and whether (a) 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 privilege to drive or, (b) if a test was 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 0.10 or more. The sworn report submitted by a law enforcement officer shall be 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, that the officer complied with the requirements of this section, and that the testing instrument was in proper working condition. ((The department shall order that the revocation either be rescinded or sustained. Any decision by the department revoking a person's driving privilege shall be stayed and shall not take effect while a formal hearing is pending as provided in this section or during the pendency of a subsequent appeal to superior court so long as there is no conviction for a moving violation or no finding that the person has committed a traffic infraction that is a moving violation during pendency of the hearing and appeal.

(8))) (9) Failure of the person to request a hearing within the time limit established by subsection (6) of this section, or failure to attend or participate in such a hearing, constitutes a default and results in the loss of that person's right to a hearing.

(10) 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 suspension, revocation, or denial by the department in the manner provided in RCW 46.20.334. 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. 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:

(a) The petitioner is likely to prevail when the court finally disposes of the matter;

(b) Without relief the petitioner will suffer irreparable injury; and

(c) The threat to the safety of persons on the public highways is not sufficiently serious to justify the department's action in the circumstances.

(((9))) (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.

NEW SECTION. Sec. 7. A new section is added to chapter 46.20 RCW to read as follows:

(1) Pursuant to RCW 46.20.308, the department shall suspend, revoke, or deny the arrested person's license, permit to drive, driving privilege, or any nonresident privilege as follows:

(a) In the case of a person who has refused a test or tests:

(i) For a first refusal within five years preceding the date of refusal, revocation or denial for one year;

(ii) For a second or subsequent refusal within five years preceding the date of refusal, revocation or denial for two years.

(b) 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 0.10 or more:

(i) For a first incident within five years, where there has been no previous conviction of RCW 46.61.502 or 46.61.504 within the five-year period preceding the current incident, suspension or denial until the person reaches age nineteen or for ninety days, whichever is longer;

(ii) For a second incident within five years, revocation or denial for one year. A previous conviction under RCW 46.61.502 or 46.61.504 within the five-year period preceding the current incident, that did not result in a suspension or denial under this subsection, shall be considered a previous incident for purposes of this subsection;

(iii) For a third or subsequent incident within five years, revocation or denial for two years. Previous convictions under RCW 46.61.502, 46.61.504, 46.61.520, or 46.61.522 within the five-year period preceding the current incident, that did not result in a suspension, revocation, or denial under this subsection, shall be considered previous incidents for purposes of this subsection.

(2) A diagnostic evaluation and treatment recommendation shall be prepared by an alcoholism agency approved by the department of social and health services or a qualified probation department approved by the department of social and health services. A copy of the report shall be forwarded to the department of licensing. The department shall not grant or reinstate a person's privilege to drive that has been suspended, revoked, or denied under subsection (1) of this section until it has determined the person's eligibility for licensing based upon the report provided by an approved alcoholism agency or probation department and shall deny reinstatement until enrollment and participation in an approved program has been established and the person is otherwise qualified.

Sec. 8. RCW 46.20.311 and 1990 c 250 s 45 are each amended to read as follows:

(1) 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 permitted under RCW 46.20.342 or 46.61.515. 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, 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. The department shall not issue to the person a new, duplicate, or renewal license until the person pays a reissue fee of twenty dollars. If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, the reissue fee shall be ((fifty)) one hundred dollars.

(2) 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: (a) After the expiration of one year from the date the license or privilege to drive was revoked; (b) after the expiration of the applicable revocation period provided by RCW 46.61.515(3) (b) or (c); (c) after the expiration of two years for persons convicted of vehicular homicide; (d) after the expiration of one year in cases of revocation for the first refusal within five years to submit to a chemical test under RCW 46.20.308; (e) after the expiration of two years in cases of revocation for the second refusal within five years to submit to a chemical test under RCW 46.20.308; or (f) after the expiration of the applicable revocation period provided by RCW 46.20.265. 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, but 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 ((fifty)) one hundred dollars. 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) Whenever the driver's license of any person is suspended pursuant to Article IV of the nonresident violators compact or RCW 46.23.020, the department shall not issue to the person any new or renewal license until the person pays a reissue fee of twenty dollars. If the suspension is the result of a violation of the laws of another state, province, or other jurisdiction involving (a) the operation or physical control of a motor vehicle upon the public highways while under the influence of intoxicating liquor or drugs, or (b) the refusal to submit to a chemical test or tests of the driver's breath or blood alcohol content, the reissue fee shall be ((fifty)) one hundred dollars.

Sec. 9. RCW 46.20.311 and 1993 c ... s 8 (section 8 of this act) are each amended to read as follows:

(1) 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 permitted under RCW 46.20.342 ((or)), 46.61.515, or section 7 of this act. Except for a suspension under section 7(1)(b)(i) of this act, 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. The department shall not issue to the person a new, duplicate, or renewal license until the person pays a reissue fee of twenty dollars. If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504 or was imposed under RCW 46.20.308, the reissue fee shall be one hundred dollars. If the suspension was imposed under section 7(1)(b)(i) of this act, the suspension shall remain in effect and the department shall not issue any new, duplicate, or renewal license until the person pays a reinstatement fee of one hundred dollars.

(2) 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: (a) After the expiration of one year from the date the license or privilege to drive was revoked; (b) after the expiration of the applicable revocation period provided by RCW 46.61.515(3) (b) or (c); (c) after the expiration of two years for persons convicted of vehicular homicide; (d) after the expiration of ((one year in cases of revocation for the first refusal within five years to submit to a chemical test under RCW 46.20.308; (e) after the expiration of two years in cases of revocation for the second refusal within five years to submit to a chemical test under RCW 46.20.308; or (f))) the applicable revocation period provided by section 7 of this act; or (e) after the expiration of the applicable revocation period provided by RCW 46.20.265. 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, but if the revocation is the result of a violation of RCW 46.20.308, 46.61.502, or 46.61.504 or was imposed under RCW 46.20.308, the reissue fee shall be one hundred dollars. 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.

Sec. 10. RCW 46.20.391 and 1985 c 407 s 5 are each amended to read as follows:

(1) Any person licensed under this chapter whose driving privilege has been suspended under section 7(1)(b)(i) of this act or 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, may submit to the department an application for an occupational 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, may issue an occupational 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 driver's license that is effective during the first thirty days of any suspension or revocation imposed under RCW 46.61.515 or section 7(1)(b)(i) of this act. 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.

(2) An applicant for an occupational driver's license is eligible to receive such license only if:

(a) Within one year immediately preceding the present conviction or administrative action, the applicant has not been convicted of any offense relating to motor vehicles for which suspension or revocation of a driver's license is mandatory; and

(b) Within five years immediately preceding the present conviction or administrative action, the applicant has not been convicted of driving or being in actual physical control of a motor vehicle while under the influence of intoxicating liquor under RCW 46.61.502 or 46.61.504, of vehicular homicide under RCW 46.61.520, or of vehicular assault under RCW 46.61.522, or had a license administratively suspended or revoked under section 7(1)(b)(i) of this act; and

(c) The applicant is engaged in an occupation or trade that makes it essential that he or she operate a motor vehicle; and

(d) The applicant files satisfactory proof of financial responsibility pursuant to chapter 46.29 RCW, unless the suspension was imposed under section 7(1)(b)(i) of this act.

(3) The director shall cancel an occupational driver's license upon receipt of notice that the holder thereof has had a driver's license administratively suspended or revoked under RCW 46.20.308 or has been convicted of operating a motor vehicle in violation of its restrictions, or of an offense that pursuant to 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.

NEW SECTION. Sec. 11. A new section is added to chapter 46.20 RCW to read as follows:

(1) Any person licensed under this chapter or any nonresident granted the privilege of driving a motor vehicle on the highways of this state, whose driver's license or driving privilege has been suspended or revoked, other than for vehicular homicide, vehicular assault, or under section 7(1)(a) of this act, or for a physical or mental disability that would affect that person's ability to operate a motor vehicle with safety upon the highways, may submit to the department an application for a provisional driver's license for purposes of participation in an alcohol or drug abuse treatment program approved by the department of social and health services. The department, upon receipt of the fee prescribed by this section and upon determining that the applicant is engaged in a treatment program approved by the department of social and health services that makes it essential that the applicant operate a motor vehicle, may issue a provisional driver's license. No person may petition for, and the department shall not issue, a provisional driver's license that is effective during the first thirty days of any suspension or revocation imposed under RCW 46.61.515 or section 7 of this act.

(2) An applicant for a provisional driver's license is eligible to receive such license only if:

(a) The applicant is engaged in a program of treatment that makes it essential that he or she operate a motor vehicle; and

(b) The applicant files satisfactory proof of financial responsibility pursuant to chapter 46.29 RCW, unless the suspension was imposed under section 7(1)(b)(i) of this act; and

(c) The applicant pays to the department a treatment assessment fee of twenty-five dollars, such fee to be deposited in a special sober or suspended account, within the department of social and health services, to be administered by the division of alcohol and substance abuse, to be used to pay the cost of the diagnostic evaluation or assessment required under section 7(2) of this act for indigent or low-income individuals.

(3) In issuing a provisional driver's license under this section, the department shall set forth in detail the specific hours of the day during which the person may drive to and from his or her place of treatment; the days of the week during which the license may be used; the general routes over which the person may travel; and the expiration date of the license, such date to correspond to the ending date of any suspension or revocation of the person's driver's license or driving privilege, or the date the person's treatment program is to be concluded, whichever occurs first. These restrictions shall be prepared in written form by the department, such document to be carried in the vehicle at all times and presented to a law enforcement officer under the same terms as the provisional 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.

(4) The department shall cancel a provisional 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 an offense that pursuant to this chapter would warrant suspension or revocation of a regular driver's license, or upon the recommendation of a treatment agency for nonparticipation in a treatment program. The cancellation is effective as of the date of the conviction, or the date a recommendation is accepted from a treatment agency, and continues with the same force and effect as any suspension or revocation under this title.

Sec. 12. RCW 46.61.515 and 1985 c 352 s 1 are each amended to read as follows:

(1) Every person who is convicted of a violation of RCW 46.61.502 or 46.61.504 shall be punished by imprisonment for not less than twenty-four consecutive hours nor more than one year, and by a fine of not less than two hundred fifty dollars and not more than one thousand dollars. Unless the judge finds the person to be indigent, two hundred fifty dollars of the fine shall not be suspended or deferred. Twenty-four consecutive hours of the jail sentence shall not be suspended or deferred unless the judge finds that the imposition of the jail sentence will pose a risk to the defendant's physical or mental well-being. Whenever the mandatory jail sentence is suspended or deferred, the judge must state, in writing, the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based. The court may impose conditions of probation that may include nonrepetition, alcohol or drug treatment, supervised probation, or other conditions that may be appropriate. The convicted person shall, in addition, be required to complete a course in an alcohol information school approved by the department of social and health services or more intensive treatment in a program approved by the department of social and health services, as determined by the court. A diagnostic evaluation and treatment recommendation shall be prepared under the direction of the court by an alcoholism agency approved by the department of social and health services or a qualified probation department approved by the department of social and health services. A copy of the report shall be forwarded to the department of licensing. Based on the diagnostic evaluation, the court shall determine whether the convicted person shall be required to complete a course in an alcohol information school approved by the department of social and health services or more intensive treatment in a program approved by the department of social and health services. Standards for approval for alcohol treatment programs shall be prescribed by rule under the administrative procedure act, chapter 34.05 RCW. The courts shall periodically review the costs of alcohol information schools and treatment programs within their jurisdictions.

