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ONE HUNDRED-THIRD DAY

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MORNING SESSION

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Senate Chamber, Olympia, Friday, April 21, 1995

The Senate was called to order at 9:00 a.m. by President Pro Tempore Wojahn. The Secretary called the roll and announced to the President Pro Tempore that all Senators were present except Senators Ann Anderson, Cal Anderson, Hochstatter, McAuliffe, Moyer and Pelz, On motion of Senator Loveland, Senators Cal Anderson, McAuliffe and Pelz were excused. On motion of Senator Wood, Senators Ann Anderson, Hochstatter and Moyer were excused.

The Sergeant at Arms Color Guard, consisting of Pages Julia Balitsky and B. J. Gavin, presented the Colors. Reverend Robert Cassis, pastor of the South Sound Presbyterian Church of Lacey, offered the prayer.

MOTION

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

MESSAGES FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House receded from its amendment(s) to ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5632, and has passed the bill without said amendment(s), and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House receded from its amendment(s) to page 1, line 18, to SUBSTITUTE SENATE BILL NO. 5795, and has passed the bill without said amendment(s), and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House receded from its amendment(s) to page 2, line 34, to SENATE BILL NO. 6004, and has passed the bill without said amendment(s), and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to the following bills and passed the bills as amended by the Senate:

SUBSTITUTE HOUSE BILL NO. 1387,

SUBSTITUTE HOUSE BILL NO. 1401,

ENGROSSED HOUSE BILL NO. 2033.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to the following bills and passed the bills as amended by the Senate:

SUBSTITUTE HOUSE BILL NO. 1144,

SUBSTITUTE HOUSE BILL NO. 1152,

SUBSTITUTE HOUSE BILL NO. 1205,

SUBSTITUTE HOUSE BILL NO. 1237,

ENGROSSED HOUSE BILL NO. 1305,

SUBSTITUTE HOUSE BILL NO. 1383,

SUBSTITUTE HOUSE BILL NO. 1398,

SUBSTITUTE HOUSE BILL NO. 1497,

HOUSE BILL NO. 1534,

SUBSTITUTE HOUSE BILL NO. 1658,

SUBSTITUTE HOUSE BILL NO. 1669,

SUBSTITUTE HOUSE BILL NO. 1673,

SUBSTITUTE HOUSE BILL NO. 1700,

SUBSTITUTE HOUSE BILL NO. 1722,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1730,

SUBSTITUTE HOUSE BILL NO. 1809,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1810,

SUBSTITUTE HOUSE BILL NO. 1865,

HOUSE BILL NO. 1872,

ENGROSSED HOUSE BILL NO. 1889,

ENGROSSED HOUSE BILL NO. 2005.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The Speaker has signed:

SUBSTITUTE SENATE BILL NO. 5089,

SENATE BILL NO. 5120,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5219,

SENATE BILL NO. 5292,

SUBSTITUTE SENATE BILL NO. 5326,

SUBSTITUTE SENATE BILL NO. 5333,

SECOND SUBSTITUTE SENATE BILL NO. 5387,

SUBSTITUTE SENATE BILL NO. 5406,

SUBSTITUTE SENATE BILL NO. 5421,

SUBSTITUTE SENATE BILL NO. 5443,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5592,

ENGROSSED SENATE BILL NO. 5610,

ENGROSSED SENATE BILL NO. 5613,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5629,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5633,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5662,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5685,

SENATE BILL NO. 5718,

SUBSTITUTE SENATE BILL NO. 5724,

SUBSTITUTE SENATE BILL NO. 5742,

SENATE BILL NO. 5748,

SUBSTITUTE SENATE BILL NO. 5751,

SUBSTITUTE SENATE BILL NO. 5799,

SENATE BILL NO. 5898,

SUBSTITUTE SENATE BILL NO. 5905,

SENATE BILL NO. 5931,

SENATE BILL NO. 5956,

ENGROSSED SENATE BILL NO. 5962,

SUBSTITUTE SENATE BILL NO. 5977,

ENGROSSED SENATE BILL NO. 5998,

ENGROSSED SENATE BILL NO. 6037,

ENGROSSED SENATE BILL NO. 6045,

SENATE JOINT MEMORIAL NO. 8014, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

INITIATIVE 159.

INTRODUCTION AND FIRST READING

SB 6071 by Senators Prentice, Smith, Moyer and Deccio

AN ACT Relating to clinical laboratory science practitioners; adding a new chapter to Title 18 RCW; creating a new section; prescribing penalties; providing effective dates; and declaring an emergency.

Referred to Committee on Health and Long-Term Care.

SECOND READING

GUBERNATORIAL APPOINTMENT

MOTION

On motion of Senator Fraser, Gubernatorial Appointment No. 9079, Art Wang, as a member of the Personnel Appeals Board, was confirmed.

APPOINTMENT OF ART WANG

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 33; Nays, 3; Absent, 7; Excused, 6.

Voting yea: Senators Bauer, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Haugen, Heavey, Loveland, McDonald, Newhouse, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 33.

Voting nay: Senators McCaslin, Morton and Palmer - 3.

Absent: Senators Cantu, Franklin, Hargrove, Johnson, Kohl, Long and Winsley - 7.

Excused: Senators Anderson, A., Anderson, C., Hochstatter, McAuliffe, Moyer and Pelz - 6.

MOTIONS

On motion of Senator Wood, Senators Cantu and Johnson were excused.

On motion of Senator Loveland, Senator Hargrove was excused.

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

There being no objection, the Senate resumed consideration of Substitute House Bill No. 1560, deferred April 20, 1995, after the Senate receded from its amendment(s) to the bill.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1560, without the Senate amendment(s).

Debate ensued.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1560, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 37; Nays, 3; Absent, 0; Excused, 9.

Voting yea: Senators Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Heavey, Kohl, Long, Loveland, McDonald, Newhouse, Oke, Owen, Palmer, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 37.

Voting nay: Senators McCaslin, Morton and Prince - 3.

Excused: Senators Anderson, A., Anderson, C., Cantu, Hargrove, Hochstatter, Johnson, McAuliffe, Moyer and Pelz - 9.

SUBSTITUTE HOUSE BILL NO. 1560, without the Senate amendment(s), having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 19, 1995

MR. PRESIDENT:

The House does not concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 1547 and asks the Senate to recede therefrom, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Prentice, the Senate receded from its amendment(s) to Substitute House Bill No. 1547.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1547, without the Senate amendment(s).

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1547, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 0; Excused, 9.

Voting yea: Senators Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Heavey, Kohl, Long, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 40.

Excused: Senators Anderson, A., Anderson, C., Cantu, Hargrove, Hochstatter, Johnson, McAuliffe, Moyer and Pelz - 9.

SUBSTITUTE HOUSE BILL NO. 1547, without the Senate amendment(s), having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 19, 1995

MR. PRESIDENT:

The House does not concur in the Senate amendment(s) to HOUSE JOINT MEMORIAL NO. 4030 and asks the Senate to recede therefrom, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Fraser, the rules were suspended, House Joint Memorial No. 4030 was returned to second reading and read the second time.

MOTIONS

On motion of Senator Fraser, the Senate reconsidered the Committee on Ecology and Parks amendment on page 1, after line 8, which was adopted April 13, 1995.

On motion of Senator Fraser, the following amendment by Senators Fraser and Hale was adopted to the Committee on Ecology and Parks amendment, on reconsideration:

On page 1, line 25, delete "does not follow through" and insert "follows through"

The President Pro Tempore declared the question before the Senate to be the adoption of the Committee on Ecology and Parks amendment on page 1, after line 8, as amended on reconsideration.

The committee amendment, as amended on reconsideration, was adopted.

MOTION

On motion of Senator Fraser, the rules were suspended, House Joint Memorial No. 4030, as amended by the Senate under suspension of the rules, was advanced to third reading, the second reading considered the third and the joint memorial was placed on final passage.

MOTION

On motion of Senator Loveland, Senator Bauer was excused.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Joint Memorial No. 4030, as amended by the Senate under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of House Joint Memorial No. 4030, as amended by the Senate under suspension of the rules, and the joint memorial passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 0; Excused, 9.

Voting yea: Senators Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Heavey, Kohl, Long, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 40.

Excused: Senators Anderson, A., Anderson, C., Bauer, Hargrove, Hochstatter, Johnson, McAuliffe, Moyer and Pelz - 9.

HOUSE JOINT MEMORIAL NO. 4030, as amended by the Senate under suspension of the rules, having received the constitutional majority, was declared passed.

MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 5141 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"PART I - IMPLIED CONSENT AND ADMINISTRATIVE REVOCATION

Sec. 1. RCW 46.20.308 and 1994 c 275 s 13 are each amended to read as follows:

(1)(a) 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)) alcohol concentration or presence of any drug in his or her breath or blood if arrested for any offense where, at the time of the arrest, the arresting officer has reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug.

(b) A person under the age of twenty-one who drives or is in physical control of a motor vehicle within this state is deemed to have given consent, subject to the relevant portions of RCW 46.61.506, to be detained long enough, and be transported if necessary, to take a test or tests of that person's blood or breath for the purpose of determining the alcohol concentration in his or her system if requested or signaled to stop by a law enforcement officer pursuant to RCW 46.20.309 (as recodified by this act) where, at the time of the stop, the officer has reasonable grounds to believe the person is under the age of twenty-one and had been driving or was in actual physical control of a motor vehicle while having alcohol in a concentration of 0.02 or more in his or her system.

(2) The test or tests of breath shall be administered at the direction of a law enforcement officer having reasonable grounds to believe the person to have been driving or in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or the person to have been driving or in actual physical control of a motor vehicle while having alcohol in a concentration of 0.02 or more in his or her system and being under the age of twenty-one. 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)) or where the person is being treated ((for a medical condition)) in a hospital, clinic, doctor's office, emergency medical vehicle, ambulance, or other similar facility in which a breath testing instrument is not present or where the officer has reasonable grounds to believe that the person is under the influence of a drug, a blood test shall be administered by a qualified person as provided in RCW 46.61.506(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 license, permit, or privilege to drive will be revoked or denied if he or she refuses to submit to the test((, and (b) that)) and that a knowing refusal to submit to the test is a crime punishable as a gross misdeamanor;

(b) His or her license, permit, or privilege to drive will be suspended, revoked, denied, or placed in probationary status if the test is administered and the test indicates the alcohol concentration of the person's breath or blood is 0.10 or more, in the case of a person age twenty-one or over, or 0.02 or more in the case of a person under age twenty-one; and

(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 or is under detention for driving with alcohol in his or her system as provided in RCW 46.20.309 (as recodified by this act), which arrest or detention results from an accident in which there has been serious bodily injury to 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 or detained.

(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 or detention and receipt of warnings under subsection (2) of this section, the person arrested or detained 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 or detention 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 if the person is age twenty-one or over, or is 0.02 or more if the person is under the age of twenty-one, or the person refuses to submit to a test, the arresting officer or other law enforcement officer at whose direction any test has been given, or the department, where applicable, if the arrest or detention results in a test of the person's blood, shall:

(a) Serve notice in writing on the person on behalf of the department of its intention to suspend, revoke, deny, or place in probationary status 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 thirty 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 thirty days after the notice has been given;

(c) Mark the person's Washington state driver's license or permit to drive, if any, in a manner authorized by the department;

(d) Serve notice in writing that the marked license or permit, if any, is a temporary license that is valid for sixty days from the date of arrest or detention or from the date notice has been given in the event notice is given by the department following a blood test, or until the suspension, revocation, or denial of the person's license, permit, or privilege to drive is sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first. No temporary license is valid to any greater degree than the license or permit that it replaces; and

(e) Immediately notify the department of the arrest or detention and transmit to the department within seventy-two hours, except as delayed as the result of a blood test, a sworn report or report under a declaration authorized by RCW 9A.72.085 that states:

(i) That the officer had reasonable grounds to believe the arrested or detained person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or drugs, or both, or was under the age of twenty-one years and had been driving or was in actual physical control of a motor vehicle while having an alcohol concentration of 0.02 or more;

(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 if the person is age twenty-one or over, or was 0.02 or more if the person is under the age of twenty-one; and

(iii) Any other information that the director may require by rule.

(7) The department of licensing, upon the receipt of a sworn report ((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 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 report under a declaration authorized by RCW 9A.72.085 under subsection (6)(e) of this section, shall suspend, revoke, deny, or place in probationary status the person's license ((or)), permit, or privilege to drive or any nonresident operating privilege, as provided in section 3 of this act, such suspension, revocation, denial, or placement in probationary status to be effective beginning sixty days from the date of arrest or detention or from the date notice has been given in the event notice is given by the department following a blood test, or when sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first.

(((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. The person shall pay a fee of one hundred dollars as part of the request.))

(8) Upon timely receipt of ((such)) a request ((and such fee)) for a formal hearing, the department shall afford the person an opportunity for a hearing ((as provided in)). Except as otherwise provided in this section, the hearing is subject to and shall be scheduled and conducted in accordance with RCW 46.20.329 and 46.20.332. The hearing shall be conducted in the county of the arrest or detention, except that all or part of the hearing may, at the discretion of the department, be conducted by telephone or other electronic means. The hearing shall be held within sixty days following the arrest or detention or following the date notice has been given in the event notice is given by the department following a blood test, unless otherwise agreed to by the department and the person, in which case the action by the department shall be stayed, and any valid temporary license marked under subsection (6)(c) of this section extended, if the person is otherwise eligible for licensing. For the purposes of this section, the scope of ((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 or any drug or had been driving or was in actual physical control of a motor vehicle within this state while having alcohol in his or her system in a concentration of 0.02 or more and was under the age of twenty-one, whether the person was placed under arrest, and (a) whether the person refused to submit to the test or tests upon request of the officer after having been informed that such refusal would result in the revocation of the person's license, permit, or privilege to drive, or (b) if a test or tests were administered, whether the applicable requirements of this section were satisfied before the administration of the test or tests, whether the person submitted to the test or tests, or whether a test was administered without express consent as permitted under this section, and whether the test or tests indicated that the alcohol concentration of the person's breath or blood was 0.10 or more if the person was age twenty-one or over at the time of the arrest, or was 0.02 or more if the person was under the age of twenty-one at the time of the arrest or detention. The sworn report or report under a declaration authorized by RCW 9A.72.085 submitted by a law enforcement officer is prima facie evidence that the officer had reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or drugs, or both, or the person had been driving or was in actual physical control of a motor vehicle within this state while having alcohol in his or her system in a concentration of 0.02 or more and was under the age of twenty-one and that the officer complied with the requirements of this section.

A hearing officer shall conduct the hearing, may issue subpoenas for the attendance of witnesses and the production of documents, and shall administer oaths to witnesses. The hearing officer shall not issue a subpoena for the attendance of a witness at the request of the person unless the request is accompanied by the fee required by RCW 5.56.010 for a witness in district court. The sworn report or report under a declaration authorized by RCW 9A.72.085 of the law enforcement officer and any other evidence accompanying the report shall be admissible without further evidentiary foundation and the certifications authorized by the criminal rules for courts of limited jurisdiction shall be admissible without further evidentiary foundation. The person may be represented by counsel, may question witnesses, may present evidence, and may testify. The department shall order that the suspension, revocation, denial, or placement in probationary status 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) If the suspension, revocation, denial, or placement in probationary status is sustained after such a hearing, the person whose license, privilege, or permit is suspended, revoked, denied, or placed in probationary status has the right to file a petition in the superior court of the county of arrest or detention to review the final order of revocation by the department in the same manner ((provided in RCW 46.20.334)) as an appeal from a decision of a court of limited jurisdiction. The appellant must pay the costs associated with obtaining the record of the hearing before the hearing officer plus an additional one hundred dollars to the department. The filing of the appeal does not stay the effective date of the suspension, revocation, denial, or placement in probationary status. 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, denial, or placement in probationary status 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 the appellant is likely to prevail in the appeal and that without a stay the appellant will suffer irreparable injury. If the court stays the suspension, revocation, denial, or placement in probationary status it may impose conditions on such stay.

(10) If a person whose driver's license, permit, or privilege to drive has been or will be suspended, revoked, denied, or placed in probationary status under subsection (7) of this section, other than as a result of a breath test refusal, and who has not committed an offense within the last five years for which he or she was granted a deferred prosecution under chapter 10.05 RCW, petitions a court for a deferred prosecution on criminal charges arising out of the arrest for which action has been or will be taken under subsection (7) of this section, the court may direct the department to stay any actual or proposed suspension, revocation, denial, or placement in probationary status for at least forty-five days but not more than ninety days. If the court stays the suspension, revocation, denial, or placement in probationary status, it may impose conditions on such stay. If the person is otherwise eligible for licensing, the department shall issue a temporary license, or extend any valid temporary license marked under subsection (6) of this section, for the period of the stay. If a deferred prosecution treatment plan is not recommended in the report made under RCW 10.05.050, or if treatment is rejected by the court, or if the person declines to accept an offered treatment plan, or if the person violates any condition imposed by the court, then the court shall immediately direct the department to cancel the stay and any temporary marked license or extension of a temporary license issued under this subsection.

A suspension, revocation, or denial imposed under this section, other than as a result of a breath test refusal, shall be stayed if the person is accepted for deferred prosecution as provided in chapter 10.05 RCW for the incident upon which the suspension, revocation, or denial is based. If the deferred prosecution is terminated, the stay shall be lifted and the suspension, revocation, or denial reinstated. If the deferred prosecution is completed, the stay shall be lifted and the suspension, revocation, or denial canceled.

(((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.

Sec. 2. RCW 46.20.309 and 1994 c 275 s 10 are each amended to read as follows:

(((1))) Notwithstanding any other provision of this title, a person under the age of twenty-one may not drive, operate, or be in physical control of a motor vehicle while having alcohol in his or her system in a concentration of 0.02 or ((above)) more.

(((2) A person under the age of twenty-one who drives or is in physical control of a motor vehicle within this state is deemed to have given consent, subject to the relevant portions of RCW 46.61.506, to be detained long enough, and be transported if necessary, to take a test or tests of that person's blood or breath for the purpose of determining the alcohol concentration in his or her system.

(3) A test or tests may be administered at the direction of a law enforcement officer, who after stopping or detaining the driver, has reasonable grounds to believe that the driver was driving or in actual physical control of a motor vehicle while having alcohol in his or her system.

(4) The law enforcement officer requesting the test or tests under subsection (2) of this section shall warn the person requested to submit to the test that a refusal to submit will result in that person's driver's license or driving privilege being revoked.

(5) If the person refuses testing, or submits to a test that discloses an alcohol concentration of 0.02 or more, the law enforcement officer shall:

(a) Serve the person notice in writing on behalf of the department of licensing of its intention to suspend, revoke, or deny the person's license, permit, or privilege to drive;

(b) Serve the person notice in writing on behalf of the department of licensing of the person's right to a hearing, specifying the steps required to obtain a hearing;

(c) Confiscate the person's Washington state license or permit to drive, if any, and issue a temporary license to replace any confiscated license or permit. The temporary license shall be valid for thirty days from the date of the traffic stop or until the suspension or revocation of the person's license or permit is sustained at a hearing as provided by subsection (7) of this section, whichever occurs first. No temporary license is valid to any greater degree than the license or permit it replaces;

(d) Notify the department of licensing of the traffic stop, and transmit to the department any confiscated license or permit and a sworn report stating:

(i) That the officer had reasonable grounds to believe the person was driving or in actual physical control of a motor vehicle within this state with alcohol in his or her system;

(ii) That pursuant to this section a test of the person's alcohol concentration was administered or that the person refused to be tested;

(iii) If administered, that the test indicated the person's alcohol concentration was 0.02 or higher; and

(iv) Any other information that the department may require by rule.

(6) Upon receipt of the sworn report of a law enforcement officer under subsection (5) of this section, the department shall suspend or revoke the driver's license or driving privilege beginning thirty days from the date of the traffic stop or beginning when the suspension, revocation, or denial is sustained at a hearing as provided by subsection (7) of this section. Within fifteen days after notice of a suspension or revocation has been given, the person may, in writing, request a formal hearing. If such a request is not made within the prescribed time the right to a hearing is waived. Upon receipt of such request, 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. For the purposes of this section, 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 having alcohol in his or her system, whether the person refused to submit to the test or tests upon request of the officer after having been informed that the refusal would result in the revocation of the person's driver's license or driving privilege, and, if the test or tests of the person's breath or blood was administered, whether the results indicated an alcohol concentration of 0.02 or more. The department shall order that the suspension or revocation of the person's driver's license or driving privilege either be rescinded or sustained. Any decision by the department suspending or revoking a person's driver's license or driving privilege is stayed and does not take effect while a formal hearing is pending under 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 the pendency of the hearing and appeal. If the suspension or revocation of the person's driver's license or driving privilege is sustained after the hearing, the person may file a petition in the superior court of the county of arrest to review the final order of suspension or revocation by the department in the manner provided in RCW 46.20.334.

(7) The department shall suspend or revoke the driver's license or driving privilege of a person as required by this section as follows:

(a) In the case of a person who has refused a test or tests:

(i) For a first refusal within five years, revocation for one year;

(ii) For a second or subsequent refusal within five years, revocation or denial for two years.

(b) In the case of an incident where a person has submitted to a test or tests indicating an alcohol concentration of 0.02 or more:

(i) For a first incident within five years, suspension for ninety days;

(ii) For a second or subsequent incident within five years, revocation for one year or until the person reaches age twenty-one whichever occurs later.

(8) For purposes of this section, "alcohol concentration" means (a) grams of alcohol per two hundred ten liters of a person's breath, or (b) the percent by weight of alcohol in a person's blood.))

NEW SECTION. Sec. 3. A new section is added to chapter 46.20 RCW to read as follows:

Pursuant to RCW 46.20.308, the department shall suspend, revoke, or deny the arrested or detained person's license, permit, or privilege to drive as follows:

(1) In the case of a person who has refused a test or tests:

(a) For a first refusal within five years, where there has not been a previous incident within five years that resulted in administrative action under this section, revocation or denial for one year;

(b) For a second or subsequent refusal within five years, or for a first refusal where there has been one or more previous incidents within five years that have resulted in administrative action under this section, revocation or denial for two years or until the person reaches age twenty-one, whichever is longer. A revocation imposed under this subsection (1)(b) shall run consecutively to the period of any suspension, revocation, or denial imposed pursuant to a criminal conviction arising out of the same incident.

(2) In the case of an incident where a person has submitted to or been administered a test or tests indicating that the alcohol concentration of the person's breath or blood was 0.10 or more:

(a) For a first incident within five years, where there has not been a previous incident within five years that resulted in administrative action under this section, placement in probationary status as provided in RCW 46.20.355;

(b) For a second or subsequent incident within five years, revocation or denial for two years.

(3) In the case of an incident where a person under age twenty-one has submitted to or been administered a test or tests indicating that the alcohol concentration of the person's breath or blood was 0.02 or more:

(a) For a first incident within five years, suspension or denial for ninety days;

(b) For a second or subsequent incident within five years, revocation or denial for one year or until the person reaches age twenty-one, whichever is longer.

Sec. 4. RCW 46.20.355 and 1994 c 275 s 8 are each amended to read as follows:

(1) Upon ((notification of a conviction under RCW 46.61.502 or 46.61.504 for which the issuance of a probationary driver's license is required)) placing a license, permit, or privilege to drive in probationary status pursuant to section 3(2)(a) of this act, or upon receipt of an abstract indicating a deferred prosecution has been granted under RCW 10.05.060, the department of licensing shall order the person to surrender ((his or her)) any Washington state driver's license that may be in his or her possession. The department shall revoke the license, permit, or privilege to drive of any person who fails to surrender it as required by this section for one year, unless the license has been previously surrendered to the department, a law enforcement officer, or a court, or the person has completed an affidavit of lost, stolen, destroyed, or previously surrendered license, such revocation to take effect thirty days after notice is given of the requirement for license surrender.

(2) ((Upon receipt of the surrendered license, and following the expiration of any period of license suspension or revocation, or following receipt of a sworn statement under RCW 46.20.365 that requires issuance of a probationary license, the department shall issue the person a probationary license if otherwise qualified. The probationary license shall be renewed on the same cycle as the person's regular license would have been renewed until five years after the date of its issuance.)) The department shall place a person's driving privilege in probationary status as required by RCW 10.05.060 or 46.20.308 for a period of five years from the date the probationary status is required to go into effect.

(3) Following receipt of an abstract indicating a deferred prosecution has been granted under RCW 10.05.060, or following receipt of a sworn report under RCW 46.20.308 that requires immediate placement in probationary status under section 3(2)(a) of this act, the department shall require the person to obtain a probationary license in order to operate a motor vehicle in the state of Washington, except as otherwise exempt under RCW 46.20.025. The department shall not issue the probationary license unless the person is otherwise qualified for licensing, and the person must renew the probationary license on the same cycle as the person's regular license would have been renewed until the expiration of the five-year probationary status period imposed under subsection (2) of this section.

(4) For each original issue or ((reissue)) renewal of a probationary license under this section, the department ((may)) shall charge ((the)) a fee ((authorized under RCW 46.20.311 for the reissuance of a license following a revocation for a violation of RCW 46.61.502 or 46.61.504)) of fifty dollars in addition to any other licensing fees required. Except for when renewing a probationary license, the department shall waive the fifty-dollar fee if the person has a probationary license in his or her possession at the time a new probationary license is required.

(((4))) (5) A probationary license shall enable the department and law enforcement personnel to determine that the person is on probationary status((, including the period of that status, for a violation of RCW 46.61.502 or 46.61.504 or 46.20.365)). ((That)) The fact that a person's driving privilege is in probationary status or that the person has been issued a probationary license shall not be a part of the person's record that is available to insurance companies.

PART II - CRIMINAL SANCTIONS

NEW SECTION. Sec. 5. A new section is added to chapter 46.61 RCW, to be codified between RCW 46.61.500 and 46.61.520, to read as follows:

(1) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has no prior offense within five years shall be punished as follows:

(a) In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i) By imprisonment for not less than one day nor more than one year. Twenty-four consecutive hours of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than three hundred fifty dollars nor more than five thousand dollars. Three hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By suspension of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of ninety days. The court may suspend all or part of the ninety-day period of suspension. The court shall notify the department of licensing of the conviction and of any period of license, permit, or privilege suspension and shall notify the department of the person's completion of any such period of suspension; or

(b) In the case of a person whose alcohol concentration was at least 0.15, or for whom by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i) By imprisonment for not less than two days nor more than one year. Two consecutive days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than five hundred dollars nor more than five thousand dollars. Five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By suspension of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of one hundred twenty days. The period of license, permit, or privilege suspension may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall suspend the offender's license, permit, or privilege.

(2) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has one prior offense within five years shall be punished as follows:

(i) By imprisonment for not less than thirty days nor more than one year. Thirty days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of one year. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege; or

(i) By imprisonment for not less than forty-five days nor more than one year. Forty-five days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than seven hundred fifty dollars nor more than five thousand dollars. Seven hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of four hundred fifty days. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege.

(3) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has two or more prior offenses within five years shall be punished as follows:

(i) By imprisonment for not less than ninety days nor more than one year. Ninety days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than one thousand dollars nor more than five thousand dollars. One thousand dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of two years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege; or

(i) By imprisonment for not less than one hundred twenty days nor more than one year. One hundred twenty days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than one thousand five hundred dollars nor more than five thousand dollars. One thousand five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of three years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege.

(4) In exercising its discretion in setting penalties within the limits allowed by this section, the court shall particularly consider whether the person's driving at the time of the offense was responsible for injury or damage to another or another's property.

(5) An offender punishable under this section is subject to the alcohol assessment and treatment provisions of RCW 46.61.5056.

(6)(a) In addition to any nonsuspendable and nondeferrable jail sentence required by this section, whenever the court imposes less than one year in jail, the court shall also suspend but shall not defer a period of confinement for a period not exceeding two years. The court shall impose conditions of probation that include: (i) Not driving a motor vehicle within this state without a valid license to drive and proof of financial responsibility for the future; (ii) not driving a motor vehicle within this state while having an alcohol concentration of 0.08 or more within two hours after driving; and (iii) not refusing to submit to a test of his or her breath or blood to determine alcohol concentration upon request of a law enforcement officer who has reasonable grounds to believe the person was driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor. The court may impose conditions of probation that include 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 probation during the suspension period.

(b) For each violation of mandatory conditions of probation under (a) (i) and (ii) or (a) (i) and (iii) of this subsection, the court shall order the convicted person to be confined for thirty days, which shall not be suspended or deferred.

(c) For each incident involving a violation of a mandatory condition of probation imposed under this subsection, the license, permit, or privilege to drive of the person shall be suspended by the court for thirty days or, if such license, permit, or privilege to drive already is suspended, revoked, or denied at the time the finding of probation violation is made, the suspension, revocation, or denial then in effect shall be extended by thirty days. The court shall notify the department of any suspension, revocation, or denial or any extension of a suspension, revocation, or denial imposed under this subsection.

(7)(a) A "prior offense" means any of the following:

(i) A conviction for a violation of RCW 46.61.502 or an equivalent local ordinance;

(ii) A conviction for a violation of RCW 46.61.504 or an equivalent local ordinance;

(iii) A conviction for a violation of RCW 46.61.520 committed while under the influence of intoxicating liquor or any drug;

(iv) A conviction for a violation of RCW 46.61.522 committed while under the influence of intoxicating liquor or any drug;

(v) An out-of-state conviction for a violation that would have been a violation of (a)(i), (ii), (iii), or (iv) of this subsection if committed in this state; or

(vi) A deferred prosecution under chapter 10.05 RCW granted in a prosecution for a violation of RCW 46.61.502, 46.61.504, or an equivalent local ordinance.

(b) "Within five years" means that the arrest for a prior offense occurred within five years of the arrest for the current offense.

Sec. 6. RCW 46.61.5058 and 1994 c 139 s 1 are each amended to read as follows:

(1) Upon the arrest of a person or upon the filing of a complaint, citation, or information in a court of competent jurisdiction, based upon probable cause to believe that a person has violated RCW 46.61.502 or 46.61.504 or any similar municipal ordinance, if such person has a ((previous conviction for violation of either RCW 46.61.502 or 46.61.504 or other similar municipal ordinance, and where the offense occurs within a five-year period of the previous conviction)) prior offense within five years as defined in section 5 of this act, and where the person has been provided written notice that any transfer, sale, or encumbrance of such person's interest in the vehicle over which that person was actually driving or had physical control when the violation occurred, is unlawful pending either acquittal, dismissal, sixty days after conviction, or other termination of the charge, such person shall be prohibited from encumbering, selling, or transferring his or her interest in such vehicle, except as otherwise provided in (a), (b), and (c) of this subsection, until either acquittal, dismissal, sixty days after conviction, or other termination of the charge. The prohibition against transfer of title shall not be stayed pending the determination of an appeal from the conviction.

(a) A vehicle encumbered by a bona fide security interest may be transferred to the secured party or to a person designated by the secured party;

(b) A leased or rented vehicle may be transferred to the lessor, rental agency, or to a person designated by the lessor or rental agency; and

(c) A vehicle may be transferred to a third party or a vehicle dealer who is a bona fide purchaser or may be subject to a bona fide security interest in the vehicle unless it is established that (i) in the case of a purchase by a third party or vehicle dealer, such party or dealer had actual notice that the vehicle was subject to the prohibition prior to the purchase, or (ii) in the case of a security interest, the holder of the security interest had actual notice that the vehicle was subject to the prohibition prior to the encumbrance of title.

(2) On ((a second or subsequent)) conviction for a violation of either RCW 46.61.502 or 46.61.504 or any similar municipal ordinance where ((such offense was committed within a five-year period of the previous conviction)) the person convicted has a prior offense within five years as defined in section 5 of this act, the motor vehicle the person was driving or over which the person had actual physical control at the time of the offense, if the person has a financial interest in the vehicle, is subject to seizure and forfeiture pursuant to this section.

(3) A vehicle subject to forfeiture under this chapter may be seized by a law enforcement officer of this state upon process issued by a court of competent jurisdiction. Seizure of a vehicle may be made without process if the vehicle subject to seizure has been the subject of a prior judgment in favor of the state in a forfeiture proceeding based upon this section.

(4) Seizure under subsection (3) of this section automatically commences proceedings for forfeiture. The law enforcement agency under whose authority the seizure was made shall cause notice of the seizure and intended forfeiture of the seized vehicle to be served within fifteen days after the seizure on the owner of the vehicle seized, on the person in charge of the vehicle, and on any person having a known right or interest in the vehicle, including a community property interest. The notice of seizure may be served by any method authorized by law or court rule, including but not limited to service by certified mail with return receipt requested. Service by mail is complete upon mailing within the fifteen-day period after the seizure. Notice of seizure in the case of property subject to a security interest that has been perfected on a certificate of title shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title.

(5) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of the seized vehicle within forty-five days of the seizure, the vehicle is deemed forfeited.

(6) If a person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of the seized vehicle within forty-five days of the seizure, the law enforcement agency shall give the person or persons a reasonable opportunity to be heard as to the claim or right. The hearing shall be before the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except where the seizing agency is a state agency as defined in RCW 34.12.020, the hearing shall be before the chief law enforcement officer of the seizing agency or an administrative law judge appointed under chapter 34.12 RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction. Removal may only be accomplished according to the rules of civil procedure. The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080 or 4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession. The court to which the matter is to be removed shall be the district court when the aggregate value of the vehicle is within the jurisdictional limit set forth in RCW 3.66.020. A hearing before the seizing agency and any appeal therefrom shall be under Title 34 RCW. In a court hearing between two or more claimants to the vehicle involved, the prevailing party shall be entitled to a judgment for costs and reasonable attorneys' fees. The burden of producing evidence shall be upon the person claiming to be the legal owner or the person claiming to have the lawful right to possession of the vehicle. The seizing law enforcement agency shall promptly return the vehicle to the claimant upon a determination by the administrative law judge or court that the claimant is the present legal owner under Title 46 RCW or is lawfully entitled to possession of the vehicle.

(7) When a vehicle is forfeited under this chapter the seizing law enforcement agency may sell the vehicle, retain it for official use, or upon application by a law enforcement agency of this state release the vehicle to that agency for the exclusive use of enforcing this title; provided, however, that the agency shall first satisfy any bona fide security interest to which the vehicle is subject under subsection (1) (a) or (c) of this section.

(8) When a vehicle is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the vehicle, the disposition of the vehicle, the value of the vehicle at the time of seizure, and the amount of proceeds realized from disposition of the vehicle.

(9) Each seizing agency shall retain records of forfeited vehicles for at least seven years.

(10) Each seizing agency shall file a report including a copy of the records of forfeited vehicles with the state treasurer each calendar quarter.

(11) The quarterly report need not include a record of a forfeited vehicle that is still being held for use as evidence during the investigation or prosecution of a case or during the appeal from a conviction.

(12) By January 31st of each year, each seizing agency shall remit to the state treasurer an amount equal to ten percent of the net proceeds of vehicles forfeited during the preceding calendar year. Money remitted shall be deposited in the public safety and education account.