(2) On a second or subsequent conviction for driving or being in physical control of a motor vehicle while under the influence of intoxicating liquor or drugs within a five-year period a person shall be punished by imprisonment for not less than seven days nor more than one year and by a fine of not less than five hundred dollars and not more than two thousand dollars. District courts and courts organized under chapter 35.20 RCW are authorized to impose such fine. Unless the judge finds the person to be indigent, five hundred dollars of the fine shall not be suspended or deferred. The jail sentence shall not be suspended or deferred unless the judge finds that the imposition of the jail sentence will pose a risk to the defendant's physical or mental well-being. Whenever the mandatory jail sentence is suspended or deferred, the judge must state, in writing, the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based. If, at the time of a second or subsequent conviction, the driver is without a license or permit because of a previous suspension or revocation, the minimum mandatory sentence shall be ninety days in jail and a two hundred dollar fine. The penalty so imposed shall not be suspended or deferred. The person shall, in addition, be required to complete a diagnostic evaluation by an alcoholism agency approved by the department of social and health services or a qualified probation department approved by the department of social and health services. The report shall be forwarded to the department of licensing. If the person is found to have an alcohol or drug problem requiring treatment, the person shall complete treatment at an approved alcoholism treatment facility or approved drug treatment center.

In addition to any nonsuspendable and nondeferrable jail sentence required by this subsection, the court shall sentence a person to a term of imprisonment not exceeding one hundred eighty days and shall suspend but shall not defer the sentence for a period not exceeding two years. The suspension of the sentence may be conditioned upon nonrepetition, alcohol or drug treatment, supervised probation, or other conditions that may be appropriate. The sentence may be imposed in whole or in part upon violation of a condition of suspension during the suspension period.

(3) The license or permit to drive or any nonresident privilege of any person convicted of driving or being in physical control of a motor vehicle while under the influence of intoxicating liquor or drugs shall:

(a) On the first conviction under either offense, where there has been no previous suspension or denial imposed under section 7(1)(b) of this act for the incident upon which the conviction is based, or where there has been no previous incident resulting in a suspension, revocation, or denial under section 7(1)(b) of this act within the five-year period preceding the current conviction, be suspended by the department until the person reaches age nineteen or for ninety days, whichever is longer. The department of licensing shall determine the person's eligibility for licensing based upon the reports provided by the designated alcoholism agency, drug treatment center, or probation department and shall deny reinstatement until enrollment and participation in an approved program has been established and the person is otherwise qualified;

(b) On a second conviction under either offense within a five-year period, where there has been no previous revocation or denial imposed under section 7(1)(b) of this act for the incident upon which the conviction is based, be revoked by the department for one year. A previous incident resulting in a suspension, revocation, or denial under section 7(1)(b) of this act within the five-year period preceding the current conviction shall be considered a previous conviction for purposes of this subsection. The department of licensing shall determine the person's eligibility for licensing based upon the reports provided by the designated alcoholism agency, drug treatment center, or probation department and shall deny reinstatement until satisfactory progress in an approved program has been established and the person is otherwise qualified;

(c) On a third or subsequent conviction of driving or being in physical control of a motor vehicle while under the influence of intoxicating liquor or drugs, vehicular homicide, or vehicular assault, or any combination thereof within a five-year period, where there has been no previous revocation or denial imposed under section 7(1)(b) of this act for the incident upon which the conviction is based, be revoked by the department for two years. Previous incidents resulting in suspension, revocation, or denial under section 7(1)(b) of this act within the five-year period preceding the current conviction shall be considered previous convictions for purposes of this subsection.

(4) In any case provided for in this section, where a driver's license is to be revoked or suspended, the revocation or suspension shall be stayed and shall not take effect until after the determination of any appeal from the conviction which may lawfully be taken, but in case the conviction is sustained on appeal the revocation or suspension takes effect as of the date that the conviction becomes effective for other purposes.

Sec. 13. RCW 46.68.060 and 1969 c 99 s 11 are each amended to read as follows:

(1) There is hereby created in the state treasury a fund to be known as the highway safety fund to the credit of which shall be deposited all moneys directed by law to be deposited therein. This fund shall be used for carrying out the provisions of law relating to driver licensing, driver improvement, financial responsibility, cost of furnishing abstracts of driving records ((and)), maintaining ((such)) the case records((, and)) necessary to carry out the purposes set forth in RCW 43.59.010, and as otherwise provided in subsection (2) of this section.

(2) The sum of ten dollars shall be paid from the highway safety fund to law enforcement agencies for each reissue fee collected under RCW 46.20.311 due to a suspension or revocation arising from an arrest under RCW 46.61.502 or 46.61.504 as reimbursement for the required administrative procedures.

NEW SECTION. Sec. 14. The traffic safety commission shall undertake a study of the effectiveness of this act and shall report its finding to the governor and the appropriate legislative committees within thirty months of the effective date of this section.

NEW SECTION. Sec. 15. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 16. The department of licensing may adopt rules necessary to carry out this act.

NEW SECTION. Sec. 17. Section 8 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately. Sections 2 through 7 and 9 through 16 of this act shall take effect July 1, 1994. The director of licensing may immediately take such steps as are necessary to insure that all sections of this act are implemented on their respective effective dates."

Senator Adam Smith moved that the following amendment to the amendment be adopted:

On page 7, line 24 of the amendment, after "(2)" insert the following and renumber the subsections accordingly:

"The department shall stay the suspension, revocation, or denial action pursuant to this subsection against any person, for whom it receives evidence of a court order for deferred prosecution, in accordance with chapter 10.05 RCW. The stay shall remain in effect for the term of the order: PROVIDED, That the department shall remove the stay upon receipt of evidence of new charges in violation of section 6 of this act or that the terms of the deferred prosecution order have been violated."

PARLIAMENTARY INQUIRY

Senator Talmadge: "A point of parliamentary inquiry, Mr. President. If I wish to raise a point of order with respect to scope and object of Senator Nelson's amendment, do I waive my right to raise the point of order as to scope and object if Senator Smith's amendment to the amendment is adopted?"

REPLY BY THE PRESIDENT

President Pritchard: "No."

The President declared the question before the Senate to be the adoption of the amendment by Senator Adam Smith on page 7, line 24, to the amendment by Senator Nelson on page 4, after line 12, to Substitute Senate Bill No. 5341.

The motion by Senator Adam Smith carried and the amendment to the amendment was adopted.

POINT OF ORDER

Senator Talmadge: "Mr. President, a point of order. I believe that the amendment by Senator Nelson expands the scope and object of the bill. The original version of Substitute Senate Bill No. 5341 deals with circumstances of removal of the registration of the vehicle and the plates of the vehicle upon a conviction in court of the individual who is driving while intoxicated. The amendment by Senator Nelson, as he candidly admits, is of the license revocation process to the administrative procedures. I believe that an administrative revocation of a driver's license as opposed to a court revocation of vehicle registration and the plates of the vehicle expands the scope and object of Substitute Senate Bill No. 4351."

Further debate ensued.

MOTION

On motion of Senator Jesernig, further consideration of Substitute Senate Bill No. 5341 was deferred.

MOTION

On motion of Senator Jesernig, the Senate commenced consideration of Senate Bill No. 5130.

SECOND READING

SENATE BILL NO. 5130, by Senators Talmadge and A. Smith

Clarifying conditions for granting attorneys' fees.

MOTIONS

On motion of Senator Adam Smith, Substitute Senate Bill No. 5130 was substituted for Senate Bill No. 5130 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Adam Smith, the rules were suspended, Substitute Senate Bill No. 5130 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5130.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5130 and the bill passed the Senate by the following vote: Yeas, 38; Nays, 10; Absent, 1; Excused, 0.

Voting yea: Senators Amondson, Bauer, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McCaslin, Moore, Moyer, Nelson, Niemi, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 38.

Voting nay: Senators Anderson, Barr, Bluechel, Cantu, Hochstatter, McDonald, Newhouse, Oke, Sellar and Smith, L. - 10.

Absent: Senator Owen - 1.

SUBSTITUTE SENATE BILL NO. 5130, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5477, by Senators Prentice, McDonald and Skratek

Eliminating school levy lids.

MOTIONS

On motion of Senator Rinehart, Substitute Senate Bill No. 5477 was substituted for Senate Bill No. 5477 and the substitute bill was placed on second reading and read the second time.

Senator Barr moved that the following amendment be adopted:

On page 4, after line 5, insert the following:

"Sec. 2. RCW 28A.500.010 and 1992 c 49 s 2 are each amended to read as follows:

(1) Commencing with taxes assessed in ((1988)) 1993 to be collected in calendar year ((1989)) 1994 and thereafter, in addition to a school district's other general fund allocations, each eligible district shall be provided local effort assistance funds as provided in this section. Such funds are not part of the district's basic education allocation. ((For the first distribution of local effort assistance funds provided under this section in calendar year 1989, state funds may be prorated according to the formula in this section.))

(2)(a) "Prior tax collection year" shall mean the year immediately preceding the year in which the local effort assistance shall be allocated.

(b) The "state-wide average ((ten)) thirteen and three-tenths percent levy rate" shall mean ((ten)) thirteen and three-tenths percent of the total levy bases as defined in RCW 84.52.0531(4) summed for all school districts, and divided by the total assessed valuation for excess levy purposes in the prior tax collection year for all districts as adjusted to one hundred percent by the county indicated ratio established in RCW 84.48.075.

(i) ((Ten)) Thirteen and three-tenths percent of the district's levy base as defined in RCW 84.52.0531(4), plus one-half of any amount computed under RCW 84.52.0531(3)(b) in the case of nonhigh school districts; divided by

(ii) The district's assessed valuation for excess levy purposes for the prior tax collection year as adjusted to one hundred percent by the county indicated ratio.

(d) "Eligible districts" shall mean those districts with a ((ten)) thirteen and three-tenths percent levy rate which exceeds the state-wide average ((ten)) thirteen and three-tenths percent levy rate.

(3) Allocation of state matching funds to eligible districts for local effort assistance shall be determined as follows:

(a) Funds raised by the district through maintenance and operation levies during that tax collection year shall be matched with state funds using the following ratio of state funds to levy funds: (i) The difference between the district's ((ten)) thirteen and three-tenths percent levy rate and the state-wide average ((ten)) thirteen and three-tenths percent levy rate; to (ii) the state-wide average ((ten)) thirteen and three-tenths percent levy rate.

(b) The maximum amount of state matching funds for which a district may be eligible in any tax collection year shall be ((ten)) thirteen and three-tenths percent of the district's levy base as defined in RCW 84.52.0531(4), multiplied by the following percentage: (i) The difference between the district's ((ten)) thirteen and three-tenths percent levy rate and the state-wide average ((ten)) thirteen and three-tenths percent levy rate; divided by (ii) the district's ((ten)) thirteen and three-tenths percent levy rate.

(4)(((a) Through tax collection year 1992, fifty-five percent of local effort assistance funds shall be distributed to qualifying districts during the applicable tax collection year on or before June 30 and forty-five percent shall be distributed on or before December 31 of any year.

(b))) In tax collection year 1993 and thereafter, local effort assistance funds shall be distributed to qualifying districts as follows:

(((i))) (a) Thirty percent in April;

(((ii))) (b) Twenty-three percent in May;

(((iii))) (c) Two percent in June;

(((iv))) (d) Twenty-six percent in October;

(((v))) (e) Seventeen percent in November; and

(((vi))) (f) Two percent in December."

Debate ensued.

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

The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Barr on page 4, after line 5, to Substitute Senate Bill No. 5477.

ROLL CALL

The Secretary called the roll and the amendment was adopted by the following vote: Yeas, 30; Nays, 18; Absent, 1; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Deccio, Erwin, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Prince, Quigley, Rasmussen, M., Roach, Sellar, Skratek, Smith, L., Snyder, von Reichbauer, West and Winsley - 30.

Voting nay: Senators Cantu, Drew, Franklin, Fraser, Gaspard, Moore, Niemi, Pelz, Prentice, Rinehart, Sheldon, Smith, A., Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 18.

Absent: Senator Owen - 1.

MOTIONS

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

On page 1, line 1 of the title, after "RCW" insert "28A.500.010 and"

On motion of Senator Rinehart, the rules were suspended, Engrossed Substitute Senate Bill No. 5477 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Spanel, Senator Owen was excused.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5477.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5477 and the bill passed the Senate by the following vote: Yeas, 28; Nays, 20; Absent, 0; Excused, 1.

Voting yea: Senators Anderson, Barr, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Loveland, McDonald, Moore, Moyer, Nelson, Niemi, Pelz, Prentice, Quigley, Rinehart, Skratek, Smith, A., Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Winsley and Wojahn - 28.

Voting nay: Senators Amondson, Bauer, Cantu, Deccio, Haugen, Hochstatter, Jesernig, McAuliffe, McCaslin, Newhouse, Oke, Prince, Rasmussen, M., Roach, Sellar, Sheldon, Smith, L., Snyder, West and Williams - 20.

Excused: Senator Owen - 1.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5477, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5494, by Senators Talmadge and Deccio (by request of Department of Social and Health Services)

Including certain juveniles who are the subject of proceedings under chapter 13.34 RCW in the definition of "at-risk juvenile sex offenders".

The bill was read the second time.

MOTION

On motion of Senator Talmadge, the rules were suspended, Senate Bill No. 5494 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5494.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5494 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Excused: Senator Owen - 1.

SENATE BILL NO. 5494, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5556, by Senators Bauer, Snyder, Deccio and Sutherland (by request of Washington State School for the Blind and Washington State School for the Deaf)

Changing provisions relating to state schools for the blind, deaf, and sensory impaired.

MOTIONS

On motion of Senator Bauer, Substitute Senate Bill No. 5556 was substituted for Senate Bill No. 5556 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Bauer, the rules were suspended, Substitute Senate Bill No. 5556 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5556.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5556 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Excused: Senator Owen - 1.

SUBSTITUTE SENATE BILL NO. 5556, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5330, by Senators Haugen, Moore and Amondson

Exempting auction sold property from a statutory holding period.

The bill was read the second time.

MOTION

On motion of Senator Moore, the rules were suspended, Senate Bill No. 5330 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5330.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5330 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, McDonald, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 48.

Excused: Senator Owen - 1.

SENATE BILL NO. 5330, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5870, by Senators Haugen and McCaslin

Concerning the tax value of new construction.

The bill was read the second time.

MOTION

On motion of Senator Haugen, the rules were suspended, Senate Bill No. 5870 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5870.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5870 and the bill passed the Senate by the following vote: Yeas, 36; Nays, 13; Absent, 0; Excused, 0.

Voting yea: Senators Barr, Bauer, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McCaslin, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, von Reichbauer, West, Winsley and Wojahn - 36.

Voting nay: Senators Amondson, Anderson, Bluechel, Cantu, Hochstatter, McDonald, Moore, Moyer, Nelson, Newhouse, Roach, Vognild and Williams - 13.

SENATE BILL NO. 5870, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

At 5:15 p.m., on motion of Senator Jesernig, the Senate was declared to be at ease.

The Senate was called to order at 5:34 p.m. by President Pritchard.

There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5425 and the pending amendment by Senators Fraser and Vognild on page 13, line 17, deferred March 12, 1993.

MOTION

On motion of Senator Fraser, and there being no objection, the amendment on page 13, line 17, to Substitute Senate Bill No. 5425 was withdrawn.

MOTIONS

On motion of Senator Fraser, the following amendment by Senator Hochstatter was adopted:

On page 1, after line 4, insert the following:

Sec. 1. RCW 47.17.001 and 1990 c 233 s 1 are each amended to read as follows:

In considering whether to make additions, deletions, or other changes to the state highway system, the legislature shall be guided by the following criteria as contained in the Road Jurisdiction Committee Phase I report to the legislature dated January 1987:

(1) A rural highway route should be designated as a state highway if it meets any of the following criteria:

(a) Is designated as part of the national system of interstate and defense highways (popularly called the interstate system); or

(b) Is designated as part of the system of numbered United States routes; or

(2) A rural highway route may be designated as a state highway if it is part of an integrated system of roads and:

(a) Carries in excess of three hundred thousand tons annually and provides primary access to a rural port or intermodal freight terminal;

(b) Provides a major cross-connection between existing state highways; or

(i) A population center of one thousand or greater;

(ii) An area or aggregation of areas having a population equivalency of one thousand or more, such as, but not limited to, recreation areas, military installations, and so forth;

(iii) A county seat;

(iv) A major commercial-industrial terminal in a rural area with a population equivalency of one thousand or greater.

(d) Is designated as a scenic and recreational highway.

(3) An urban highway route that meets any of the following criteria should be designated as part of the state highway system:

(a) Is designated as part of the interstate system;

(b) Is designated as part of the system of numbered United States routes;

(c) Is an urban extension of a rural state highway into or through an urban area and is necessary to form an integrated system of state highways;

(d) Is a principal arterial that is a connecting link between two state highways and serves regionally oriented through traffic in urbanized areas with a population of fifty thousand or greater, or is a spur that serves regionally oriented traffic in urbanized areas.

(4) The following guidelines are intended to be used as a basis for interpreting and applying the criteria to specific routes:

(a) For any route wholly within one or more contiguous jurisdictions which would be proposed for transfer to the state highway system under these criteria, if local officials prefer, responsibility will remain at the local level.

(b) State highway routes maintain continuity of the system by being composed of routes that join other state routes at both ends or to arterial routes in the states of Oregon and Idaho and the Province of British Columbia.

(d) Exceptions may be made to include:

(i) Rural spurs as state highways if they meet the criteria relative to serving population centers of one thousand or greater population or activity centers with population equivalencies or an aggregated population of one thousand or greater;

(ii) Urban spurs as state highways that provide needed access to Washington state ferry terminals, state parks, major seaports, and trunk airports; and

(iii) Urban connecting links as state highways that function as needed bypass routing of regionally oriented through traffic and benefit truck routing, capacity alternative, business congestion, and geometric deficiencies.

(e) In urban and urbanized areas:

(i) Unless they are significant regional traffic generators, public facilities such as state hospitals, state correction centers, state universities, ferry terminals, and military bases do not constitute a criteria for establishment of a state highway; and

(ii) There may be no more than one parallel nonaccess controlled facility in the same corridor as a freeway or limited access facility as designated by the metropolitan planning organization.

(f) When there is a choice of two or more routes between population centers, the state route designation shall normally be based on the following considerations:

(i) The ability to handle higher traffic volumes;

(ii) The higher ability to accommodate further development or expansion along the existing alignment;

(iii) The most direct route and the lowest travel time;

(iv) The route that serves traffic with the most interstate, state-wide, and interregional significance;

(v) The route that provides the optimal spacing between other state routes; and

(vi) The route that best serves the comprehensive plan for community development in those areas where such a plan has been developed and adopted.

(5) A route designated in chapter 47.39 RCW as a scenic and recreational highway is not eligible for removal from the scenic and recreational system without the prior consent of the local jurisdiction in which the highway is located."

Renumber the remaining sections consecutively and correct internal references accordingly.

Senator Roach moved that the following amendment by Senators Roach and Fraser be adopted:

On page 12, after line 16, insert the following:

"Sec. 6. RCW 47.42.040 and 1991 c 94 s 2 are each amended to read as follows:

It is declared to be the policy of the state that no signs which are visible from the main traveled way of the interstate system, primary system, or scenic system shall be erected or maintained except the following types:

(1) Directional or other official signs or notices that are required or authorized by law;

(2) Signs advertising the sale or lease of the property upon which they are located;

(3) Signs advertising activities conducted on the property on which they are located;

(4) Signs, not inconsistent with the policy of this chapter and the national policy set forth in section 131 of title 23, United States Code as codified and enacted by Public Law 85-767 and amended only by section 106, Public Law 86-342, and the national standards promulgated thereunder by the secretary of commerce or the secretary of transportation, advertising activities being conducted at a location within twelve miles of the point at which such signs are located: PROVIDED, That no sign lawfully erected pursuant to this subsection adjacent to the interstate system and outside commercial and industrial areas shall be maintained by any person after three years from May 10, 1971;

(5) Signs, not inconsistent with the policy of this chapter and the national policy set forth in section 131 of title 23, United States Code as codified and enacted by Public Law 85-767 and amended only by section 106, Public Law 86-342, and the regulations promulgated thereunder by the secretary of commerce or the secretary of transportation, designed to give information in the specific interest of the traveling public: PROVIDED, That no sign lawfully erected pursuant to this subsection adjacent to the interstate system and outside commercial and industrial areas shall be maintained by any person after three years from May 10, 1971;

(6) Signs lawfully in existence on October 22, 1965, determined by the commission, subject to the approval of the United States secretary of transportation, to be landmark signs, including signs on farm structures or natural surfaces, of historic or artistic significance the preservation of which would be consistent with the purposes of chapter 47.42 RCW;

(7) Public service signs, located on school bus stop shelters, which:

(a) Identify the donor, sponsor, or contributor of said shelters;

(b) Contain safety slogans or messages which occupy not less than sixty percent of the area of the sign;

(d) Are located on school bus shelters which are authorized or approved by city, county, or state law, regulation, or ordinance, and at places approved by the city, county, or state agency controlling the highway involved; and

(e) Do not exceed thirty-two square feet in area. Not more than one sign on each shelter may face in any one direction.