(13) The net proceeds of a forfeited vehicle is the value of the forfeitable interest in the vehicle after deducting the cost of satisfying a bona fide security interest to which the vehicle is subject at the time of seizure; and in the case of a sold vehicle, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents.

(14) The value of a sold forfeited vehicle is the sale price. The value of a retained forfeited vehicle is the fair market value of the vehicle at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing. A seizing agency may, but need not, use an independent qualified appraiser to determine the value of retained vehicles. If an appraiser is used, the value of the vehicle appraised is net of the cost of the appraisal.

PART III - TECHNICAL AMENDMENTS

Sec. 7. RCW 3.62.090 and 1994 c 275 s 34 are each amended to read as follows:

(1) There shall be assessed and collected in addition to any fines, forfeitures, or penalties assessed, other than for parking infractions, by all courts organized under Title 3 or 35 RCW a public safety and education assessment equal to sixty percent of such fines, forfeitures, or penalties, which shall be remitted as provided in chapters 3.46, 3.50, 3.62, and 35.20 RCW. The assessment required by this section shall not be suspended or waived by the court.

(2) There shall be assessed and collected in addition to any fines, forfeitures, or penalties assessed, other than for parking infractions and for fines levied under ((RCW 46.61.5051, 46.61.5052, and 46.61.5053)) section 5 of this act, and in addition to the public safety and education assessment required under subsection (1) of this section, by all courts organized under Title 3 or 35 RCW, an additional public safety and education assessment equal to fifty percent of the public safety and education assessment required under subsection (1) of this section, which shall be remitted to the state treasurer and deposited as provided in RCW 43.08.250. The additional assessment required by this subsection shall not be suspended or waived by the court.

Sec. 8. RCW 35.21.165 and 1994 c 275 s 36 are each amended to read as follows:

Except as limited by the maximum penalties authorized by law, no city or town may establish a penalty for an act that constitutes the crime of driving while under the influence of intoxicating liquor or any drug, as provided in RCW 46.61.502, or the crime of being in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug, as provided in RCW 46.61.504, that is less than the penalties prescribed for those crimes in ((RCW 46.61.5051, 46.61.5052, and 46.61.5053)) section 5 of this act.

Sec. 9. RCW 36.32.127 and 1994 c 275 s 37 are each amended to read as follows:

No county may establish a penalty for an act that constitutes the crime of driving while under the influence of intoxicating liquor or any drug, as provided for in RCW 46.61.502, or the crime of being in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug, as provided in RCW 46.61.504, that is less than the penalties prescribed for those crimes in ((RCW 46.61.5051, 46.61.5052, and 46.61.5053)) section 5 of this act.

Sec. 10. RCW 46.04.480 and 1994 c 275 s 38 are each amended to read as follows:

"Revoke," in all its forms, means the invalidation for a period of one calendar year and thereafter until reissue: PROVIDED, That under the provisions of RCW 46.20.285, 46.20.311, 46.20.265, ((46.61.5051, 46.61.5052, or 46.61.5053)) or section 5 of this act, and chapter 46.65 RCW the invalidation may last for a period other than one calendar year.

Sec. 11. RCW 46.20.311 and 1994 c 275 s 27 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 specifically permitted under RCW 46.20.342 or other provision of law. Except for a suspension under RCW 46.20.289 and 46.20.291(5), 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. If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reinstatement until enrollment and participation in an approved program has been established and the person is otherwise qualified. 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 is the result of administrative action under RCW 46.20.308, the reissue fee shall be fifty 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 46.20.308 or 46.61.5052, 46.61.5053, or 46.20.365)) section 3 or 5 of this act; (c) after the expiration of two years for persons convicted of vehicular homicide; or (d) 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 is the result of administrative action under RCW 46.20.365)), the reissue fee shall be fifty dollars. If the revocation is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reissuance of a license, permit, or privilege to drive until enrollment and participation in an approved program has been established and the person is otherwise qualified. 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 or 46.20.289 or 46.20.291(5), the department shall not issue to the person any new or renewal license until the person pays a reissue fee of twenty dollars. If the suspension is the result of a violation of the laws of this or any other 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 of the driver's blood alcohol content, the reissue fee shall be fifty dollars.

Sec. 12. RCW 46.20.391 and 1994 c 275 s 29 are each amended to read as follows:

(1) Any person licensed under this chapter who is convicted of an offense relating to motor vehicles for which suspension or revocation of the driver's license is mandatory, other than vehicular homicide or vehicular assault, 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 for a violation of RCW 46.61.502 or 46.61.504. ((No person may petition for, and the department shall not issue, an occupational driver's license if the person is ineligible for such a license under RCW 46.61.5052 or 46.61.5053.)) 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 date of the offense that gave rise to the present conviction, the applicant has not committed ((of)) any (([committed 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 date of the offense that gave rise to the present conviction, the applicant has not committed any of the following offenses: (i) Driving or being in actual physical control of a motor vehicle while under the influence of intoxicating liquor; (ii) vehicular homicide under RCW 46.61.520; or (iii) vehicular assault under RCW 46.61.522; and

(c) 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.

(3) The director shall cancel an occupational 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 chapter 46.20 RCW would warrant suspension or revocation of a regular driver's license. The cancellation is effective as of the date of the conviction, and continues with the same force and effect as any suspension or revocation under this title.

Sec. 13. RCW 46.61.5054 and 1994 c 275 s 7 are each amended to read as follows:

(1)(a) In addition to penalties set forth in RCW 46.61.5051 through 46.61.5053 until September 1, 1995, and section 5 of this act thereafter, a one hundred twenty-five dollar fee shall be assessed to a person who is either convicted, sentenced to a lesser charge, or given deferred prosecution, as a result of an arrest for violating RCW 46.61.502, 46.61.504, 46.61.520, or 46.61.522. This fee is for the purpose of funding the Washington state toxicology laboratory and the Washington state patrol breath test program.

(b) Upon a verified petition by the person assessed the fee, the court may suspend payment of all or part of the fee if it finds that the person does not have the ability to pay.

(c) When a minor has been adjudicated a juvenile offender for an offense which, if committed by an adult, would constitute a violation of RCW 46.61.502, 46.61.504, 46.61.520, or 46.61.522, the court shall assess the one hundred twenty-five dollar fee under (a) of this subsection. Upon a verified petition by a minor assessed the fee, the court may suspend payment of all or part of the fee if it finds that the minor does not have the ability to pay the fee.

(2) The fee assessed under subsection (1) of this section shall be collected by the clerk of the court and distributed as follows:

(a) Forty percent shall be subject to distribution under RCW 3.46.120, 3.50.100, 35.20.220, 3.62.020, 3.62.040, or 10.82.070.

(b) If the case involves a blood test by the state toxicology laboratory, the remainder of the fee shall be forwarded to the state treasurer for deposit in the death investigations account to be used solely for funding the state toxicology laboratory blood testing program.

(c) Otherwise, the remainder of the fee shall be forwarded to the state treasurer for deposit in the state patrol highway account to be used solely for funding the Washington state patrol breath test program.

(3) This section applies to any offense committed on or after July 1, 1993.

Sec. 14. RCW 46.61.5056 and 1994 c 275 s 9 are each amended to read as follows:

(1) A person subject to alcohol assessment and treatment under ((RCW 46.61.5051, 46.61.5052, or 46.61.5053)) section 5 of this act shall be required by the court to complete a course in an alcohol information school approved by the department of social and health services or to complete more intensive treatment in a program approved by the department of social and health services, as determined by the court. The court shall notify the department of licensing whenever it orders a person to complete a course or treatment program under this section.

(2) 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 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.

(3) Standards for approval for alcohol treatment programs shall be prescribed by the department of social and health services. The department of social and health services shall periodically review the costs of alcohol information schools and treatment programs.

(4) Any agency that provides treatment ordered under ((RCW 46.61.5051, 46.61.5052, or 46.61.5053)) section 5 of this act, shall immediately report to the appropriate probation department where applicable, otherwise to the court, and to the department of licensing any noncompliance by a person with the conditions of his or her ordered treatment. The court shall notify the department of licensing and the department of social and health services of any failure by an agency to so report noncompliance. Any agency with knowledge of noncompliance that fails to so report shall be fined two hundred fifty dollars by the department of social and health services. Upon three such failures by an agency within one year, the department of social and health services shall revoke the agency's approval under this section.

(5) The department of licensing and the department of social and health services may adopt such rules as are necessary to carry out this section.

Sec. 15. RCW 46.61.5151 and 1994 c 275 s 39 are each amended to read as follows:

A sentencing court may allow persons convicted of violating RCW 46.61.502 or 46.61.504 to fulfill the terms of the sentence provided in ((RCW 46.61.5051, 46.61.5052, or 46.61.5053)) section 5 of this act in nonconsecutive or intermittent time periods. However, any mandatory minimum sentence under ((RCW 46.61.5051, 46.61.5052, or 46.61.5053)) section 5 of this act shall be served consecutively unless suspended or deferred as otherwise provided by law.

Sec. 16. RCW 46.63.020 and 1994 c 275 s 33 and 1994 c 141 s 2 are each reenacted and amended to read as follows:

Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:

(1) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;

(2) RCW 46.09.130 relating to operation of nonhighway vehicles;

(3) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;

(4) RCW 46.10.130 relating to the operation of snowmobiles;

(5) Chapter 46.12 RCW relating to certificates of ownership and registration;

(6) RCW 46.16.010 relating to initial registration of motor vehicles;

(7) RCW 46.16.011 relating to permitting unauthorized persons to drive;

(8) RCW 46.16.160 relating to vehicle trip permits;

(9) RCW 46.16.381 (6) or (9) relating to unauthorized use or acquisition of a special placard or license plate for disabled persons' parking;

(10) RCW 46.20.021 relating to driving without a valid driver's license;

(11) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;

(12) RCW 46.20.342 relating to driving with a suspended or revoked license or status;

(13) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;

(14) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;

(15) RCW 46.20.750 relating to assisting another person to start a vehicle equipped with an ignition interlock device;

(16) RCW 46.25.170 relating to commercial driver's licenses;

(17) Chapter 46.29 RCW relating to financial responsibility;

(18) RCW 46.30.040 relating to providing false evidence of financial responsibility;

(19) RCW 46.37.435 relating to wrongful installation of sunscreening material;

(20) RCW 46.44.180 relating to operation of mobile home pilot vehicles;

(21) RCW 46.48.175 relating to the transportation of dangerous articles;

(22) RCW 46.52.010 relating to duty on striking an unattended car or other property;

(23) RCW 46.52.020 relating to duty in case of injury to or death of a person or damage to an attended vehicle;

(24) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;

(25) RCW 46.52.100 relating to driving under the influence of liquor or drugs;

(26) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company, an employer, and an alcohol/drug assessment or treatment agency;

(27) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;

(28) RCW 46.55.035 relating to prohibited practices by tow truck operators;

(29) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;

(30) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;

(31) RCW 46.61.022 relating to failure to stop and give identification to an officer;

(32) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;

(33) RCW 46.61.500 relating to reckless driving;

(34) RCW 46.61.502((,)) and 46.61.504((, 46.61.5051, 46.61.5052, and 46.61.5053)) relating to persons under the influence of intoxicating liquor or drugs;

(35) RCW 46.61.520 relating to vehicular homicide by motor vehicle;

(36) RCW 46.61.522 relating to vehicular assault;

(37) RCW 46.61.525 relating to negligent driving;

(38) RCW 46.61.527(4) relating to reckless endangerment of roadway workers;

(39) RCW 46.61.530 relating to racing of vehicles on highways;

(40) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;

(41) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;

(42) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;

(43) Chapter 46.65 RCW relating to habitual traffic offenders;

(44) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;

(45) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;

(46) Chapter 46.80 RCW relating to motor vehicle wreckers;

(47) Chapter 46.82 RCW relating to driver's training schools;

(48) RCW 46.87.260 relating to alteration or forgery of a cab card, letter of authority, or other temporary authority issued under chapter 46.87 RCW;

(49) RCW 46.87.290 relating to operation of an unregistered or unlicensed vehicle under chapter 46.87 RCW.

Sec. 17. RCW 46.04.015 and 1994 c 275 s 1 are each amended to read as follows:

"Alcohol concentration" means (1) grams of alcohol per two hundred ten liters of a person's breath, or (2) ((the percent by weight of alcohol in)) grams of alcohol per one hundred milliliters of a person's blood.

Sec. 18. RCW 46.61.506 and 1994 c 275 s 26 are each amended to read as follows:

(1) Upon the trial of any civil or criminal action or proceeding arising out of acts alleged to have been committed by any person while driving or in actual physical control of a vehicle while under the influence of intoxicating liquor or any drug, if the person's alcohol concentration is less than 0.10, it is evidence that may be considered with other competent evidence in determining whether the person was under the influence of intoxicating liquor or any drug.

(2) The breath analysis shall be based upon grams of alcohol per two hundred ten liters of breath. The foregoing provisions of this section shall not be construed as limiting the introduction of any other competent evidence bearing upon the question whether the person was under the influence of intoxicating liquor or any drug.

(3) Analysis of the person's blood or breath to be considered valid under the provisions of this section or RCW 46.61.502 or 46.61.504 shall have been performed according to methods approved by the state toxicologist and by an individual possessing a valid permit issued by the state toxicologist for this purpose. The state toxicologist is directed to approve satisfactory techniques or methods, to supervise the examination of individuals to ascertain their qualifications and competence to conduct such analyses, and to issue permits which shall be subject to termination or revocation at the discretion of the state toxicologist.

(4) When a blood test is administered under the provisions of RCW 46.20.308, the withdrawal of blood for the purpose of determining its alcoholic or drug content may be performed only by a physician, a registered nurse, or a qualified technician. This limitation shall not apply to the taking of breath specimens.

(5) The person tested may have a physician, or a qualified technician, chemist, registered nurse, or other qualified person of his or her own choosing administer one or more tests in addition to any administered at the direction of a law enforcement officer. The failure or inability to obtain an additional test by a person shall not preclude the admission of evidence relating to the test or tests taken at the direction of a law enforcement officer.

(6) Upon the request of the person who shall submit to a test or tests at the request of a law enforcement officer, full information concerning the test or tests shall be made available to him or her or his or her attorney.

NEW SECTION. Sec. 19. A new section is added to chapter 46.04 RCW to read as follows:

"Reasonable grounds", when used in the context of a law enforcement officer's decision to make an arrest, means probable cause.

NEW SECTION. Sec. 20. RCW 46.20.309 is recodified as a section in chapter 46.61 RCW.

NEW SECTION. Sec. 21. The following acts or parts of acts are each repealed:

(1) RCW 46.20.365 and 1994 c 275 s 12;

(2) RCW 46.61.5051 and 1994 c 275 s 4;

(3) RCW 46.61.5052 and 1994 c 275 s 5; and

(4) RCW 46.61.5053 and 1994 c 275 s 6.

NEW SECTION. Sec. 22. 1994 c 275 s 44 (uncodified) is hereby repealed.

NEW SECTION. Sec. 23. 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. 24. This act shall take effect September 1, 1995, except for sections 13 and 22 of this act which 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 immediately.

NEW SECTION. Sec. 25. A new section is added to chapter 46.61 RCW to read as follows:

Upon the filing of any citation or complaint alleging a violation of RCW 46.61.502 or 46.61.504, upon which there is probable cause to believe a violation has occurred, the prosecuting attorney or city attorney shall not subsequently reduce or amend the charge to any equivalent or lesser criminal offense. This provision shall not affect an attorney's obligations under rules of professional conduct or court rules.

NEW SECTION. Sec. 26. A new section is added to chapter 46.20 RCW to read as follows:

(1) A person is guilty of refusal to submit to a breath alcohol test when he or she:

(a) Is arrested for any offense where, at the time of the arrest, the arresting officer has reasonable grounds to believe the arrested person had been driving or was in actual physical control of a motor vehicle while under the influence of intoxicants; and

(b) Receives the warnings under RCW 46.20.308(2); and

(2) Refusal to submit to a breath alcohol test is a gross misdemeanor."

On page 1, line 1 of the title, after "drugs;" strike the remainder of the title and insert "amending RCW 46.20.308, 46.20.309, 46.20.355, 46.61.5058, 3.62.090, 35.21.165, 36.32.127, 46.04.480, 46.20.311, 46.20.391, 46.61.5054, 46.61.5056, 46.61.5151, 46.04.015, and 46.61.506; reenacting and amending RCW 46.63.020; adding new sections to chapter 46.20 RCW; adding new sections to chapter 46.61 RCW; adding a new section to chapter 46.04 RCW; recodifying RCW 46.20.309; repealing RCW 46.20.365, 46.61.5051, 46.61.5052, and 46.61.5053; repealing 1994 c 275 s 44 (uncodified); prescribing penalties; providing an effective date; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Smith, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5141 and requests of the House a conference thereon.

APPOINTMENT OF CONFERENCE COMMITTEE

The President Pro Tempore appointed as members of the Conference Committee on Substitute Senate Bill No. 5141 and the House amendments thereto: Senators Smith, Schow and Quigley.

MOTION

On motion of Senator Spanel, the Conference Committee appointments were confirmed.

MESSAGE FROM THE HOUSE

April 14, 1995

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5466 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. As used in sections 1 through 6 of this act, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Minor" means any person under the age of eighteen years.

(2) "Harmful to minors" means any matter or live performance:

(a) That the average adult person, applying contemporary community standards, would find, when considered as a whole, appeals to the prurient interest of minors; and

(b) That explicitly depicts or describes, by prevailing standards in the adult community with respect to what is suitable for minors, patently offensive representations or descriptions of:

(i) Ultimate sexual acts, normal or perverted, actual or simulated; or

(ii) Masturbation, fellatio, cunnilingus, bestiality, excretory functions, lewd exhibition of the genitals or genital area, sexually explicit conduct, sexual excitement, or sexually explicit nudity; or

(iii) Sexual acts that are violent or destructive, including but not limited to human or animal mutilation, dismemberment, rape, or torture; and

(c) That, when considered as a whole, and in the context in which it is used, lacks serious literary, artistic, political, or scientific value for minors.

(3) "Matter" means a motion picture film, a publication, a sexual device, or any combination thereof.

(4) "Motion picture film" means any:

(a) Film or plate negative;

(b) Film or plate positive;

(d) Film, glass slides, or transparencies, either in negative or positive form, designed for exhibition by projection on a screen;

(e) Video tape; or

(f) Any other medium used to electronically transmit or reproduce images on a screen.

(5) "Publication" means any book, magazine, article, pamphlet, writing, printing illustration, picture, sound recording, telephonic communication, or coin-operated machine.

(6) "Sexual device" means any artificial device primarily designed, promoted, or marketed to physically stimulate or manipulate the human genitals.

(7) "Live performance" means any play, show, skit, dance, or other exhibition performed or presented to or before an audience of one or more, in person or by electronic transmission, or by telephonic communication, with or without consideration.

(8) "Person" means any individual, partnership, firm, association, corporation, or other legal entity.

(9) "Knowledge of its character" means that the person has knowledge that the matter or performance contains, depicts, or describes activity or conduct that may be found to be patently offensive under subsection (2)(b) of this section. Such knowledge may be proved by direct or circumstantial evidence, or both.

(10) "Knowledge" means knowledge as defined in RCW 9A.08.010(1)(b).

(11) "Community" means the state-wide community.

NEW SECTION. Sec. 2. No person shall with knowledge of its character:

(1) Display matter that is harmful to minors, as defined in section 1(2) of this act, in such a way that minors, as part of the invited general public, will be exposed to view such matter; however, a person shall be deemed not to have displayed matter harmful to minors if the matter is kept behind devices commonly known as blinder racks so that the lower two-thirds of the matter is not exposed to view. In the case of on-line accessibility to information stored in an electronic form, a person shall be deemed not to have displayed matter harmful to minors if:

(a) The matter is stored in a restricted area where access is allowed only to persons who are reasonably believed to be eighteen years of age or older based on information supplied as provided for in section 3(3) of this act and who have obtained a password or other authorization necessary for access to the matter; or

(b) Where it is not reasonably possible to restrict access in the manner described in (a) of this subsection, the matter is stored in an area labelled "adults only";

(2) Sell, furnish, present, distribute, allow to view or hear, or otherwise disseminate to a minor, with or without consideration, any matter that is harmful to minors as defined in section 1(2) of this act; or

(3) Present to a minor or participate in presenting to a minor, with or without consideration, any live performance that is harmful to minors as defined in section 1(2) of this act.

NEW SECTION. Sec. 3. In any prosecution for violation of section 2 of this act, it shall be an affirmative defense that:

(1) The matter or performance involved was displayed or otherwise disseminated to a minor by the minor's parent or legal guardian, for bona fide purposes;

(2) The matter or performance involved was displayed or otherwise disseminated to a minor with the written permission of the minor's parent or legal guardian, for bona fide purposes; or

(3) The person made a reasonable bona fide attempt to ascertain the true age of the minor by requiring production of a driver's license, marriage license, birth certificate, or other governmental or educational identification card or paper, or copy thereof if supplied by mail or electronic facsimile when in-person production thereof is impractical, and not relying solely on the oral allegations or apparent age of the minor.

NEW SECTION. Sec. 4. Any person who is convicted of violating any provision of section 2 of this act is guilty of a gross misdemeanor. Each day that any violation of section 2 of this act occurs or continues shall constitute a separate offense and shall be punishable as a separate violation. Every act, thing, or transaction prohibited by section 2 of this act shall constitute a separate offense as to each item, issue, or title involved and shall be punishable as such. For the purpose of this section, multiple copies of the same identical title, monthly issue, volume, and number issue, or other such identical material shall constitute a single offense.

NEW SECTION. Sec. 5. Nothing in this chapter shall apply to the official distribution of material by a recognized historical society or museum, a library of a college or university, or an archive or library under the supervision and control of the state, county, municipality, or other political subdivision of the state.

NEW SECTION. Sec. 6. The state of Washington hereby fully occupies and preempts within the boundaries of the state the entire field of regulation and sanctions for displaying, selling, furnishing, presenting, or otherwise distributing matter or performances that are harmful to minors. Counties, cities, towns, or other municipalities may enact only those laws and ordinances relating to matter and performances harmful to minors that are consistent with this chapter. Local laws and ordinances that are inconsistent with, more restrictive than, or exceed the requirements of this chapter shall not be enacted and are preempted and repealed, regardless of the nature of the code, charter, or home rule status of such county, city, town, or municipality.

NEW SECTION. Sec. 7. The following acts or parts of acts are each repealed:

(1) RCW 9.68.015 and 1959 c 260 s 2;

(2) RCW 9.68.050 and 1992 c 5 s 1 & 1969 ex.s. c 256 s 13;

(3) RCW 9.68.060 and 1992 c 5 s 2 & 1969 ex.s. c 256 s 14;

(4) RCW 9.68.070 and 1992 c 5 s 4 & 1969 ex.s. c 256 s 15;

(5) RCW 9.68.080 and 1969 ex.s. c 256 s 16;

(6) RCW 9.68.090 and 1992 c 5 s 3 & 1969 ex.s. c 256 s 17;

(7) RCW 9.68.100 and 1969 ex.s. c 256 s 18;

(8) RCW 9.68.110 and 1969 ex.s. c 256 s 19;

(9) RCW 9.68.120 and 1969 ex.s. c 256 s 20;

(10) RCW 9.68.130 and 1975 1st ex.s. c 156 s 1;

(11) RCW 9.68A.140 and 1987 c 396 s 1;

(12) RCW 9.68A.150 and 1987 c 396 s 2; and

(13) RCW 9.68A.160 and 1987 c 396 s 3.

NEW SECTION. Sec. 8. Sections 1 through 6 of this act are each added to chapter 9.68 RCW.

NEW SECTION. Sec. 9. 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. 10. 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.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Smith, the Senate refuses to concur in the House amendment to Engrossed Substitute Senate Bill No. 5466 and asks the House to recede therefrom.

President Pritchard assumed the Chair.

MOTION

At 9:46 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 10:56 a.m. by President Pritchard.

MESSAGES FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The Speaker has signed:

HOUSE BILL NO. 1088,

SUBSTITUTE HOUSE BILL NO. 1110,

SUBSTITUTE HOUSE BILL NO. 1123,

SUBSTITUTE HOUSE BILL NO. 1195,

SUBSTITUTE HOUSE BILL NO. 1350,

SUBSTITUTE HOUSE BILL NO. 1430,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1431,

SUBSTITUTE HOUSE BILL NO. 1434,

SUBSTITUTE HOUSE BILL NO. 1517,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1518,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1527,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1557,

HOUSE BILL NO. 1583,

SUBSTITUTE HOUSE BILL NO. 1610,

SUBSTITUTE HOUSE BILL NO. 1632,

SUBSTITUTE HOUSE BILL NO. 1660,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1679,

SUBSTITUTE HOUSE BILL NO. 1680,

SUBSTITUTE HOUSE BILL NO. 1692,

HOUSE BILL NO. 1858,

HOUSE BILL NO. 1879,

SUBSTITUTE HOUSE BILL NO. 2067, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House grants the request of the Senate for a conference on ENGROSSED SENATE BILL NO. 5011. The Speaker has appointed the following members as conferees: Representatives Buck, Beeksma and Sheldon.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House grants the request of the Senate for a conference on SUBSTITUTE SENATE BILL NO. 5516. The Speaker has appointed the following members as conferees: Representatives Lisk, Elliot and Romero.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House grants the request of the Senate for a conference on ENGROSSED SUBSTITUTE SENATE BILL NO. 5607. The Speaker has appointed the following members as conferees: Representatives Hargrove, Backlund and Ogden.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House grants the request of the Senate for a conference on ENGROSSED SENATE BILL NO. 5770. The Speaker has appointed the following members as conferees: Representatives Lisk, Thompson and Romero.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House grants the request of the Senate for a conference on SUBSTITUTE SENATE BILL NO. 5854. The Speaker has appointed the following members as conferees: Representatives Backlund, Hymes and Kessler.

TIMOTHY A. MARTIN, Chief Clerk

April 20, 1995

MR. PRESIDENT:

The House grants the request of the Senate for a conference on ENGROSSED SUBSTITUTE SENATE BILL NO. 5885. The Speaker has appointed the following members as conferees: Representatives Cooke, Lambert and Tokuda.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE SENATE BILL NO. 5118,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5880.

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5632,

SUBSTITUTE SENATE BILL NO. 5795,

SENATE BILL NO. 6004.

SIGNED BY THE PRESIDENT

The President signed:

HOUSE BILL NO. 1088,

SUBSTITUTE HOUSE BILL NO. 1110,

SUBSTITUTE HOUSE BILL NO. 1123,

SUBSTITUTE HOUSE BILL NO. 1195,

SUBSTITUTE HOUSE BILL NO. 1350,

SUBSTITUTE HOUSE BILL NO. 1430,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1431,

SUBSTITUTE HOUSE BILL NO. 1434,

SUBSTITUTE HOUSE BILL NO. 1517,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1518,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1527,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1557,

HOUSE BILL NO. 1583,

SUBSTITUTE HOUSE BILL NO. 1610,

SUBSTITUTE HOUSE BILL NO. 1632,

SUBSTITUTE HOUSE BILL NO. 1660,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1679,

SUBSTITUTE HOUSE BILL NO. 1680,

SUBSTITUTE HOUSE BILL NO. 1692,

HOUSE BILL NO. 1858,

HOUSE BILL NO. 1879,

SUBSTITUTE HOUSE BILL NO. 2067.

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

MOTION

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

SENATE RESOLUTION 1995-8651

By Senator Pelz

WHEREAS, On March 16, ten-year-old Quintin Griffin, with little thought for his own safety, dashed into a Seattle street to rescue a toddler from oncoming traffic; and

WHEREAS, Quintin's quick-thinking and selfless act is solely responsible for saving the life of Ronnie White; and

WHEREAS, Quintin's heroic act occurred on his first day of training for the Lowell School Safety Patrol; and

WHEREAS, Quintin's deed earned him not only an award from the school, but also a gold medal, a fifty dollar check, and a framed certificate praising his action from the Seattle Police Department and the American Automobile Association; and

WHEREAS, The American Automobile Association also plans to nominate Quintin for the 1996 Washington School Safety Patrol Hall of Fame; and

WHEREAS, Quintin will also be nominated to receive the President's Award, one of the highest awards offered for acts of bravery and heroism; and

WHEREAS, Quintin also is active in the Northwest Boys Choir and the St. Louis Stars, a Little League baseball team; and

WHEREAS, Quintin exemplifies the compassionate, modest, generous, and courageous person we all aspire to be;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize and honor Quintin Griffin for his brave and selfless action and encourage all state residents to be aware of the unsung, daily contributions of the school safety patrol program;

BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Secretary of the Senate to Quintin Griffin.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced Quintin Griffin and his family, who were seated in the gallery.

MOTION

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

SENATE RESOLUTION 1995-8643

By Senators Moyer, McCaslin, Hochstatter, Wood, Oke, Strannigan, Quigley, Deccio, West, Finkbeiner, Kohl, Pelz, Johnson, McDonald, Winsley, Sheldon and Bauer

WHEREAS, Don Kardong grew up in Bellevue, Washington, and is a lifelong resident of the state of Washington. He attended Seattle Prep where, in 1966, he placed second in the state cross country meet and led his team to the team championship. After Seattle Prep, Don attended Stanford University from 1967 through 1971, graduating with a BA in psychology. He was a member of the Stanford Cross Country Team which placed second in the 1968 NCAA Division 1 Cross Country Championships; and

WHEREAS, Don continued his running career after Stanford. In 1972, he qualified for the United States Olympic trials in both the 10,000 meters and marathon. In 1976, he made the United States Olympic Team in the marathon and placed fourth in the Montreal Olympic Games; and

WHEREAS, What makes Don especially deserving of recognition is the significant contribution he has made to the growth in popularity of running for both competition and for personal health and fitness in the state of Washington and nation-wide. In 1977, Don founded the Lilac Bloomsday Run in Spokane, Washington. This road race, which began with 1,500 runners has grown to a world recognized event with over 50,000 participants. It has become the high point of springtime in Spokane, Washington. The Bloomsday Run is recognized around the world as one of the premier road-running events in the United States and attracts world class and Olympian runners; and

WHEREAS, As a result of Don's community involvement with Bloomsday, he was asked to be a cochair of the Centennial Trail project in the late 1980's. This trail, now essentially completed, provides a dedicated 40+ mile running, walking, and biking path which follows the Spokane River from the Idaho border west through the city of Spokane and beyond. At the Idaho border, the trail links with the Idaho Centennial Trail which continues another twenty miles to Coeur d'Alene. This trail is used by over 200,000 people a year and has become a focus for the promotion of health through fitness for the citizens of Spokane County; and

WHEREAS, Don Kardong continues to work to enrich the community of Spokane, the state of Washington and the nation with untiring devotion. He is a past president of the YMCA of the Inland Empire. He lives in Spokane with his wife, Bridgid, who teaches at Lewis and Clark High School, and two daughters, Kaitlin and Katherine;

NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington honor Don Kardong for his outstanding contributions to this state; and

BE IT FURTHER RESOLVED, That the Secretary of the Senate immediately transmit copies of this resolution to Don Kardong.

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

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5053 and asks the Senate for a conference theron: The Speaker has appointed the following members as conferees: Representatives Van Luven, Cairnes and Hatfield.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Heavey, the Senate insists on its position, refuses to grant the request for a conference on Substitute Senate Bill No. 5053 and the House amendment(s) thereto, and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5155 and asks the Senate for a conference thereon: The Speaker has appointed the following members as conferees: Representatives Goldsmith, Hymes and Rust.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Fraser, the Senate insists on its position, refuses to grant the request for a conference on Substitute Senate Bill No. 5155 and the House amendment(s) thereto, and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 5169 and asks the Senate for a conference thereon: The Speaker has appointed the following members as conferees: Representatives Brumsickle, Radcliff and Cole.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Heavey, the Senate insists on its position, refuses to grant the request for a conference on Engrossed Substitute Senate Bill No. 5169 and the House amendment(s) thereto, and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5365 and asks the Senate for a conference thereon: The Speaker has appointed the following members as conferees: Representatives Dyer, Backlund and Cody.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Heavey, the Senate grants the request of the House for a conference on Substitute Senate Bill No. 5365 and the House amendment(s) thereto.

APPOINTMENT OF CONFERENCE COMMITTEE

The President appointed as members of the Conference Committee on Substitute Senate Bill No. 5365 and the House amendment(s) thereto: Senators Quigley, Deccio and Fairley.

MOTION

On motion of Senator Heavey, the Conference Committee appointments were confirmed.

APPOINTMENT OF CONFERENCE COMMITTEE TO SUBSTITUTE SENATE BILL NO. 5516

The President appointed as members of the Conference Committee on Substitute Senate Bill No. 5516 and the House amendment(s) thereto: Senators Owen, Newhouse and Bauer.

MOTION

On motion of Senator Heavey, the Conference Committee appointments were confirmed.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5567 and asks the Senate for a conference thereon: The Speaker has appointed the following members as conferees: Representatives Mulliken, D. Schmidt and Chopp.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Heavey, the Senate insists on its position, refuses to grant the request for a conference on Substitute Senate Bill No. 5567 and the House amendment(s) thereto, and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SENATE BILL NO. 5677 and asks the Senate for a conference theron: The Speaker has appointed the following members as conferees: Representatives Horn, Hargrove and Cody.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Heavey, the Senate insists on its position, refuses to grant the request for a conference on Senate Bill No. 5677 and the House amendment(s) thereto, and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5244 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 74.12.010 and 1992 c 136 s 2 are each amended to read as follows:

For the purposes of the administration of aid to families with dependent children assistance, the term "dependent child" means any child in need under the age of eighteen years who has been deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of the parent, and who is living with a relative as specified under federal aid to families with dependent children program requirements, in a place of residence maintained by one or more of such relatives as his or their homes. The term "dependent child" does not include a child who voluntarily leaves the home of a parent, without the consent of the parent, unless:

(1) Out-of-home placement has been approved for that child under chapter 13.32A RCW and the parent is required to contribute to support of the child pursuant to RCW 13.32A.175; or

(2) The child has been determined by a court to meet the criteria under RCW 13.34.030(4) (a), (b), or (c).

The term a "dependent child" shall, notwithstanding the foregoing, also include a child who would meet such requirements except for his removal from the home of a relative specified above as a result of a judicial determination that continuation therein would be contrary to the welfare of such child, for whose placement and care the state department of social and health services or the county office is responsible, and who has been placed in a licensed or approved child care institution or foster home as a result of such determination and who: (((1))) Was receiving an aid to families with dependent children grant for the month in which court proceedings leading to such determination were initiated; or (((2))) would have received aid to families with dependent children for such month if application had been made therefor; or (((3))) in the case of a child who had been living with a specified relative within six months prior to the month in which such proceedings were initiated, would have received aid to families with dependent children for such month if in such month he had been living with such a relative and application had been made therefor, as authorized by the Social Security Act: PROVIDED, That to the extent authorized by the legislature in the biennial appropriations act and to the extent that matching funds are available from the federal government, aid to families with dependent children assistance shall be available to any child in need who has been deprived of parental support or care by reason of the unemployment of a parent or stepparent liable under this chapter for support of the child.