Subsection (7) of this section notwithstanding, the department of transportation shall adopt regulations relating to the appearance of school bus shelters, the placement, size, and public service content of public service signs located thereon, and the prominence of the identification of the donors, sponsors, or contributors of the shelters.

(8) Temporary agricultural directional signs, with the following restrictions:

(a) Signs shall be posted only during the period of time the seasonal agricultural product is being sold;

(b) Signs shall not be placed adjacent to the interstate highway system unless the sign qualifies as an on-premise sign;

(d) Premises on which the seasonal agricultural products are sold must be within fifteen miles of the state highway, and necessary supplemental signing on local roads must be provided before the installation of the signs on the state highway;

(e) Signs must be located so as not to restrict sight distances on approaches to intersections;

(f) The department shall establish a permit system and fee schedule and rules for the manufacturing, installation, and maintenance of these signs in accordance with the policy of this chapter;

(g) Signs in violation of these provisions shall be removed in accordance with the procedures in RCW 47.42.080;

(9) Temporary political signs are signs that do not exceed eight square feet in area, are on private property, and solicit votes for candidates or ballot propositions at a scheduled election. Temporary political signs visible to the primary system and scenic system may be erected or maintained without a permit issued by the department. Temporary political signs shall not be erected or maintained outside city limits or zoned commercial and industrial areas having development visible to the highway as determined by the department prior to September 1st during a campaign for a general election, and must be removed within seven days after the election. When the candidate or proposition will be voted upon in a primary or special election, temporary political signs may not be erected or maintained more than 30 days prior to the election, and must be removed within seven days after the election. If temporary political signs are not removed within seven days after any election, the department is authorized to remove them. This subsection provides the exclusive means for posting temporary political signs which are visible from the main traveled way of the primary system and scenic system. The department may adopt rules to implement this subsection.

Only signs of types 1, 2, 3, 7, ((and)) 8, and 9 may be erected or maintained within view of the scenic system. Signs of types 7 and 8 may also be erected or maintained within view of the federal aid primary system."

Renumber the remaining sections consecutively and correct internal references accordingly.

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senators Roach and Fraser on page 12, after line 26, to Substitute Senate Bill No. 5425.

The motion by Senator Roach carried and the amendment was adopted.

MOTIONS

On motion of Senator Fraser, the following title amendments were considered simultaneously and were adopted:

On page 1, line 1 of the title after "RCW" insert "47.17.001,"

On page 1, line 2 of the title, after "47.42.025," insert "47.42.040,"

On motion of Senator Fraser, the rules were suspended, Engrossed Substitute Senate Bill No. 5425 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5425.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5425 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 1; Excused, 0.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

Voting nay: Senator McCaslin - 1.

Absent: Senator McDonald - 1.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5425, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5843, by Senators Moyer, Talmadge, Hochstatter, Deccio, Prentice, Quigley, McAuliffe, Erwin, Pelz, Winsley and M. Rasmussen

Authorizing local governments to exceed statutory property tax limitations for the purpose of financing affordable housing for very low-income households.

The bill was read the second time.

MOTIONS

On motion of Senator West, the following amendment was adopted:

On page 2, line 12, strike the words "a majority" and insert "three fifths"

On motion of Senator Barr, the following amendment by Senators Barr and Haugen was adopted:

On page 5, after line 24, insert the following:

"Sec. 5. RCW 84.52.069 and 1991 c 175 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, 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 in each year for six consecutive years when specifically authorized so to do 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 per centum of the total votes cast in such taxing district at the last preceding general election when the number of registered voters voting on the proposition does not exceed forty per centum of the total votes cast 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 per centum of the total votes cast in such taxing district in the last preceding general election. Ballot propositions shall conform with RCW 29.30.111.

(3) 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.

(4) If a county levies a tax under this section, no taxing district within the county 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 authorized subsequent to a county emergency medical service levy, shall expire concurrently with the county emergency medical service levy.

(5) The tax levy authorized in this section is in addition to the tax levy authorized in RCW 84.52.043.

(6) 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.

(((7) No taxing district may levy under this section more than twenty-five cents per thousand dollars of assessed value of property if reductions under RCW 84.52.010(2) are made for the year within the boundaries of the taxing district.))"

MOTIONS

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

On page 1, line 4 of the title, after "84.52.043" strike "and 84.52.010" and insert ", 84.52.010, and 84.52.069"

On motion of Senator Moyer, the rules were suspended, Engrossed Senate Bill No. 5843 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Oke, Senator Linda Smith was excused.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5843.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5843 and the bill passed the Senate by the following vote: Yeas, 32; Nays, 15; Absent, 1; Excused, 1.

Voting yea: Senators Barr, Deccio, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Williams, Winsley and Wojahn - 32.

Voting nay: Senators Amondson, Anderson, Bauer, Bluechel, Cantu, Erwin, Hochstatter, McCaslin, Moore, Newhouse, Roach, Sellar, Vognild, von Reichbauer and West - 15.

Absent: Senator McDonald - 1.

Excused: Senator Smith, L. - 1.

ENGROSSED SENATE BILL NO. 5843, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Oke, Senator McDonald was excused.

SECOND READING

SENATE BILL NO. 5387, by Senators Fraser, Talmadge and Haugen (by request of Department of Ecology)

Including the water pollution control revolving fund in the funds that will be credited with earnings of investments of surplus funds.

The bill was read the second time.

MOTION

On motion of Senator Fraser, the rules were suspended, Senate Bill No. 5387 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5387.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5387 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McCaslin, Moore, Moyer, Nelson, Newhouse, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 47.

Excused: Senators McDonald and Smith, L. - 2.

SENATE BILL NO. 5387, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5226, by Senators Skratek, Haugen, Talmadge, Winsley, M. Rasmussen and Quigley

Providing for additional evaluation of state programs.

MOTIONS

On motion of Senator Rinehart, Substitute Senate Bill No. 5226 was substituted for Senate Bill No. 5226 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Franklin, the following amendment by Senators Franklin, Quigley and Skratek was adopted:

On page 11, line 14, after "financial audit" insert ": PROVIDED, That the auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report"

MOTION

On motion of Senator Rinehart, the rules were suspended, Engrossed Substitute Senate Bill No. 5226 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5226.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5226 and the bill passed the Senate by the following vote: Yeas, 38; Nays, 10; Absent, 0; Excused, 1.

Voting yea: Senators Anderson, Barr, Bauer, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, McAuliffe, Moore, Nelson, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 38.

Voting nay: Senators Amondson, Cantu, Deccio, Hochstatter, Loveland, McCaslin, McDonald, Moyer, Newhouse and Oke - 10.

Excused: Senator Smith, L. - 1.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5226, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5341 and the pending amendment by Senator Nelson on page 4, after line 12, as amended, deferred earlier today.

RULING BY THE PRESIDENT

President Pritchard: "In ruling upon the point of order raised by Senator Talmadge, the President finds that Substitute Senate Bill No. 5341 is a measure which establishes additional penalties and related procedures for driving while under the influence of intoxicating liquor or drugs.

"The amendment by Senator Nelson, as amended, would add to the penalties and procedures related to suspension, revocation or denial of driving privileges as a result of driving while under the influence of intoxicating liquor or drugs.

"The President, therefore, finds that the proposed amendment, as amended, does not change the scope and object of the bill and the point of order is not well taken."

The amendment by Senator Nelson, as amended, on page 4, after line 12, to Substitute Senate Bill No. 5341 was ruled in order.

The President declared the question before the Senate to be the adoption of the amendment by Senator Nelson, as amended, on page 4, after line 12, to Substitute Senate Bill No. 5341.

Debate ensued.

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

The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Nelson, as amended, on page 4, after line 12, to Substitute Senate Bill No. 5341.

ROLL CALL

The Secretary called the roll and the amendment, as amended, was adopted by the following vote: Yeas, 28; Nays, 20; Absent, 0; Excused, 1.

Voting yea: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Hargrove, Haugen, Hochstatter, McAuliffe, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Pelz, Prince, Rasmussen, M., Roach, Sellar, Sheldon, Smith, A., Spanel, von Reichbauer, West and Winsley - 28.

Voting nay: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Jesernig, Loveland, Moore, Niemi, Owen, Prentice, Quigley, Rinehart, Skratek, Snyder, Sutherland, Talmadge, Vognild, Williams and Wojahn - 20.

Excused: Senator Smith, L. - 1.

MOTION

Senator Nelson moved that the following amendment be adopted:

On page 4, after line 12, insert the following:

"Sec. 2. RCW 46.20.285 and 1990 c 250 s 43 are each amended to read as follows:

The department shall forthwith revoke the license of any driver for the period of one calendar year unless otherwise provided in this section, upon receiving a record of the driver's conviction of any of the following offenses, when the conviction has become final:

(1) For vehicular homicide the period of revocation shall be two years;

(2) Vehicular assault;

(3) Driving a motor vehicle while under the influence of intoxicating liquor or a narcotic drug, or under the influence of any other drug to a degree which renders the driver incapable of safely driving a motor vehicle, upon a showing by the department's records that the conviction is the second such conviction for the driver within a period of five years. Upon a showing that the conviction is the third such conviction for the driver within a period of five years, the period of revocation shall be two years;

(4) Any felony in the commission of which a motor vehicle is used;

(5) Failure to stop and give information or render aid as required under the laws of this state in the event of a motor vehicle accident resulting in the death or personal injury of another or resulting in damage to a vehicle that is driven or attended by another;

(6) Perjury or the making of a false affidavit or statement under oath to the department under Title 46 RCW or under any other law relating to the ownership or operation of motor vehicles;

(7) Reckless driving upon a showing by the department's records that the conviction is the third such conviction for the driver within a period of two years;

(8) A felony violation of chapter 69.50 RCW. Upon a showing that the conviction is the second such conviction within a period of five years, the period of revocation shall be two years."

Renumber the remaining sections consecutively and correct any internal references accordingly.

MOTION

At 6:24 p.m., on motion of Senator Jesernig, the Senate was declared to be at ease.

The Senate was called to order at 7:10 p.m. by President Pritchard.

SECOND READING

SENATE BILL NO. 5702, by Senators Prentice, Wojahn and Franklin (by request of Employment Security Department)

Regulating unemployment insurance.

MOTIONS

On motion of Senator Vognild, Substitute Senate Bill No. 5702 was substituted for Senate Bill No. 5702 and the substitute bill was placed on second reading and read the second time.