"Aid to families with dependent children" means money payments, services, and remedial care with respect to a dependent child or dependent children and the needy parent or relative with whom the child lives and may include another parent or stepparent of the dependent child if living with the parent and if the child is a dependent child by reason of the physical or mental incapacity or unemployment of a parent or stepparent liable under this chapter for the support of such child.

NEW SECTION. Sec. 2. A new section is added to chapter 74.12 RCW to read as follows:

(1) Whenever the department receives an application for aid to families with dependent children assistance on behalf of a child under this chapter, the department shall determine whether the child is living with a parent of the child. Whenever the child is living in the home of a person or relative other than a parent of the child, the department shall notify the parent that an application for assistance on behalf of the child has been received by the department.

(2) If the department determines that the child has voluntarily left the home of a parent, without the consent of the parent, the department shall advise the parent of the provisions of the family reconciliation act under Chapter 13.32A RCW.

(3) Upon written request of the parent, the department shall notify the parent of the address and location of the child subject to the provisions of RCW 74.04.060.

(4) If a child voluntarily leaves the home of a parent, without parental consent, the parent has no obligation or duty to pay for any aid to families with dependent children assistance provided under this chapter.

Sec. 3. RCW 74.04.060 and 1987 c 435 s 29 are each amended to read as follows:

(1) For the protection of applicants and recipients, the department and the county offices and their respective officers and employees are prohibited, except as hereinafter provided, from disclosing the contents of any records, files, papers and communications, except for purposes directly connected with the administration of the programs of this title. In any judicial proceeding, except such proceeding as is directly concerned with the administration of these programs, such records, files, papers and communications, and their contents, shall be deemed privileged communications and except for the right of any individual to inquire of the office whether a named individual is a recipient of welfare assistance and such person shall be entitled to an affirmative or negative answer. ((However,))

(2) Upon written request of a parent who has been awarded visitation rights in an action for divorce or separation or any parent with legal custody of the child, the department shall disclose to him or her the last known address and location of his or her natural or adopted children. The secretary shall adopt rules which establish procedures for disclosing the address of the children and providing, when appropriate, for prior notice to the custodian of the children. The notice shall state that a request for disclosure has been received and will be complied with by the department unless the department receives a copy of a court order which enjoins the disclosure of the information or restricts or limits the requesting party's right to contact or visit the other party or the child. Information supplied to a parent by the department shall be used only for purposes directly related to the enforcement of the visitation and custody provisions of the court order of separation or decree of divorce. No parent shall disclose such information to any other person except for the purpose of enforcing visitation provisions of the said order or decree.

(3) When an application for aid to families with dependent children assistance has been filed on the behalf of a child who has left his or her parent's home, without the parent's consent, the department shall, upon written request of the parent, disclose to the parent the last known address and location of the child. The department, when appropriate, shall provide prior notice to the adult with whom the child is living. The notice shall state that a request for disclosure has been received and will be complied with by the department unless the department receives a copy of a court order that enjoins the disclosure of the information or restricts or limits the requesting party's right to contact or visit the other party or the child. If the department believes that there is clear and cogent evidence that the parent is responsible for abuse or neglect of the child, the department may not disclose to the parent the child's last known address or location until a shelter care hearing under chapter 13.34 RCW has been held.

(4) The county offices shall maintain monthly at their offices a report showing the names and addresses of all recipients in the county receiving public assistance under this title, together with the amount paid to each during the preceding month.

(5) The provisions of this section shall not apply to duly designated representatives of approved private welfare agencies, public officials, members of legislative interim committees and advisory committees when performing duties directly connected with the administration of this title, such as regulation and investigation directly connected therewith: PROVIDED, HOWEVER, That any information so obtained by such persons or groups shall be treated with such degree of confidentiality as is required by the federal social security law.

(6) It shall be unlawful, except as provided in this section, for any person, body, association, firm, corporation or other agency to solicit, publish, disclose, receive, make use of, or to authorize, knowingly permit, participate in or acquiesce in the use of any lists or names for commercial or political purposes of any nature. The violation of this section shall be a gross misdemeanor.

NEW SECTION. Sec. 4. A new section is added to chapter 74.04 RCW to read as follows:

The department shall pay to a parent his or her reasonable attorneys' fees attributable to reversing or correcting any proposed, preliminary, or final decision by the department or by an administrative law judge that if implemented would:

(1) Require the parent to reimburse the state for the department's payment provided under the "aid to families with dependent children" program where: (a) The department's payment is made for the parent's child who has voluntarily left the home of the parent to reside in the home of another person; (b) the department's payment is made on the child's behalf to such other person; and (c) the decision is reversed or corrected because the decision maker, contrary to law, had incorrectly classified the child as a "dependent child" under RCW 74.12.010;

(2) Deny a parent information disclosing the last known address and location of his or her child and where such disclosure is required under RCW 74.04.060; or

(3) Deny a parent's request for payment of reasonable attorneys' fees where the parent is entitled to the same under subsection (1) or (2) of this section. This subsection (3) only applies if the payment amount last requested in writing by the parent and denied by the department is more than ninety percent of the amount that is awarded in any legal action brought by the parent to collect payment.

NEW SECTION. Sec. 5. The provisions of section 4 of this act also apply to provide a parent with a right to payment of reasonable attorneys' fees attributable to reversing or correcting a decision made during the period commencing January 1, 1990, and ending on the effective date of this act. However, this retroactive right to payment shall be based on the law as it existed at the time of the department's decision.

NEW SECTION. Sec. 6. By October 1, 1995, the department shall request the governor to seek congressional action on any federal legislation that may be necessary to implement any sections of this act. By October 1, 1995, the department shall request the governor to seek federal agency action on any federal regulation that may require a federal waiver. By January 1 of each year, the department shall report to the legislature on the status of its efforts to obtain any federal statutory or regulatory waivers provided in this section. If all federal statutory or regulatory waivers necessary to fully implement this act have not been obtained, the department shall report the extent to which this act can be implemented without receipt of such waivers. The reporting requirement under this section shall terminate upon a report from the department that all waivers necessary to implement this act have been obtained.

NEW SECTION. Sec. 7. 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."

On page 1, line 2 of the title, after "children;" strike the remainder of the title and insert "amending RCW 74.12.010 and 74.04.060; adding a new section to chapter 74.12 RCW; adding a new section to chapter 74.04 RCW; and creating new sections.", and the same are herewith transmitted.

TIMOTHY A. MARTIN

MOTION

On motion of Senator Heavey, the Senate refuses to concur in the House amendments to Engrossed Substitute Senate Bill No. 5244 and requests of the House a conference thereon.

APPOINTMENT OF CONFERENCE COMMITTEE

The President appointed as members of the Conference Committee on Engrossed Substitute Senate Bill No. 5244 and the House amendments thereto: Senators Owen, Palmer and Fairley.

MOTION

On motion of Senator Heavey, the Conference Committee appointments were confirmed.

MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

The House has passed SENATE BILL NO. 5990 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 41.50 RCW to read as follows:

(1) Except as limited by subsection (3) of this section, the governing body of an employer under chapter 41.32 or 41.40 RCW shall comply with the provisions of subsection (2) of this section prior to executing a contract or collective bargaining agreement with members under chapter 41.32 or 41.40 RCW which provides for:

(a) A cash out of unused annual leave in excess of two hundred forty hours of such leave. "Cash out" for purposes of this subsection means any payment in lieu of an accrual of annual leave or any payment added to regular salary, concurrent with a reduction of annual leave;

(b) A cash out of any other form of leave;

(d) The portion of any payment, including overtime payments, that exceeds twice the regular rate of pay; or

(e) Any other termination or severance payment.

(2) Any governing body entering into a contract, other than a collective bargaining agreement, that includes a compensation provision listed in subsection (1) of this section shall do so only after public notice in compliance with the open public meetings act, chapter 42.30 RCW. This notification requirement may be accomplished as part of the approval process for adopting a contract in whole, and does not require separate or additional open public meetings. At two consecutive public meetings, full disclosure shall be made of the nature of the proposed compensation provision, and the employer's estimate of the excess compensation billings under RCW 41.50.150 that the employing entity would have to pay as a result of the proposed compensation provision. Only after the second of these two public meetings may the governing body adopt the proposed compensation provisions. The employer shall notify the department of its compliance with this section at the time the department bills the employer under RCW 41.40.150 for the pension impact of compensation provisions listed in subsection (1) of this section that are adopted after the effective date of this act.

(3) The requirements of subsection (2) of this section shall not apply to the adoption of a compensation provision listed in subsection (1) of this section if the compensation would not be includable in calculating benefits under chapter 41.32 or 41.40 RCW for the employees covered by the compensation provision."

On page 1, line 2 of the title, after "compensation;" strike the remainder of the title and insert "and adding a new section to chapter 41.50 RCW.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Snyder, the Senate refuses to concur in the House amendments to Senate Bill No. 5990 and asks the House to recede therefrom.

MOTION

At 11:29 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 11:31 a.m. by President Pritchard.

MOTION

At 11:31 a.m., on motion of Senator Gaspard, the Senate recessed until 2:00 p.m.

The Senate was called to order at 2:13 p.m. by President Pritchard.

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

SECOND READING

GUBERNATORIAL APPOINTMENT

MOTION

On motion of Senator West, Gubernatorial Appointment No. 9124, Jean Beschel, as a member of the Board of Trustees for Eastern Washington University, was confirmed.

MOTION

On motion of Senator Wood, Senator McDonald was excused.

APPOINTMENT OF JEAN BESCHEL

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

Voting yea: Senators Anderson, A., Bauer, Cantu, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 40.

Absent: Senators Deccio, Fairley, Hale, Haugen, Roach and Winsley - 6.

Excused: Senators Anderson, C., Hargrove and McDonald - 3.

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

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House does not concur in the Senate amendment(s) to ENGROSSED HOUSE BILL NO. 1461 and asks the Senate to recede therefrom, and the same are herewith transmitted.

TIMOTHY A. MARTIN

MOTION

On motion of Senator Spanel, the Senate insists on its position regarding the Senate amendment(s) to Engrossed House Bill No. 1461 and asks the House to concur therein.

MOTION

On motion of Senator Oke, Senator Deccio was excused.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The Speaker ruled the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2058 beyond the scope and object of the bill. The House does not concur in said amendment(s) and asks the Senate to recede therefrom, and the same are herewith transmitted.

TIMOTHY A. MARTIN

MOTION

On motion of Senator Spanel, the Senate receded from its amendment(s) to Substitute House Bill No. 2058.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2058, without the Senate amendment(s).

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 2058, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Anderson, A., Bauer, Cantu, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

Excused: Senators Anderson, C. and Deccio - 2.

SUBSTITUTE HOUSE BILL NO. 2058, without the Senate amendment(s), having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5092 and again asks the Senate to concur therein, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Haugen, the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 5092.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5092, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5092, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

Voting yea: Senators Anderson, A., Bauer, Cantu, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

Absent: Senator Owen - 1.

Excused: Senators Anderson, C. and Deccio - 2.

SUBSTITUTE SENATE BILL NO. 5092, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5119 and once again asks the Senate to concur therein, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Spanel, the Senate insists on its position regarding the House amendment(s) to Substitute Senate Bill No. 5119 and asks the House to recede therefrom.

MOTION

On motion of Senator Loveland, Senator Owen was excused.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SENATE BILL NO. 5544 and once again asks the Senate to concur therein, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Spanel, the Senate insists on its position regarding the House amendment(s) to Senate Bill No. 5544 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to SENATE BILL NO. 5655 and once again asks the Senate to concur therein, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Spanel, the Senate insists on its position regarding the House amendment(s) to Senate Bill No. 5655 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5597 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 42.17.260 and 1992 c 139 s 3 are each amended to read as follows:

(1) Each agency, in accordance with published rules, shall make available for public inspection and copying all public records, unless the record falls within the specific exemptions of subsection (6) of this section, RCW 42.17.310, 42.17.315, or other statute which exempts or prohibits disclosure of specific information or records. To the extent required to prevent an unreasonable invasion of personal privacy interests protected by RCW 42.17.310 and 42.17.315, an agency shall delete identifying details in a manner consistent with RCW 42.17.310 and 42.17.315 when it makes available or publishes any public record; however, in each case, the justification for the deletion shall be explained fully in writing.

(2) For informational purposes, each agency shall publish and maintain a current list containing every law, other than those listed in this chapter, that the agency believes exempts or prohibits disclosure of specific information or records of the agency. An agency's failure to list an exemption shall not affect the efficacy of any exemption.

(3) Each local agency shall maintain and make available for public inspection and copying a current index providing identifying information as to the following records issued, adopted, or promulgated after January 1, 1973:

(a) Final opinions, including concurring and dissenting opinions, as well as orders, made in the adjudication of cases;

(b) Those statements of policy and interpretations of policy, statute, and the Constitution which have been adopted by the agency;

(d) Planning policies and goals, and interim and final planning decisions;

(e) Factual staff reports and studies, factual consultant's reports and studies, scientific reports and studies, and any other factual information derived from tests, studies, reports, or surveys, whether conducted by public employees or others; and

(f) Correspondence, and materials referred to therein, by and with the agency relating to any regulatory, supervisory, or enforcement responsibilities of the agency, whereby the agency determines, or opines upon, or is asked to determine or opine upon, the rights of the state, the public, a subdivision of state government, or of any private party.

(4) A local agency need not maintain such an index, if to do so would be unduly burdensome, but it shall in that event:

(a) Issue and publish a formal order specifying the reasons why and the extent to which compliance would unduly burden or interfere with agency operations; and

(b) Make available for public inspection and copying all indexes maintained for agency use.

(5) Each state agency shall, by rule, establish and implement a system of indexing for the identification and location of the following records:

(a) All records issued before July 1, 1990, for which the agency has maintained an index;

(b) Final orders entered after June 30, 1990, that are issued in adjudicative proceedings as defined in RCW 34.05.010(1) and that contain an analysis or decision of substantial importance to the agency in carrying out its duties;

(c) Declaratory orders entered after June 30, 1990, that are issued pursuant to RCW 34.05.240 and that contain an analysis or decision of substantial importance to the agency in carrying out its duties;

(d) Interpretive statements as defined in RCW 34.05.010(8) that were entered after June 30, 1990; and

(e) Policy statements as defined in RCW 34.05.010(14) that were entered after June 30, 1990.

Rules establishing systems of indexing shall include, but not be limited to, requirements for the form and content of the index, its location and availability to the public, and the schedule for revising or updating the index. State agencies that have maintained indexes for records issued before July 1, 1990, shall continue to make such indexes available for public inspection and copying. Information in such indexes may be incorporated into indexes prepared pursuant to this subsection. State agencies may satisfy the requirements of this subsection by making available to the public indexes prepared by other parties but actually used by the agency in its operations. State agencies shall make indexes available for public inspection and copying. State agencies may charge a fee to cover the actual costs of providing individual mailed copies of indexes.

(6) A public record may be relied on, used, or cited as precedent by an agency against a party other than an agency and it may be invoked by the agency for any other purpose only if—

(a) It has been indexed in an index available to the public; or

(b) Parties affected have timely notice (actual or constructive) of the terms thereof.

(7) Each agency shall establish, maintain, and make available for public inspection and copying a statement of the actual per page cost or other costs, if any, that it charges for providing photocopies of public records and a statement of the factors and manner used to determine the actual per page cost or other costs, if any.

(a) In determining the actual per page cost for providing photocopies of public records, an agency may include all costs directly incident to copying such public records including the actual cost of the paper and the per page cost for use of agency copying equipment. In determining other actual costs for providing photocopies of public records, an agency may include all costs directly incident to shipping such public records, including the cost of postage or delivery charges and the cost of any container or envelope used.

(b) In determining the actual per page cost or other costs for providing copies of public records, an agency may not include staff salaries, benefits, or other general administrative or overhead charges, unless those costs are directly related to the actual cost of copying the public records. Staff time to copy and mail the requested public records may be included in an agency's costs.

(8) An agency need not calculate the actual per page cost or other costs it charges for providing photocopies of public records if to do so would be unduly burdensome, but in that event: The agency may not charge in excess of fifteen cents per page for photocopies of public records or for the use of agency equipment to photocopy public records and the actual postage or delivery charge and the cost of any container or envelope used to mail the public records to the requestor.

(9) This chapter shall not be construed as giving authority to any agency to give, sell or provide access to lists of individuals requested for commercial purposes, and agencies shall not do so unless specifically authorized or directed by law: PROVIDED, HOWEVER, That lists of applicants for professional licenses and of professional licensees shall be made available to those professional associations or educational organizations recognized by their professional licensing or examination board, upon payment of a reasonable charge therefor: PROVIDED FURTHER, That such recognition may be refused only for a good cause pursuant to a hearing under the provisions of chapter 34.05 RCW, the Administrative Procedure Act.

Sec. 2. RCW 42.17.300 and 1973 c 1 s 30 are each amended to read as follows:

No fee shall be charged for the inspection of public records. No fee shall be charged for locating public documents and making them available for copying. Agencies may impose a reasonable charge for providing copies of public records and for the use by any person of agency equipment to copy public records, which charges shall not exceed the amount necessary to reimburse the agency for its actual costs directly incident to such copying. Agency charges for photocopies shall be imposed in accordance with the actual per page cost or other costs established and published by the agency. In no event may an agency charge a per page cost greater than the actual per page cost as established and published by the agency. To the extent the agency has not determined the actual per page cost for photocopies of public records, the agency may not charge in excess of fifteen cents per page.

NEW SECTION. Sec. 3. A new section is added to chapter 42.17 RCW under the subchapter heading "public records" to read as follows:

The provisions of RCW 42.17.260 (7) and (8) and 42.17.300 that establish or allow agencies to establish the costs charged for photocopies of public records do not supersede other statutory provisions, other than in this chapter, authorizing or governing fees for copying public records."

On page 1, line 1 of the title, after "records;" strike the remainder of the title and insert "amending RCW 42.17.260 and 42.17.300; and adding a new section to chapter 42.17 RCW.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

Senator Smith moved that the Senate do concur in the House amendments to Engrossed Substitute Senate Bill No. 5597.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Smith that the Senate do concur in the House amendments to Engrossed Substitute Senate Bill No. 5597.

The motion by Senator Smith carried and the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5597.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5597, as amended by the House.

Debate ensued.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5597, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 34; Nays, 13; Absent, 0; Excused, 2.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hargrove, Heavey, Kohl, McDonald, Morton, Moyer, Newhouse, Pelz, Prentice, Prince, Quigley, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, West, Wojahn and Wood - 34.

Voting nay: Senators Hale, Haugen, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, Oke, Palmer, Rasmussen, Swecker and Winsley - 13.

Excused: Senators Anderson, C. and Owen - 2.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5597, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

The House insists on its position regarding the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 5616 and once again asks the Senate to concur therein, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Drew, the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 5616.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5616, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5616, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

Absent: Senator Smith - 1.

Excused: Senators Anderson, C. and Owen - 2.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5616, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

At 2:51 p.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 3:31 p.m. by President Pritchard.

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

MOTION

On motion of Senator Owen, the following resolution was adopted.

SENATE RESOLUTION 1995-8653

By Senators Owen, Oke, Sutherland, Snyder, McDonald, Hargrove, Swecker , Drew, Gaspard and Spanel

WHEREAS, The people of the state of Washington lost a dear friend with the untimely death of Jerry Pavletich; and

WHEREAS, Jerry worked tirelessly to improve salmon and steelhead resources, and to advance the Trout Unlimited organization for which he was a lifetime member and the organization's West Coast representative; and

WHEREAS, Jerry was totally dedicated to the enhancement of recreational fishing and was considered a leader in the field by all of those who knew him; and

WHEREAS, The Northwest Renewable Resource Center benefitted from Jerry's position on the board of directors and his tireless efforts to solve the natural resource conflicts of the region in a cooperative manner; and

WHEREAS, Jerry was recently named by President Clinton to represent his state and his country on the North Pacific Anadromous Fish Commission, one of only three United States members; and

WHEREAS, Jerry served many years as a recreational fishing representative on the Pacific Fisheries Management Council Salmon Advisory Panel; and

WHEREAS, The Honorable Booth Gardner and the Honorable Mike Lowry have both depended on Jerry as a trusted advisor; and

WHEREAS, Jerry was respected by Native Americans of the Pacific Northwest as a good friend, a man of his word, and a dedicated advocate for the anadromous fishery resource; and

WHEREAS, Perhaps Jerry's most satisfying accomplishment was the hundreds of children who he first introduced to the joys of fishing, and instilled in them a reverence for the salmon, steelhead, and trout resource; and

WHEREAS, For everyone who knew Jerry, his passing left an emptiness and a sorrow, that reflected the quality of his life, his accomplishments, and his dreams for the future; and

WHEREAS, The salmon and steelhead trout that run each year into the rivers of the state have never had a better friend than Jerry Pavletich;

NOW, THEREFORE, BE IT RESOLVED, That the Senate recognize and honor Jerry Pavletich for his life and his accomplishments; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to Ione Pavletich, and the Pavletich family, and to the organization of Trout Unlimited.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced the family of Jerry Pavletich, who were seated in the gallery.

MOTION

On motion of Senator Fraser, the following resolution was adopted.

SENATE RESOLUTION 1995-8656

By Senators Fraser, Drew, Fairley, Prentice, Winsley, Wood, Oke, Spanel, Snyder, Gaspard, Sheldon, Wojahn, Heavey, Smith, Moyer, Prince, Hale and Kohl

WHEREAS, Saturday, April 22, 1995, is the twenty-fifth anniversary of Earth Day, a day of recognition founded by residents of the state of Washington, and now celebrated throughout the nation and in many parts of the world; and

WHEREAS, Washington State is blessed with quality, liveable cities and communities that are surrounded by the beauty and richness of abundant and diverse natural resources, spectacular mountain ranges, marine waters and shorelines of the Pacific Ocean and Puget Sound, rich and diverse forests, the mighty Columbia and many other significant rivers, wide prairies and rich agricultural lands, innumerable and delightful lakes and streams, abundant ground water, safe drinking water, some of the cleanest and healthiest air in the world, native fish and wildlife, migratory birds and whales, and a vast array of plant life; and

WHEREAS, Washington State is equally blessed with thoughtful, caring citizens who appreciate and depend on these natural resources for their beauty, their intrinsic values, their economic values, their community values, their recreational values, and their inspirational values; and

WHEREAS, Washington State has been a national leader in citizen involvement and business development in environmental quality, cooperative natural resource management, waste reduction and recycling, toxic and nuclear cleanup, and energy conservation; and

WHEREAS, In commemoration of Earth Day, tens of thousands of Washington residents will participate in events that will educate citizens concerning our state's natural resources and that enhance those resources;

NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, that appreciation is expressed to those who are volunteering their time and talents to organize or participate in Earth Day activities; and

BE IT FURTHER RESOLVED, That all citizens are encouraged to use the occasion of Earth Day to renew their commitments to responsible stewardship of Washington State's unique, wonderful, and rich natural resources and to participate in the many planned activities in communities throughout the state.

INTRODUCTION OF SPECIAL GUEST

The President welcomed Senator Don Hargrove and his family visiting from the state of Montana, who were seated in the gallery.

There being no objection, the President reverted the Senate to the third order of business.

MESSAGE FROM THE GOVERNOR

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

I have the honor to advise you that on April 20, 1995, Governor Lowry approved the following Senate Bills entitled:

Senate Bill No. 5075

Relating to emergency school construction.

Engrossed Substitute Senate Bill No. 5101

Relating to game fish catch record cards.

Senate Bill No. 5200

Relating to use tax on aircraft training equipment transferred to Washington State as a result of base closure.

Second Substitute Senate Bill No. 5235

Relating to superior court judges.

Senate Bill No. 5372

Relating to appropriations for projects recommended by the public works board.

Substitute Senate Bill No. 5647

Relating to retention of sick leave by transferred employees of community and technical colleges.

Senate Bill No. 5771

Relating to third party employers.

Senate Bill No. 5806

Relating to school district budget development dates.

Engrossed Substitute Senate Bill No. 5868

Relating to mobile home relocation assistance.

Senate Bill No. 5882

Relating to the authority of the state or a political subdivision to dispose of surplus property.

Engrossed Senate Bill No. 5888

Relating to consideration for charges for sewerage and storm water control systems.

Senate Bill No. 5894

Relating to wetlands owned by the department of transportation.

Senate Bill No. 6011

Relating to the purchase of liability insurance by school districts.

Substitute Senate Bill No. 6028

Relating to harassment. Sincerely,

KENT CAPUTO, Legal Counsel to the Governor

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

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

Under suspension of the rules, ENGROSSED SUBSTITUTE SENATE BILL NO. 5121, was returned to second reading for the purpose of amendment. The following amendments were adopted and the bill passed the House as amended:

Strike everything after the enacting clause and insert the following:

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

(1) The state's highly productive and efficient agricultural sector is composed predominately of family-owned and managed farms and an industrious and efficient work force;

(2) A reasonable level of safety regulations is needed to protect workers;

(3) The smaller but highly efficient farming operations would benefit from safety rules that are easily referenced and agriculture-specific to the extent possible; and

(4) There should be lead time between the adoption of agriculture safety rules and their effective date in order to allow the department of labor and industries to provide training, education, and enhanced consultation services to family-owned and managed farms.

NEW SECTION. Sec. 2. A new section is added to chapter 49.17 RCW to read as follows:

(1)(a) Except as provided in (b) of this subsection, no rules adopted under this chapter amending or establishing agricultural safety standards shall take effect during the period beginning January 1, 1995, and ending January 15, 1996. This subsection applies, but is not limited to applying, to a rule adopted before January 1, 1995, but with an effective date which is during the period beginning January 1, 1995, and ending January 15, 1996, and to provisions of rules adopted prior to January 1, 1995, which provisions are to become effective during the period beginning January 1, 1995, and ending January 15, 1996.

(b) Subsection (1)(a) of this section does not apply to: Provisions of rules that were in effect before January 1, 1995; emergency rules adopted under RCW 34.05.350; or revisions to chapter 296-306 WAC regarding rollover protective structures that were adopted in 1994 and effective March 1, 1995, and that are additionally revised to refer to the variance process available under this chapter.

(2) The rules for agricultural safety adopted under this chapter must:

(a) Establish, for agricultural employers, an agriculture safety standard that includes agriculture-specific rules and specific references to the general industry safety standard adopted under chapter 49.17 RCW; and

(b) Exempt agricultural employers from the general industry safety standard adopted under chapter 49.17 RCW for all rules not specifically referenced in the agriculture safety standard.

(3) The department shall publish in one volume all of the occupational safety rules that apply to agricultural employers and shall make this volume available to all agricultural employers before January 15, 1996. This volume must be available in both English and Spanish.

(4) The department shall provide training, education, and enhanced consultation services concerning its agricultural safety rules to agricultural employers before the rules' effective dates. The training, education, and consultation must continue throughout the winter of 1995-1996. Training and education programs must be provided throughout the state and must be coordinated with agricultural associations in order to meet their members' needs.

(5) The department shall provide, for informational purposes, a list of commercially available rollover protective structures for tractors used in agricultural operations manufactured before October 25, 1976. The list must include the name and address of the manufacturer and the approximate price of the structure. Included with the list shall be a statement indicating that an employer may apply for a variance from the rules requiring rollover protective structures under this chapter and that variances may be granted in appropriate circumstances on a case-by-case basis. The statement shall also provide examples of circumstances under which a variance may be granted. The list and statement shall be generally available to the agricultural community before the department may take any action to enforce rules requiring rollover protective structures for tractors used in agricultural operations manufactured before October 25, 1976.

NEW SECTION. Sec. 3. A new section is added to chapter 49.17 RCW to read as follows:

Other than rules published under section 2(3) of this act, the director may adopt, in accordance with chapter 34.05 RCW, rules concerning agriculture safety, other than emergency rules, only:

(1) As specifically required by federal law, and only to the extent specifically required; or

(2) As specifically authorized by statute enacted after the effective date of this section.

NEW SECTION. Sec. 4. Section 2(1) of this act is remedial in nature and applies to rules and provisions of rules regarding agricultural safety that would take effect after December 31, 1994."

On page 1, line 1 of the title, after "standards;" strike the remainder of the title and insert "adding new sections to chapter 49.17 RCW; and creating new sections.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Rasmussen, the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 5121.

MOTION

On motion of Senator Wood, Senator Roach 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. 5121, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5121, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 4; Excused, 2.

Voting yea: Senators Anderson, A., Cantu, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 43.

Absent: Senators Bauer, Deccio, Hargrove and Haugen - 4.

Excused: Senators Anderson, C. and Roach - 2.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5121, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

Under suspension of the rules, SECOND SUBSTITUTE SENATE BILL NO. 5157, was returned to second reading for the purpose of amendment. The following amendments were adopted and the bill passed the House as amended:

On page 1, after line 14, insert the following:

"The legislature further declares that the establishment of other incentives for commercial fishing and fish processing in Washington will complement the program of selective harvest in mixed stock fisheries anticipated by this legislation."

On page 2, after line 28, insert the following:

"Sec. 4. RCW 82.27.010 and 1985 c 413 s 1 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Enhanced food fish" includes all species of food fish, except all species of tuna, mackerel, and jack; shellfish((,)); and anadromous game fish, including byproducts and parts thereof, originating within the territorial and adjacent waters of Washington and salmon originating from within the territorial and adjacent waters of Oregon, Washington, and British Columbia, and all troll-caught Chinook salmon originating from within the territorial and adjacent waters of southeast Alaska. As used in this subsection, "adjacent" waters of Oregon, Washington, and Alaska are those comprising the United States fish conservation zone; "adjacent" waters of British Columbia are those comprising the Canadian two hundred mile exclusive economic zone; and "southeast Alaska" means that portion of Alaska south and east of Cape Suckling to the Canadian border. For purposes of this chapter, point of origination is established by a document which identifies the product and state or province in which it originates, including, but not limited to fish tickets, bills of lading, invoices, or other documentation required to be kept by governmental agencies.

(2) "Commercial" means related to or connected with buying, selling, bartering, or processing.

(3) "Possession" means the control of enhanced food fish by the owner and includes both actual and constructive possession. Constructive possession occurs when the person has legal ownership but not actual possession of the enhanced food fish.

(4) "Anadromous game fish" means steelhead trout and anadromous cutthroat trout and Dolly Varden char and includes byproducts and also parts of anadromous game fish, whether fresh, frozen, canned, or otherwise.

(5) "Landed" means the act of physically placing enhanced food fish (a) on a tender in the territorial waters of Washington; or (b) on any land within or without the state of Washington including wharves, piers, or any such extensions therefrom."

Renumber the remaining sections consecutively and correct internal references accordingly.

On page 1, line 2 of the title, after "salmon;" insert "amending RCW 82.27.010;", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

Senator Drew moved that the Senate concur in the House amendments to Second Substitute Senate Bill No. 5157.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Drew that the Senate do concur in the House amendments to Second Substitute Senate Bill No. 5157.

The motion by Senator Drew carried and the Senate concurred in the House amendments to Second Substitute Senate Bill No. 5157.

MOTION

On motion of Senator Loveland, Senator Hargrove was excused.

The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5157, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5157, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

Excused: Senators Anderson, C., Hargrove and Roach - 3.

SECOND SUBSTITUTE SENATE BILL NO. 5157, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

Under suspension of the rules, SUBSTITUTE SENATE BILL NO. 5162, was returned to second reading for the purpose of amendment. The following amendments were adopted and the bill passed the House as amended:

Strike everything after the enacting clause, set aside all previous amendments to the bill, and insert the following:

"Sec. 1. RCW 28B.15.620 and 1994 c 208 s 1 are each amended to read as follows:

(1) The legislature finds that military and naval veterans who have served their country in wars on foreign soil have risked their own lives to defend both the lives of all Americans and the freedoms that define and distinguish our nation. The legislature also finds that veterans of the Vietnam conflict suffered during and after the war as the country anguished over its involvement in the conflict. It is the intent of the legislature to honor Vietnam veterans for the public service they have provided to their country. It is the further intent of the legislature that, for eligible Vietnam veterans, colleges and universities waive tuition and fee increases that have occurred since October 1, 1977.

(2) Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may exempt veterans of the Vietnam conflict who have served in the southeast Asia theater of operations from the payment of all or a portion of any increase in tuition and fees that occur after October 1, 1977, if the veteran qualifies as a resident student under RCW 28B.15.012((, was enrolled in state institutions of higher education on or before May 7, 1990, and meets the requirements of subsection (2) of this section)).

(((2) Beginning with the fall academic term of 1994, veterans receiving the exemption under subsection (1) of this section must meet these additional requirements:

(a) Remain continuously enrolled for seven or more quarter credits per academic term or their equivalent, except summer term and not including community service courses;

(b) Have an adjusted gross family income as most recently reported to the internal revenue service that does not exceed Washington state's median family income as established by the federal bureau of the census; and

(c) Have exhausted all entitlement to federal vocational or educational benefits conferred by virtue of their military service.))

(3) For the purposes of this section, "veterans of the Vietnam conflict" shall be those persons who have been on active federal service as a member of the armed military or ((navel)) naval forces of the United States between a period commencing August 5, 1964, and ending on May 7, 1975.

(4) This section shall expire June 30, ((1997)) 1999."

On page 1, line 1 of the title, after "veterans;" strike the remainder of the title and insert "and amending RCW 28B.15.620.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

Senator Heavey moved that the Senate concur in the House amendments to Substitute Senate Bill No. 5162.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Heavey that the Senate do concur in the House amendments to Substitute Senate Bill No. 5162.

The motion by Senator Heavey carried and the Senate concurred in the House amendments to Substitute Senate Bill No. 5162.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5162, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5162, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

Excused: Senators Anderson, C. and Hargrove - 2.

SUBSTITUTE SENATE BILL NO. 5162, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

Under suspension of the rules, SUBSTITUTE SENATE BILL NO. 5315, was returned to second reading for the purpose of amendment. The following amendments were adopted and the bill passed the House as amended:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 15.36.012 and 1994 c 143 s 102 are each amended to read as follows:

For the purpose of this chapter:

"Adulterated milk" means milk that is deemed adulterated under appendix L of the PMO.

"Aseptic processing" means the process by which milk or milk products have been subjected to sufficient heat processing and packaged in a hermetically sealed container so as to meet the standards of the PMO.

"Colostrum milk" means milk produced within ten days before or until practically colostrum free after parturition.

"DMO" means supplement I, the recommended sanitation ordinance for grade A condensed and dry milk products and condensed and dry whey, to the PMO published by the United States public health service, food and drug administration.

"Dairy farm" means a place or premises where one or more cows, goats, or other mammals are kept, a part or all of the milk or milk products from which is sold or offered for sale to a milk processing plant, transfer station, or receiving station.