Senator Vognild moved that the following amendment by Senators Vognild, Gaspard, Moore and Prentice be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 50.04 RCW to read as follows:

"Misconduct" means an employee's act or failure to act in willful disregard of his or her employer's interest where the effect of the employee's act or failure to act is to harm the employer's business.

Sec. 2. RCW 50.04.323 and 1983 1st ex.s. c 23 s 7 are each amended to read as follows:

(1) The amount of benefits payable to an individual for any week which begins after October 3, 1980, and which begins in a period with respect to which such individual is receiving a governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment which is based on the previous work of such individual shall be reduced (but not below zero) by an amount equal to the amount of such pension, retirement or retired pay, annuity, or other payment, which is reasonably attributable to such week((: PROVIDED, That)). However:

(a) The requirements of this subsection shall apply to any pension, retirement or retired pay, annuity, or other similar periodic payment only if--

(i) Such pension, retirement or retired pay, annuity, or similar payment is under a plan maintained (or contributed to) by a base period employer; and

(ii) In the case of such a payment not made under the Social Security Act or the Railroad Retirement Act of 1974 (or corresponding provisions of prior law), services performed for such employer by the individual after the beginning of the base period (or remuneration for such services) affect eligibility for, or increase the amount of, such pension, retirement or retired pay, annuity, or similar payment; ((and))

(b) The amount of any such a reduction shall take into account contributions made by the individual for the pension, retirement or retired pay, annuity, or other similar periodic payment, in accordance with regulations prescribed by the commissioner; and

(c) No deduction shall be made from the amount of benefits payable for a week for individuals receiving federal social security pensions to take into account the individuals' contributions to the pension program.

(2) In the event that a retroactive pension or retirement payment covers a period in which an individual received benefits under the provisions of this title, the amount in excess of the amount to which such individual would have been entitled had such retirement or pension payment been considered as provided in this section shall be recoverable under RCW 50.20.190.

(3) A lump sum payment accumulated in a plan described in this section paid to an individual eligible for such payment shall be prorated over the life expectancy of the individual computed in accordance with the commissioner's regulation.

(4) The resulting weekly benefit amount payable after reduction under this section, if not a multiple of one dollar, shall be reduced to the next lower multiple of one dollar.

(5) Any ambiguity in subsection (1) of this section should be construed in a manner consistent with 26 U.S.C. Sec. 3304 (a)(15) as last amended by P.L. 96-364.

Sec. 3. RCW 50.06.010 and 1984 c 65 s 1 are each amended to read as follows:

This chapter is enacted for the purpose of providing the protection of the unemployment compensation system to persons who have suffered a temporary total disability ((compensable under industrial insurance or crime victims compensation laws)) and is a recognition by this legislature of the economic hardship confronting those persons who have not been promptly reemployed after a prolonged period of temporary total disability.

Sec. 4. RCW 50.06.020 and 1984 c 65 s 2 are each amended to read as follows:

The benefits of this chapter shall be allowed only to:

(1) Individuals who have suffered a temporary total disability and have received compensation under the industrial insurance or crime victims compensation laws of this state, any other state or the United States for a period of not less than thirteen consecutive calendar weeks by reason of such temporary total disability ((shall be allowed the benefits of this chapter)); or

(2) Individuals who are reentering the work force after an absence of not less than thirteen consecutive calendar weeks resulting from temporary total physical disability because of a nonwork-related injury or illness: PROVIDED, That individuals authorized to receive benefits under this subsection are required to meet other eligibility requirements under Title 50 RCW.

Sec. 5. RCW 50.06.030 and 1987 c 278 s 3 are each amended to read as follows:

(1) In the case of individuals eligible under RCW 50.06.020(1), an application for initial determination made pursuant to this chapter, to be considered timely, must be filed in writing with the employment security department within twenty-six weeks following the week in which the period of temporary total disability commenced. Notice from the department of labor and industries shall satisfy this requirement. The records of the agency supervising the award of compensation shall be conclusive evidence of the fact of temporary disability and the beginning date of such disability.

(2) In the case of individuals eligible under RCW 50.06.020(2), an application for initial determination must be filed in writing with the employment security department within twenty-six weeks following the week in which the period of temporary total physical disability commenced. This filing requirement is satisfied by filing a signed statement from the attending physician stating the date that the disability commenced and stating that the individual was unable to reenter the work force during the time of the disability. The department may examine any medical information related to the disability. If the claim is appealed, a base year employer may examine the medical information related to the disability and require, at the employer's expense, that the individual obtain the opinion of a second health care provider selected by the employer concerning any information related to the disability.

(3) The employment security department shall process and issue an initial determination of entitlement or nonentitlement as the case may be.

(4) For the purpose of this chapter, a special base year is established for an individual consisting of either the first four of the last five completed calendar quarters or the last four completed calendar quarters immediately prior to the first day of the calendar week in which the individual's temporary total disability commenced, and a special individual benefit year is established consisting of the entire period of disability and a fifty-two consecutive week period commencing with the first day of the calendar week immediately following the week or part thereof with respect to which the individual received his final temporary total disability compensation under the applicable industrial insurance or crime victims compensation laws, or the week in which the individual reentered the work force after an absence under subsection (2) of this section, as applicable, except that no special benefit year shall have a duration in excess of three hundred twelve calendar weeks: PROVIDED HOWEVER, That such special benefit year will not be established unless the criteria contained in RCW 50.04.030 has been met, except that an individual meeting the ((disability and filing)) eligibility requirements of this chapter and who has an unexpired benefit year established which would overlap the special benefit year provided by this chapter, notwithstanding the provisions in RCW 50.04.030 relating to the establishment of a subsequent benefit year and RCW 50.40.010 relating to waiver of rights, may elect to establish a special benefit year under this chapter: PROVIDED FURTHER, that the unexpired benefit year shall be terminated with the beginning of the special benefit year if the individual elects to establish such special benefit year.

(5) For the purposes of establishing a benefit year, the department shall initially use the first four of the last five completed calendar quarters as the base year. If a benefit year is not established using the first four of the last five calendar quarters as the base year, the department shall use the last four completed calendar quarters as the base year.

Sec. 6. RCW 50.13.040 and 1977 ex.s. c 153 s 4 are each amended to read as follows:

(1) An individual shall have access to all records and information concerning that individual held by the department of employment security, unless the information is exempt from disclosure under RCW 42.17.310.

(2) An employing unit shall have access to its own records and to any records and information relating to a benefit claim by an individual if the employing unit is either the individual's last employer or is the individual's base year employer.

(3) An employing unit shall have access to any records and information relating to any decision to allow or deny benefits if:

(a) The decision is based on employment or an offer of employment with the employing unit; or

(b) If the decision is based on material information provided by the employing unit.

(4) An employing unit shall have access to general summaries of benefit claims by individuals whose benefits are chargeable to the employing unit's experience rating or reimbursement account.

Sec. 7. RCW 50.16.010 and 1991 sp.s. c 13 s 59 are each amended to read as follows:

There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable. The unemployment compensation fund shall consist of

(1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

(2) any property or securities acquired through the use of moneys belonging to the fund,

(3) all earnings of such property or securities,

(4) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

(5) all money recovered on official bonds for losses sustained by the fund,

(6) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

(7) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

(8) all moneys received for the fund from any other source.

All moneys in the unemployment compensation fund shall be commingled and undivided.

The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title, all fines and penalties collected pursuant to the provisions of this title, all sums recovered on official bonds for losses sustained by the fund, and revenue received under RCW 50.24.014: PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended. Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

(a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

(b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

(c) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.

Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW ((74.09.035, 74.09.510, 74.09.520, and 74.09.700)) 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

Sec. 8. RCW 50.20.050 and 1982 1st ex.s. c 18 s 6 are each amended to read as follows:

(1) An individual shall be disqualified from benefits beginning with the first day of the calendar week in which he or she has left the most recent work voluntarily without good cause and thereafter for five calendar weeks and until he or she has obtained bona fide work and earned wages ((of not less than his or her suspended weekly benefit amount in each of five calendar weeks)) equal to five times his or her weekly benefit amount.

The disqualification shall continue if the work obtained is a mere sham to qualify for benefits and is not bona fide work. In determining whether work is of a bona fide nature, the commissioner shall consider factors including but not limited to the following:

(a) The duration of the work;

(b) The extent of direction and control by the employer over the work; and

(2) An individual shall not be considered to have left the most recent work voluntarily without good cause when:

(a) He or she has left work to accept a bona fide offer of bona fide work as described in subsection (1) of this section; ((or))

(b) The separation was because of the illness or disability of the claimant or the death, illness, or disability of a member of the claimant's immediate family if the claimant took all reasonable precautions, in accordance with any regulations that the commissioner may prescribe, to protect his or her employment status by having promptly notified the employer of the reason for the absence and by having promptly requested reemployment when again able to assume employment: PROVIDED, That these precautions need not have been taken when they would have been a futile act, including those instances when the futility of the act was a result of a recognized labor/management dispatch system; or

(c) He or she has left work to relocate for employment outside the existing labor market area with his or her spouse if the claimant remained employed as long as was reasonable prior to the move.

(3)(a) In determining under this section whether an individual has left the most recent work voluntarily without good cause, the commissioner shall only consider work-connected factors such as the degree of risk involved to the individual's health, safety, and morals, the individual's physical fitness for the work, the individual's ability to perform the work, distance to work and transportation available and such other work connected factors as the commissioner may deem pertinent, including state and national emergencies. ((Good cause shall not be established for voluntarily leaving work because of its distance from an individual's residence where the distance was known to the individual at the time he or she accepted the employment and where, in the judgment of the department, the distance is customarily traveled by workers in the individual's job classification and labor market, nor because of any other significant work factor which was generally known and present at the time he or she accepted employment, unless the related circumstances have so changed as to amount to a substantial involuntary deterioration of the work factor or unless the commissioner determines that other related))

(b) Good cause shall be established whenever an individual quits work because hours of work offered, pay, or any other significant work factor has deteriorated to the detriment of the employee by more than ten percent, unless the reduction has been specifically agreed to in writing by the individual and the employer.

(c) Notwithstanding the requirement for written agreements in (b) of this subsection, good cause may be established when work-related circumstances would work an unreasonable hardship on the individual were he or she required to continue in the employment.

(4) Subsections (1) and (3) of this section shall not apply to an individual whose marital status or domestic responsibilities cause him or her to leave employment. Such an individual shall not be eligible for unemployment insurance benefits beginning with the first day of the calendar week in which he or she left the most recent work without good cause and thereafter for five calendar weeks and until he or she has requalified, either by obtaining bona fide work and earning wages ((of not less than the suspended weekly benefit amount in each of five calendar weeks)) equal to five times his or her weekly benefit amount or by reporting in person to the department during ten different calendar weeks and certifying on each occasion that he or she is ready, able, and willing to immediately accept any suitable work which may be offered, is actively seeking work pursuant to customary trade practices, and is utilizing such employment counseling and placement services as are available through the department. This subsection does not apply to individuals covered by subsection (2)(c) of this section.