"Dairy technician" means any person who takes samples of milk or cream or fluid derivatives thereof, on which sample tests are to be made as a basis of payment, or who grades, weighs, or measures milk or cream or the fluid derivatives thereof, the grade, weight, or measure to be used as a basis of payment, or who operates equipment wherein milk or products thereof are pasteurized.

"Department" means the state department of agriculture.

"Director" means the director of agriculture of the state of Washington or the director's duly authorized representative.

"Distributor" means a person other than a producer who offers for sale or sells to another, milk or milk products.

"Grade A milk processing plant" means any milk processing plant that meets all of the standards of the PMO to process grade A pasteurized milk or milk products.

"Grade A pasteurized milk" means grade A raw milk that has been pasteurized.

"Grade A raw milk" means raw milk produced upon dairy farms conforming with all of the items of sanitation contained in the PMO, in which the bacterial plate count does not exceed twenty thousand per milliliter and the coliform count does not exceed ten per milliliter as determined in accordance with RCW ((15.36.110)) 15.36.201.

"Grade A raw milk for pasteurization" means raw milk produced upon dairy farms conforming with all of the same items of sanitation contained in the PMO of grade A raw milk, and the bacterial plate count, as delivered from the farm, does not exceed eighty thousand per milliliter as determined in accordance with RCW ((15.36.110)) 15.36.201.

"Grade C milk" is milk that violates any of the requirements for grade A milk but that is not deemed to be adulterated.

"Homogenized" means milk or milk products which have been treated to ensure breakup of the fat globules to an extent consistent with the requirements outlined in the PMO.

"Milk" means the lacteal secretion, practically free of colostrum, obtained by the complete milking of one or more healthy cows, goats, or other mammals.

"Milk hauler" means a person who transports milk or milk products in bulk to or from a milk processing plant, receiving station, or transfer station.

"Milk processing" means the handling, preparing, packaging, or processing of milk in any manner in preparation for sale as food, as defined in chapter 69.04 RCW. Milk processing does not include milking or producing milk on a dairy farm that is shipped to a milk processing plant for further processing.

"Milk processing plant" means a place, premises, or establishment where milk or milk products are collected, handled, processed, stored, bottled, pasteurized, aseptically processed, bottled, or prepared for distribution, except an establishment ((whose activity is limited to retail sales)) that merely receives the processed milk products and serves them or sells them at retail.

"Milk products" means the product of a milk manufacturing process.

"Misbranded milk" means milk or milk products that carries a grade label unless such grade label has been awarded by the director and not revoked, or that fails to conform in any other respect with the statements on the label.

"Official brucellosis adult vaccinated cattle" means those cattle, officially vaccinated over the age of official calfhood vaccinated cattle, that the director has determined have been commingled with, or kept in close proximity to, cattle identified as brucellosis reactors, and have been vaccinated against brucellosis in a manner and under the conditions prescribed by the director after a hearing and under rules adopted under chapter 34.05 RCW, the administrative procedure act.

"Official laboratory" means a biological, chemical, or physical laboratory that is under the direct supervision of the state or a local regulatory agency.

"Officially designated laboratory" means a commercial laboratory authorized to do official work by the department, or a milk industry laboratory officially designated by the department for the examination of grade A raw milk for pasteurization and commingled milk tank truck samples of raw milk for antibiotic residues and bacterial limits.

"PMO" means the grade "A" pasteurized milk ordinance published by the United States public health service, food and drug administration.

"Pasteurized" means the process of heating every particle of milk or milk product in properly designed and operated equipment to the temperature and time standards specified in the PMO.

"Person" means an individual, partnership, firm, corporation, company, trustee, or association.

"Producer" means a person or organization who operates a dairy farm and provides, sells, or offers milk for sale to a milk processing plant, receiving station, or transfer station.

"Receiving station" means a place, premises, or establishment where raw milk is received, collected, handled, stored, or cooled and prepared for further transporting.

"Sale" means selling, offering for sale, holding for sale, preparing for sale, trading, bartering, offering a gift as an inducement for sale of, and advertising for sale in any media.

"Transfer station" means any place, premises, or establishment where milk or milk products are transferred directly from one milk tank truck to another.

"Ultrapasteurized" means the process by which milk or milk products have been thermally processed in accordance with the time and temperature standards of the PMO, so as to produce a product which has an extended shelf life under refrigerated conditions.

"Ungraded processing plant" means a milk processing plant that meets all of the standards of the PMO to produce milk products other than grade A milk or milk products.

"Wash station" means a place, facility, or establishment where milk tanker trucks are cleaned in accordance with the standards of the PMO.

All dairy products mentioned in this chapter mean those fit or used for human consumption.

Sec. 2. RCW 15.36.071 and 1994 c 143 s 205 are each amended to read as follows:

A milk hauler must obtain a milk hauler's license to conduct the operation under this chapter. A milk hauler's license is not transferable with respect to persons or locations or both. The license, issued by the director upon approval of an application for the license and compliance with the provisions of this chapter, shall contain the license number, name, residence, and place of business, if any, of the licensee. A milk hauler's license shall also contain endorsements for individual milk transport vehicles. The license plate number and registration number for each milk transport vehicle shall be listed on the endorsement.

Sec. 3. RCW 15.36.171 and 1994 c 143 s 301 are each amended to read as follows:

No milk or milk products shall be sold to the final consumer or to restaurants, soda fountains, grocery stores, or similar establishments except grade A pasteurized milk, or grade A raw milk. The director may revoke the license of any milk distributor ((failing)), milk processing plant, or producer whose product fails to qualify as grade A pasteurized or grade A raw, or in lieu thereof may degrade his or her product to grade C and permit its sale as other than fluid milk or grade A milk products during a period not exceeding thirty days. In the event of an emergency, the director may permit the sale of grade C milk for more than thirty days.

Sec. 4. RCW 15.36.221 and 1984 c 226 s 5 are each amended to read as follows:

Milk and milk products for consumption in the raw state or for pasteurization shall be cooled within two hours of completion of milking to forty degrees Fahrenheit or less and maintained at that temperature until picked up, in accordance with RCW ((15.36.110)) 15.36.201, so long as the blend temperature after the first and following milkings does not exceed fifty degrees Fahrenheit.

Sec. 5. RCW 15.36.411 and 1994 c 143 s 502 are each amended to read as follows:

The director may, subsequent to a hearing on the license, suspend or revoke a license issued under this chapter if the director determines that an applicant has committed any of the following acts:

(1) Refused, neglected, or failed to comply with the provisions of this chapter, the rules adopted under this chapter, or a lawful order of the director.

(2) Refused, neglected, or failed to keep and maintain records required by this chapter, or to make the records available if requested under the provisions of this chapter.

(3) Refused the department access to a portion or area of a facility regulated under this chapter, for the purpose of carrying out the provisions of this chapter.

(4) Refused the department access to records required to be kept under the provisions of this chapter.

(5) Refused, neglected, or failed to comply with the applicable provisions of chapter 69.04 RCW, Washington food, drug, and cosmetic act, or rules adopted under chapter 69.04 RCW.

The provisions of this section requiring that a hearing be conducted before an action may be taken against a license do not apply to an action taken under RCW 15.36.111, 15.36.201, or 15.36.421.

Whenever a milk transport vehicle is found in violation of this chapter or rules adopted under this chapter, the endorsement for that milk transport vehicle contained on a milk hauler's license shall be suspended or revoked. The suspension or revocation does not apply to any other milk transport vehicle operated by the milk hauler.

Sec. 6. RCW 15.36.431 and 1994 c 143 s 504 are each reenacted to read as follows:

No person shall employ a tester, sampler, weigher, grader, or pasteurizer who is not licensed as a dairy technician.

A person who violates the provisions of this section may be fined not less than two hundred fifty nor more than one thousand dollars, and his or her license issued under this chapter revoked or suspended subject to a hearing as provided under chapter 34.05 RCW.

Sec. 7. RCW 15.36.441 and 1994 c 143 s 505 are each amended to read as follows:

(1) If the results of an antibiotic, pesticide, or other drug residue test under RCW ((15.36.110)) 15.36.201 are above the actionable level established in the PMO and determined using procedures set forth in the PMO, a person holding a milk producer's license is subject to a civil penalty. The penalty shall be in an amount equal to one-half the value of the sum of the volumes of milk equivalent produced under the license on the day prior to and the day of the adulteration. The value of the milk shall be computed by the weighted average price for the federal market order under which the milk is delivered.

(2) The penalty is imposed by the department giving a written notice which is either personally served upon or transmitted by certified mail, return receipt requested, to the person incurring the penalty. The notice of the civil penalty shall be a final order of the department unless, within fifteen days after the notice is received, the person incurring the penalty appeals the penalty by filing a notice of appeal with the department. If a notice of appeal is filed in a timely manner, a hearing shall be conducted on behalf of the department by the office of administrative hearings in accordance with chapters 34.05 and 34.12 RCW. At the conclusion of the hearing, the department shall determine whether the penalty should be affirmed, and, if so, shall issue a final order setting forth the civil penalty assessed, if any. The order may be appealed to superior court in accordance with chapter 34.05 RCW. Tests performed for antibiotic, pesticide, or other drug residues by an official laboratory or an officially designated laboratory of a milk sample drawn by a department official or a licensed dairy technician shall be admitted as prima facie evidence of the presence or absence of an antibiotic, pesticide, or other drug residue.

(3) Any penalty imposed under this section is due and payable upon the issuance of the final order by the department. The penalty shall be deducted by the violator's marketing organization from the violator's final payment for the month following the issuance of the final order. The department shall promptly notify the violator's marketing organization of any penalties contained in the final order.

(4) All penalties received or recovered from violations of this section shall be remitted monthly by the violator's marketing organization to the Washington state dairy products commission and deposited in a revolving fund to be used solely for the purposes of education and research. No appropriation is required for disbursements from this fund.

(5) In case of a violation of the antibiotic, pesticide, or other drug residue test requirements, an investigation shall be made to determine the cause of the residue which shall be corrected. Follow-up sampling and testing must be done in accordance with the requirements of the PMO.

NEW SECTION. Sec. 8. For the purpose of this chapter:

(1) "Food storage warehouse" means any premises, establishment, building, room area, facility, or place, in whole or in part, where food is stored, kept, or held for wholesale distribution to other wholesalers or to retail outlets, restaurants, and any such other facility selling or distributing to the ultimate consumer. Food storage warehouses include, but are not limited to, facilities where food is kept or held refrigerated or frozen and include facilities where food is stored to the account of another firm and/or is owned by the food storage warehouse. "Food storage warehouse" does not include grain elevators or fruit and vegetable storage and packing houses that store, pack, and ship fresh fruit and vegetables even though they may use refrigerated or controlled atmosphere storage practices in their operation. However, this chapter applies to multiple food storage operations that also distribute or ripen fruits and vegetables.

(2) "Department" means the Washington department of agriculture.

(3) "Director" means the director of the Washington department of agriculture.

(4) "Food" means the same as defined in RCW 69.04.008.

(5) "Independent sanitation consultant" means an individual, partnership, cooperative, or corporation that by reason of education, certification, and experience has satisfactorily demonstrated expertise in food and dairy sanitation and is approved by the director to advise on such areas including, but not limited to: Principles of cleaning and sanitizing food processing plants and equipment; rodent, insect, bird, and other pest control; principals of hazard analysis critical control point; basic food product labeling; principles of proper food storage and protection; proper personnel work practices and attire; sanitary design, construction, and installation of food plant facilities, equipment, and utensils; and other pertinent food safety issues.

NEW SECTION. Sec. 9. The director or his or her representative may inspect food storage warehouses for compliance with the provisions of chapter 69.04 RCW and the rules adopted under chapter 69.04 RCW as deemed necessary by the director. Any food storage warehouse found to not be in substantial compliance with chapter 69.04 RCW and the rules adopted under chapter 69.04 RCW will be reinspected as deemed necessary by the director to determine compliance. This does not preclude the director from using any other remedies as provided under chapter 69.04 RCW to gain compliance or to embargo products as provided under RCW 69.04.110 to protect the public from adulterated foods.

NEW SECTION. Sec. 10. Except as provided in this section and section 11 of this act, it shall be unlawful for any person to operate a food storage warehouse in the state without first having obtained an annual license from the department, which shall expire on a date set by rule by the director. Application for a license or license renewal shall be on a form prescribed by the director and accompanied by the license fee. The license fee is fifty dollars.

For a food storage warehouse that has been inspected on at least an annual basis for compliance with the provisions of the current good manufacturing practices (Title 21 C.F.R. part 110) by a federal agency or by a state agency acting on behalf of and under contract with a federal agency and that is not exempted from licensure by section 11 of this act, the annual license fee for the warehouse is twenty-five dollars.

The application shall include the full name of the applicant for the license and the location of the food storage warehouse he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association, or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation must be given on the application. The application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted under this chapter by the department, the applicant shall be issued a license or renewal thereof. The director shall waive licensure under this chapter for firms that are licensed under the provisions of chapter 69.07 or 15.36 RCW.

NEW SECTION. Sec. 11. A food storage warehouse that is inspected for compliance with the current good manufacturing practices (Title 21 C.F.R. part 110) on at least an annual basis by an independent sanitation consultant approved by the department shall be exempted from licensure under this chapter.

A report identifying the inspector and the inspecting entity, the date of the inspection, and any violations noted on such inspection shall be forwarded to the department by the food storage warehouse within sixty days of the completion of the inspection. An inspection shall be conducted and an inspection report for a food storage warehouse shall be filed with the department at least once every twelve months or the warehouse shall be licensed under this chapter and inspected by the department for a period of two years.

NEW SECTION. Sec. 12. If the application for renewal of any license provided for under this chapter is not filed prior to the expiration date as established by rule by the director, an additional fee of ten percent of the cost of the license shall be assessed and added to the original fee and must be paid by the applicant before the renewal license is issued.

NEW SECTION. Sec. 13. The director may, subsequent to a hearing thereon, deny, suspend, or revoke any license provided for in this chapter if he or she determines that an applicant has committed any of the following acts:

(1) Refused, neglected, or failed to comply with the provisions of this chapter, the rules adopted under this chapter, or any lawful order of the director;

(2) Refused, neglected, or failed to keep and maintain records required by this chapter, or to make such records available if requested pursuant to the provisions of this chapter;

(3) Refused the department access to any portion or area of the food storage warehouse for the purpose of carrying out the provisions of this chapter;

(4) Refused the department access to any records required to be kept under the provisions of this chapter;

(5) Refused, neglected, or failed to comply with any provisions of chapter 69.04 RCW, Washington food, drug, and cosmetic act, or any rules adopted under chapter 69.04 RCW.

The provisions of this section requiring that a hearing be conducted before an action may be taken against a license do not apply to an action taken under section 14 of this act.

NEW SECTION. Sec. 14. (1) Whenever the director finds a food storage warehouse operating under conditions that constitute an immediate danger to public health or whenever the licensee or any employee of the licensee actively prevents the director or the director's representative, during an on-site inspection, from determining whether such a condition exists, the director may summarily suspend, pending a hearing, a license provided for in this chapter.

(2) Whenever a license is summarily suspended, the holder of the license shall be notified in writing that the license is, upon service of the notice, immediately suspended and that prompt opportunity for a hearing will be provided.

(3) Whenever a license is summarily suspended, food distribution operations shall immediately cease. However, the director may reinstate the license if the condition that caused the suspension has been abated to the director's satisfaction.

NEW SECTION. Sec. 15. It is unlawful to sell, offer for sale, or distribute in intrastate commerce food from or stored in a food storage warehouse that is required to be licensed under this chapter but that has not obtained a license, once notification by the director has been given to the persons selling, offering, or distributing food for sale, that the food is in or from such an unlicensed food storage warehouse.

NEW SECTION. Sec. 16. All moneys received by the department under provisions of this chapter, except moneys collected for civil penalties levied under this chapter, shall be paid into an account created in the agricultural local fund established in RCW 43.23.230 and shall be used solely to carry out provisions of this chapter and chapter 69.04 RCW. All moneys collected for civil penalties levied under this chapter shall be deposited in the state general fund.

NEW SECTION. Sec. 17. (1) Except as provided in subsection (2) of this section, the department may use all the civil remedies provided under chapter 69.04 RCW in carrying out and enforcing the provisions of this chapter.

(2) Civil penalties are intended to be used to obtain compliance and shall not be collected if a warehouse successfully completes a mutually agreed upon compliance agreement with the department. A warehouse that enters into a compliance agreement with the department shall pay only for inspections conducted by the department and any laboratory analyses as required by the inspections as outlined and agreed to in the compliance agreement. In no event shall the fee for these inspections and analyses exceed four hundred dollars per inspection or one thousand dollars in total.

NEW SECTION. Sec. 18. (1) The department shall enforce and carry out the provisions of this chapter and may adopt the necessary rules to carry out its purpose.

(2) The adoption of rules under the provisions of this chapter are subject to the applicable provisions of chapter 34.05 RCW, the administrative procedure act.

NEW SECTION. Sec. 19. The director or director's deputies, assistants, and inspectors are authorized to do all acts and things necessary to carry out the provisions of this chapter, including the taking of verified statements. The department personnel are empowered to administer oaths of verification on the statement.

NEW SECTION. Sec. 20. A new section is added to chapter 69.04 RCW to read as follows:

The director need not petition the superior court as provided for in RCW 69.04.120 if the owner or claimant of such food or food products agrees in writing to the disposition of such food or food products as the director may order.

Sec. 21. RCW 69.07.040 and 1993 sp.s. c 19 s 11 and 1993 c 212 s 2 are each reenacted and amended to read as follows:

It shall be unlawful for any person to operate a food processing plant or process foods in the state without first having obtained an annual license from the department, which shall expire on a date set by rule by the director. License fees shall be prorated where necessary to accommodate staggering of expiration dates. Application for a license shall be on a form prescribed by the director and accompanied by the license fee. The license fee is determined by computing the gross annual sales for the accounting year immediately preceding the license year. If the license is for a new operator, the license fee shall be based on an estimated gross annual sales for the initial license period.

If gross annual sales are: The license fee is:

$0 to $50,000 $55.00

$50,001 to $500,000 $110.00

$500,001 to $1,000,000 $220.00

$1,000,001 to $5,000,000 $385.00

$5,000,001 to $10,000,000 $550.00

Greater than $10,000,000 $825.00

Such application shall include the full name of the applicant for the license and the location of the food processing plant he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. The application shall also specify the type of food to be processed and the method or nature of processing operation or preservation of that food and any other necessary information. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof.

Licenses shall be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. Wherever a license holder wishes to engage in processing a type of food product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities or has a high potential for harm, the licensee shall submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of food product only after the amendment has been approved by the department.

If upon investigation by the director, it is determined that a person is processing food for retail sale and is not under permit, license, or inspection by a local health authority, then that person may be considered a food processor and subject to the provisions of this chapter. The director may waive the licensure requirements of this chapter for a person's operations at a facility if the person ((is licensed under chapter 15.32 RCW or has a permit)) has obtained a milk processing plant license under chapter 15.36 RCW to conduct the same or a similar operation at the facility.

Sec. 22. RCW 69.07.100 and 1988 c 5 s 4 are each amended to read as follows:

The provisions of this chapter shall not apply to establishments issued a permit or licensed under the provisions of:

(1) ((Chapter 15.32 RCW, the Dairies and dairy products act;

(2))) Chapter 69.25 RCW, the Washington wholesome eggs and egg products act;

(((3))) (2) Chapter 69.28 RCW, the Washington state honey act;

(((4))) (3) Chapter 16.49 RCW, the Meat inspection act;

(((5))) (4) Title 66 RCW, relating to alcoholic beverage control; and

(((6))) (5) Chapter 69.30 RCW, the Sanitary control of shellfish act: PROVIDED, That if any such establishments process foods not specifically provided for in the above entitled acts, such establishments shall be subject to the provisions of this chapter.

The provisions of this chapter shall not apply to restaurants or food service establishments.

Sec. 23. RCW 69.07.085 and 1988 c 254 s 9 are each amended to read as follows:

The department may issue sanitary certificates to food processors under this chapter subject to such requirements as it may establish by rule. The fee for issuance shall be ((twenty)) fifty dollars per certificate. Fees collected under this section shall be deposited in the agricultural local fund.

NEW SECTION. Sec. 24. The following acts or parts of acts are each repealed:

(1) RCW 69.08.010 and 1971 c 27 s 1 & 1945 c 192 s 1;

(2) RCW 69.08.020 and 1945 c 192 s 4;

(3) RCW 69.08.030 and 1985 c 25 s 1 & 1945 c 192 s 2;

(4) RCW 69.08.040 and 1985 c 25 s 2 & 1945 c 192 s 3;

(5) RCW 69.08.045 and 1988 c 5 s 5 & 1971 c 27 s 2;

(6) RCW 69.08.050 and 1945 c 192 s 5;

(7) RCW 69.08.060 and 1945 c 192 s 6;

(8) RCW 69.08.070 and 1945 c 192 s 7;

(9) RCW 69.08.080 and 1945 c 192 s 8; and

(10) RCW 69.08.090 and 1945 c 192 s 9.

Sec. 25. RCW 69.25.020 and 1982 c 182 s 42 are each amended to read as follows:

When used in this chapter the following terms shall have the indicated meanings, unless the context otherwise requires:

(1) "Department" means the department of agriculture of the state of Washington.

(2) "Director" means the director of the department or his duly authorized representative.

(3) "Person" means any natural person, firm, partnership, exchange, association, trustee, receiver, corporation, and any member, officer, or employee thereof, or assignee for the benefit of creditors.

(4) "Adulterated" applies to any egg or egg product under one or more of the following circumstances:

(a) If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such article shall not be considered adulterated under this clause if the quantity of such substance in or on such article does not ordinarily render it injurious to health;

(b) If it bears or contains any added poisonous or added deleterious substance (other than one which is: (i) A pesticide chemical in or on a raw agricultural commodity; (ii) a food additive; or (iii) a color additive) which may, in the judgment of the director, make such article unfit for human food;

(c) If it is, in whole or in part, a raw agricultural commodity and such commodity bears or contains a pesticide chemical which is unsafe within the meaning of RCW 69.04.392, as enacted or hereafter amended;

(d) If it bears or contains any food additive which is unsafe within the meaning of RCW 69.04.394, as enacted or hereafter amended;

(e) If it bears or contains any color additive which is unsafe within the meaning of RCW 69.04.396, as enacted or hereafter amended: PROVIDED, That an article which is not otherwise deemed adulterated under subsection (4)(c), (d), or (e) of this section shall nevertheless be deemed adulterated if use of the pesticide chemical, food additive, or color additive, in or on such article, is prohibited by regulations of the director in official plants;

(f) If it consists in whole or in part of any filthy, putrid, or decomposed substance, or if it is otherwise unfit for human food;

(g) If it consists in whole or in part of any damaged egg or eggs to the extent that the egg meat or white is leaking, or it has been contacted by egg meat or white leaking from other eggs;

(h) If it has been prepared, packaged, or held under insanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health;

(((h))) (i) If it is an egg which has been subjected to incubation or the product of any egg which has been subjected to incubation;

(((i))) (j) If its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health;

(((j))) (k) If it has been intentionally subjected to radiation, unless the use of the radiation was in conformity with a regulation or exemption in effect pursuant to RCW 69.04.394; or

(((k))) (l) If any valuable constituent has been in whole or in part omitted or abstracted therefrom; or if any substance has been substituted, wholly or in part therefor; or if damage or inferiority has been concealed in any manner; or if any substance has been added thereto or mixed or packed therewith so as to increase its bulk or weight, or reduce its quality or strength, or make it appear better or of greater value than it is.

(5) "Capable of use as human food" shall apply to any egg or egg product unless it is denatured, or otherwise identified, as required by regulations prescribed by the director, to deter its use as human food.

(6) "Intrastate commerce" means any eggs or egg products in intrastate commerce, whether such eggs or egg products are intended for sale, held for sale, offered for sale, sold, stored, transported, or handled in this state in any manner and prepared for eventual distribution in this state, whether at wholesale or retail.

(7) "Container" or "package" includes any box, can, tin, plastic, or other receptacle, wrapper, or cover.

(8) "Immediate container" means any consumer package, or any other container in which egg products, not consumer-packaged, are packed.

(9) "Shipping container" means any container used in packaging a product packed in an immediate container.

(10) "Egg handler" or "dealer" means any person who produces, contracts for or obtains possession or control of any eggs for the purpose of sale to another dealer or retailer, or for processing and sale to a dealer, retailer or consumer: PROVIDED, That for the purpose of this chapter, "sell" or "sale" includes the following: Offer for sale, expose for sale, have in possession for sale, exchange, barter, trade, or as an inducement for the sale of another product.

(11) "Egg product" means any dried, frozen, or liquid eggs, with or without added ingredients, excepting products which contain eggs only in a relatively small proportion, or historically have not been, in the judgment of the director, considered by consumers as products of the egg food industry, and which may be exempted by the director under such conditions as he may prescribe to assure that the egg ingredients are not adulterated and such products are not represented as egg products.

(12) "Egg" means the shell egg of the domesticated chicken, turkey, duck, goose, or guinea, or any other specie of fowl.

(13) "Check" means an egg that has a broken shell or crack in the shell but has its shell membranes intact and contents not leaking.

(14) "Clean and sound shell egg" means any egg whose shell is free of adhering dirt or foreign material and is not cracked or broken.

(15) "Dirty egg" means an egg that has a shell that is unbroken and has adhering dirt or foreign material.

(16) "Incubator reject" means an egg that has been subjected to incubation and has been removed from incubation during the hatching operations as infertile or otherwise unhatchable.

(17) "Inedible" means eggs of the following descriptions: Black rots, yellow rots, white rots, mixed rots (addled eggs), sour eggs, eggs with green whites, eggs with stuck yolks, moldy eggs, musty eggs, eggs showing blood rings, and eggs containing embryo chicks (at or beyond the blood ring stage).

(18) "Leaker" means an egg that has a crack or break in the shell and shell membranes to the extent that the egg contents are exposed or are exuding or free to exude through the shell.

(19) "Loss" means an egg that is unfit for human food because it is smashed or broken so that its contents are leaking; or overheated, frozen, or contaminated; or an incubator reject; or because it contains a bloody white, large meat spots, a large quantity of blood, or other foreign material.

(20) "Restricted egg" means any check, dirty egg, incubator reject, inedible, leaker, or loss.

(21) "Inspection" means the application of such inspection methods and techniques as are deemed necessary by the director to carry out the provisions of this chapter.

(22) "Inspector" means any employee or official of the department authorized to inspect eggs or egg products under the authority of this chapter.

(23) "Misbranded" shall apply to egg products which are not labeled and packaged in accordance with the requirements prescribed by regulations of the director under RCW 69.25.100.

(24) "Official certificate" means any certificate prescribed by regulations of the director for issuance by an inspector or other person performing official functions under this chapter.

(25) "Official device" means any device prescribed or authorized by the director for use in applying any official mark.

(26) "Official inspection legend" means any symbol prescribed by regulations of the director showing that egg products were inspected in accordance with this chapter.

(27) "Official mark" means the official inspection legend or any other symbol prescribed by regulations of the director to identify the status of any article under this chapter.

(28) "Official plant" means any plant which is licensed under the provisions of this chapter, at which inspection of the processing of egg products is maintained by the United States department of agriculture or by the state under cooperative agreements with the United States department of agriculture or by the state.

(29) "Official standards" means the standards of quality, grades, and weight classes for eggs, adopted under the provisions of this chapter.

(30) "Pasteurize" means the subjecting of each particle of egg products to heat or other treatments to destroy harmful, viable micro-organisms by such processes as may be prescribed by regulations of the director.

(31) "Pesticide chemical", "food additive", "color additive", and "raw agricultural commodity" shall have the same meaning for purposes of this chapter as prescribed in chapter 69.04 RCW.

(32) "Plant" means any place of business where egg products are processed.

(33) "Processing" means manufacturing egg products, including breaking eggs or filtering, mixing, blending, pasteurizing, stabilizing, cooling, freezing, drying, or packaging egg products.

(34) "Retailer" means any person in intrastate commerce who sells eggs to a consumer.

(35) "At retail" means any transaction in intrastate commerce between a retailer and a consumer.

(36) "Consumer" means any person who purchases eggs for his or her own family use or consumption; or any restaurant, hotel, boarding house, bakery, or other institution or concern which purchases eggs for serving to guests or patrons thereof, or for its own use in cooking or baking.

(37) "Candling" means the examination of the interior of eggs by the use of transmitted light used in a partially dark room or place.

(38) "Master license system" means the mechanism established by chapter 19.02 RCW by which master licenses, endorsed for individual state-issued licenses, are issued and renewed utilizing a master application and a master license expiration date common to each renewable license endorsement.

(39) "Ambient temperature" means the atmospheric temperature surrounding or encircling shell eggs.

Sec. 26. RCW 69.25.050 and 1982 c 182 s 43 are each amended to read as follows:

No person shall act as an egg handler or dealer without first obtaining an annual license and permanent dealer's number from the department; such license shall expire on the master license expiration date. Application for an egg dealer license or egg dealer branch license, shall be made through the master license system. The annual egg dealer license fee shall be ((ten)) thirty dollars and the annual egg dealer branch license fee shall be ((five)) fifteen dollars. A copy of the master license shall be posted at each location where such licensee operates. Such application shall include the full name of the applicant for the license and the location of each facility he intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership or the names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant and any other necessary information prescribed by the director. Upon the approval of the application and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof. Such license and permanent egg handler or dealer's number shall be nontransferable.

Sec. 27. RCW 69.25.150 and 1992 c 7 s 47 are each amended to read as follows:

(1) ((Any person who commits any offense prohibited by RCW 69.25.110 shall upon conviction be guilty of a gross misdemeanor.)) (a) Any person violating any provision of this chapter or any rule adopted under this chapter is guilty of a misdemeanor and guilty of a gross misdemeanor for any second and subsequent violation. Any offense committed more than five years after a previous conviction shall be considered a first offense. A misdemeanor under this section is punishable to the same extent that a misdemeanor is punishable under RCW 9A.20.021 and a gross misdemeanor under this section is punishable to the same extent that a gross misdemeanor is punishable under RCW 9A.20.021.

(b) Whenever the director finds that a person has committed a violation of any of the provisions of this chapter, and that violation has not been punished pursuant to (a) of this subsection, the director may impose upon and collect from the violator a civil penalty not exceeding one thousand dollars per violation per day. Each violation shall be a separate and distinct offense.

When construing or enforcing the provisions of RCW 69.25.110, the act, omission, or failure of any person acting for or employed by any individual, partnership, corporation, or association within the scope of the person's employment or office shall in every case be deemed the act, omission, or failure of such individual, partnership, corporation, or association, as well as of such person.

(2) No carrier or warehouseman shall be subject to the penalties of this chapter, other than the penalties for violation of RCW 69.25.140, or subsection (3) of this section, by reason of his or her receipt, carriage, holding, or delivery, in the usual course of business, as a carrier or warehouseman of eggs or egg products owned by another person unless the carrier or warehouseman has knowledge, or is in possession of facts which would cause a reasonable person to believe that such eggs or egg products were not eligible for transportation under, or were otherwise in violation of, this chapter, or unless the carrier or warehouseman refuses to furnish on request of a representative of the director the name and address of the person from whom he or she received such eggs or egg products and copies of all documents, if there be any, pertaining to the delivery of the eggs or egg products to, or by, such carrier or warehouseman.

(3) Notwithstanding any other provision of law any person who forcibly assaults, resists, impedes, intimidates, or interferes with any person while engaged in or on account of the performance of his or her official duties under this chapter shall be punished by a fine of not more than five thousand dollars or imprisonment in a state correctional facility for not more than three years, or both. Whoever, in the commission of any such act, uses a deadly or dangerous weapon, shall be punished by a fine of not more than ten thousand dollars or by imprisonment in a state correctional facility for not more than ten years, or both.

Sec. 28. RCW 69.25.170 and 1975 1st ex.s. c 201 s 18 are each amended to read as follows:

(1) The director may, by regulation and under such conditions and procedures as he may prescribe, exempt from specific provisions of this chapter:

(a) The sale, transportation, possession, or use of eggs which contain no more restricted eggs than are allowed by the tolerance in the official state standards for consumer grades for shell eggs;

(b) The processing of egg products at any plant where the facilities and operating procedures meet such sanitary standards as may be prescribed by the director, and where the eggs received or used in the manufacture of egg products contain no more restricted eggs than are allowed by the official standards of the state consumer grades for shell eggs, and the egg products processed at such plant;

(c) The sale of eggs by any poultry producer from his own flocks directly to a household consumer exclusively for use by such consumer and members of his household and his nonpaying guests and employees, and the transportation, possession, and use of such eggs in accordance with this subsection;

(d) The sale of eggs by shell egg packers on his own premises directly to household consumers for use by such consumer and members of his household and his nonpaying guests and employees, and the transportation, possession, and use of such eggs in accordance with this subsection;

(e) The sale of eggs by any egg producer with an annual egg production from a flock of three thousand hens or less.

(2) The director may modify or revoke any regulation granting exemption under this chapter whenever he deems such action appropriate to effectuate the purposes of this chapter.

Sec. 29. RCW 69.25.250 and 1993 sp.s. c 19 s 12 are each amended to read as follows:

There is hereby levied an assessment not to exceed three mills per dozen eggs entering intrastate commerce, as prescribed by rules and regulations issued by the director. Such assessment shall be applicable to all eggs entering intrastate commerce except as provided in RCW 69.25.170 and 69.25.290. Such assessment shall be paid to the director on a monthly basis on or before the tenth day following the month such eggs enter intrastate commerce. The director may require reports by egg handlers or dealers along with the payment of the assessment fee. Such reports may include any and all pertinent information necessary to carry out the purposes of this chapter. The director may, by regulations, require egg container manufacturers to report on a monthly basis all egg containers sold to any egg handler or dealer and bearing such egg handler or dealer's ((license)) permanent number.

Sec. 30. RCW 69.25.310 and 1975 1st ex.s. c 201 s 32 are each amended to read as follows:

(1) All containers used by an egg handler or dealer to package eggs shall bear the name and address or the permanent number issued by the director to said egg handler or dealer. Such permanent number shall be displayed in a size and location prescribed by the director. ((It shall constitute a gross misdemeanor for any egg handler or dealer to reuse a container which bears the permanent number of another egg handler or dealer unless such number is totally obliterated prior to reuse.)) It shall be a violation for any egg handler or dealer to use a container that bears the permanent number of another egg handler or dealer unless such number is totally obliterated prior to use. The director may in addition require the obliteration of any or all markings that may be on any container which will be ((reused)) used for eggs by an egg handler or dealer.

(2) Notwithstanding subsection (1) of this section and following written notice to the director, licensed egg handlers and dealers may use new containers bearing another handler's or dealer's permanent number on a temporary basis, in any event not longer than one year, with the consent of such other handler or dealer for the purpose of using up existing container stocks. Sale of container stock shall constitute agreement by the parties to use the permanent number.