Sec. 9. RCW 50.20.060 and 1982 1st ex.s. c 18 s 16 are each amended to read as follows:

(((1))) An individual shall be disqualified from benefits beginning with the first day of the calendar week in which he or she has been discharged or suspended for misconduct connected with his or her most recent work and thereafter for five calendar weeks and until he or she has obtained work and earned wages ((of not less than the suspended weekly benefit amount in each of five calendar weeks)) equal to five times his or her benefit amount. Alcoholism shall not constitute a defense to disqualification from benefits due to misconduct.

(((2) An individual who has been discharged because of a felony or a gross misdemeanor of which he or she has been convicted, or has admitted committing to a competent authority, and which is connected with his or her work shall be disqualified from receiving any benefits for which base year credits are earned in any employment prior to the discharge. Such disqualification begins with the first day of the calendar week in which he or she has been discharged, and all benefits paid during the period the individual was disqualified shall be recoverable, notwithstanding RCW 50.20.190, 50.24.020, or any other provision of this title.))

Sec. 10. RCW 50.20.080 and 1959 c 321 s 1 are each amended to read as follows:

An individual is disqualified for benefits, if the commissioner finds that ((he)) the individual has failed without good cause, either to apply for available, suitable work when so directed by the employment office or the commissioner, or to accept suitable work when offered ((him)) the individual, or to return to his or her customary self-employment (if any) when so directed by the commissioner. Such disqualification shall begin with the week of the refusal and thereafter for five calendar weeks and continue until ((he)) the individual has obtained work and earned wages therefor of not less than five times his or her suspended weekly benefit amount ((in each of five weeks)).

NEW SECTION. Sec. 11. A new section is added to chapter 50.20 RCW to read as follows:

CANCELLATION OF WAGE/HOUR CREDITS. (1) An individual who has been discharged from his or her most recent work because of a felony or gross misdemeanor of which he or she has been convicted, or has admitted committing to a competent authority, and that is connected with his or her work shall have all hourly wage credits based on that employment canceled.

(2) The employer shall notify the department of such an admission or conviction, not later than six months following the admission or conviction.

(3) The claimant shall disclose any conviction of the claimant of a work-connected felony or gross misdemeanor occurring in the previous two years to the department at the time of application for benefits.

(4) All benefits that are paid in error based on wage/hour credits that should have been removed from the claimant's base year are recoverable, notwithstanding RCW 50.20.190 or 50.24.020 or any other provisions of this title.

Sec. 12. RCW 50.20.120 and 1984 c 205 s 1 are each amended to read as follows:

(1) Subject to the other provisions of this title, benefits shall be payable to any eligible individual during the individual's benefit year in a maximum amount equal to the lesser of thirty times the weekly benefit amount (determined hereinafter) or one-third of the individual's base year wages under this title: PROVIDED, That as to any week beginning on and after March 31, 1981, which falls in an extended benefit period as defined in RCW 50.22.010(1), as now or hereafter amended, an individual's eligibility for maximum benefits in excess of twenty-six times his or her weekly benefit amount will be subject to the terms and conditions set forth in RCW 50.22.020, as now or hereafter amended.

(2) An individual's weekly benefit amount shall be an amount equal to one twenty-fifth of the average quarterly wages of the individual's total wages during the two quarters of the individual's base year in which such total wages were highest. The maximum and minimum amounts payable weekly shall be determined as of each June 30th to apply to benefit years beginning in the twelve-month period immediately following such June 30th. The maximum amount payable weekly shall be ((fifty-five)) seventy percent of the "average weekly wage" for the calendar year preceding such June 30th((: PROVIDED, That if as of the first December 31st on which the ratio of the balance in the unemployment compensation fund to total remuneration paid by all employers subject to contributions during the calendar year ending on such December 31st and reported to the department by the following March 31st is 0.024 or more, the maximum amount payable weekly for benefit years beginning with the first full calendar week in July next following, and thereafter, shall be sixty percent of the "average weekly wage")). The computation for this ratio shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded: PROVIDED FURTHER, That for benefit years beginning before July 7, 1985, the maximum amount payable weekly shall not exceed one hundred eighty-five dollars. The minimum amount payable weekly shall be fifteen percent of the "average weekly wage" for the calendar year preceding such June 30th. If any weekly benefit, maximum benefit, or minimum benefit amount computed herein is not a multiple of one dollar, it shall be reduced to the next lower multiple of one dollar.

Sec. 13. RCW 50.20.190 and 1991 c 117 s 3 are each amended to read as follows:

(1) An individual who is paid any amount as benefits under this title to which he or she is not entitled shall, unless otherwise relieved pursuant to this section, be liable for repayment of the amount overpaid. The department shall issue an overpayment assessment setting forth the reasons for and the amount of the overpayment. The amount assessed, to the extent not collected, may be deducted from any future benefits payable to the individual: PROVIDED, That in the absence of fraud, misrepresentation, or willful nondisclosure, every determination of liability shall be mailed or personally served not later than two years after the close of the individual's benefit year in which the purported overpayment was made unless the merits of the claim are subjected to administrative or judicial review in which event the period for serving the determination of liability shall be extended to allow service of the determination of liability during the six-month period following the final decision affecting the claim.

(2) The commissioner may waive an overpayment if the commissioner finds that said overpayment was not the result of fraud, misrepresentation, willful nondisclosure, or fault attributable to the individual and that the recovery thereof would be against equity and good conscience: PROVIDED, HOWEVER, That the overpayment so waived shall be charged against the individual's applicable entitlement for the eligibility period containing the weeks to which the overpayment was attributed as though such benefits had been properly paid.

(3) Any assessment herein provided shall constitute a determination of liability from which an appeal may be had in the same manner and to the same extent as provided for appeals relating to determinations in respect to claims for benefits: PROVIDED, That an appeal from any determination covering overpayment only shall be deemed to be an appeal from the determination which was the basis for establishing the overpayment unless the merits involved in the issue set forth in such determination have already been heard and passed upon by the appeal tribunal. If no such appeal is taken to the appeal tribunal by the individual within thirty days of the delivery of the notice of determination of liability, or within thirty days of the mailing of the notice of determination, whichever is the earlier, said determination of liability shall be deemed conclusive and final. Whenever any such notice of determination of liability becomes conclusive and final, the commissioner, upon giving at least twenty days notice by certified mail return receipt requested to the individual's last known address of the intended action, may file with the superior court clerk of any county within the state a warrant in the amount of the notice of determination of liability plus a filing fee of five dollars. The clerk of the county where the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the person(s) mentioned in the warrant, the amount of the notice of determination of liability, and the date when the warrant was filed. The amount of the warrant as docketed shall become a lien upon the title to, and any interest in, all real and personal property of the person(s) against whom the warrant is issued, the same as a judgment in a civil case duly docketed in the office of such clerk. A warrant so docketed shall be sufficient to support the issuance of writs of execution and writs of garnishment in favor of the state in the manner provided by law for a civil judgment. A copy of the warrant shall be mailed to the person(s) mentioned in the warrant by certified mail to the person's last known address within five days of its filing with the clerk.

(4) On request of any agency which administers an employment security law of another state, the United States, or a foreign government and which has found in accordance with the provisions of such law that a claimant is liable to repay benefits received under such law, the commissioner may collect the amount of such benefits from the claimant to be refunded to the agency. In any case in which under this section a claimant is liable to repay any amount to the agency of another state, the United States, or a foreign government, such amounts may be collected without interest by civil action in the name of the commissioner acting as agent for such agency if the other state, the United States, or the foreign government extends such collection rights to the employment security department of the state of Washington, and provided that the court costs be paid by the governmental agency benefiting from such collection.

(5) Any employer who is a party to a back pay award or settlement due to loss of wages shall, within thirty days of the award or settlement, report to the department the amount of the award or settlement, the name and social security number of the recipient of the award or settlement, and the period for which it is awarded. When an individual has been awarded or receives back pay, for benefit purposes the amount of the back pay shall constitute wages paid in the period for which it was awarded. For contribution purposes, the back pay award or settlement shall constitute wages paid in the period in which it was actually paid. The following requirements shall also apply:

(a) The employer shall reduce the amount of the back pay award or settlement by an amount determined by the department based upon the amount of unemployment benefits received by the recipient of the award or settlement during the period for which the back pay award or settlement was awarded;

(b) The employer shall pay to the unemployment compensation fund, in a manner specified by the commissioner, an amount equal to the amount of such reduction;

(c) The employer shall also pay to the department any taxes due for unemployment insurance purposes on the entire amount of the back pay award or settlement notwithstanding any reduction made pursuant to (a) of this subsection;

(d) If the employer fails to reduce the amount of the back pay award or settlement as required in (a) of this subsection, the department shall issue an overpayment assessment against the recipient of the award or settlement in the amount that the back pay award or settlement should have been reduced; and

(e) If the employer fails to pay to the department an amount equal to the reduction as required in (b) of this subsection, the department shall issue an assessment of liability against the employer which shall be collected pursuant to the procedures for collection of assessments provided herein and in RCW 50.24.110.

(6) When an individual fails to repay an overpayment assessment that is due and fails to arrange for satisfactory repayment terms, the commissioner shall impose an interest penalty of one percent per month of the outstanding balance ((for each month that payments are not made in a timely fashion)). Interest shall accrue immediately on overpayments assessed pursuant to RCW 50.20.070 and shall be imposed when the assessment becomes final. For any other overpayment, interest shall accrue when the individual has missed two or more of their monthly payments either partially or in full. The interest penalty shall be used to fund detection and recovery of overpayment and collection activities.

NEW SECTION. Sec. 14. A new section is added to chapter 50.20 RCW to read as follows:

All receipts from interest assessed against unemployment insurance claimants shall be deposited in the administrative contingency account and shall be used for the purpose of RCW 50.20.190(3).

Sec. 15. RCW 50.22.010 and 1985 ex.s. c 5 s 10 are each amended to read as follows:

As used in this chapter, unless the context clearly indicates otherwise:

(1) "Extended benefit period" means a period which:

(a) Begins with the third week after a week for which there is an "on" indicator; and

(b) Ends with the third week after the first week for which there is an "off" indicator: PROVIDED, That no extended benefit period shall last for a period of less than thirteen consecutive weeks, and further that no extended benefit period may begin by reason of an "on" indicator before the fourteenth week after the close of a prior extended benefit period which was in effect with respect to this state.