Sec. 31. RCW 69.25.320 and 1975 1st ex.s. c 201 s 33 are each amended to read as follows:

(1) In addition to any other records required to be kept and furnished the director under the provisions of this chapter, the director may require any person who sells to any retailer, or to any restaurant, hotel, boarding house, bakery, or any institution or concern which purchases eggs for serving to guests or patrons thereof or for its use in preparation of any food product for human consumption, candled or graded eggs other than those of his own production sold and delivered on the premises where produced, to furnish that retailer or other purchaser with an invoice covering each such sale, showing the exact grade or quality, and the size or weight of the eggs sold, according to the standards prescribed by the director, together with the name and address of the person by whom the eggs were sold. The person selling and the retailer or other purchaser shall keep a copy of said invoice on file at his place of business for a period of thirty days, during which time the copy shall be available for inspection at all reasonable times by the director: PROVIDED, That no retailer or other purchaser shall be guilty of a violation of this chapter if he can establish a guarantee from the person from whom the eggs were purchased to the effect that they, at the time of purchase, conformed to the information required by the director on such invoice: PROVIDED FURTHER, That if the retailer or other purchaser having labeled any such eggs in accordance with the invoice keeps them for such a time after they are purchased as to cause them to deteriorate to a lower grade or standard, and sells them under the label of the invoice grade or standard, he shall be guilty of a violation of this chapter.

(2) Each retailer and each distributor shall store shell eggs awaiting sale or display eggs under clean and sanitary conditions in areas free from rodents and insects. Shell eggs must be stored up off the floor away from strong odors, pesticides, and cleaners.

(3) After being received at the point of first purchase, all graded shell eggs packed in containers for the purpose of sale to consumers shall be held and transported under refrigeration at ambient temperatures no greater than forty-five degrees Fahrenheit (seven and two-tenths degrees Celsius). This provision shall apply without limitation to retailers, institutional users, dealer/wholesalers, food handlers, transportation firms, or any person who handles eggs after the point of first purchase.

(4) No invoice shall be required on eggs when packed for sale to the United States department of defense, or a component thereof, if labeled with grades promulgated by the United States secretary of agriculture.

NEW SECTION. Sec. 32. The following acts or parts of acts are each repealed:

(1) RCW 69.25.330 and 1975 1st ex.s. c 201 s 34; and

(2) RCW 69.25.340 and 1975 1st ex.s. c 201 s 36.

Sec. 33. RCW 15.53.901 and 1982 c 177 s 1 are each amended to read as follows:

The definitions set forth in this section apply ((through [throughout])) throughout this chapter.

(((1) "Department" means the department of agriculture of the state of Washington or its duly authorized representative.

(2) "Person" means a natural person, individual, firm, partnership, corporation, company, society, or association.

(3) "Distribute" means to import, consign, manufacture, produce, compound, mix, or blend commercial feed, or to offer for sale, sell, barter, or otherwise supply commercial feed in this state.

(4) "Distributor" means any person who distributes.

(5) "Sell" or "sale" includes exchange.

(6) "Commercial feed" means all materials including customer-formula feed which are distributed for use as feed or for mixing in feed, for animals other than man.

(7) "Feed ingredient" means each of the constituent materials making up a commercial feed.

(8) "Customer-formula feed" means a mixture of commercial feed and/or materials each batch of which is mixed according to the specific instructions of the final purchaser or contract feeder.

(9) "Brand" means the term, design, trademark, or other specific designation under which an individual commercial feed is distributed in this state.

(10) "Product" means the name of the commercial feed that identifies it as to kind, class, or specific use.

(11) "Label" means a display of written, printed, or graphic matter upon or affixed to the container in which a commercial feed is distributed, or on the invoice or delivery slip with which a commercial feed is distributed.

(12) "Labeling" means all labels and other written, printed, or graphic matter upon a commercial feed or any of its containers or wrappers, or otherwise accompanying such commercial feed.

(13) "Ton" means a net weight of two thousand pounds avoirdupois.

(14) "Percent" or "percentage" means percentage by weight.

(15) "Official sample" means any sample of feed taken by the department, obtained and analyzed as provided in RCW 15.53.9024.

(16) "Contract feeder" means an independent contractor, or any other person who feeds commercial feed to animals pursuant to an oral or written agreement whereby such commercial feed is supplied, furnished or otherwise provided to such person by any distributor and whereby such person's remuneration is determined all or in part by feed consumption, mortality, profits, or amount or quality of product: PROVIDED, That it shall not include a bona fide employee of a manufacturer or distributor of commercial feed.

(17) "Retail" means to distribute to the ultimate consumer.))

(1) "Brand name" means a word, name, symbol, or device, or any combination thereof, identifying the commercial feed of a distributor or registrant and distinguishing it from that of others.

(2) "Commercial feed" means all materials or combination of materials that are distributed or intended for distribution for use as feed or for mixing in feed, unless such materials are specifically exempted. Unmixed whole seeds and physically altered entire unmixed seeds, when such whole seeds or physically altered seeds are not chemically changed or not adulterated within the meaning of RCW 15.53.902, are exempt. The department by rule may exempt from this definition, or from specific provisions of this chapter, commodities such as hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or substances when such commodities, compounds, or substances are not intermixed with other materials, and are not adulterated within the meaning of RCW 15.53.902.

(3) "Contract feeder" means a person who is an independent contractor and feeds commercial feed to animals pursuant to a contract whereby such commercial feed is supplied, furnished, or otherwise provided to such person and whereby such person's remuneration is determined all or in part by feed consumption, mortality, profits, or amount or quality of product.

(4) "Customer-formula feed" means commercial feed that consists of a mixture of commercial feeds or feed ingredients, or both, each batch of which is manufactured according to the instructions of the final purchaser.

(5) "Department" means the department of agriculture of the state of Washington or its duly authorized representative.

(6) "Director" means the director of the department or a duly authorized representative.

(7) "Distribute" means to offer for sale, sell, exchange or barter, commercial feed; or to supply, furnish, or otherwise provide commercial feed to a contract feeder.

(8) "Distributor" means a person who distributes.

(9) "Drug" means an article intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in animals other than people and articles, other than feed intended to affect the structure or a function of the animal body.

(10) "Exempt buyer" means a licensee who has agreed to be responsible for reporting tonnage and paying inspection fees for all commercial feeds they distribute. An exempt buyer must apply for exempt buyer status with the department. The department shall maintain a list of all exempt buyers and make the list available on request.

(11) "Feed ingredient" means each of the constituent materials making up a commercial feed.

(12) "Final purchaser" means a person who purchases commercial feed to feed to animals in his or her care.

(13) "Initial distributor" means a person who first distributes a commercial feed in or into this state.

(14) "Label" means a display of written, printed, or graphic matter upon or affixed to the container in which a commercial feed is distributed, or on the invoice or delivery slip with which a commercial feed is distributed.

(15) "Labeling" means all labels and other written, printed, or graphic matter: (a) Upon a commercial feed or any of its containers or wrappers; or (b) accompanying such commercial feed.

(16) "Licensee" means a person who holds a commercial feed license as prescribed in this chapter.

(17) "Manufacture" means to grind, mix or blend, or further process a commercial feed for distribution.

(18) "Medicated feed" means a commercial feed containing a drug or other medication.

(19) "Mineral feed" means a commercial feed intended to supply primarily mineral elements or inorganic nutrients.

(20) "Official sample" means a sample of feed taken by the department, obtained and analyzed as provided in RCW 15.53.9024 (3), (5), or (6).

(21) "Percent" or "percentage" means percentage by weight.

(22) "Person" means an individual, firm, partnership, corporation, or association.

(23) "Pet" means a domesticated animal normally maintained in or near the household of the owner of the pet.

(24) "Pet food" means a commercial feed prepared and distributed for consumption by pets.

(25) "Product name" means the name of the commercial feed that identifies it as to kind, class, or specific use.

(26) "Retail" means to distribute to the final purchaser.

(27) "Sell" or "sale" includes exchange.

(28) "Specialty pet" means a domesticated animal pet normally maintained in a cage or tank, such as, but not limited to, gerbils, hamsters, canaries, psittacine birds, mynahs, finches, tropical fish, goldfish, snakes, and turtles.

(29) "Specialty pet food" means a commercial feed prepared and distributed for consumption by specialty pets.

(30) "Ton" means a net weight of two thousand pounds avoirdupois.

(31) "Quantity statement" means the net weight (mass), net volume (liquid or dry), or count.

Sec. 34. RCW 15.53.9012 and 1965 ex.s. c 31 s 3 are each amended to read as follows:

(1) The department shall administer, enforce and carry out the provisions of this chapter and may adopt rules necessary to carry out its purpose. In adopting such rules, the director shall consider (a) the official definitions of feed ingredients and official feed terms adopted by the association of American feed control officials and published in the official publication of that organization; and (b) any regulation adopted pursuant to the authority of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301, et seq.), if the department would have the authority under this chapter to adopt the regulations. The adoption of rules shall be subject to a public hearing and all other applicable provisions of chapter 34.05 RCW (Administrative Procedure Act)((, as enacted or hereafter amended)).

(2) The director when adopting rules in respect to the feed industry shall consult with affected parties, such as manufacturers and distributors of commercial feed and any final rule adopted shall be designed to promote orderly marketing and shall be reasonable and necessary and based upon the requirements and condition of the industry and shall be for the purpose of promoting the well-being of the members of the feed industry as well as the well-being of the purchasers and users of feed and for the general welfare of the people of the state.

NEW SECTION. Sec. 35. A new section is added to chapter 15.53 RCW to read as follows:

(1) Beginning January 1, 1996, a person who manufactures a commercial feed, is an initial distributor of a commercial feed, or whose name appears as the responsible party on a commercial feed label to be distributed in or into this state shall first obtain from the department a commercial feed license for each facility. Sale of food processing byproducts from fruit, vegetable, or potato processing plants, freezing or dehydrating facilities, or juice or jelly preserving plants, bona fide experimental feed on which accurate records and experimental programs are maintained, and pet food and specialty pet food are exempt from the requirement of a commercial feed license. The sale of byproducts or products of sugar refineries are not exempt from the requirement of a commercial feed license.

(2) Application for a commercial feed license shall be made annually on forms provided by the department and shall be accompanied by a fee of fifty dollars, except that for the period beginning January 1, 1996, and ending June 30, 1996, the fee shall be twenty-five dollars. The commercial feed license shall expire on June 30th of each year.

(3) An application for license shall include the following:

(a) The name and address of the applicant;

(b) Other information required by the department by rule.

(4) After January 1, 1996, application for license renewal is due July 1st of each year. If an application for license renewal provided for in this section is not filed with the department prior to July 15th, a delinquency fee of fifty dollars shall be assessed and added to the original fee and must be paid by the applicant before the renewal license is issued. The assessment of the delinquency fee shall not prevent the department from taking other action as provided for in this chapter. The penalty does not apply if the applicant furnishes an affidavit that he or she has not distributed a commercial feed subsequent to the expiration of his or her prior license.

(5) The department may deny a license application if the applicant is not in compliance with this chapter or applicable rules, and may revoke a license if the licensee is not in compliance with this chapter or applicable rules. Prior to denial or revocation of a license, the department shall provide notice and an opportunity to correct deficiencies. If an applicant or licensee fails to correct the deficiency, the department shall deny or revoke the license. If aggrieved by the decision, the applicant or licensee may request a hearing as authorized under chapter 34.05 RCW.

(6) Notwithstanding the payment of a delinquency fee, it is a violation to distribute a commercial feed by an unlicensed person, and nothing in this chapter shall prevent the department from imposing a penalty authorized by this chapter for the violation.

(7) The department may under conditions specified by rule, request copies of labels and labeling in order to determine compliance with the provisions of this chapter.

Sec. 36. RCW 15.53.9014 and 1993 sp.s. c 19 s 2 are each amended to read as follows:

(1) Each ((commercial feed)) pet food and specialty pet food shall be registered with the department and such registration shall be renewed annually before such commercial feed may be distributed in this state((: PROVIDED, That sales of food processing byproducts from fruit, vegetable, or potato processing plants, freezing or dehydrating facilities, or juice or jelly preserving plants; unmixed seed, whole or processed, made directly from the entire seed; unground hay, straw, stover, silage, cobs, husks, and hulls, when not mixed with other material; bona fide experimental feeds on which accurate records and experimental programs are maintained; and customer-formula feeds are exempt from such registration. The exemption for byproducts provided by this subsection does not apply to byproducts or products of sugar refineries or to materials used in the preparation of pet foods.

(a) Beginning July 1, 1993, each registration for a commercial feed product distributed in packages of ten pounds or more shall be accompanied by a fee of eleven dollars. If such commercial feed is also distributed in packages of less than ten pounds it shall be registered under subsection (b) of this section.

(b) Beginning July 1, 1993, each registration for a commercial feed product distributed in packages of less than ten pounds shall be accompanied by an annual registration fee of forty-five dollars on each such commercial feed so distributed, but no inspection fee may be collected on packages of less than ten pounds of the commercial feed so registered)).

(2) The application for registration of pet food and specialty pet food shall be on forms provided by the department and shall be accompanied by the fees in subsection (3) of this section. Registrations expire on June 30th of each year.

(3) Pet food and specialty pet food registration fees are as follows:

(a) Each pet food and specialty pet food distributed in packages of ten pounds or more shall be accompanied by a fee of eleven dollars, except that for the period beginning January 1, 1996, and ending June 30, 1996, the fee shall be five dollars and fifty cents. If such commercial feed is also distributed in packages of less than ten pounds it shall be registered under (b) of this subsection.

(b) Each pet food and specialty pet food distributed in packages of less than ten pounds shall be accompanied by a fee of forty-five dollars, except that for the period beginning January 1, 1996, and ending June 30, 1996, the fee shall be twenty-two dollars and fifty cents. No inspection fee may be collected on pet food and specialty pet food distributed in packages of less than ten pounds.

(4) The department may require that ((such)) the application for registration of pet food and specialty pet food be accompanied by a label and/or other printed matter describing the product. ((All registrations expire on December 31st of each year, and are renewable unless such registration is canceled by the department or it has called for a new registration, or unless canceled by the registrant.

(4) The application shall include the information required by RCW 15.53.9016(1)(b) through (1)(e).))

(5) A distributor shall not be required to register ((any commercial feed brand or product which)) a pet food or specialty pet food that is already registered under the provisions of this chapter, as long as it is distributed with the original label.

(6) Changes in the guarantee of either chemical or ingredient composition of a ((commercial feed)) pet food or specialty pet food registered under the provisions of this chapter may be permitted if there is satisfactory evidence that such changes would not result in a lowering of the feed value of the product for the purpose for which it was designed.

(7) The department is ((empowered)) authorized to refuse registration of any application not in compliance with the provisions of this chapter and any rule adopted under this chapter and to cancel any registration subsequently found to be not in compliance with any provisions of this chapter((, but a registration shall not be refused or canceled until the registrant has been given opportunity to be heard before the department and to amend his application in order to comply with the requirements of)) and any rule adopted under this chapter. Prior to refusal or cancellation of a registration, the applicant or registrant of an existing registered pet food or specialty pet food shall be notified of the reasons and given an opportunity to amend the application to comply. If the applicant does not make the necessary corrections, the department shall refuse to register the feed. The applicant or registrant of an existing registered pet food or specialty pet food may request a hearing as provided for in chapter 34.05 RCW.

(8) After January 1, 1996, application for renewal of registration is due July 1st of each year. If an application for renewal of the registration provided for in this section is not filed prior to ((January 1st)) July 15th of any one year, a penalty of ten dollars per product shall be assessed and added to the original fee and shall be paid by the applicant before the renewal registration may be issued, unless the applicant furnishes an affidavit that he has not distributed this feed subsequent to the expiration of his or her prior registration.

(9) It is a violation of this chapter to distribute an unregistered pet food or specialty pet food. Payment of a delinquency fee shall not prevent the department from imposing a penalty authorized by this chapter for the violation.

Sec. 37. RCW 15.53.9016 and 1965 ex.s. c 31 s 5 are each amended to read as follows:

(1) Any commercial feed ((registered with the department and)), except a customer-formula feed, distributed in this state shall be accompanied by a legible label bearing the following information:

(a) ((The net weight as required under chapter 19.94 RCW as enacted or hereinafter amended.

(b))) The product name ((or)) and the brand name, if any, under which the commercial feed is distributed.

(((c) The guaranteed analysis of the commercial feed, listing the minimum percentage of crude protein, minimum percentage of crude fat, and maximum percentage of crude fiber. For mineral feeds the list shall include the following if added: Minimum and maximum percentages of calcium (Ca), minimum percentage of phosphorus (P), minimum percentage of iodine (I), and minimum and maximum percentages of salt (NaCl). Other substances or elements, determinable by laboratory methods, may be guaranteed by permission of the department. When any items are guaranteed, they shall be subject to inspection and analysis in accordance with the methods and regulations that may be prescribed by the department. Products distributed solely as mineral and/or vitamin supplements and guaranteed as specified in this section need not show guarantees for protein, fat, and fiber.

(d))) (b) The guaranteed analysis stated in such terms as the department by rule determines is required to advise the user of the composition of the feed or to support claims made in the labeling. In all cases the substances or elements must be determinable by laboratory methods such as the methods published by the association of official analytical chemists.

(c) The common or usual name of each ingredient used in the manufacture of the commercial feed, except as the department may, by regulation, permit the use of a collective term for a group of ingredients all of which perform the same function. An ingredient statement is not required for single standardized ingredient feeds which are officially defined.

(((e))) (d) The name and principal mailing address of the person responsible for distributing the commercial feed.

(e) Adequate directions for use for all commercial feeds containing drugs and for all such other commercial feeds as the department may require by rule as necessary for their safe and effective use.

(f) Precautionary statements as the department by rule determines are necessary for the safe and effective use of the commercial feed.

(g) The net weight as required under chapter 19.94 RCW.

(2) When a commercial feed, except a customer-formula feed, is distributed in this state in bags or other containers, the label shall be placed on or affixed to the container; when a commercial feed, except a customer-formula feed, is distributed in bulk the label shall accompany delivery and be furnished to the purchaser at time of delivery.

(3) A customer-formula feed shall be labeled by ((invoice)) shipping document. The ((invoice)) shipping document, which is to accompany delivery and be supplied to the purchaser at the time of delivery, shall bear the following information:

(a) Name and address of the ((mixer)) manufacturer;

(b) Name and address of the purchaser;

(d) ((Brand name and number of pounds of each registered commercial feed used in the mixture and the name and number of pounds of each other feed ingredient added.

(4) If a commercial feed contains a nonnutritive substance which is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or which is intended to affect the structure or any function of the animal body, the department may require the label to show the amount present, directions for use, and/or warnings against misuse of the feed.

(5) A customer-formula feed shall be considered to be in violation of this chapter if it does not conform to the invoice labeling. Upon request of the department it shall be the duty of the person distributing the customer-formula feed to supply the department with a copy of the invoice which represents that particular feed: PROVIDED, That such person shall not be required to keep such invoice for a period of longer than six months)) Product name and the net weight as required under chapter 19.94 RCW;

(e) Adequate directions for use for all customer-formula feeds containing drugs and for such other feeds as the department may require by rule as necessary for their safe and effective use;

(f) The directions for use and precautionary statements as required by subsection (1) (e) and (f) of this section; and

(g) If a drug containing product is used:

(i) The purpose of the medication (claim statement);

(ii) The established name of each active drug ingredient and the level of each drug used in the final mixture expressed in accordance with rules established by the department.

(4) The product name and quantity statement of each commercial feed and each other ingredient used in the customer formula feed must be on file at the plant producing the product. These records must be kept on file for one year after the last sale. This information shall be made available to the purchaser, the dealer making the sale, and the department on request.

Sec. 38. RCW 15.53.9018 and 1982 c 177 s 3 are each amended to read as follows:

(1) ((On or after June 30, 1981,)) Except as provided in subsection (4) of this section, each initial distributor of a commercial feed in this state shall pay to the department an inspection fee on all commercial feed sold by such person during the year. The fee shall be not less than four cents nor more than ((fourteen)) twelve cents per ton as prescribed by the director by rule: PROVIDED, That such fees shall be used for routine enforcement ((of RCW 15.53.9022 and for analysis for contaminants only when the department has reasonable cause to believe any lot of feed or any feed ingredient is adulterated)) and administration of this chapter and rules adopted under this chapter.

(2) ((In computing the tonnage on which the inspection fee must be paid, sales of: (a) Commercial feed to other feed registrants;)) An inspection fee is not required for: (a) Commercial feed distributed by a person having proof that inspection fees have been paid by his or her supplier (manufacturer); (b) commercial feed in packages weighing less than ten pounds; (c) commercial feed for shipment to points outside this state; (d) food processing byproducts from fruit, vegetable, or potato processing plants, freezing or dehydrating facilities, or juice or jelly preserving plants; and (e) ((unmixed seed, whole or processed, made directly from the entire seed; (f) unground hay, straw, stover, silage, cobs, husks, and hulls, when not mixed with other material; and (g))) bona fide experimental feeds on which accurate records and experimental programs are maintained ((may be excluded. The exemption for byproducts provided by this subsection does not apply to byproducts or products of sugar refineries or to materials used in the preparation of pet foods)).

(3) Tonnage will be reported and inspection fees will be paid on (a) byproducts or products of sugar refineries; (b) materials used in the preparation of pet foods and specialty pet food.

(4) When more than one distributor is involved in the distribution of a commercial feed, the ((last registrant or)) initial distributor ((who distributes to a nonregistrant (dealer or consumer))) is responsible for reporting the tonnage and paying the inspection fee, unless ((the reporting and paying of fees have been made by a prior distributor of the feed)) this sale or transaction is made to an exempt buyer.

(((4))) (5) Each person made responsible by this chapter for the payment of inspection fees for commercial feed sold in this state shall file a report with the department on January 1st and July 1st of each year showing the number of tons of such commercial feed sold during the six calendar months immediately preceding the date the report is due. The proper inspection fee shall be remitted with the report. The person required to file the report and pay the fee shall have a thirty-day period of grace immediately following the day the report and payment are due to file the report, and pay the fee. Upon permission of the department, an annual statement under oath may be filed by any person distributing within the state less than one hundred tons for each six-month period during any year, and upon filing such statement such person shall pay the inspection fee at the rate provided for in subsection (1) of this section. The minimum inspection fee shall be twelve dollars and fifty cents for each six-month reporting period or twenty-five dollars if reporting annually.

(((5) Each distributor shall keep such reasonable and practical records as may be necessary or required by the department to indicate accurately the tonnage of commercial feed distributed in this state, and the department has the right to examine such records to verify statements of tonnage. Failure to make an accurate statement of tonnage or to pay the inspection fee or comply as provided herein constitutes a violation of this chapter, and may result in the issuance of an order for "withdrawal from distribution" on any commercial feed being subsequently distributed.

(6) Inspection fees which are due and owing and have not been remitted to the department within thirty days following the due date shall have a collection fee of ten percent, but not less than ten dollars, added to the amount due when payment is finally made. The assessment of this collection fee shall not prevent the department from taking other actions as provided for in this chapter.

(7))) (6) For the purpose of determining accurate tonnage of commercial feed distributed in this state or to identify or verify semiannual tonnage reports, the department may require each registrant or licensee, or both, to maintain records or file additional reports.

(7) The department may examine at reasonable times the records maintained under this section. Records shall be maintained in usable condition by the registrant or licensee for a period of two years unless by rule this retention period is extended.

(8) The registrant or licensee shall maintain records required under this section and submit these records to the department upon request.

(9) Any person responsible for reporting tonnage or paying inspection fees who fails to do so before the thirty-first day following the last day of each reporting period, shall pay a penalty equal to fifteen percent of the inspection fee due or fifty dollars, whichever is greater. The penalty, together with any delinquent inspection fee is due before the forty-first day following the last day of each reporting period. The department may cancel registration of a registrant or may revoke a license of a licensee who fails to pay the penalty and delinquent inspection fees within that time period. The applicant or licensee may request a hearing as authorized under chapter 34.05 RCW.

(10) The report required by subsection (((4))) (5) of this section shall not be a public record, and it is a misdemeanor for any person to divulge any information given in such report which would reveal the business operation of the person making the report: PROVIDED, That nothing contained in this subsection shall be construed to prevent or make unlawful the use of information concerning the business operation of a person if any action, suit, or proceeding instituted under the authority of this chapter, including any civil action for collection of unpaid inspection fees, which action is hereby authorized and which shall be as an action at law in the name of the director of the department.

(((8))) (11) Any commercial feed purchased by a consumer or contract feeder outside the jurisdiction of this state and brought into this state for use is subject to all the provisions of this chapter, including inspection fees.

Sec. 39. RCW 15.53.902 and 1982 c 177 s 4 are each amended to read as follows:

It is unlawful for any person to distribute an adulterated feed. A commercial feed is deemed to be adulterated:

(1) If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such commercial feed shall not be considered adulterated under this subsection if the quantity of such substance in such commercial feed does not ordinarily render it injurious to health; or

(2) If it bears or contains any added poisonous, added deleterious, or added nonnutritive substance which is unsafe within the meaning of section 406 of the Federal Food, Drug, and Cosmetic Act (other than one which is (a) a pesticide chemical in or on a raw agricultural commodity; or (b) a food additive); or

(3) If it is, or it bears, or contains any food additive which is unsafe within the meaning of section 409 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 348); or

(4) If it is a raw agricultural commodity and it bears or contains a pesticide chemical which is unsafe within the meaning of section 408(a) of the Federal Food, Drug, and Cosmetic Act: PROVIDED, That where a pesticide chemical has been used in or on a raw agricultural commodity in conformity with an exemption granted or a tolerance prescribed under section 408 of the Federal Food, Drug, and Cosmetic Act and such raw agricultural commodity has been subjected to processing such as canning, cooking, freezing, dehydrating, or milling, the residue of such pesticide chemical remaining in or on such processed feed shall not be deemed unsafe if such residue in or on the raw agricultural commodity has been removed to the extent possible in good manufacturing practice and the concentration of such residue in the processed feed is not greater than the tolerance prescribed for the raw agricultural commodity unless the feeding of such processed feed will result or is likely to result in a pesticide residue in the edible product of the animal, which is unsafe within the meaning of section 408(a) of the Federal Food, Drug, and Cosmetic Act; or

(5) If it is, or it bears or contains any color additive which is unsafe within the meaning of section 706 of the Federal Food, Drug, and Cosmetic Act; or

(6) If it is, or it bears or contains any new animal drug that is unsafe within the meaning of section 512 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 360b); or

(7) If any valuable constituent has been in whole or in part omitted or abstracted therefrom or any less valuable substance substituted therefor; or

(((7))) (8) If its composition or quality falls below or differs from that which it is purported or is represented to possess by its labeling; or

(((8))) (9) If it contains a drug and the methods used in or the facilities or controls used for its manufacture, processing, or packaging do not conform to current good manufacturing practice rules adopted by the department to assure that the drug meets the requirements of this chapter as to safety and has the identity and strength and meets the quality and purity characteristics that it purports or is represented to possess. In adopting such rules, the department shall adopt the current good manufacturing practice regulations for type A medicated articles and type B and type C medicated feeds established under authority of the Federal Food, Drug, and Cosmetic Act, unless the department determines that they are not appropriate to the conditions that exist in this state; or

(10) If it contains viable, prohibited (primary) noxious weed seeds in excess of one per pound, or if it contains viable, restricted (secondary) noxious weed seeds in excess of twenty-five per pound. The primary and secondary noxious weed seeds shall be those as named pursuant to the provisions of chapter 15.49 RCW ((as enacted or hereafter amended)) and rules adopted thereunder.

Sec. 40. RCW 15.53.9022 and 1965 ex.s. c 31 s 8 are each amended to read as follows:

It shall be unlawful for any person to distribute misbranded feed. A commercial feed shall be deemed to be misbranded:

(1) If its labeling is false or misleading in any particular;

(2) If it is distributed under the name of another commercial feed;

(3) If it is not labeled as required in RCW 15.53.9016 and in ((regulations)) rules prescribed under this chapter;

(4) If it purports to be or is represented as a commercial feed ((ingredient)), or if it purports to contain or is represented as containing a commercial feed or feed ingredient, unless such commercial feed or feed ingredient conforms to the definition of identity, if any, prescribed by ((regulation)) rule of the department. In the adopting of such ((regulations)) rules the department may consider commonly accepted definitions such as those issued by nationally recognized associations or groups of feed control officials;

(5) If any word, statement, or other information required by or under authority of this chapter to appear on the label or labeling is not prominently placed thereon with such conspicuousness (as compared with other words, statements, designs, or devices, in the labeling) and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use;

(6) If its composition or quality falls below or differs from that which it is purported or is represented to possess by its labeling.

Sec. 41. RCW 15.53.9024 and 1965 ex.s. c 31 s 9 are each amended to read as follows:

(1) ((It shall be the duty of the department to sample, inspect, make analysis of, and test commercial feed distributed within this state at such time and place and to such an extent as it may deem necessary to determine whether such feeds are in compliance with the provisions of this chapter. The department is authorized to stop any commercial vehicle transporting feed on the public highways and direct it to the nearest scales approved by the department to check weights of feeds being delivered. The department is also authorized, upon presentation of proper identification, to enter any distributor's premises including any vehicle of transport at all reasonable times in order to have access to commercial feed and to records relating to their distribution. This includes the determining of the weight of packages and bulk shipments.

(2) The methods of sampling and analysis shall be those adopted by the department from officially recognized sources.

(3))) For the purpose of enforcement of this chapter, and in order to determine whether its provisions have been complied with, including whether an operation is subject to such provisions, inspectors duly designated by the director, upon presenting appropriate credentials, and a written notice to the owner, operator, or agent in charge, are authorized (a) to enter, during normal business hours, a factory, warehouse, or establishment within the state in which commercial feeds are manufactured, processed, packed, or held for distribution, or to enter a vehicle being used to transport or hold such feeds; and (b) to inspect at reasonable times and within reasonable limits and in a reasonable manner, such factory, warehouse, establishment, or vehicle and all pertinent equipment, finished and unfinished materials, containers, and labeling. The inspection may include the verification of only such records, and production and control procedures as may be necessary to determine compliance with the current good manufacturing practice regulations established under RCW 15.53.902(9) and rules adopted under good manufacturing practices for feeds to include nonmedicated feeds.

(2) A separate notice shall be given for each such inspection, but a notice is not required for each entry made during the period covered by the inspection. Each such inspection shall be commenced and completed with reasonable promptness. Upon completion of the inspection, the person in charge of the facility or vehicle shall be so notified.

(3) If the inspector or employee making such inspection of a factory, warehouse, or other establishment has obtained a sample in the course of the inspection, upon completion of the inspection and prior to leaving the premises, he or she shall give to the owner, operator, or agent in charge, a receipt describing the samples obtained.

(4) If the owner of a factory, warehouse, or establishment described in subsection (1) of this section, or his or her agent, refuses to admit the director or his or her agent to inspect in accordance with subsections (1) and (2) of this section, the director or his or her agent is authorized to obtain from any court of competent jurisdiction a warrant directing such owner or his or her agent to submit the premises described in the warrant to inspection.

(5) For the enforcement of this chapter, the director or his or her duly assigned agent is authorized to enter upon any public or private premises including any vehicle of transport during regular business hours to have access to, and to obtain samples, and to examine records relating to distribution of commercial feeds.

(6) Sampling and analysis shall be conducted in accordance with methods published by the association of official analytical chemists, or in accordance with other generally recognized methods.

(7) The results of all analyses of official samples shall be forwarded by the department to the person named on the label and to the purchaser, if known. If the inspection and analysis of an official sample indicates a commercial feed has been adulterated or misbranded and upon request within thirty days following the receipt of the analysis, the department shall furnish to the registrant or licensee a portion of the sample concerned. If referee analysis is requested, a portion of the official sample shall be furnished by the department and shall be sent directly to an independent lab agreed to by all parties.

(8) The department, in determining for administrative purposes whether a feed is deficient in any component, shall be guided solely by the official sample as defined in RCW 15.53.901(((13))) (20) and obtained and analyzed as provided for in this section.

(((4) When the inspection and analysis of an official sample has been made the results of analysis shall be forwarded by the department to the distributor and to the purchaser if known. Upon request and within thirty days the department shall furnish to the distributor a portion of the sample concerned.

(5))) (9) Analysis of an official sample by the department shall be accepted as prima facie evidence by any court of competent jurisdiction.

Sec. 42. RCW 15.53.9038 and 1982 c 177 s 5 are each amended to read as follows:

(1) When the department has reasonable cause to believe that any lot of commercial feed is adulterated or misbranded or is being distributed in violation of this chapter or any ((regulations)) rules hereunder it may issue and enforce a written or printed "withdrawal from distribution" order, or "stop sale" order, warning the distributor not to dispose of the lot of feed in any manner until written permission is given by the department ((or a court of competent jurisdiction)). The department shall release the lot of commercial feed so withdrawn when the provisions and ((regulations)) rules have been complied with. If compliance is not obtained within thirty days, parties may agree to an alternative disposition in writing or the department may ((begin)) institute condemnation proceedings ((for condemnation)) in a court of competent jurisdiction.

(2) Any lot of commercial feed not in compliance with the provisions and ((regulations)) rules is subject to seizure on complaint of the department to a court of competent jurisdiction in the area in which the commercial feed is located. If the court finds the commercial feed to be in violation of this chapter and orders the condemnation of the commercial feed, it shall be disposed of in any manner consistent with the quality of the commercial feed and the laws of the state. The court shall first give the claimant an opportunity to apply to the court for release of the commercial feed or for permission to process or relabel the commercial feed to bring it into compliance with this chapter.

Sec. 43. RCW 15.53.9042 and 1965 ex.s. c 31 s 18 are each amended to read as follows:

The department shall publish at least annually, in such forms as it may deem proper, information concerning the distribution of commercial feed, together with such data on their production and use as it may consider advisable, and a report of the results of the analyses of official samples of commercial feed within the state as compared with the analyses guaranteed ((in the registration and)) on the label or as calculated from the invoice data for customer-formula feeds: PROVIDED, That the information concerning production and use of commercial feeds shall not disclose the operations of any person.

Sec. 44. RCW 15.53.9053 and 1975 1st ex.s. c 257 s 12 are each amended to read as follows:

(((1) The following acts or parts of acts are each repealed:

(a) Section 10, chapter 31, Laws of 1965 ex. sess., section 33, chapter 240, Laws of 1967 and RCW 15.53.9026; and

(b) Sections 11 through 14, chapter 31, Laws of 1965 ex. sess. and RCW 15.53.9028 through 15.53.9034.

(2) The enactment of this act and the repeal of the sections listed in subsection (1) of this section shall not have the effect of terminating, or in any way modify any liability, civil or criminal, which shall already be in existence on July 1, 1975.

(3))) All licenses and registrations in effect on July 1, ((1975)) 1995, shall continue in full force and effect until their regular expiration date, December 31, ((1975)) 1995. No registration or license that has already been paid under the requirements of prior law shall be refunded.

NEW SECTION. Sec. 45. (1) The following acts or parts of acts are each repealed:

(a) Section 10, chapter 31, Laws of 1965 ex. sess., section 33, chapter 240, Laws of 1967 and RCW 15.53.9026; and

(b) Sections 11 through 14, chapter 31, Laws of 1965 ex. sess. and RCW 15.53.9028 through 15.53.9034.

(2) The enactment of chapter 257, Laws of 1975 1st ex. sess. and the repeal of the sections listed in subsection (1) of this section shall not have the effect of terminating, or in any way modify any liability, civil or criminal, which shall already be in existence on July 1, 1975.

NEW SECTION. Sec. 46. RCW 15.53.9036 and 1989 c 175 s 51, 1975 1st ex.s. c 257 s 6, & 1965 ex.s. c 31 s 15 are each repealed.

NEW SECTION. Sec. 47. RCW 15.53.905 and 15.53.9052 are each decodified.

Sec. 48. RCW 16.57.220 and 1994 c 46 s 19 are each amended to read as follows:

The director shall cause a charge to be made for all brand inspection of cattle and horses required under this chapter and rules adopted hereunder. Such charges shall be paid to the department by the owner or person in possession unless requested by the purchaser and then such brand inspection shall be paid by the purchaser requesting such brand inspection. Except as provided by rule, such inspection charges shall be due and payable at the time brand inspection is performed and shall be paid upon billing by the department and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides brand inspected until such charge is paid. The director in order to best utilize the services of the department in performing brand inspection may establish schedules by days and hours when a brand inspector will be on duty to perform brand inspection at established inspection points. The fees for brand inspection shall be not less than fifty cents nor more than seventy-five cents per head for cattle and not less than two dollars nor more than three dollars per head for horses as prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Fees for brand inspection of cattle and horses ((performed by the director)) at points other than those designated by the director or not in accord with the schedules established by the director shall be based on a fee schedule not to exceed actual net cost to the department of performing the brand inspection service. For the purpose of this section, actual costs shall mean fifteen dollars per hour and the current mileage rate set by the office of financial management.

Sec. 49. RCW 16.57.220 and 1994 c 46 s 25 and 1994 c 46 s 19 are each reenacted and amended to read as follows:

The director shall cause a charge to be made for all brand inspection of cattle and horses required under this chapter and rules adopted hereunder. Such charges shall be paid to the department by the owner or person in possession unless requested by the purchaser and then such brand inspection shall be paid by the purchaser requesting such brand inspection. Except as provided by rule, such inspection charges shall be due and payable at the time brand inspection is performed and shall be paid upon billing by the department and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides brand inspected until such charge is paid. The director in order to best utilize the services of the department in performing brand inspection may establish schedules by days and hours when a brand inspector will be on duty to perform brand inspection at established inspection points. The fees for brand inspection performed at inspection points according to schedules established by the director shall be sixty cents per head for cattle and not more than two dollars and forty cents per head for horses as prescribed by the director subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Fees for brand inspection of cattle and horses ((performed by the director)) at points other than those designated by the director or not in accord with the schedules established by the director shall be based on a fee schedule not to exceed actual net cost to the department of performing the brand inspection service. For the purpose of this section, actual costs shall mean fifteen dollars per hour and the current mileage rate set by the office of financial management.

Sec. 50. RCW 16.57.230 and 1959 c 54 s 23 are each amended to read as follows:

No person shall collect or make a charge for brand inspection of livestock unless there has been an actual brand inspection of such livestock ((by the director)).

Sec. 51. RCW 16.57.240 and 1991 c 110 s 4 are each amended to read as follows:

Any person purchasing, selling, holding for sale, trading, bartering, transferring title, slaughtering, handling, or transporting cattle shall keep a record on forms prescribed by the director. Such forms shall show the number, specie, brand or other method of identification of such cattle and any other necessary information required by the director. The original shall be kept for a period of three years or shall be furnished to the director upon demand or as prescribed by rule, one copy shall accompany the cattle to their destination and shall be subject to inspection at any time by the director or any peace officer or member of the state patrol: PROVIDED, That in the following instances only, cattle may be moved or transported within this state without being accompanied by ((a)) an official certificate of permit ((or an official)), brand inspection certificate ((or)), bill of sale, or self-inspection slip:

(1) When such cattle are moved or transported upon lands under the exclusive control of the person moving or transporting such cattle;

(2) When such cattle are being moved or transported for temporary grazing or feeding purposes and have the registered brand of the person having or transporting such cattle.

Sec. 52. RCW 16.57.280 and 1991 c 110 s 5 are each amended to read as follows:

No person shall knowingly have unlawful possession of any livestock marked with a recorded brand or tattoo of another person unless:

(1) Such livestock lawfully bears the person's own healed recorded brand((,)); or

(2) Such livestock is accompanied by a certificate of permit from the owner of the recorded brand or tattoo((,)); or

(3) Such livestock is accompanied by a brand inspection certificate((,)); or

(4) Such cattle is accompanied by a self-inspection slip; or

(5) Such livestock is accompanied by a bill of sale from the previous owner or other satisfactory proof of ownership.

A violation of this section constitutes a gross misdemeanor punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021.

Sec. 53. RCW 16.57.290 and 1989 c 286 s 23 are each amended to read as follows:

All unbranded cattle and horses and those bearing brands not recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit, and those bearing brands recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit signed by the owner of the brand when presented for inspection by the director, shall be sold by the director or the director's representative, unless other satisfactory proof of ownership is presented showing the person presenting them to be lawfully in possession. Upon the sale of such cattle or horses, the director or the director's representative shall give the purchasers a bill of sale therefor, or, if theft is suspected, the cattle or horses may be impounded by the director or the director's representative.

Sec. 54. RCW 16.65.030 and 1994 c 46 s 12 are each amended to read as follows:

(1) On and after June 10, 1959, no person shall operate a public livestock market without first having obtained a license from the director. Application for such license ((or renewal thereof)) shall be in writing on forms prescribed by the director, and shall include the following:

(a) A nonrefundable original license application fee of fifteen hundred dollars.

(b) A legal description of the property upon which the public livestock market shall be located.

(((b))) (c) A complete description and blueprints or plans of the public livestock market physical plant, yards, pens, and all facilities the applicant proposes to use in the operation of such public livestock market.

(((c))) (d) A detailed statement showing all the assets and liabilities of the applicant which must reflect a sufficient net worth to construct or operate a public livestock market.

(((d))) (e) The schedule of rates and charges the applicant proposes to impose on the owners of livestock for services rendered in the operation of such livestock market.

(((e))) (f) The weekly or monthly sales day or days on which the applicant proposes to operate his or her public livestock market sales.

(((f))) (g) Projected source and quantity of livestock, by county, anticipated to be handled.

(((g))) (h) Projected income and expense statements for the first year's operation.

(((h))) (i) Facts upon which are based the conclusion that the trade area and the livestock industry will benefit because of the proposed market.

(((i))) (j) Such other information as the director may reasonably require.

(2) The director shall, after public hearing as provided by chapter 34.05 RCW, grant or deny an application for original license for a public livestock market after considering evidence and testimony relating to all of the requirements of this section and giving reasonable consideration at the same hearing to:

(a) Benefits to the livestock industry to be derived from the establishment and operation of the public livestock market proposed in the application; and

(b) The present market services elsewhere available to the trade area proposed to be served.

(3) ((Such application shall be accompanied by a license fee based on the average gross sales volume per official sales day of that market:

(a) Markets with an average gross sales volume up to and including ten thousand dollars, a fee of no less than one hundred dollars or more than one hundred fifty dollars;

(b) Markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars, a fee of no less than two hundred dollars or more than three hundred fifty dollars; and

(c) Markets with an average gross sales volume over fifty thousand dollars, a fee of no less than three hundred dollars or more than four hundred fifty dollars.

The fees for public livestock market licensees shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

(4) Any applicant operating more than one public livestock market shall make a separate application for a license to operate each such public livestock market, and each such application shall be accompanied by the appropriate license fee.

(5) Upon the approval of the application by the director and compliance with the provisions of this chapter, the applicant shall be issued a license or renewal thereof. Any license issued under the provisions of this chapter shall only be valid at location and for the sales day or days for which the license was issued)) Applications for renewal under RCW 16.65.040 shall include all information under subsection (1) of this section, except subsection (1)(a) of this section.

NEW SECTION. Sec. 55. 1994 c 46 s 21 is repealed.

NEW SECTION. Sec. 56. A new section is added to chapter 16.65 RCW to read as follows:

(1) Upon the approval of the application by the director and compliance with the provisions of this chapter, the applicant shall be issued a license or renewal thereof. Any license issued under the provisions of this chapter shall only be valid at location and for the sales day or days for which the license was issued.

(2) The license fee shall be based on the average gross sales volume per official sales day of that market:

(a) Markets with an average gross sales volume up to and including ten thousand dollars, a fee of no less than one hundred dollars or more than one hundred fifty dollars;

(c) Markets with an average gross sales volume over fifty thousand dollars, a fee of no less than three hundred dollars or more than four hundred fifty dollars.

The fees for public livestock market licenses shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

(3) Any applicant operating more than one public livestock market shall make a separate application for a license to operate each such public livestock market, and each such application shall be accompanied by the appropriate application fee.

NEW SECTION. Sec. 57. A new section is added to chapter 16.65 RCW to read as follows:

(2) The license fee shall be based on the average gross sales volume per official sales day of that market:

(a) Markets with an average gross sales volume up to and including ten thousand dollars, a one hundred twenty dollar fee;

(b) Markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars, a two hundred forty dollar fee; and

The fees for public market licenses shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

NEW SECTION. Sec. 58. (1) Sections 49 and 57 of this act shall take effect July 1, 1997.

(2) Sections 48 and 56 of this act shall expire July 1, 1997.

Sec. 59. RCW 15.44.033 and 1967 c 240 s 30 are each amended to read as follows:

Producer members of the commission shall be nominated and elected by producers within the district that such producer members represent in the year in which a commission member's term shall expire. Such producer members receiving the largest number of the votes cast in the respective districts which they represent shall be elected. The election shall be by secret mail ballot and under the supervision of the director.

Nomination for candidates to be elected to the commission shall be conducted by mail by the director. Such nomination forms shall be mailed by the director to each producer in a district where a vacancy is about to occur. Such mailing shall be made on or after April 1st, but not later than April 10th of the year the commission vacancy will occur. The nomination form shall provide for the name of the producer being nominated and the names of five producers nominating such nominee. The producers nominating such nominee shall affix their signatures to such form and shall further attest that the said nominee meets the qualifications for a producer member to serve on the commission and that he or she will be willing to serve on the commission if elected.

All nominations as provided for herein shall be returned to the director by April 30th, and the director shall not accept any nomination postmarked later than midnight April 30th, nor place the candidate thereon on the election ballot.

Ballots for electing members to the commission will be mailed by the director to all eligible producers no later than May 15th, in districts where elections are to be held and such ballots to be valid shall be returned postmarked no later than May 31st of the year mailed, to the director in Olympia.

((Whenever producers fail to file any nominating petitions, the director shall nominate at least two, but not more than three, qualified producers and place their names on the secret mail election ballot as nominees: PROVIDED, That any qualified producer may be elected by a write-in ballot, even though said producer's name was not placed in nomination for such election.)) If only one person is nominated for a position on the commission, the director shall determine whether the person possesses the qualifications required by statute for the position and, if the director determines that the person possesses such qualifications, the director shall declare that the person has been duly elected.

Sec. 60. RCW 43.88.240 and 1981 c 225 s 3 are each amended to read as follows:

Unless otherwise directed in the commodity commission enabling statute, this chapter shall not apply to the Washington state ((apple advertising commission, the Washington state fruit commission, the Washington tree fruit research commission, the Washington state beef commission, the Washington state dairy products commission, or any agricultural)) commodity commissions created either under separate statute or under the provisions of chapters 15.65 and 15.66 RCW: PROVIDED, That all such commissions shall submit estimates and such other necessary information as may be required for the development of the budget and shall also be subject to audit by the appropriate state auditing agency or officer.

NEW SECTION. Sec. 61. A new section is added to chapter 43.23 RCW to read as follows:

For purposes of this chapter:

(1) "Department" means department of agriculture;

(2) "Person" means any individual, partnership, association, corporation, or organized group of persons whether or not incorporated.

NEW SECTION. Sec. 62. A new section is added to chapter 43.23 RCW to read as follows:

Except as otherwise specified by law, the director or his or her designee has the authority to retain collection agencies licensed under chapter 19.16 RCW for the purposes of collecting unpaid penalties, assessments, and other debts owed to the department.

The director or his or her designee may also collect as costs moneys paid to the collection agency as charges, or in the case of credit cards or financial instruments, such as checks returned for nonpayment, moneys paid to financial institutions.

NEW SECTION. Sec. 63. A new section is added to chapter 43.23 RCW to read as follows:

Except as otherwise specified by law, any due and payable assessment levied under the authority of the director or his or her designee in such specified amount as may be determined by the department shall constitute a personal debt of every person so assessed or who otherwise owes the same, and the same shall be due and payable to the department when payment is called for by the department. In the event any person fails to pay the department the full amount of such assessment or such other sum on or before the date due, the department may, and is hereby authorized to, add to such unpaid assessment or other sum an amount not exceeding ten percent of the same to defray the cost of enforcing the collecting of the same. In the event of failure of such person or persons to pay any such due and payable assessment or other sum, the department may bring a civil action against such person or persons in a court of competent jurisdiction for the collections thereof, including all costs and reasonable attorneys' fees together with the above specified ten percent, and such action shall be tried and judgment rendered as in any other cause of action for debt due and payable.

NEW SECTION. Sec. 64. A new section is added to chapter 43.23 RCW to read as follows:

Except as otherwise specified by law, the department is authorized to charge interest at the rate authorized under RCW 43.17.240 for all unpaid balances for moneys owed to the department.

NEW SECTION. Sec. 65. A new section is added to chapter 43.23 RCW to read as follows:

Except as otherwise specified by law, in the event a check or negotiable instrument as defined by RCW 62A.3-104 is dishonored by nonacceptance or nonpayment, the department is entitled to collect a reasonable handling fee for each instrument. If the check or instrument is not paid within fifteen days and proper notice is sent, the department is authorized to recover the assessment, the handling fee, and any other charges allowed by RCW 62A.3-515.

Sec. 66. RCW 15.58.070 and 1994 c 46 s 1 are each amended to read as follows:

(1) Except as provided in subsection (((2))) (4) of this section, any person desiring to register a pesticide with the department shall pay to the director an annual registration fee for each pesticide registered by the department for such person. The registration fee for the registration of pesticides for any one person during a calendar year shall be: One hundred five dollars for each of the first twenty-five pesticides registered; one hundred dollars for each of the twenty-sixth through one-hundredth pesticides registered; seventy-five dollars for each of the one hundred first through one hundred fiftieth pesticides registered; and fifty dollars for each additional pesticide registered. In addition, the department may establish by rule a registration fee not to exceed ten dollars for each registered product labeled and intended for home and garden use only.

(2) The revenue generated by the pesticide registration fees shall be deposited in the agricultural local fund to support the activities of the pesticide program within the department. The revenue generated by the home and garden use only fees shall be deposited in the agriculture—local fund, to be used to assist in funding activities of the pesticide incident reporting and tracking review panel.

(3) All pesticide registrations expire on December 31st of each year. A registrant may elect to register a pesticide for a two-year period by prepaying for a second year at the time of registration.

(((2))) (4) A person desiring to register a label where a special local need exists shall pay to the director a nonrefundable application fee of two hundred dollars upon submission of the registration request. In addition, a person desiring to renew an approved special local need registration shall pay to the director an annual registration fee of two hundred dollars for each special local needs label registered by the department for such person. The revenue generated by the special local needs application fees and the special local needs renewal fees shall be deposited in the agricultural local fund to be used to assist in funding the department's special local needs registration activities. All special local needs registrations expire on December 31st of each year.

(((3))) (5) Any registration approved by the director and in effect on the 31st day of December for which a renewal application has been made and the proper fee paid, continues in full force and effect until the director notifies the applicant that the registration has been renewed, or otherwise denied in accord with the provision of RCW 15.58.110.

NEW SECTION. Sec. 67. A new section is added to chapter 15.58 RCW to read as follows:

All license fees collected under this chapter shall be paid to the director for use exclusively in the enforcement of this chapter.

NEW SECTION. Sec. 68. RCW 15.58.410 and 1971 ex.s. c 190 s 41 are each repealed.

Sec. 69. RCW 16.24.130 and 1975 1st ex.s. c 7 s 16 are each amended to read as follows:

The brand inspector shall cause to be published once in a newspaper published in the county where the animal was found, a notice of the impounding.

The notice shall state:

(1) A description of the animal, including brand, tattoo or other identifying characteristics;

(2) When and where found;

(3) Where impounded; and

(4) That if unclaimed, the animal will be sold at a public livestock market sale or other public sale, and the date of such sale: PROVIDED, That if no newspaper shall be published in such county, copies of the notice shall be posted at four commonly frequented places therein.

If the animal is marked with a brand or tattoo which is registered with the director of agriculture, the brand inspector, on or before the date of publication or posting, shall send a copy of the notice to the owner of record by registered mail.

Sec. 70. RCW 16.24.150 and 1975 1st ex.s. c 7 s 17 are each amended to read as follows:

If no person shall claim the animal within ten days after the date of publication or posting of the notice, it shall be sold at the next succeeding public livestock market sale to be held at the sales yard where impounded, provided that in the director's discretion the department of agriculture may otherwise cause the animal to be sold at public sale.

The legislature intends this to be a clarification of existing law; therefore, this section shall have retroactive effect as of December 1, 1994.

Sec. 71. RCW 15.76.140 and 1965 ex.s. c 32 s 1 are each amended to read as follows:

(1) Before any agricultural fair may become eligible for state allocations it must have conducted two successful consecutive annual fairs immediately preceding application for such allocations, and have its application therefor approved by the director.

(2) Beginning January 1,1994, and until June 30, 1997, the director may waive this requirement for an agricultural fair that through itself or its predecessor sponsoring organization has successfully operated at least two years as a county fair, has received a funding allocation as a county fair under this act for those two years, and that reorganizes as an area fair.

NEW SECTION. Sec. 72. The legislature finds that in Washington, the loss of state lands from productive use due to infestation by noxious weeds is a major public concern.

It is the intent of the legislature that serious and fundamental policy direction be given to state agencies to:

(1) Ensure that state lands set an example of excellence in noxious weed control and eradication on state lands;

(2) Halt the spread of noxious weeds from state to private lands;

(3) Recognize that state agencies are ultimately responsible for noxious weed control on state land, regardless of type, timing, or amount of use;

(4) Recognize that the public is not well served by the spread of noxious weeds on state lands, in part, because of the decrease in wildlife habitat and loss of land productivity.

The legislature further finds that biological control agents represent one of the only cost-effective control measures for existing, widespread noxious weed infestations. Members of the genus Centaurea, commonly referred to as knapweeds, currently infest and destroy the productivity of hundreds of thousands of acres in Washington.

NEW SECTION. Sec. 73. The state noxious weed control board shall develop a study to determine the cost of controlling weeds on state-owned or managed lands, included along state-owned rights of way. The board may conduct the study, or may contract with either public or private agencies to conduct and complete the study. The departments of natural resources, transportation, and fish and wildlife, and the parks and recreation commission shall cooperate with the weed board or the contractor in the study.

As part of the study, the state noxious weed control board shall identify those weed species that are practical to control and should be controlled. The board shall also identify the impacts and estimate the costs of not controlling these weeds. The board may exclude from the study those weeds that, due to high cost or impracticality, cannot be controlled on private lands. The board shall develop a prioritized list of weeds that are practical to control and that should be controlled on state-owned and managed lands.

NEW SECTION. Sec. 74. The state noxious weed control board shall study alternative funding mechanisms for Washington's noxious weed control program. The departments of natural resources, transportation, and fish and wildlife, and the parks and recreation commission shall cooperate with the weed board in the study. As part of the study, the state noxious weed control board shall identify the impacts and costs of each alternative. Funding alternatives shall address weed control needs of private citizens, local governments, county weed boards, state agencies, the state noxious weed control board, and federal agencies.

NEW SECTION. Sec. 75. A new section is added to chapter 17.10 RCW to read as follows:

All state agencies shall control noxious weeds on lands they own, lease, or otherwise control. Agencies shall develop plans to control noxious weeds in accordance with standards in this chapter. All state agencies' lands must comply with this chapter, regardless of noxious weed control efforts on adjacent lands. County noxious weed control boards shall assist landowners to meet and exceed the standards on state lands.

NEW SECTION. Sec. 76. (1) The standing committee on agriculture and agricultural trade and development of the senate and the standing committee on agriculture and ecology of the house of representatives shall jointly study land leasing practices of state agencies in regard to weed control and report their findings to the legislature in 1996.

(2) State agencies shall list noxious weed control projects in their respective jurisdictions in order of priority, along with their plans to control these infestations, and shall submit the lists and plans to the legislative committees identified in subsection (1) of this section before the beginning of the 1996 regular session of the legislature.

Sec. 77. RCW 17.10.240 and 1987 c 438 s 31 are each amended to read as follows:

The activated county noxious weed control board of each county shall annually submit a budget to the county legislative authority for the operating cost of the county's weed program for the ensuing fiscal year: PROVIDED, That if the board finds the budget approved by the legislative authority is insufficient for an effective county noxious weed control program it shall petition the county legislative authority to hold a hearing as provided in RCW 17.10.890. Control of weeds is a special benefit to the lands within any such section. Funding for the budget shall be derived from ((either or both)) any or all of the following:

(1) The county legislative authority may, in lieu of a tax, levy an assessment against the land for this purpose. Prior to the levying of an assessment the county noxious weed control board shall hold a public hearing at which it shall gather information to serve as a basis for classification and shall then classify the lands into suitable classifications, including but not limited to dry lands, range lands, irrigated lands, nonuse lands, forest lands, or federal lands. The board shall develop and forward to the county legislative authority, as a proposed level of assessment for each class, such an amount as shall seem just. The assessment rate shall be either uniform per acre in its respective class or a flat rate per parcel rate plus a uniform rate per acre: PROVIDED, That if no special benefits should be found to accrue to a class of land, a zero assessment may be levied. The legislative authority, upon receipt of the proposed levels of assessment from the board, after a hearing, shall accept, modify, or refer back to the board for its reconsideration all or any portion of the proposed levels of assessment. The findings by the county legislative authority of such special benefits, when so declared by resolution and spread upon the minutes of said authority shall be conclusive as to whether or not the same constitutes a special benefit to the lands within the section. The amount of such assessment shall constitute a lien against the property. The county legislative authority may by resolution or ordinance require that notice of the lien be sent to each owner of property for which the assessment has not been paid by the date it was due and that each such lien created shall be collected by the treasurer in the same manner as delinquent real property tax, if within thirty days from the date the owner is sent notice of the lien, including the amount thereof, the lien remains unpaid and an appeal has not been made pursuant to RCW 17.10.180. Liens treated as delinquent taxes shall bear interest at the rate of twelve percent per annum and such interest shall accrue as of the date notice of the lien is sent to the owner: PROVIDED FURTHER, That any collections for such lien shall not be considered as tax; or

(2) The county legislative authority may appropriate money from the county general fund necessary for the administration of the county noxious weed control program. In addition the county legislative authority may make emergency appropriations as it deems necessary for the implementation of this chapter.

(3) Forest lands used solely for the planting, growing, or harvesting of trees and which are typified, except during a single period of five years following clear-cut logging, by canopies so dense as to prohibit growth of an understory may be subject to an annual noxious weed assessment levied by a county legislative authority that shall not exceed one-tenth of the weighted average per acre noxious weed assessment levied on all other lands in unincorporated areas within the county that are subject to the weed assessment. This assessment shall be computed in accordance with the formula in subsection (4) of this section.

(4) The calculation of the "weighted average per acre noxious weed assessment" shall be a ratio expressed as follows: (a) The numerator shall be the total amount of funds estimated to be collected from the per acre assessment on all lands except (i) forest lands as identified in subsection (3) of this section, (ii) lands exempt from the noxious weed assessment, and (iii) lands located in an incorporated area. (b) The denominator shall be the total acreage from which funds in (a) of this subsection are collected. For lands of less than one acre in size, the denominator calculation may be based on the following assumptions: (i) Unimproved lands shall be calculated as being one-half acre in size on the average, and (ii) improved lands shall be calculated as being one-third acre in size on the average. The county legislative authority may choose to calculate the denominator for lands of less than one acre in size using other assumptions about average parcel size based on local information.

(5) For those counties that levy a per parcel assessment to help fund noxious weed control programs, the per parcel assessment on forest lands as defined in subsection (3) of this section shall not exceed one-tenth of the per parcel assessment on nonforest lands.

NEW SECTION. Sec. 78. The sum of thirty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund for the biennium ending June 30, 1997, to Washington State University for the use of the cooperative extension service in the selection, testing, and production of biological control agents for knapweed species on the state noxious weed list adopted under RCW 17.10.080, with the intent of improving field availability of these agents.

NEW SECTION. Sec. 79. The sum of twenty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund for the biennium ending June 30, 1997, to the state noxious weed control board to study, or contract for a study, on the cost of controlling weeds on state-owned or managed lands.

NEW SECTION. Sec. 80. Sections 8 through 19 of this act shall constitute a new chapter in Title 69 RCW.

NEW SECTION. Sec. 81. Sections 1 through 47, 50 through 53, and 59 through 68 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 June 30, 1995.

NEW SECTION. Sec. 82. Sections 69, 70, and 72 through 79 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 immediately."

On page 1, line 1 of the title, after "marketing;" strike the remainder of the title and insert "amending RCW 15.36.012, 15.36.071, 15.36.171, 15.36.221, 15.36.411, 15.36.441, 69.07.100, 69.07.085, 69.25.020, 69.25.050, 69.25.150, 69.25.170, 69.25.250, 69.25.310, 69.25.320, 15.53.901, 15.53.9012, 15.53.9014, 15.53.9016, 15.53.9018, 15.53.902, 15.53.9022, 15.53.9024, 15.53.9038, 15.53.9042, 15.53.9053, 16.57.220, 16.57.230, 16.57.240, 16.57.280, 16.57.290, 16.65.030, 15.44.033, 43.88.240, 15.58.070, 16.24.130, 16.24.150, 15.76.140, and 17.10.240; reenacting and amending RCW 69.07.040 and 16.57.220; reenacting RCW 15.36.431; adding a new section to chapter 69.04 RCW; adding a new section to chapter 15.53 RCW; adding new sections to chapter 16.65 RCW; adding new sections to chapter 43.23 RCW; adding a new section to chapter 15.58 RCW; adding a new section to chapter 17.10 RCW; adding a new chapter to Title 69 RCW; creating new sections; decodifying RCW 15.53.905 and 15.53.9052; repealing RCW 69.08.010, 69.08.020, 69.08.030, 69.08.040, 69.08.045, 69.08.050, 69.08.060, 69.08.070, 69.08.080, 69.08.090, 69.25.330, 69.25.340, 15.53.9036, and 15.58.410; repealing 1994 c 46 s 21; prescribing penalties; making appropriations; providing effective dates; providing an expiration date; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Rasmussen, the Senate concurred in the House amendments to Substitute Senate Bill No. 5315.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5315, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5315, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

Excused: Senators Anderson, C. and Hargrove - 2.

SUBSTITUTE SENATE BILL NO. 5315, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 20, 1995

MR. PRESIDENT:

Under suspension of the rules, SUBSTITUTE SENATE BILL NO. 5374, was returned to second reading for the purpose of amendment. The following amendments were adopted and the bill passed the House as amended:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. This subchapter applies to limited liability partnerships. All other provisions of this chapter, not in conflict with this subchapter, also apply.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this subchapter.

(1) "Limited liability partnership" or "partnership" means a partnership formed pursuant to an agreement governed by the laws of this state, registered under section 6 of this act.

(2) "Foreign limited liability partnership" means a limited liability partnership formed pursuant to an agreement governed by the laws of another jurisdiction.

NEW SECTION. Sec. 3. (1) To become and to continue as a limited liability partnership, a partnership shall file with the secretary of state an application stating the name of the partnership; the address of its principal office; if the partnership's principal office is not located in this state, the address of a registered office and the name and address of a registered agent for service of process in this state which the partnership will be required to maintain; the number of partners; a brief statement of the business in which the partnership engages; any other matters that the partnership determines to include; and that the partnership thereby applies for status as a limited liability partnership.

(2) The application shall be executed by a majority in interest of the partners or by one or more partners authorized to execute an application.

(3) The application shall be accompanied by a fee of one hundred seventy-five dollars for each partnership.

(4) The secretary of state shall register as a limited liability partnership any partnership that submits a completed application with the required fee.

(5) A partnership registered under this section shall pay an annual fee, in each year following the year in which its application is filed, on a date and in an amount specified by the secretary of state. The fee must be accompanied by a notice, on a form provided by the secretary of state, of the number of partners currently in the partnership and of any material changes in the information contained in the partnership's application for registration.

(6) Registration is effective immediately after the date an application is filed, and remains effective until: (a) It is voluntarily withdrawn by filing with the secretary of state a written withdrawal notice executed by a majority in interest of the partners or by one or more partners authorized to execute a withdrawal notice; or (b) thirty days after receipt by the partnership of a notice from the secretary of state, which notice shall be sent by certified mail, return receipt requested, that the partnership has failed to make timely payment of the annual fee specified in subsection (5) of this section, unless the fee is paid within such a thirty-day period.

(7) The status of a partnership as a limited liability partnership, and the liability of the partners thereof, shall not be affected by: (a) Errors in the information stated in an application under subsection (1) of this section or a notice under subsection (5) of this section; or (b) changes after the filing of such an application or notice in the information stated in the application or notice.

(8) The secretary of state may provide forms for the application under subsection (1) of this section or a notice under subsection (5) of this section.

NEW SECTION. Sec. 4. The name of a limited liability partnership shall contain the words "limited liability partnership" or the abbreviation "L.L.P." or "LLP" as the last words or letters of its name.

NEW SECTION. Sec. 5. A person or group of persons licensed or otherwise legally authorized to render professional services, as defined in RCW 18.100.030, within this state may organize and become a member or members of a limited liability partnership under the provisions of this chapter for the purposes of rendering professional service. Nothing in this section prohibits a person duly licensed or otherwise legally authorized to render professional services in any jurisdiction other than this state from becoming a member of a limited liability partnership organized for the purpose of rendering the same professional services. Nothing in this section prohibits a limited liability partnership from rendering professional services outside this state through individuals who are not duly licensed or otherwise legally authorized to render such professional services within this state.

NEW SECTION. Sec. 6. (1) A limited liability partnership formed and existing under this chapter, may conduct its business, carry on its operations, and have and exercise the powers granted by this chapter in any state, territory, district, or possession of the United States or in any foreign country.

(2) It is the intent of the legislature that the legal existence of a limited liability partnership formed and existing under this chapter be recognized outside the boundaries of this state and that the laws of this state governing a limited liability partnership transacting business outside this state be granted the protection of full faith and credit under the Constitution of the United States.

(3) The internal affairs of a partnership, including a limited liability partnership formed and existing under this chapter, including the liability of partners for debts, obligations, and liabilities of or chargeable to the partnership, shall be subject to and governed by the laws of this state.

(4) Subject to any statutes for the regulation and control of specific types of business, a foreign limited liability partnership, formed and existing under the laws of another jurisdiction, may do business in this state provided it registers with the secretary of state under this chapter in the same manner as a limited liability partnership.

(5) It is the policy of this state that the internal affairs of a foreign limited liability partnership, including the liability of partners for debts, obligations, and liabilities of or chargeable to partnerships, shall be subject to and governed by the laws of such other jurisdiction. However, a foreign limited liability partnership formed and existing under the laws of another jurisdiction is subject to section 7 of this act if it renders professional services, as defined in RCW 18.100.030, in this state.

NEW SECTION. Sec. 7. (1) Except as provided in subsection (2) of this section, all partners are liable:

(a) Jointly and severally for everything chargeable to the partnership under RCW 25.04.130 and 25.04.140; and

(b) Jointly for all other debts and obligations of the partnership; but any partner may enter into a separate obligation to perform a partnership contract;

(i) In no event shall a trustee or personal representative, a fiduciary, acting as a partner have personal liability except as provided in RCW 11.98.110 (2) and (4);

(ii) Any such liability under this section shall be satisfied first from the partnership assets and second from the trust or estate; and

(iii) If a fiduciary is liable, the fiduciary is entitled to indemnification first from the partnership assets and second from the trust or estate.

(2) Subject to subsections (3) and (5) of this section, a partner in a limited liability partnership is not liable directly or indirectly, including by way of indemnification, contribution, assessment, or otherwise for debts, obligations, and liabilities of or chargeable to the partnership, whether in tort, contract or otherwise, arising from omissions, negligence, wrongful acts, misconduct, or malpractice committed in the course of the partnership business by another partner or an employee, agent, or representative of the partnership.

(3) Subsection (2) of this section shall not affect the liability of a partner in a limited liability partnership for his or her own omissions, negligence, wrongful acts, misconduct, or malpractice or that of any person under his or her direct supervision and control.

(4) A partner in a limited liability partnership is not a proper party to a proceeding by or against a limited liability partnership, the object of which is to recover damages or enforce the obligations arising from omissions, negligence, wrongful acts, misconduct, or malpractice described in subsection (2) of this section, unless such partner is personally liable under subsection (3) or (5) of this section.

(5) If the partners of a limited liability partnership or foreign limited liability partnership are required to be licensed to provide professional services, as defined in RCW 18.100.030, and the partnership fails to maintain for itself and for its members practicing in this state a policy of professional liability insurance, bond, deposit in trust, bank escrow of cash, bank certificates of deposit, United States Treasury obligations, bank letter of credit, insurance company bond, or other evidence of financial responsibility of a kind designated by rule by the state insurance commissioner and in the amount of at least one million dollars or such greater amount, not to exceed three million dollars, as the state insurance commissioner may establish by rule for a licensed profession or for any specialty within a profession, taking into account the nature and size of the businesses within the profession or specialty, then the partners shall be personally liable to the extent that, had such insurance, bond, deposit in trust, bank escrow of cash, bank certificates of deposit, United States Treasury obligations, bank letter of credit, insurance company bond, or other evidence of responsibility been maintained, it would have covered the liability in question.

NEW SECTION. Sec. 8. The rights and duties of the partners in relation to the partnership shall be determined, subject to any agreement between them, by the following rules:

(1) Each partner shall be repaid his or her contributions, whether by way of capital or advances to the partnership property and share equally in the profits and surplus remaining after all liabilities, including those to partners, are satisfied; and except as provided in section 7(2) of this act, each partner must contribute toward the losses, whether of capital or otherwise, sustained by the partnership according to his or her share in the profits.

(2) The partnership must indemnify every partner in respect of payments made and personal liabilities reasonably incurred by him or her in the ordinary and proper conduct of its business, or for the preservation of its business or property.