(2) There is an "on" indicator for this state for a week if the commissioner determines, in accordance with the regulations of the United States secretary of labor, that for the period consisting of such week and the immediately preceding twelve weeks((,)):

(a) The rate of insured unemployment ((()), not seasonally adjusted(() either:

(a))), equaled or exceeded one hundred twenty percent of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years and equaled or exceeded five percent; or

(b) ((Equaled or exceeded six percent: PROVIDED, That the six percent trigger shall apply only until December 31, 1985)) For benefits for weeks of unemployment beginning after March 6, 1993:

(i) The average rate of total unemployment, seasonally adjusted, as determined by the United States secretary of labor, for the period consisting of the most recent three months for which data for all states are published before the close of the week equals or exceeds six and one-half percent; and

(ii) The average rate of total unemployment in the state, seasonally adjusted, as determined by the United States secretary of labor, for the three-month period referred to in (b)(i) of this subsection, equals or exceeds one hundred ten percent of the average for either or both of the corresponding three-month periods ending in the two preceding calendar years.

(3) "High unemployment period" means any period of unemployment beginning after March 6, 1993, during which an extended benefit period would be in effect if:

(a) The average rate of total unemployment, seasonally adjusted, as determined by the United States secretary of labor, for the period consisting of the most recent three months for which data for all states are published before the close of the week equals or exceeds eight percent; and

(b) The average rate of total unemployment in the state, seasonally adjusted, as determined by the United States secretary of labor, for the three-month period referred to in (a) of this subsection, equals or exceeds one hundred ten percent of the average for either or both of the corresponding three-month periods ending in the two preceding calendar years.

(4) There is an "off" indicator for this state for a week ((if the commissioner determines, in accordance with the regulations of the United States secretary of labor, that for the period consisting of such week and the immediately preceding twelve weeks, the rate of insured unemployment (not seasonally adjusted) was either:

(a) Less than five percent; or

(b) Five percent or more but less than six percent and the rate of insured unemployment was less than one hundred twenty percent of the average of the rates for the corresponding thirteen week period ending in each of the two preceding calendar years: PROVIDED, That the six percent trigger shall apply only until December 31, 1985)) only if, for the period consisting of such week and immediately preceding twelve weeks, none of the options specified in subsection (2) or (3) of this section result in an "on" indicator.

(((4))) (5) "Regular benefits" means benefits payable to an individual under this title or under any state law (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than extended benefits or additional benefits.

(((5))) (6) "Extended benefits" means benefits payable for weeks of unemployment beginning in an extended benefit period to an individual under this title or under any state law (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than regular or additional benefits.

(((6))) (7) "Additional benefits" are benefits totally financed by the state and payable under this title to exhaustees by reason of conditions of high unemployment or by reason of other special factors.

(((7))) (8) "Eligibility period" of an individual means the period consisting of the weeks in his or her benefit year which begin in an extended benefit period that is in effect in this state and, if his or her benefit year ends within such extended benefit period, any weeks thereafter which begin in such period.

(((8))) (9) "Additional benefit eligibility period" of an individual means the period consisting of the weeks in his or her benefit year which begin in an additional benefit period that is in effect and, if his or her benefit year ends within such additional benefit period, any weeks thereafter which begin in such period.

(((9))) (10) "Exhaustee" means an individual who, with respect to any week of unemployment in his or her eligibility period:

(a) Has received, prior to such week, all of the regular benefits that were payable to him or her under this title or any other state law (including dependents' allowances and regular benefits payable to federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85) in his or her current benefit year that includes such week; or

(b) Has received, prior to such week, all of the regular benefits that were available to him or her under this title or any other state law (including dependents' allowances and regular benefits available to federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85) in his or her current benefit year that includes such week, after the cancellation of some or all of his or her wage credits or the total or partial reduction of his or her rights to regular benefits: PROVIDED, That, for the purposes of (a) and (b), an individual shall be deemed to have received in his or her current benefit year all of the regular benefits that were payable to him or her, or available to him or her, as the case may be, even though:

(i) As a result of a pending appeal with respect to wages or employment, or both, that were not included in the original monetary determination with respect to his or her current benefit year, he or she may subsequently be determined to be entitled to more regular benefits; or

(ii) By reason of the seasonal provisions of another state law, he or she is not entitled to regular benefits with respect to such week of unemployment (although he or she may be entitled to regular benefits with respect to future weeks of unemployment in the next season, as the case may be, in his or her current benefit year), and he or she is otherwise an exhaustee within the meaning of this section with respect to his or her right to regular benefits under such state law seasonal provisions during the season or off season in which that week of unemployment occurs; or

(iii) Having established a benefit year, no regular benefits are payable to him or her during such year because his or her wage credits were canceled or his or her right to regular benefits was totally reduced as the result of the application of a disqualification; or

(c) His or her benefit year having ended prior to such week, he or she has insufficient wages or employment, or both, on the basis of which he or she could establish in any state a new benefit year that would include such week, or having established a new benefit year that includes such week, he or she is precluded from receiving regular benefits by reason of the provision in RCW 50.04.030 which meets the requirement of section 3304(a)(7) of the Federal Unemployment Tax Act, or the similar provision in any other state law; and

(d)(i) Has no right for such week to unemployment benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act, the Trade Expansion Act of 1962, and such other federal laws as are specified in regulations issued by the United States secretary of labor; and

(ii) Has not received and is not seeking for such week unemployment benefits under the unemployment compensation law of Canada, unless the appropriate agency finally determines that he or she is not entitled to unemployment benefits under such law for such week.

(((10))) (11) "State law" means the unemployment insurance law of any state, approved by the United States secretary of labor under section 3304 of the internal revenue code of 1954.

Sec. 16. RCW 50.22.020 and 1981 c 35 s 8 are each amended to read as follows:

When the result would not be inconsistent with the other provisions of this chapter, the provisions of this title and commissioner's regulations enacted pursuant thereto, which apply to claims for, or the payment of, regular benefits, shall apply to claims for, and the payment of, extended benefits: PROVIDED, That

(1) Payment of extended compensation under this chapter shall not be made to any individual for any week of unemployment in his or her eligibility period--

(a) During which he or she fails to accept any offer of suitable work (as defined in subsection (3) of this section) or fails to apply for any suitable work to which he or she was referred by the employment security department; or

(b) During which he or she fails to actively engage in seeking work.

(2) If any individual is ineligible for extended compensation for any week by reason of a failure described in subsections (1)(a) or (1)(b) of this section, the individual shall be ineligible to receive extended compensation for any week which begins during a period which--

(a) Begins with the week following the week in which such failure occurs; and

(b) Does not end until such individual has been employed during at least four weeks which begin after such failure and the total of the remuneration earned by the individual for being so employed is not less than the product of four multiplied by the individual's weekly benefit amount (as determined under RCW 50.20.120) for his or her benefit year.

(3) For purposes of this section, the term "suitable work" means, with respect to any individual, any work which is within such individual's capabilities and which does not involve conditions described in RCW 50.20.110: PROVIDED, That if the individual furnishes evidence satisfactory to the employment security department that such individual's prospects for obtaining work in his or her customary occupation within a reasonably short period are good, the determination of whether any work is suitable work with respect to such individual shall be made in accordance with RCW 50.20.100.

(4) Extended compensation shall not be denied under subsection (1)(a) of this section to any individual for any week by reason of a failure to accept an offer of, or apply for, suitable work if:

(a) The gross average weekly remuneration payable to such individual for the position does not exceed the sum of--

(i) The individual's weekly benefit amount (as determined under RCW 50.20.120) for his or her benefit year; plus

(ii) The amount (if any) of supplemental unemployment compensation benefits (as defined in section 501(c)(17)(D) of the Internal Revenue Code of 1954, 26 U.S.C. Sec. 501(c)(17)(D)), payable to such individual for such week;

(b) The position was not offered to such individual in writing and was not listed with the employment security department;

(c) Such failure would not result in a denial of compensation under the provisions of RCW 50.20.080 and 50.20.100 to the extent such provisions are not inconsistent with the provisions of subsections (3) and (5) of this section; or

(d) The position pays wages less than the higher of--

(i) The minimum wage provided by section (6)(a)(1) of the Fair Labor Standards Act of 1938, without regard to any exemption; or

(ii) Any applicable state or local minimum wage.

(5) For purposes of this section, an individual shall be treated as actively engaged in seeking work during any week if:

(a) The individual has engaged in a systematic and sustained effort to obtain work during such week; and

(b) The individual provides tangible evidence to the employment security department that he or she has engaged in such an effort during such week.

(6) The employment security department shall refer applicants for benefits under this chapter to any suitable work to which subsections (4)(a) through (4)(d) of this section would not apply.

(7) No provisions of this title which terminates a disqualification for voluntarily leaving employment, being discharged for misconduct, or refusing suitable employment shall apply for purposes of determining eligibility for extended compensation unless such termination is based upon employment subsequent to the date of such disqualification.

(8) The provisions of subsections (1) through (7) of this section shall apply with respect to weeks of unemployment beginning after March 31, 1981. However, the provisions of subsections (1) through (7) of this section shall not apply to those weeks of unemployment beginning after March 6, 1993, and before January 1, 1995.

Sec. 17. RCW 50.22.030 and 1982 1st ex.s. c 18 s 4 are each amended to read as follows:

(1) An individual shall be eligible to receive extended benefits with respect to any week of unemployment in his or her eligibility period only if the commissioner finds with respect to such week that:

(a) The individual is an "exhaustee" as defined in RCW 50.22.010;

(b) He or she has satisfied the requirements of this title for the receipt of regular benefits that are applicable to individuals claiming extended benefits, including not being subject to a disqualification for the receipt of benefits; and

(i) Forty times his or her weekly benefit amount; or

(ii) One and one-half times his or her insured wages in the calendar quarter of the base period in which the insured wages are the highest, for weeks of unemployment on or after July 3, 1992.

(2) An individual filing an interstate claim in any state under the interstate benefit payment plan shall not be eligible to receive extended benefits for any week beyond the first two weeks claimed for which extended benefits are payable unless an extended benefit period embracing such week is also in effect in the agent state.

Sec. 18. RCW 50.22.050 and 1982 1st ex.s. c 18 s 5 are each amended to read as follows:

(1) The total extended benefit amount payable to any eligible individual with respect to his or her applicable benefit year shall be the least of the following amounts:

(a) Fifty percent of the total amount of regular benefits which were payable to him or her under this title in his or her applicable benefit year;

(b) Thirteen times his or her weekly benefit amount which was payable to him or her under this title for a week of total unemployment in the applicable benefit year; or

(c) Thirty-nine times his or her weekly benefit amount which was payable to him or her under this title for a week of total unemployment in the applicable benefit year, reduced by the total amount of regular benefits which were paid (or deemed paid) to him or her under this title with respect to the benefit year.

(2) Notwithstanding any other provision of this chapter, if the benefit year of any eligible individual ends within an extended benefit period, the extended benefits which the individual would otherwise be entitled to receive with respect to weeks of unemployment beginning after the end of the benefit year and within the extended benefit period shall be reduced (but not below zero) by the product of the number of weeks for which the individual received any amount as a trade readjustment allowance within that benefit year, multiplied by the individual's weekly extended benefit amount.

(3) Effective for weeks beginning in a high unemployment period as defined in RCW 50.22.010(3) the total extended benefit amount payable to any eligible individual with respect to his or her applicable benefit year shall be the least of the following amounts:

(a) Eighty percent of the total amount of regular benefits that were payable to him or her under this title in his or her applicable benefit year;

(b) Twenty times his or her weekly benefit amount that was payable to him or her under this title for a week of total unemployment in the applicable benefit year; or

(c) Forty-six times his or her weekly benefit amount that was payable to him or her under this title for a week of total unemployment in the applicable benefit year, reduced by the total amount of regular benefits which were paid, or deemed paid, to him or her under this title with respect to the benefit year.

Sec. 19. RCW 50.29.020 and 1991 c 129 s 1 are each amended to read as follows:

(1) An experience rating account shall be established and maintained for each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, based on existing records of the employment security department. Benefits paid to any eligible individuals shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.

(2) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:

(a) Benefits paid to any individuals later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer.

(b) Benefits paid to an individual under the provisions of RCW 50.12.050 shall not be charged to the account of any contribution paying employer if the wage credits earned in this state by the individual during his or her base year are less than the minimum amount necessary to qualify the individual for unemployment benefits.

(c) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer.

(d) Benefits paid which represent the state's share of benefits payable under chapter 50.22 RCW shall not be charged to the experience rating account of any contribution paying employer.

(e) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.

(f)(i) Benefits paid to an individual as the result of a determination by the commissioner that no stoppage of work exists, pursuant to RCW 50.20.090, shall not be charged to the experience rating account of any contribution paying employer.

(ii) Benefits paid to an individual under RCW 50.20.090(1) for weeks of unemployment ending before February 20, 1987, shall not be charged to the experience rating account of any base year employer.

(g) In the case of individuals identified under RCW 50.20.015, benefits paid with respect to a calendar quarter, which exceed the total amount of wages earned in the state of Washington in the higher of two corresponding calendar quarters included within the individual's determination period, as defined in RCW 50.20.015, shall not be charged to the experience rating account of any contribution paying employer.

(h) Benefits paid to an individual who does not successfully complete an approved on-the-job training program under RCW 50.12.240 may not be charged to the experience rating account of the contribution-paying employer who provided the approved on-the-job training.

(i) Beginning July 1, 1985, a contribution-paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:

(i) ((The benefit charges result from payment to an individual who)) Last left the employ of such employer voluntarily for reasons not attributable to the employer((, or was discharged for misconduct connected with his or her work; and));

(ii) ((The employer requests relief of charges in writing within thirty days following mailing to the last known address of the notification of the initial determination of such a claim, stating the date and reason for the last leaving; and

(iii) Upon investigation of the separation, the commissioner rules that the relief should be granted.

(i) An employer who employed a claimant during the claimant's base year, and who continues to employ the claimant, is eligible for relief of benefit charges if relief is requested in writing within thirty days of notification by the department of the claimant's application for initial determination of eligibility. Relief of benefit charges shall cease when the employment relationship with the claimant ends. This subsection shall not apply to shared work employers under chapter 50.60 RCW.

(j) Benefits paid to an individual who does not successfully complete an approved on-the-job training program under RCW 50.12.240 shall not be charged to the experience rating account of the contribution paying employer who provided the approved on-the-job training.

(k) Benefits paid resulting from a closure or severe curtailment of operations at the employer's plant, building, work site, or facility due to damage caused by fire, flood, or other natural disaster shall not be charged to the experience rating account of the employer if:

(i))) Was discharged for misconduct connected with his or her work not a result of inability to meet the minimum job requirements;

(iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, work site, or other facility. This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or

(iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer. Benefit charge relief ceases when the employment relationship between that employer and the claimant is terminated. This subsection does not apply to shared work employers under chapter 50.60 RCW.

(j) The employer ((petitions for)) requests relief of charges((; and

(ii) The commissioner approves granting relief of charges)) in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment, and, upon investigation of the request, the commissioner rules that relief should be granted.

Sec. 20. RCW 50.24.014 and 1987 c 171 s 4 are each amended to read as follows:

A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund. Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at ((the)) a basic rate of two one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010.

For the first calendar quarter of 1994 only, this basic two one-hundredths of one percent shall be increased by one hundredth of one percent to a total rate of three one-hundredths of one percent. The proceeds of this incremental one-hundredth of one percent shall be used solely for the purposes described in section 22 of this act. Any surplus will be deposited in the unemployment compensation trust fund.

Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st.

Sec. 21. RCW 50.29.025 and 1990 c 245 s 7 are each amended to read as follows:

The contribution rate for each employer shall be determined under this section.

(1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

(2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:

Interval of the

Fund Balance Ratio Effective

Expressed as a Percentage Tax Schedule

3.90 and above AA

3.40 ((and above)) to 3.89 A

2.90 to 3.39 B

2.40 to 2.89 C

1.90 to 2.39 D

1.40 to 1.89 E

Less than 1.40 F

(3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

(4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

(5) The contribution rate for each employer in the array shall be the rate specified in the following table for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:

Percent of

Cumulative Schedule of Contribution Rates for

Taxable Payrolls Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.48 0.48 0.58 0.98 1.48 1.88 2.48

5.01 10.00 2 0.48 0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00 3 0.58 0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00 4 0.58 0.78 1.18 1.58 1.98 2.48 3.08

20.01 25.00 5 0.78 0.98 1.38 1.78 2.18 2.68 3.18

25.01 30.00 6 0.98 1.18 1.58 1.98 2.38 2.78 3.28

30.01 35.00 7 1.08 1.38 1.78 2.18 2.58 2.98 3.38

35.01 40.00 8 1.28 1.58 1.98 2.38 2.78 3.18 3.58

40.01 45.00 9 1.48 1.78 2.18 2.58 2.98 3.38 3.78

45.01 50.00 10 1.68 1.98 2.38 2.78 3.18 3.58 3.98

50.01 55.00 11 1.98 2.28 2.58 2.98 3.38 3.78 4.08

55.01 60.00 12 2.18 2.48 2.78 3.18 3.58 3.98 4.28

60.01 65.00 13 2.38 2.68 2.98 3.38 3.78 4.18 4.48

65.01 70.00 14 2.58 2.88 3.18 3.58 3.98 4.38 4.68

70.01 75.00 15 2.88 3.08 3.38 3.78 4.18 4.58 4.78

75.01 80.00 16 3.08 3.28 3.58 3.98 4.38 4.68 4.88

80.01 85.00 17 3.28 3.48 3.78 4.18 4.58 4.88 4.98

85.01 90.00 18 3.68 3.88 4.18 4.58 4.88 4.98 5.18

90.01 95.00 19 4.08 4.28 4.58 4.98 5.08 5.18 5.38

95.01 100.00 20 5.40 5.40 5.40 5.40 5.40 5.40 5.40

(6) The contribution rate for each employer not qualified to be in the array shall be as follows:

(a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and ((four-tenths)) six-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to five and ((four-tenths)) six-tenths percent for the current rate year;

(b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

(c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

NEW SECTION. Sec. 22. (1) There is hereby created a joint task force on unemployment insurance composed of the following members:

(a) Four members of the senate labor and commerce committee, two from each of the major caucuses, to be appointed by the president of the senate;

(b) Four members of the house of representatives commerce and labor committee, two from each of the major caucuses, to be appointed by the speaker of the house of representatives; and

(c) Up to eight members appointed jointly by the president of the senate and the speaker of the house of representatives representing business and labor in equal numbers. The business representatives shall be selected from nominations submitted by state-wide business organizations representing a cross-section of industries. The labor representatives shall be selected from nominations submitted by state-wide labor organizations representing a cross-section of industries.

(2) The employment security department unemployment insurance advisory committee shall act as an advisory body to the task force.

(3) The senate committee services and the office of program research shall provide the staff support as mutually agreed by the cochairs of the task force. The task force shall designate the cochairs.

(4) The members of the task force shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(5) The task force shall study the following issues:

(a) Financing and administration of unemployment insurance;

(b) Social costs;

(d) Experience rating systems;

(e) Tax rates;

(f) Trust fund adequacy;

(g) Accountability and administrative funding of employment security department programs; and

(h) Any other issues deemed appropriate by the task force.

(6) The task force shall report its findings to the legislature by December 31, 1993.

NEW SECTION. Sec. 23. (1) Sections 1 and 8 through 11 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 shall take effect July 3, 1993, and shall be effective as to separations occurring after July 3, 1993.

(2) Section 2 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 3, 1993, and is effective as to weeks claimed after July 3, 1993.

(3) Section 12 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 3, 1993, and is effective as to new claims filed after July 3, 1993.

(4) Section 19 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 3, 1993, and is effective as to requests for relief of charges received after July 3, 1993.

(5) Sections 15, 17, and 18 of this act shall be effective to new extended benefit claims filed after October 2, 1993.

(6) Sections 13 and 14 of this act shall take effect January 1, 1994.

(7) Sections 3, 4, 5, and 13 of this act shall take effect January 2, 1994.

(8) Sections 20 and 21 of this act shall take effect for tax year 1994.

(9) Section 16 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

NEW SECTION. Sec. 24. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION. Sec. 25. 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."

Debate ensued.

The President declared the question before the Senate to be the adoption of the striking amendment by Senators Vognild, Gaspard, Moore and Prentice to Substitute Senate Bill No. 5702.

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

MOTIONS

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

On page 1, line 1 of the title, after "insurance;" strike the remainder of the title and insert "amending RCW 50.04.323, 50.06.010, 50.06.020, 50.06.030, 50.13.040, 50.16.010, 50.20.050, 50.20.060, 50.20.080, 50.20.120, 50.20.190, 50.22.010, 50.22.020, 50.22.030, 50.22.050, 50.29.020, 50.24.014, and 50.29.025; adding a new section to chapter 50.04 RCW; adding new sections to chapter 50.20 RCW; creating new sections; providing effective dates; and declaring an emergency."

On motion of Senator Vognild, the rules were suspended, Engrossed Substitute Senate Bill No. 5702 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5702.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5702 and the bill passed the Senate by the following vote: Yeas, 27; Nays, 21; Absent, 0; Excused, 1.

Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Jesernig, Loveland, McAuliffe, Moore, Niemi, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams, Winsley and Wojahn - 27.

Voting nay: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Haugen, Hochstatter, McCaslin, McDonald, Moyer, Nelson, Newhouse, Oke, Owen, Prince, Roach, Sellar, von Reichbauer and West - 21.

Excused: Senator Smith, L. - 1.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5702, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

At 7:34 p.m., on motion of Senator Jesernig, the Senate adjourned until 8:00 a.m., Wednesday, March 17, 1993.

JOEL PRITCHARD, President of the Senate

MARTY BROWN, Secretary of the Senate