(3) A partner, who in aid of the partnership makes any payment or advance beyond the amount of capital which he or she agreed to contribute, shall be paid interest from the date of the payment or advance.

(4) A partner shall receive interest on the capital contributed by him or her only from the date when repayment should be made.

(5) All partners have equal rights in the management and conduct of the partnership business.

(6) No partner is entitled to remuneration for acting in the partnership business, except that a surviving partner is entitled to reasonable compensation for his or her services in winding up the partnership affairs.

(7) No person can become a member of a partnership without the consent of all the partners.

(8) Any difference arising as to ordinary matters connected with the partnership business may be decided by a majority of the partners; but no act in contravention of any agreement between the partners may be done rightfully without the consent of all the partners.

NEW SECTION. Sec. 9. Where a dissolution is caused by the act, death, or bankruptcy of a partner, each partner is liable to his or her copartners for his or her share of any liability created by any partner acting for the partnership as if the partnership had not been dissolved unless:

(1) The dissolution being by act of any partner, the partner acting for the partnership had knowledge of the dissolution; or

(2) The dissolution being by the death or bankruptcy of a partner, the partner acting for the partnership had knowledge or notice of the death or bankruptcy; or

(3) The liability is for a debt, obligation, or liability for which the partner is not liable as provided in section 7(2) of this act.

NEW SECTION. Sec. 10. (1) The dissolution of the partnership does not of itself discharge the existing liability of any partner.

(2) A partner is discharged from any existing liability upon dissolution of the partnership by an agreement to that effect between himself or herself, the partnership creditor and the person or partnership continuing the business; and such agreement may be inferred from the course of dealing between the creditor having knowledge of the dissolution and the person or partnership continuing the business.

(3) Where a person agrees to assume the existing obligations of a dissolved partnership, the partners whose obligations have been assumed shall be discharged from any liability to any creditor of the partnership who, knowing of the agreement, consents to a material alteration in the nature or time of payment of such obligations.

(4) The individual property of a deceased partner shall be liable for those obligations of the partnership incurred while he or she was a partner and for which he or she was liable under section 7 of this act, but subject to the prior payment of his or her separate debts.

NEW SECTION. Sec. 11. In settling accounts between the partners after dissolution, the following rules shall be observed, subject to any agreement to the contrary:

(1) The assets of the partnership are:

(a) The partnership property;

(b) The contributions of the partners specified in subsection (4) of this section.

(2) The liabilities of the partnership shall rank in order of payment, as follows:

(a) Those owing to creditors other than partners;

(b) Those owing to partners other than for capital and profits;

(d) Those owing to partners in respect of profits.

(3) The assets shall be applied in the order of their declaration in subsection (1) of this section to the satisfaction of the liabilities.

(4) Except as provided in section 7(2) of this act: (a) The partners shall contribute, as provided by section 8(1) of this act the amount necessary to satisfy the liabilities; and (b) if any, but not all, of the partners are insolvent, or, not being subject to process, refuse to contribute, the other partners shall contribute their share of the liabilities, and, in the relative proportions in which they share the profits, the additional amount necessary to pay the liabilities.

(5) An assignee for the benefit of creditors or any person appointed by the court shall have the right to enforce the contribution specified in subsection (4) of this section.

(6) Any partner or his or her legal representative shall have the right to enforce the contributions specified in subsection (4) of this section, to the extent of the amount which he or she has paid in excess of his or her share of the liability.

(7) The individual property of a deceased partner shall be liable for the contributions specified in subsection (4) of this section.

(8) When partnership property and the individual properties of the partners are in possession of a court for distribution, partnership creditors shall have priority on partnership property and separate creditors on individual property, saving the rights of lien or secured creditors as heretofore.

(9) Where a partner has become bankrupt or his or her estate is insolvent the claims against his or her separate property shall rank in the following order:

(a) Those owing to separate creditors;

(b) Those owing to partnership creditors;

NEW SECTION. Sec. 12. Sections 1 through 11 of this act are each added to chapter 25.04 RCW and codified with the subchapter heading of "limited liability partnerships."

Sec. 13. RCW 25.15.005 and 1994 c 211 s 101 are each amended to read as follows:

As used in this chapter, unless the context otherwise requires:

(1) "Certificate of formation" means the certificate referred to in RCW 25.15.070, and the certificate as amended.

(2) "Event of dissociation" means an event that causes a person to cease to be a member as provided in RCW 25.15.130.

(3) "Foreign limited liability company" means an entity that is formed under:

(a) ((An unincorporated enterprise;

(b) Organized under the)) The limited liability company laws of ((a)) any state other than ((the laws of)) this state, or ((under the))

(b) The laws of any foreign country((;

(c) Organized)) that is: (A) An unincorporated association, (B) formed under a statute pursuant to which an ((enterprise)) association may be formed that affords to each of its members limited liability with respect to the liabilities of the entity((;)), and (((d) Is)) (C) not required, in order to transact business or conduct affairs in this state, to be registered or ((organized under any statute of this state other than this chapter)) qualified under Title 23B or 24 RCW, or any other chapter of the Revised Code of Washington authorizing the formation of a domestic entity and the registration or qualification in this state of similar entities formed under the laws of a jurisdiction other than this state.

(4) "Limited liability company" and "domestic limited liability company" means a limited liability company organized and existing under this chapter.

(5) "Limited liability company agreement" means any written agreement as to the affairs of a limited liability company and the conduct of its business which is binding upon all of the members.

(6) "Limited liability company interest" means a member's share of the profits and losses of a limited liability company and a member's right to receive distributions of the limited liability company's assets.

(7) "Manager" or "managers" means, with respect to a limited liability company that has set forth in its certificate of formation that it is to be managed by managers, the person, or persons designated in accordance with RCW 25.15.150(2).

(8) "Member" means a person who has been admitted to a limited liability company as a member as provided in RCW 25.15.115 and who has not been dissociated from the limited liability company.

(9) "Person" means a natural person, partnership (whether general or limited and whether domestic or foreign), limited liability company, foreign limited liability company, trust, estate, association, corporation, custodian, nominee, or any other individual or entity in its own or any representative capacity.

(10) "Professional limited liability company" means a limited liability company which is organized for the purpose of rendering professional service and whose certificate of formation sets forth that it is a professional limited liability company subject to RCW 25.15.045.

(11) "Professional service" means ((any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license or other legal authorization, including, but not by way of limitation, certified public accountants, architects, veterinarians, attorneys at law, and health professions regulated under chapter 18.130 RCW)) the same as defined under RCW 18.100.030.

(12) "State" means the District of Columbia or the Commonwealth of Puerto Rico or any state, territory, possession, or other jurisdiction of the United States other than the state of Washington.

Sec. 14. RCW 25.15.045 and 1994 c 211 s 109 are each amended to read as follows:

(1) A person or group of persons licensed or otherwise legally authorized to render professional services within this state may organize and become a member or members of a professional limited liability company under the provisions of this chapter for the purposes of rendering professional service. A "professional limited liability company" is subject to all the provisions of chapter 18.100 RCW that apply to a professional corporation, and its managers, members, agents, and employees shall be subject to all the provisions of chapter 18.100 RCW that apply to the directors, officers, shareholders, agents, or employees of a professional corporation, except as provided otherwise in this section. Nothing in this section prohibits a person duly licensed or otherwise legally authorized to render professional services in any jurisdiction other than this state from becoming a member of a professional limited liability company organized for the purpose of rendering the same professional services. Nothing in this section prohibits a professional limited liability company from rendering professional services outside this state through individuals who are not duly licensed or otherwise legally authorized to render such professional services within this state. Notwithstanding RCW 18.100.065, persons engaged in a profession and otherwise meeting the requirements of this chapter may operate under this chapter as a professional limited liability company so long as each member personally engaged in the practice of the profession in this state is duly licensed or otherwise legally authorized to practice the profession in this state and:

(a) At least one manager of the company is duly licensed or otherwise legally authorized to practice the profession in this state; ((and)) or

(b) Each ((resident manager or)) member in charge of an office of the company in this state ((and each resident manager or member personally engaged in this state in the practice of the profession)) is duly licensed or otherwise legally authorized to practice the profession in this state.

(2) If the company's members are required to be licensed to practice such profession, and the company fails to maintain for itself and for its members practicing in this state a policy of professional liability insurance, bond, or other evidence of financial responsibility of a kind designated by rule by the state insurance commissioner and in the amount of at least one million dollars or such greater amount as the state insurance commissioner may establish by rule for a licensed profession or for any specialty within a profession, taking into account the nature and size of the business, then the company's members shall be personally liable to the extent that, had such insurance, bond, or other evidence of responsibility been maintained, it would have covered the liability in question.

(3) For purposes of applying the provisions of chapter 18.100 RCW to a professional limited liability company, the terms "director" or "officer" shall mean manager, "shareholder" shall mean member, "corporation" shall mean professional limited liability company, "articles of incorporation" shall mean certificate of formation, "shares" or "capital stock" shall mean a limited liability company interest, "incorporator" shall mean the person who executes the certificate of formation, and "bylaws" shall mean the limited liability company agreement.

(4) The name of a professional limited liability company must contain either the words "Professional Limited Liability Company," or the words "Professional Limited Liability" and the abbreviation "Co.," or the abbreviation "P.L.L.C." provided that the name of a professional limited liability company organized to render dental services shall contain the full names or surnames of all members and no other word than "chartered" or the words "professional services" or the abbreviation "P.L.L.C."

(5) Subject to the provisions in article VII of this chapter, the following may be a member of a professional limited liability company and may be the transferee of the interest of an ineligible person or deceased member of the professional limited liability company:

(a) A professional corporation, if its shareholders, directors, and its officers other than the secretary and the treasurer, are licensed or otherwise legally authorized to render the same specific professional services as the professional limited liability company; and

(b) Another professional limited liability company, if the managers and members of both professional limited liability companies are licensed or otherwise legally authorized to render the same specific professional services.

Sec. 15. RCW 25.15.060 and 1994 c 211 s 112 are each amended to read as follows:

Members of a limited liability company shall be personally liable for any act, debt, obligation, or liability of the limited liability company to the extent that shareholders of a Washington business corporation would be liable in analogous circumstances. In this regard, the court may consider the factors and policies set forth in established case law with regard to piercing the corporate veil, except that the failure to hold meetings of members or managers or the failure to observe formalities pertaining to the calling or conduct of meetings shall not be considered a factor tending to establish that the members have personal liability for any act, debt, obligation, or liability of the limited liability company if the certificate of formation and limited liability company agreement do not expressly require the holding of meetings of members or managers.

Sec. 16. RCW 25.15.085 and 1994 c 211 s 204 are each amended to read as follows:

(1) Each document required by this chapter to be filed in the office of the secretary of state shall be executed in the following manner:

(a) Each original certificate of formation must be signed by the person or persons forming the limited liability company;

(b) A reservation of name may be signed by any person;

(d) A registration of name must be signed by any member or manager of the foreign limited liability company;

(e) A certificate of amendment or restatement must be signed by at least one manager, or by a member if management of the limited liability company is reserved to the members;

(f) A certificate of cancellation must be signed by the person or persons authorized to wind up the limited liability company's affairs pursuant to RCW 25.15.295(1);

(g) If a surviving domestic limited liability company is filing articles of merger, the articles of merger must be signed by at least one manager, or by a member if management of the limited liability company is reserved to the members, or if the articles of merger are being filed by a surviving foreign limited liability company, limited partnership, or corporation, the articles of merger must be signed by a person authorized by such foreign limited liability company, limited partnership, or corporation; and

(h) A foreign limited liability company's application for registration as a foreign limited liability company doing business within the state must be signed by any member or manager of the foreign limited liability company.

(2) Any person may sign a certificate, articles of merger, ((or)) limited liability company agreement, or other document by an attorney-in-fact or other person acting in a valid representative capacity, so long as each document signed in such manner identifies the capacity in which the signator signed.

(3) The person executing the document shall sign it and state beneath or opposite the signature the name of the person and capacity in which the person signs. The document must be typewritten or printed, and must meet such legibility or other standards as may be prescribed by the secretary of state.

(4) The execution of a certificate or articles of merger by any person constitutes an affirmation under the penalties of perjury that the facts stated therein are true.

Sec. 17. RCW 25.15.130 and 1994 c 211 s 304 are each amended to read as follows:

(1) A person ceases to be a member of a limited liability company upon the occurrence of one or more of the following events:

(a) The member dies or withdraws by voluntary act from the limited liability company as provided in subsection (3) of this section;

(b) The member ceases to be a member as provided in RCW 25.15.250(2)(b) following an assignment of all the member's limited liability company interest;

(d) Unless otherwise provided in the limited liability company agreement, or with the written consent of all other members at the time, the member (i) makes a general assignment for the benefit of creditors; (ii) files a voluntary petition in bankruptcy; (iii) becomes the subject of an order for relief in bankruptcy proceedings; (iv) files a petition or answer seeking for himself or herself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation; (v) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against him or her in any proceeding of the nature described in (d) (i) through (iv) of this subsection; or (vi) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the member or of all or any substantial part of the member's properties;

(e) Unless otherwise provided in the limited liability company agreement, or with the consent of all other members at the time, one hundred twenty days after the commencement of any proceeding against the member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation, the proceeding has not been dismissed, or if within ninety days after the appointment without his or her consent or acquiescence of a trustee, receiver, or liquidator of the member or of all or any substantial part of the member's properties, the appointment is not vacated or stayed, or within ninety days after the expiration of any stay, the appointment is not vacated;

(f) Unless otherwise provided in the limited liability company agreement, or with written consent of all other members at the time, in the case of a member who is an individual, the entry of an order by a court of competent jurisdiction adjudicating the member ((incompetent to manage his or her person or estate)) incapacitated, as used and defined under chapter 11.88 RCW, as to his or her estate;

(g) Unless otherwise provided in the limited liability company agreement, or with written consent of all other members at the time, in the case of a member that is another limited liability company, the dissolution and commencement of winding up of such limited liability company;

(h) Unless otherwise provided in the limited liability company agreement, or with written consent of all other members at the time, in the case of a member that is a corporation, the filing of articles of dissolution or the equivalent for the corporation or the administrative dissolution of the corporation and the lapse of any period authorized for application for reinstatement; or

(i) Unless otherwise provided in the limited liability company agreement, or with written consent of all other members at the time, in the case of a member that is a limited partnership, the dissolution and commencement of winding up of such limited partnership.

(2) The limited liability company agreement may provide for other events the occurrence of which result in a person ceasing to be a member of the limited liability company.

(3) ((Unless otherwise provided in the limited liability company agreement,)) A member may withdraw from a limited liability company at ((any time by giving thirty days' written notice to the other members)) the time or upon the happening of events specified in and in accordance with the limited liability company agreement. If the limited liability company agreement does not specify the time or the events upon the happening of which a member may withdraw, a member may not withdraw prior to the time for the dissolution and commencement of winding up of the limited liability company, without the written consent of all other members at the time.

Sec. 18. RCW 25.15.220 and 1994 c 211 s 602 are each amended to read as follows:

Unless otherwise provided in the limited liability company agreement, upon the occurrence of an event of dissociation under RCW 25.15.130 which does not cause dissolution (other than an event of dissociation specified in RCW 25.15.130(((2))) (1)(b) where the dissociating member's assignee is admitted as a member), a dissociating member (or the member's assignee) is entitled to receive any distribution to which ((the member (or assignee) is entitled under the limited liability company agreement and, if not otherwise provided in a limited liability company agreement, the member (or the member's assignee) is entitled to receive, within a reasonable time after dissociation, the fair value of the member's limited liability company interest as of the date of the dissociation based upon the member's right to share in distributions from the limited liability company)) an assignee would be entitled.

Sec. 19. RCW 25.15.250 and 1994 c 211 s 702 are each amended to read as follows:

(1) A limited liability company interest is assignable in whole or in part except as provided in a limited liability company agreement. The assignee of a member's limited liability company interest shall have no right to participate in the management of the business and affairs of a limited liability company except:

(a) Upon the approval of all of the members of the limited liability company other than the member assigning his or her limited liability company interest; or

(b) As provided in a limited liability company agreement.

(2) Unless otherwise provided in a limited liability company agreement:

(a) An assignment entitles the assignee to share in such profits and losses, to receive such distributions, and to receive such allocation of income, gain, loss, deduction, or credit or similar item to which the assignor was entitled, to the extent assigned; and

(b) A member ceases to be a member and to have the power to exercise any rights or powers of a member upon assignment of all of his or her limited liability company interest.

(3) For the purposes of this chapter, unless otherwise provided in a limited liability company agreement:

(a) The pledge of, or granting of a security interest, lien, or other encumbrance in or against, any or all of the limited liability company interest of a member shall not be deemed to be an assignment of the member's limited liability company interest, but a foreclosure or execution sale or exercise of similar rights with respect to all of a member's limited liability company interest shall be deemed to be an assignment of the member's limited liability company interest to the transferee pursuant to such foreclosure or execution sale or exercise of similar rights;

(b) ((The death of a member who is an individual shall be deemed to be an assignment of that member's entire limited liability company interest to his or her personal representative;

(c))) Where a limited liability company interest is held in a trust or estate, or is held by a trustee, personal representative, or other fiduciary, the transfer of the limited liability company interest, whether to a beneficiary of the trust or estate or otherwise, shall be deemed to be an assignment of such limited liability company interest, but the mere substitution or replacement of the trustee, personal representative, or other fiduciary shall not constitute an assignment of any portion of such limited liability company interest.

(4) Unless otherwise provided in a limited liability company agreement and except to the extent assumed by agreement, until an assignee of a limited liability company interest becomes a member, the assignee shall have no liability as a member solely as a result of the assignment.

Sec. 20. RCW 25.15.280 and 1994 c 211 s 803 are each amended to read as follows:

The secretary of state may commence a proceeding under RCW 25.15.285 to administratively dissolve a limited liability company if:

(1) The limited liability company does not pay any license fees or penalties, imposed by this chapter, when they become due;

(2) The limited liability company does not deliver its completed initial report or annual report to the secretary of state when it is due;

(3) The limited liability company is without a registered agent or registered office in this state for sixty days or more; or

(((2))) (4) The limited liability company does not notify the secretary of state within sixty days that its registered agent or registered office has been changed, that its registered agent has resigned, or that its registered office has been discontinued.

Sec. 21. RCW 25.15.310 and 1994 c 211 s 901 are each amended to read as follows:

(1) Subject to the Constitution of the state of Washington:

(a) The laws of the state, territory, possession, or other jurisdiction or country under which a foreign limited liability company is organized govern its organization and internal affairs and the liability of its members and managers; and

(b) A foreign limited liability company may not be denied registration by reason of any difference between those laws and the laws of this state.

(2) A foreign limited liability company is subject to RCW 25.15.030 and, notwithstanding subsection (1)(a) of this section, a foreign limited liability company rendering professional services in this state is also subject to RCW 25.15.045(2).

(3) A foreign limited liability company and its members and managers doing business in this state thereby submit to personal jurisdiction of the courts of this state and are subject to RCW 25.15.125.

Sec. 22. RCW 24.06.045 and 1994 c 211 s 1307 are each amended to read as follows:

The corporate name:

(1) Shall not contain any word or phrase which indicates or implies that it is organized for any purpose other than one or more of the purposes contained in its articles of incorporation.

(2) Shall not be the same as, or deceptively similar to, the name of any corporation existing under any act of this state, or any foreign corporation authorized to transact business or conduct affairs in this state under any act of this state, or the name of any limited liability ((corporation)) company organized or authorized to transact business under any act of this state, the name of a domestic or foreign limited partnership on file with the secretary, or a corporate name reserved or registered as permitted by the laws of this state. This subsection shall not apply if the applicant files with the secretary of state either of the following: (a) The written consent of the other corporation, limited liability company, limited partnership, or holder of a reserved name to use the same or deceptively similar name and one or more words are added or deleted to make the name distinguishable from the other name as determined by the secretary of state, or (b) a certified copy of a final decree of a court of competent jurisdiction establishing the prior right of the applicant to the use of the name in this state.

(3) Shall be transliterated into letters of the English alphabet if it is not in English.

(4) The name of any corporation formed under this section shall not include nor end with "incorporated", "company", or "corporation" or any abbreviation thereof, but may use "club", "league", "association", "services", "committee", "fund", "society", "foundation"," . . . . . ., a nonprofit mutual corporation", or any name of like import.

NEW SECTION. Sec. 23. 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 1, 1995."

On page 1, line 1 of the title, after "partnerships;" strike the remainder of the title and insert "amending RCW 25.15.005, 25.15.045, 25.15.060, 25.15.085, 25.15.130, 25.15.220, 25.15.250, 25.15.280, 25.15.310, and 24.06.045; adding new sections to chapter 25.04 RCW; providing an effective date; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Smith, the Senate concurred in the House amendments to Substitute Senate Bill No. 5374.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5374, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5374, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 2; Excused, 1.

Voting yea: Senators Anderson, A., Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

Absent: Senators Bauer and Pelz - 2.

Excused: Senator Anderson, C. - 1.

SUBSTITUTE SENATE BILL NO. 5374, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 18, 1995

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5386 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 70.47.060 and 1994 c 309 s 5 are each amended to read as follows:

The administrator has the following powers and duties:

(1) To design and from time to time revise a schedule of covered basic health care services, including physician services, inpatient and outpatient hospital services, prescription drugs and medications, and other services that may be necessary for basic health care ((, which)). In addition, the administrator may offer as basic health plan services chemical dependency services, mental health services and organ transplant services; however, no one service or any combination of these three services shall increase the actuarial value of the basic health plan benefits by more than five percent excluding inflation, as determined by the office of financial management. All subsidized and nonsubsidized enrollees in any participating managed health care system under the Washington basic health plan shall be entitled to receive in return for premium payments to the plan. The schedule of services shall emphasize proven preventive and primary health care and shall include all services necessary for prenatal, postnatal, and well-child care. However, with respect to coverage for groups of subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that such services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider. The schedule of services shall also include a separate schedule of basic health care services for children, eighteen years of age and younger, for those subsidized or nonsubsidized enrollees who choose to secure basic coverage through the plan only for their dependent children. In designing and revising the schedule of services, the administrator shall consider the guidelines for assessing health services under the mandated benefits act of 1984, RCW 48.42.080, and such other factors as the administrator deems appropriate. ((On and after July 1, 1995, the uniform benefits package adopted and from time to time revised by the Washington health services commission pursuant to RCW 43.72.130 shall be implemented by the administrator as the schedule of covered basic health care services.))

However, with respect to coverage for subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that the services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider.

(2)(a) To design and implement a structure of periodic premiums due the administrator from subsidized enrollees that is based upon gross family income, giving appropriate consideration to family size and the ages of all family members. The enrollment of children shall not require the enrollment of their parent or parents who are eligible for the plan. The structure of periodic premiums shall be applied to subsidized enrollees entering the plan as individuals pursuant to subsection (9) of this section and to the share of the cost of the plan due from subsidized enrollees entering the plan as employees pursuant to subsection (10) of this section.

(b) To determine the periodic premiums due the administrator from nonsubsidized enrollees. Premiums due from nonsubsidized enrollees shall be in an amount equal to the cost charged by the managed health care system provider to the state for the plan plus the administrative cost of providing the plan to those enrollees and the premium tax under RCW 48.14.0201.

(c) An employer or other financial sponsor may, with the prior approval of the administrator, pay the premium, rate, or any other amount on behalf of a subsidized or nonsubsidized enrollee, by arrangement with the enrollee and through a mechanism acceptable to the administrator, but in no case shall the payment made on behalf of the enrollee exceed the total premiums due from the enrollee.

(d) To develop, as an offering by all health carriers providing coverage identical to the basic health plan, a model plan benefits package with uniformity in enrollee cost-sharing requirements.

(3) To design and implement a structure of ((copayments)) enrollee cost sharing due a managed health care system from subsidized and nonsubsidized enrollees. The structure shall discourage inappropriate enrollee utilization of health care services, and may utilize copayments, deductibles, and other cost-sharing mechanisms, but shall not be so costly to enrollees as to constitute a barrier to appropriate utilization of necessary health care services. ((On and after July 1, 1995, the administrator shall endeavor to make the copayments structure of the plan consistent with enrollee point of service cost-sharing levels adopted by the Washington health services commission, giving consideration to funding available to the plan.))

(4) To limit enrollment of persons who qualify for subsidies so as to prevent an overexpenditure of appropriations for such purposes. Whenever the administrator finds that there is danger of such an overexpenditure, the administrator shall close enrollment until the administrator finds the danger no longer exists.

(5) To limit the payment of subsidies to subsidized enrollees, as defined in RCW 70.47.020. The level of subsidy provided to persons who qualify may be based on the lowest cost plans, as defined by the administrator.

(6) To adopt a schedule for the orderly development of the delivery of services and availability of the plan to residents of the state, subject to the limitations contained in RCW 70.47.080 or any act appropriating funds for the plan.

(7) To solicit and accept applications from managed health care systems, as defined in this chapter, for inclusion as eligible basic health care providers under the plan. The administrator shall endeavor to assure that covered basic health care services are available to any enrollee of the plan from among a selection of two or more participating managed health care systems. In adopting any rules or procedures applicable to managed health care systems and in its dealings with such systems, the administrator shall consider and make suitable allowance for the need for health care services and the differences in local availability of health care resources, along with other resources, within and among the several areas of the state. Contracts with participating managed health care systems shall ensure that basic health plan enrollees who become eligible for medical assistance may, at their option, continue to receive services from their existing providers within the managed health care system if such providers have entered into provider agreements with the department of social and health services.

(8) To receive periodic premiums from or on behalf of subsidized and nonsubsidized enrollees, deposit them in the basic health plan operating account, keep records of enrollee status, and authorize periodic payments to managed health care systems on the basis of the number of enrollees participating in the respective managed health care systems.

(9) To accept applications from individuals residing in areas served by the plan, on behalf of themselves and their spouses and dependent children, for enrollment in the Washington basic health plan as subsidized or nonsubsidized enrollees, to establish appropriate minimum-enrollment periods for enrollees as may be necessary, and to determine, upon application and ((at least semiannually thereafter)) on a reasonable schedule defined by the authority, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums. No subsidy may be paid with respect to any enrollee whose current gross family income exceeds twice the federal poverty level or, subject to RCW 70.47.110, who is a recipient of medical assistance or medical care services under chapter 74.09 RCW. If, as a result of an eligibility review, the administrator determines that a subsidized enrollee's income exceeds twice the federal poverty level and that the enrollee knowingly failed to inform the plan of such increase in income, the administrator may bill the enrollee for the subsidy paid on the enrollee's behalf during the period of time that the enrollee's income exceeded twice the federal poverty level. If a number of enrollees drop their enrollment for no apparent good cause, the administrator may establish appropriate rules or requirements that are applicable to such individuals before they will be allowed to re-enroll in the plan.

(10) To accept applications from business owners on behalf of themselves and their employees, spouses, and dependent children, as subsidized or nonsubsidized enrollees, who reside in an area served by the plan. The administrator may require all or the substantial majority of the eligible employees of such businesses to enroll in the plan and establish those procedures necessary to facilitate the orderly enrollment of groups in the plan and into a managed health care system. The administrator ((shall)) may require that a business owner pay at least ((fifty percent of the nonsubsidized)) an amount equal to what the employee pays after the state pays its portion of the subsidized premium cost of the plan on behalf of each employee enrolled in the plan. Enrollment is limited to those not eligible for medicare who wish to enroll in the plan and choose to obtain the basic health care coverage and services from a managed care system participating in the plan. The administrator shall adjust the amount determined to be due on behalf of or from all such enrollees whenever the amount negotiated by the administrator with the participating managed health care system or systems is modified or the administrative cost of providing the plan to such enrollees changes.

(11) To determine the rate to be paid to each participating managed health care system in return for the provision of covered basic health care services to enrollees in the system. Although the schedule of covered basic health care services will be the same for similar enrollees, the rates negotiated with participating managed health care systems may vary among the systems. In negotiating rates with participating systems, the administrator shall consider the characteristics of the populations served by the respective systems, economic circumstances of the local area, the need to conserve the resources of the basic health plan trust account, and other factors the administrator finds relevant.

(12) To monitor the provision of covered services to enrollees by participating managed health care systems in order to assure enrollee access to good quality basic health care, to require periodic data reports concerning the utilization of health care services rendered to enrollees in order to provide adequate information for evaluation, and to inspect the books and records of participating managed health care systems to assure compliance with the purposes of this chapter. In requiring reports from participating managed health care systems, including data on services rendered enrollees, the administrator shall endeavor to minimize costs, both to the managed health care systems and to the plan. The administrator shall coordinate any such reporting requirements with other state agencies, such as the insurance commissioner and the department of health, to minimize duplication of effort.

(13) To evaluate the effects this chapter has on private employer-based health care coverage and to take appropriate measures consistent with state and federal statutes that will discourage the reduction of such coverage in the state.

(14) To develop a program of proven preventive health measures and to integrate it into the plan wherever possible and consistent with this chapter.

(15) To provide, consistent with available funding, assistance for rural residents, underserved populations, and persons of color.

Sec. 2. RCW 70.47.020 and 1994 c 309 s 4 are each amended to read as follows:

As used in this chapter:

(1) "Washington basic health plan" or "plan" means the system of enrollment and payment on a prepaid capitated basis for basic health care services, administered by the plan administrator through participating managed health care systems, created by this chapter.

(2) "Administrator" means the Washington basic health plan administrator, who also holds the position of administrator of the Washington state health care authority.

(3) "Managed health care system" means any health care organization, including health care providers, insurers, health care service contractors, health maintenance organizations, or any combination thereof, that provides directly or by contract basic health care services, as defined by the administrator and rendered by duly licensed providers, on a prepaid capitated basis to a defined patient population enrolled in the plan and in the managed health care system. ((On and after July 1, 1995, "managed health care system" means a certified health plan, as defined in RCW 43.72.010.))

(4) "Subsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children, not eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, whose gross family income at the time of enrollment does not exceed twice the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services, ((who the administrator determines shall not have, or shall not have voluntarily relinquished health insurance more comprehensive than that offered by the plan as of the effective date of enrollment,)) and who chooses to obtain basic health care coverage from a particular managed health care system in return for periodic payments to the plan.

(5) "Nonsubsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children, not eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, ((who the administrator determines shall not have, or shall not have voluntarily relinquished health insurance more comprehensive than that offered by the plan as of the effective date of enrollment,)) and who chooses to obtain basic health care coverage from a particular managed health care system, and who pays or on whose behalf is paid the full costs for participation in the plan, without any subsidy from the plan.

(6) "Subsidy" means the difference between the amount of periodic payment the administrator makes to a managed health care system on behalf of a subsidized enrollee plus the administrative cost to the plan of providing the plan to that subsidized enrollee, and the amount determined to be the subsidized enrollee's responsibility under RCW 70.47.060(2).

(7) "Premium" means a periodic payment, based upon gross family income which an individual, their employer or another financial sponsor makes to the plan as consideration for enrollment in the plan as a subsidized enrollee or a nonsubsidized enrollee.

(8) "Rate" means the per capita amount, negotiated by the administrator with and paid to a participating managed health care system, that is based upon the enrollment of subsidized and nonsubsidized enrollees in the plan and in that system.

NEW SECTION. Sec. 3. A new section is added to chapter 70.47 RCW to read as follows:

(1) The legislature recognizes that every individual possesses a fundamental right to exercise their religious beliefs and conscience. The legislature further recognizes that in developing public policy, conflicting religious and moral beliefs must be respected. Therefore, while recognizing the right of conscientious objection to participating in specific health services, the state shall also recognize the right of individuals enrolled with the basic health plan to receive the full range of services covered under the basic health plan.

(2)(a) No individual health care provider, religiously sponsored health carrier, or health care facility may be required by law or contract in any circumstances to participate in the provision of or payment for a specific service if they object to so doing for reason of conscience or religion. No person may be discriminated against in employment or professional privileges because of such objection.

(b) The provisions of this section are not intended to result in an enrollee being denied timely access to any service included in the basic health plan. Each health carrier shall:

(i) Provide written notice to enrollees, upon enrollment with the plan, listing services that the carrier refuses to cover for reason of conscience or religion;

(ii) Provide written information describing how an enrollee may directly access services in an expeditious manner; and

(iii) Ensure that enrollees refused services under this section have prompt access to the information developed pursuant to (b)(ii) of this subsection.

(c) The administrator shall establish a mechanism or mechanisms to recognize the right to exercise conscience while ensuring enrollees timely access to services and to assure prompt payment to service providers.

(3)(a) No individual or organization with a religious or moral tenet opposed to a specific service may be required to purchase coverage for that service or services if they object to doing so for reason of conscience or religion.

(b) The provisions of this section shall not result in an enrollee being denied coverage of, and timely access to, any service or services excluded from their benefits package as a result of their employer's or another individual's exercise of the conscience clause in (a) of this subsection.

(c) The administrator shall define the process through which health carriers may offer the basic health plan to individuals and organizations identified in (a) and (b) of this subsection in accordance with the provisions of subsection (2)(c) of this section.

(4) Nothing in this section requires the health care authority, health carriers, health care facilities, or health care providers to provide any basic health plan service without payment of appropriate premium share or enrollee cost sharing.

NEW SECTION. Sec. 4. RCW 70.47.065 and 1993 c 494 s 6 are each repealed.

NEW SECTION. Sec. 5. 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 1, 1995."

Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

Senator Moyer moved that the Senate concur in the House amendment to Engrossed Substitute Senate Bill No. 5386.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Moyer that the Senate do concur in the House amendment to Engrossed Substitute Senate Bill No. 5386.

The motion by Senator Moyer carried and the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5386.

MOTIONS

On motion of Senator Sheldon, Senator Franklin was excused.

On motion of Senator Kohl, Senator Pelz 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. 5386, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5386, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 4; Absent, 0; Excused, 3.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Finkbeiner, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 42.

Voting nay: Senators Fairley, Fraser, Prentice and Wojahn - 4.

Excused: Senators Anderson, C., Franklin and Pelz - 3.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5386, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5574 with the following amendment(s):

On page 1, after line 3, strike all of Section 1 and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that in the early 1900's and up through the 1930's, counties took possession of a number of forest land parcels as a result of tax delinquencies. In many cases, the timber had already been harvested from these lands prior to the forfeiture of the property to the counties. Since that time, the department of natural resources has reforested and managed these lands in conjunction with state trust lands. Given changes in forest practices, fluctuation in income from the forest board lands, and questions about forest board land management by the department of natural resources, the legislature finds that a legislative study of forest board lands is appropriate.

There is created a joint select committee on county forest board lands. The committee shall be comprised of eight members of the legislature, who shall be appointed to the committee as follows: The president of the senate shall appoint two members, one from each caucus, to represent the senate natural resources committee, and two members, one from each caucus, to represent the senate ways and means committee; the speaker of the house of representatives shall appoint two members, one from each caucus, to represent the house natural resources committee, and two members, one from each caucus, to represent the house capital budget committee. In conducting this study, the committee shall seek input from the department of natural resources, counties with forest board transfer lands, and Grays Harbor county, which manages its own county forest lands. Staff support for the committee shall be provided by senate committee services and the house office of program research."

On page 2, after line 26, strike section 4, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Spanel, the Senate refuses to concur in the House amendments to Second Substitute Senate Bill No. 5574 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 12, 1995

MR. PRESIDENT:

The House has passed SUBSTIUTE SENATE BILL NO. 5325 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"PART 1 - TUITION AND FEES

NEW SECTION. Sec. 101. A new section is added to chapter 28B.15 RCW to read as follows:

The legislature finds that Washington faces a challenge of increasingly daunting proportions as the state attempts to preserve enrollment opportunities for current and future students at the state's colleges and universities. The need to expand access is virtually unquestioned. The state's economy is undergoing a fundamental restructuring from one that was heavily dependent on natural resource-based industries to one that is more dependent on emerging technologies, international trade, and entrepreneurial enterprises. Washington residents need additional education and work force training opportunities to be competitive in this new world. Yet, in the twenty years from the middle 1970's to the middle 1990's, higher education's share of the state budget has declined from about twenty-one percent to about ten and one-half percent of the state general fund. During that same era, enrollments in Washington's public baccalaureate institutions have been strictly controlled, and enrollments in community colleges declined for a time. Currently, Washington ranks second to last nationally in the percentage of its citizens who have an opportunity to attend a public baccalaureate college or university in the state. As the children of the baby boom generation mature, high school graduates will increase fifty percent above the numbers of students graduating in 1995. The members of the baby boom echo generation will begin applying to college in about 1997. Their numbers are expected to peak in the year 2010. Failure to provide postsecondary education and training opportunities for the members of the baby boom echo generation may well restrict their future earning power and constrict the state's opportunity to compete in a technologically complex world.

The legislature intends to preserve enrollment opportunities for current students and create additional opportunities for future students by restructuring the state's tuition and financial aid systems, working with institutions to decrease the amount of time it takes students to obtain a degree, and removing state laws that impede institutional effectiveness.

NEW SECTION. Sec. 102. TUITION FEES--UNIVERSITY OF WASHINGTON AND WASHINGTON STATE UNIVERSITY--BUILDING FEES. Total tuition fees for full-time students at the University of Washington and Washington State University for other than the summer term shall be as follows:

(1) Base tuition. Except as provided in subsection (2) of this section, base tuition fees shall be calculated as a percent of the per student undergraduate or graduate educational costs at the state universities as set forth in (a) through (f) of this subsection. However, if educational costs decrease, or increase at a rate less than four percent over the previous year's educational costs, base tuition fees shall increase a minimum of four percent each year above the tuition fees rate charged the previous year. If educational costs increase at a rate greater than six percent over the previous academic year's educational costs, base tuition fees shall increase a maximum of six percent each academic year above the tuition fees rate charged the previous year. The following calculations shall be used to determine base tuition under this section:

(a) For resident undergraduate students and all other resident students not in first professional, graduate, or law programs: Forty-one percent of undergraduate educational costs;

(b) For nonresident undergraduate students and all other nonresident students not in graduate or law programs: One hundred twenty-three percent of undergraduate educational costs;

(d) For nonresident graduate and law students: Seventy-four percent of graduate educational costs;

(e) For resident first professional students: One hundred sixty-seven percent of the tuition fees charged to resident graduate and law students; and

(f) For nonresident first professional students: One hundred sixty-seven percent of the tuition fees charged to nonresident graduate and law students.

(2) For the 1995-96 and 1996-97 academic years, base tuition fees for resident undergraduate students and all other resident students not enrolled in first professional, graduate, or law programs shall increase five percent each year above the rate charged during the previous academic year. For the 1995-96 and 1996-97 academic years, base tuition fees for all other students shall increase five percent each year above the rate charged during the previous academic year to students in the same tuition categories. During the 1997-98 through 2000-01 academic years, a research university participating in the fiscal autonomy program under section 301 of this act may increase base tuition fees for any student category up to a maximum of fifteen percent each year.

(3) Surcharge tuition. State universities may annually assess a surcharge in addition to base tuition fees. The amount of the surcharge assessed in any year shall not be included in base tuition fees in the next academic year. During the 1995-96 and 1996-97 academic years, the maximum percentage surcharge levied on base tuition for students in any tuition category shall be fifteen percent. Beginning with the 1997-98 academic year, the maximum percentage surcharge levied on base tuition shall be as follows:

(a) For full-time resident undergraduate students and other full-time resident students not in first professional, graduate, or law programs, a maximum of ten percent;

(b) For full-time resident first professional, graduate, and law students, a maximum of twenty percent in each tuition category; and

(4) Building fees. The building fees for each academic year shall be based on the percent, as set forth in (a) through (f) of this subsection, of tuition fees specified in subsections (1) and (2) of this section:

(a) Resident undergraduate students and all other resident students not in graduate study or law programs or enrolled in programs leading to a first professional degree: Five percent;

(b) Nonresident undergraduate students and all other nonresident students not in graduate study or law programs or enrolled in programs leading to a first professional degree: Four and one-half of one percent;

(d) Nonresident graduate and law students not enrolled in a first professional degree program: Three and one-half of one percent;

(e) Resident first professional students: Five percent; and

(f) Nonresident first professional students: Three percent.

(5) As used in this section, "tuition category" means the separate tuition fees categories established in subsection (1) (a) through (f) of this section.

NEW SECTION. Sec. 103. TUITION FEES--REGIONAL UNIVERSITIES--BUILDING FEES. Tuition fees charged to all full-time students at the regional universities and The Evergreen State College for other than the summer term shall be as follows:

(1) Base tuition. Except as provided in subsection (2) of this section, base tuition fees shall be calculated as a percent of the per student undergraduate or graduate educational costs at the regional universities as set forth in (a) through (d) of this subsection. However, if educational costs decrease, or increase at a rate less than four percent over the previous year's educational costs, base tuition fees shall increase a minimum of four percent each year above the tuition fees rate charged the previous year. If educational costs increase at a rate greater than six percent over the previous academic year's educational costs, base tuition fees shall increase a maximum of six percent each academic year above the tuition fees rate charged the previous year. The following calculations shall be used to determine base tuition under this section:

(a) Resident undergraduate students and all other resident students not in graduate study programs: Thirty-one and one-half of one percent of undergraduate educational costs;

(b) Nonresident undergraduate students and all other nonresident students not in graduate study programs: One hundred twenty-three percent of undergraduate educational costs;

(d) Nonresident graduate students: Ninety-two percent of graduate educational costs.

(2) For the 1995-96 and 1996-97 academic years, base tuition fees for resident undergraduate students and all other resident students not enrolled in graduate programs shall increase five percent each year above the rate charged during the previous academic year. For the 1995-96 and 1996-97 academic years, base tuition fees for all other students shall increase five percent each year above the rate charged during the previous academic year to students in the same tuition categories. During the 1997-98 through 2000-01 academic years, a regional university participating in the fiscal autonomy program under section 301 of this act may increase base tuition fees for any student category up to a maximum of fifteen percent each year.

(3) Surcharge tuition. The regional universities and The Evergreen State College may annually assess a surcharge in addition to base tuition fees. The amount of the surcharge assessed in any year shall not be included in base tuition fees in the next academic year. During the 1995-96 and 1996-97 academic years, the maximum percentage surcharge levied on base tuition for students in any tuition category shall be fifteen percent. Beginning with the 1997-98 academic year, the maximum percentage surcharge levied on base tuition shall be as follows:

(a) For full-time resident undergraduate students and other full-time resident students not in graduate programs, a maximum of ten percent;

(b) For full-time resident graduate students, a maximum of twenty percent; and

(4) Building fees. The building fees for each academic year shall be based on the percent, as set forth in (a) through (d) of this subsection, of base tuition fees specified in subsections (1) and (2) of this section:

(a) Resident undergraduate students and all other resident students not in graduate study programs: Four percent;

(b) Nonresident undergraduate students and all other nonresident students not in graduate study programs: Four percent;

(d) Nonresident graduate students: Three percent.

(5) As used in this section, "tuition category" means the separate tuition fees categories established in subsection (1) (a) through (d) of this section.

NEW SECTION. Sec. 104. TUITION FEES--COMMUNITY COLLEGES--BUILDING FEES. Total tuition fees at each community college for full-time students for other than the summer term shall be set by the state board for community and technical colleges as follows:

(1) Base tuition. Except as provided in subsection (2) of this section, base tuition fees shall be calculated as a percent of the per student undergraduate or graduate educational costs at the community colleges as set forth in (a) and (b) of this subsection. However, if educational costs decrease, or increase at a rate less than four percent over the previous year's educational costs, base tuition fees shall increase a minimum of four percent each year above the tuition fees rate charged the previous year. If educational costs increase at a rate greater than six percent over the previous academic year's educational costs, base tuition fees shall increase a maximum of six percent each academic year above the tuition fees rate charged the previous year. The following calculations shall be used to determine base tuition under this section:

(a) Resident students: Twenty-nine percent of undergraduate educational costs; and

(b) Nonresident students: One hundred twenty-three percent of undergraduate educational costs.

(2) For the 1995-96 and 1996-97 academic years, base tuition fees for resident students shall increase five percent each year above the rate charged during the previous academic year. For the 1995-96 and 1996-97 academic years, base tuition fees for nonresident students shall increase five percent each year above the rate charged during the previous academic year.

(3) Surcharge tuition. The community colleges may annually assess a surcharge in addition to base tuition fees. The amount of the surcharge assessed in any year shall not be included in base tuition fees in the next academic year. The amount of any surcharge is subject to guidelines adopted by the state board for community and technical colleges. In adopting its guidelines, the board shall consider the special needs of individual colleges within the system as well as the system as a whole. The board may permit surcharge amounts to vary among colleges. In any academic year, the maximum percentage surcharge levied on base tuition shall be as follows:

(a) For full-time resident students, a maximum of ten percent. A surcharge under this subsection (3)(a) shall not be levied before the 1997-98 academic year; and

(b) For full-time nonresident students, a maximum of thirty percent. However, during the 1995-96 and 1996-97 academic years, the maximum percentage surcharge under this subsection (3)(b) shall be fifteen percent.

(4) Building fees. The building fees for each academic year shall be based on the percent, as set forth in (a) and (b) of this subsection, of tuition fees specified in subsections (1) and (2) of this section:

(a) Resident students: Eleven percent; and

(b) Nonresident students: Eight and one-half of one percent.

NEW SECTION. Sec. 105. A new section is added to chapter 28B.15 RCW to read as follows:

Each state university, regional university, and state college may charge a differential program fee in up to three degree programs. The basis for determining the fee may be: Higher than average costs of offering the program, differential tuition rates charged for that type of program at peer institutions, or other unique characteristics associated with the program.

NEW SECTION. Sec. 106. A new section is added to chapter 28B.15 RCW to read as follows:

It is the policy of the state of Washington that each state university, regional university, and state college, and the community and technical college system as a whole maintain or improve the percentage that resident students comprised of total budgeted full-time equivalent enrollments during the 1994-95 academic year. It is also the policy of the state of Washington that state general fund support for full-time equivalent students be used for resident students and for only those nonresident students who are within the percentage that nonresident students comprised of the budgeted full-time equivalent enrollment at each institution during the 1994-95 academic year. Additional nonresident students may be included above the budgeted enrollment level, at the option of the institution.

NEW SECTION. Sec. 107. A new section is added to chapter 28B.15 RCW to read as follows:

(1) As used in this section, "excess credit" means any credit taken by a resident undergraduate student or a resident student who is not enrolled in a first professional, graduate, or law program and who is attending a state university, regional university, or The Evergreen State College, if the student:

(a) Does not meet the requirements of (b) or (c) of this subsection but has accumulated more than one hundred fifteen percent of the number of credits required to complete the student's baccalaureate degree program; or

(b) Has an associate degree from a community college and has accumulated more than one hundred twenty-five percent of the number of credits required to complete the student's baccalaureate degree program; or

(c) Has accumulated more than forty-five quarter credits or their equivalent at a college or university other than a state university, regional university, or state college, each as defined in RCW 28B.10.016 and has accumulated more than one hundred twenty-five percent of the number of credits required to complete the student's baccalaureate degree program.

(2)(a) Except as provided in (b) of this subsection, state universities, regional universities, and The Evergreen State College may collect a surcharge from any resident student who is enrolled for excess credits. The amount of the surcharge may vary by credit or percentage thresholds, or may be based on special circumstances, each as established by the institution.

(b) Students who are required to take continuing education credits as a condition of licensure or state law shall be exempted from the excess credits surcharge for any credits taken as a result of the requirements.

(c) With the exception of students who are required to take continuing education credits as a condition of licensure or state law, no state general fund support shall be provided at state universities, regional universities, and The Evergreen State College for resident undergraduate students and other resident students not enrolled in first professional, graduate, or law programs if the students have accumulated more than one hundred fifty percent of the number of credits necessary to complete their baccalaureate degree programs.

Sec. 108. RCW 28B.15.005 and 1977 ex.s. c 169 s 33 are each amended to read as follows:

(1) "Colleges and universities" for the purposes of this chapter shall mean Central Washington University at Ellensburg, Eastern Washington University at Cheney, Western Washington University at Bellingham, The Evergreen State College in Thurston county, community colleges as are provided for in chapter 28B.50 RCW, the University of Washington, and Washington State University.

(2) "State universities" for the purposes of this chapter shall mean the University of Washington and Washington State University.

(3) "Regional universities" for the purposes of this chapter shall mean Central Washington University, Eastern Washington University and Western Washington University.

(4) "State college" means The Evergreen State College.

(5) "First professional program" means a program leading to one of the following degrees: Doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine.

Sec. 109. RCW 28B.15.031 and 1993 sp.s. c 18 s 6 and 1993 c 379 s 201 are each reenacted and amended to read as follows:

The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include fees surcharges for excess credits under section 107 of this act, program fees under section 105 of this act, or fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time. All moneys received as operating fees at any institution of higher education shall be deposited in a local account containing only operating fees revenue and related interest((: PROVIDED, That two and one-half percent of operating fees shall be retained by the institutions, except the technical colleges, for the purposes of)), except as provided in RCW 28B.15.820. Local operating fee accounts shall not be subject to appropriation by the legislature or allotment procedures under chapter 43.88 RCW.

Sec. 110. RCW 28B.15.041 and 1985 c 390 s 14 are each amended to read as follows:

(1) The term "services and activities fees" as used in this chapter is defined to mean fees, other than tuition fees, charged to all students registering at the state's community colleges, regional universities, The Evergreen State College, and state universities.

(2) Services and activities fees shall be used as otherwise provided by law or by rule ((or regulation)) of the board of trustees or regents of each of the state's community colleges, The Evergreen State College, the regional universities, or the state universities for the express purpose of funding student activities and programs of their particular institution.

(3) Student activity fees, student use fees, student building use fees, special student fees, or other similar fees charged to all full time students, or to all students, as the case may be, registering at the state's colleges or universities and pledged for the payment of bonds heretofore or hereafter issued for, or other indebtedness incurred to pay, all or part of the cost of acquiring, constructing or installing any lands, buildings, or facilities of the nature described in RCW 28B.10.300 as now or hereafter amended, shall be included within and deemed to be services and activities fees.

(4) The governing boards of each of the colleges and universities shall charge to and collect from each student a services and activities fee. Each governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage increase not to exceed the percentage increase in resident undergraduate tuition fees. The percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(5) Services and activities fees consistent with subsection (4) of this section shall be set by the state board for community and technical colleges for summer school students unless the community college charges fees in accordance with RCW 28B.15.515.

Sec. 111. RCW 28B.15.066 and 1993 c 379 s 205 are each amended to read as follows:

It is the intent of the legislature that:

In making appropriations from the state's general fund to institutions of higher education, each appropriation shall conform to the following:

(1) The appropriation shall be reduced by the amount of operating fees revenue estimated to be collected from students enrolled at the state-funded enrollment level specified in the omnibus biennial operating appropriations act and the estimated interest on operating fees revenue, minus obligations under RCW 28B.15.820 and 43.99I.040, minus any revenue an institution may have raised by assessing a tuition fees surcharge as permitted in sections 102(3), 103(3), and 104(3) of this act, minus the amount of revenue collected from raising base tuition fees above the level specified in sections 102(1) and 103(1) of this act by institutions participating in the fiscal autonomy pilot program under section 301 of this act, and minus the amount of waived operating fees authorized under RCW 28B.15.910;

(2) The appropriation shall not be reduced by the amount of operating fees revenue collected from students enrolled above the state-funded level, but within the over-enrollment limitations, specified in the omnibus biennial operating appropriations act; ((and))

(3) The general fund state appropriation shall not be reduced by the amount of operating fees revenue collected as a result of waiving less operating fees revenue than the amounts authorized under RCW 28B.15.910;

(4) The general fund state appropriation shall not be reduced by the amount of revenue collected from tuition fees surcharges authorized under sections 102(3), 103(3), and 104(3) of this act; and

(5) The general fund state appropriation shall not be reduced by the amount of revenue collected from raising base tuition fees above the level specified in sections 102(1) and 103(1) of this act by institutions participating in the fiscal autonomy pilot program under section 301 of this act.

Sec. 112. RCW 28B.15.067 and 1992 c 231 s 4 are each amended to read as follows:

(1) Base tuition fees shall be established and adjusted annually under the provisions of this chapter beginning with the 1987-88 academic year. Such fees shall be identical, subject to other provisions of this chapter, for students enrolled at either state university, for students enrolled at the regional universities and The Evergreen State College, and for students enrolled at any community college. Base tuition fees shall reflect the undergraduate and graduate educational costs of the state universities, the regional universities, and the community colleges, respectively, in ((the amounts prescribed in)) accordance with the provisions of this chapter.

(2) The total tuition fees established under this chapter shall not apply to high school students enrolling in community colleges under RCW 28A.600.300 through 28A.600.395.

Sec. 113. RCW 28B.15.070 and 1992 c 231 s 5 are each amended to read as follows:

(1) The higher education coordinating board, in consultation with the house of representatives and senate committees responsible for higher education, the respective fiscal committees of the house of representatives and senate, the office of financial management, and the state institutions of higher education, shall develop by December of every fourth year beginning in 1989, definitions, criteria, and procedures for determining the undergraduate and graduate educational costs for the state universities, regional universities, state college, and community colleges upon which tuition fees will be based.

(2) Every four years, the state institutions of higher education in cooperation with the higher education coordinating board shall perform an educational cost study pursuant to subsection (1) of this section. The study shall be conducted based on every fourth academic year beginning with 1989-90. Institutions shall complete the studies within one year of the end of the study year and report the results to the higher education coordinating board for consolidation, review, and distribution.

(3) In order to conduct the study required by subsection (2) of this section, the higher education coordinating board, in cooperation with the institutions of higher education, shall develop a methodology that requires the collection of comparable educational cost data, which utilizes a faculty activity analysis or similar instrument.

Sec. 114. RCW 28B.15.076 and 1989 c 245 s 4 are each amended to read as follows:

The higher education coordinating board shall determine and transmit amounts constituting approved undergraduate and graduate educational costs to the several boards of regents and trustees of the state institutions of higher education by November 10 of each even-numbered year except the year 1990 for which the transmittal shall be made by December 17. Base tuition fees shall be based on such costs in accordance with the provisions of this chapter.

NEW SECTION. Sec. 115. A new section is added to chapter 28B.15 RCW to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing board of each community college may charge such fees for ungraded courses, noncredit courses, community service courses, and self-supporting courses as it, in its discretion, determines, consistent with the rules of the state board for community and technical colleges.

PART 2 - FINANCIAL AID

Sec. 201. RCW 28B.15.740 and 1993 sp.s. c 18 s 28 are each amended to read as follows:

(1) Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may waive all or a portion of tuition and fees ((subject to the following restrictions:

(1) Except as provided in subsection (2) of this section, the total dollar amount of tuition and fee waivers awarded by the governing boards shall not exceed four percent, except for the community colleges considered as a whole, such amount shall not exceed three percent of an amount determined by estimating the total collections from tuition and services and activities fees had no such waivers been made, and deducting the portion of that total amount that is attributable to the difference between resident and nonresident fees: PROVIDED, That at least three-fourths of the dollars waived shall be)) for needy students who are eligible for resident tuition and fee rates pursuant to RCW 28B.15.012 and 28B.15.013((: PROVIDED FURTHER, That the remainder of the dollars waived, not to exceed one-fourth of the total, may be applied to)). Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may waive all or a portion of tuition and fees for other students at the discretion of the governing boards, except on the basis of participation in intercollegiate athletic programs((: PROVIDED FURTHER, That the waivers for undergraduate and graduate students of foreign nations under RCW 28B.15.556 are not subject to the limitation under this section)), not to exceed three-fourths of one percent of gross authorized operating fees revenue under RCW 28B.15.910 for the community colleges considered as a whole and not to exceed one percent of gross authorized operating fees revenue for the other institutions of higher education.

(2) In addition to the tuition and fee waivers provided in subsection (1) of this section and subject to the provisions of RCW 28B.15.455 ((and)), 28B.15.460, and 28B.15.910, a total dollar amount of tuition and fee waivers awarded by any state university, regional university, or state college under this chapter, not to exceed one percent, as calculated in subsection (1) of this section, may be used for the purpose of achieving or maintaining gender equity in intercollegiate athletic programs. At any institution that has an underrepresented gender class in intercollegiate athletics, any such waivers shall be awarded:

(a) First, to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; and

(b) Second, (i) to nonmembers of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for members of the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; or (ii) to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers do not result in any saved or displaced money that can be used for athletic programs for members of the underrepresented gender class.

Sec. 202. RCW 28B.15.820 and 1993 c 385 s 1 and 1993 c 173 s 1 are each reenacted and amended to read as follows:

(1) Each institution of higher education, except technical colleges, shall deposit a minimum of two and one-half percent of revenues collected from tuition and services and activities fees in an institutional financial aid fund that is hereby created and which shall be held locally. Moneys in the fund shall be used only for the following purposes: (a) To make guaranteed long-term loans to eligible students as provided in subsections (3) through (8) of this section; (b) to make short-term loans as provided in subsection (9) of this section; or (c) to provide financial aid to needy students as provided in subsection (10) of this section.

(2) An "eligible student" for the purposes of subsections (3) through (8) and (10) of this section is a student registered for at least six credit hours or the equivalent, who is eligible for resident tuition and fee rates as defined in RCW 28B.15.012 through 28B.15.013, and who is a "needy student" as defined in RCW 28B.10.802.

(3) The amount of the guaranteed long-term loans made under this section shall not exceed the demonstrated financial need of the student. Each institution shall establish loan terms and conditions which shall be consistent with the terms of the guaranteed loan program established by 20 U.S. Code Section 1071 et seq., as now or hereafter amended. All loans made shall be guaranteed by the Washington student loan guaranty association or its successor agency. Institutions are hereby granted full authority to operate as an eligible lender under the guaranteed loan program.

(4) Before approving a guaranteed long-term loan, each institution shall analyze the ability of the student to repay the loan based on factors which include, but are not limited to, the student's accumulated total education loan burdens and the employment opportunities and average starting salary characteristics of the student's chosen fields of study. The institution shall counsel the student on the advisability of acquiring additional debt, and on the availability of other forms of financial aid.

(5) Each institution is responsible for collection of guaranteed long-term loans made under this section and shall exercise due diligence in such collection, maintaining all necessary records to insure that maximum repayments are made. Institutions shall cooperate with other lenders and the Washington student loan guaranty association, or its successor agency, in the coordinated collection of guaranteed loans, and shall assure that the guarantability of the loans is not violated. Collection and servicing of guaranteed long-term loans under this section shall be performed by entities approved for such servicing by the Washington student loan guaranty association or its successor agency: PROVIDED, That institutions be permitted to perform such servicing if specifically recognized to do so by the Washington student loan guaranty association or its successor agency. Collection and servicing of guaranteed long-term loans made by community colleges under subsection (1) of this section shall be coordinated by the state board for community and technical colleges and shall be conducted under procedures adopted by the state board.

(6) Receipts from payment of interest or principal or any other subsidies to which institutions as lenders are entitled, that are paid by or on behalf of borrowers of funds under subsections (3) through (8) of this section, shall be deposited in each institution's financial aid fund and shall be used to cover the costs of making the guaranteed long-term loans under this section and maintaining necessary records and making collections under subsection (5) of this section: PROVIDED, That such costs shall not exceed five percent of aggregate outstanding loan principal. Institutions shall maintain accurate records of such costs, and all receipts beyond those necessary to pay such costs, shall be deposited in the institution's financial aid fund.

(7) The governing boards of the state universities, the regional universities, and The Evergreen State College, and the state board for community and technical colleges, on behalf of the community colleges, shall each adopt necessary rules and regulations to implement this section.

(8) First priority for any guaranteed long-term loans made under this section shall be directed toward students who would not normally have access to educational loans from private financial institutions in Washington state, and maximum use shall be made of secondary markets in the support of loan consolidation.

(9) Short-term loans, not to exceed one year, may be made from the institutional financial aid fund to students enrolled in the institution. No such loan shall be made to any student who is known by the institution to be in default or delinquent in the payment of any outstanding student loan. A short-term loan may be made only if the institution has ample evidence that the student has the capability of repaying the loan within the time frame specified by the institution for repayment.

(10) Any moneys deposited in the institutional financial aid fund that are not used in making long-term or short-term loans may be used by the institution for locally-administered financial aid programs for needy students, such as need-based institutional employment programs or need-based tuition and fee scholarship or grant programs. These funds shall be used in addition to and not to replace institutional funds that would otherwise support these locally-administered financial aid programs. First priority in the use of these funds shall be given to needy students who have accumulated excessive educational loan burdens. An excessive educational loan burden is a burden that will be difficult to repay given employment opportunities and average starting salaries in the student's chosen fields of study. Second priority in the use of these funds shall be given to needy single parents, to assist these students with their educational expenses, including expenses associated with child care and transportation.

NEW SECTION. Sec. 203. It is the intent of the legislature to restructure the state's system of financial aid. Funding levels for the state's system of financial aid are subject to available funds. The restructured financial aid system shall be known as college promise. In designing college promise, the higher education coordinating board shall follow these goals:

(1) For all need-based financial aid programs under RCW 28B.10.790 through 28B.10.824 and chapters 28B.12 and 28B.101 RCW:

(a) Through a mix of federal, state, and other resources:

(i) Limit the debt of an undergraduate student to no more than one-half of a student's cost of attendance; and

(ii) Provide more self-help opportunities than grant aid to middle-income students, and approximately equal amounts of self-help opportunities and grant aid to low-income and lower middle-income students. Self-help opportunities include work-study and loans;

(b) In determining eligibility for state financial aid programs, shelter home equity on a family's principal place of residence, and shelter a reasonable portion of savings and farm or business net worth, each insofar as is permissible under state and federal law;

(d) Strive to preserve a range of educational options for needy students, including choice of institutions and programs;

(e) Recognize otherwise unfunded equipment and assistance needed to reasonably accommodate students with disabilities; and

(f) Deliver clear and timely information to current and future postsecondary students about the costs of attending college and available financial aid.

(2) For the state need grant program under RCW 28B.10.790 through 28B.10.824: As funds are available, expand the program to include new populations of resident students in the following priority order, ensuring that undergraduate students with the most demonstrated financial need receive full grants before less needy students receive any grant:

(a) Low-income undergraduates;

(b) Lower middle-income undergraduates;

(d) Resident graduate and professional students, following the income priorities established for undergraduate students.

(3) For the state work-study program under chapter 28B.12 RCW: Increase employment opportunities including off-campus job opportunities with off-campus community service employers.

NEW SECTION. Sec. 204. (1) By January 1, 1997, the higher education coordinating board, in consultation with the house of representatives and senate higher education and fiscal committees, and the institutions of higher education, shall develop a detailed implementation plan for college promise. In preparing the plan, the board shall follow the goals and priorities set forth in section 203 of this act. The plan shall include, but not be limited to:

(a) Specific program eligibility measures;

(b) Estimates of how many state residents would be eligible for assistance in the state need grant and state work-study programs under the goals adopted in section 203 of this act;

(c) Estimates of the costs for each state financial aid program, including the state need grant program under RCW 28B.10.790 through 28B.10.824; the state work-study program under chapter 28B.12 RCW; and the educational opportunity grant program under chapter 28B.101 RCW to accommodate any new aid applicants estimated under (b) of this subsection, as offset by nonstate sources of aid.

(2) The plan shall be deemed approved on June 30, 1997, unless legislation is enacted to alter the policies set forth in the plan. The board shall also propose to the legislature any changes to the laws governing state financial aid programs that it deems necessary to accomplish the purposes of college promise.

PART 3 - INSTITUTIONAL FISCAL AUTONOMY

NEW SECTION. Sec. 301. A new section is added to chapter 28B.80 RCW to read as follows:

The higher education coordinating board shall design and administer a higher education fiscal autonomy pilot program. In its administration of the pilot program, the board shall have the following powers and duties:

(1) In consultation with institutions of higher education and appropriate state agencies, identify state laws and rules that may inhibit effective fiscal decisions by institutions of higher education;

(2) Select one research and one regional university to participate in the pilot program;

(3) Work with state agencies to exempt participating institutions from state rules that inhibit effective fiscal decisions;

(4) By December 1, 1996, report to the governor and appropriate legislative committees with a preliminary report on the progress of the pilot program and with a list of state laws and rules that may need to be revised in order to encourage effective fiscal decisions by institutions of higher education.

This section shall expire June 30, 2001.

Sec. 302. RCW 43.19.19054 and 1975-'76 2nd ex.s. c 21 s 7 are each amended to read as follows:

The provisions of RCW 43.19.1905 shall not apply to materials, supplies, and equipment purchased for resale to other than public agencies by state agencies, including educational institutions. In addition, RCW 43.19.1905 shall not apply to purchases by institutions of higher education participating in the fiscal autonomy pilot program under section 301 of this act or liquor purchased by the state for resale under the provisions of Title 66 RCW.

Sec. 303. RCW 41.06.382 and 1979 ex.s. c 46 s 1 are each amended to read as follows:

(1) Nothing contained in this chapter shall prohibit any institution of higher education, as defined in RCW 28B.10.016, or related board from purchasing services by contract with individuals or business entities if such services were regularly purchased by valid contract at such institution prior to April 23, 1979: PROVIDED, That except as provided in subsection (2) of this section, no such contract may be executed or renewed if it would have the effect of terminating classified employees or classified employee positions existing at the time of the execution or renewal of the contract.

(2) An institution of higher education participating in the fiscal autonomy pilot program under section 301 of this act may purchase services by contract with individuals or business entities if the contract would not result in increased expenditures of public funds for the contracted service and if the contract would not result in the termination of classified employees employed at the institution on the effective date of this section.

Sec. 304. RCW 43.88.110 and 1994 c 219 s 5 are each amended to read as follows:

This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds.

(1) Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.

(2) The director of financial management shall provide all agencies with a complete set of operating and capital instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.

(3) Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor.

(4) Except as provided in subsection (11) of this section, the office of financial management shall develop a method for monitoring capital appropriations and expenditures that will capture at least the following elements:

(a) Appropriations made for capital projects including transportation projects;

(b) Estimates of total project costs including past, current, ensuing, and future biennial costs;

(d) Comparisons of estimated construction start and completion dates with actual dates;

(e) Documentation of fund shifts between projects.

This data may be incorporated into the existing accounting system or into a separate project management system, as deemed appropriate by the office of financial management.

(5) The office of financial management, prior to approving allotments for major capital construction projects valued over five million dollars, shall institute procedures for reviewing such projects at the predesign stage that will reduce long-term costs and increase facility efficiency. The procedures shall include, but not be limited to, the following elements:

(a) Evaluation of facility program requirements and consistency with long-range plans;

(b) Utilization of a system of cost, quality, and performance standards to compare major capital construction projects; and

(6) No expenditure may be incurred or obligation entered into for such major capital construction projects including, without exception, land acquisition, site development, predesign, design, construction, and equipment acquisition and installation, until the allotment of the funds to be expended has been approved by the office of financial management. This limitation does not prohibit the continuation of expenditures and obligations into the succeeding biennium for projects for which allotments have been approved in the immediate prior biennium.

(7) If at any time during the fiscal period the governor projects a cash deficit in a particular fund or account as defined by RCW 43.88.050, the governor shall make across-the-board reductions in allotments for that particular fund or account so as to prevent a cash deficit, unless the legislature has directed the liquidation of the cash deficit over one or more fiscal periods. Except for the legislative and judicial branches and other agencies headed by elective officials, the governor shall review the statement of proposed operating expenditures for reasonableness and conformance with legislative intent. Once the governor approves the statements of proposed operating expenditures, further revisions shall be made only at the beginning of the second fiscal year and must be initiated by the governor. However, changes in appropriation level authorized by the legislature, changes required by across-the-board reductions mandated by the governor, changes caused by executive increases to spending authority, and changes caused by executive decreases to spending authority for failure to comply with the provisions of chapter 36.70A RCW may require additional revisions. Revisions shall not be made retroactively. Revisions caused by executive increases to spending authority shall not be made after June 30, 1987. However, the governor may assign to a reserve status any portion of an agency appropriation withheld as part of across-the-board reductions made by the governor and any portion of an agency appropriation conditioned on a contingent event by the appropriations act. The governor may remove these amounts from reserve status if the across-the-board reductions are subsequently modified or if the contingent event occurs. The director of financial management shall enter approved statements of proposed expenditures into the state budgeting, accounting, and reporting system within forty-five days after receipt of the proposed statements from the agencies. If an agency or the director of financial management is unable to meet these requirements, the director of financial management shall provide a timely explanation in writing to the legislative fiscal committees.

(8) Except as provided in subsection (11) of this section, it is expressly provided that all agencies shall be required to maintain accounting records and to report thereon in the manner prescribed in this chapter and under the regulations issued pursuant to this chapter. Within ninety days of the end of the fiscal year, all agencies shall submit to the director of financial management their final adjustments to close their books for the fiscal year. Prior to submitting fiscal data, written or oral, to committees of the legislature, it is the responsibility of the agency submitting the data to reconcile it with the budget and accounting data reported by the agency to the director of financial management.

(9) Except as provided in subsection (11) of this section, the director of financial management shall monitor agency operating expenditures against the approved statement of proposed expenditures and shall provide the legislature with quarterly explanations of major variances.

(10) The director of financial management may exempt certain public funds from the allotment controls established under this chapter if it is not practical or necessary to allot the funds. With the exception of exemptions that may be granted to institutions of higher education that are participating in the fiscal autonomy pilot program under section 301 of this act, allotment control exemptions expire at the end of the fiscal biennium for which they are granted. The director of financial management shall report any exemptions granted under this subsection to the legislative fiscal committees.

(11) In consultation with the higher education coordinating board, the director of the office of financial management shall develop and implement a simplified allotment and reporting procedure for institutions of higher education participating in the fiscal autonomy pilot program under section 301 of this act.

PART 4 - MISCELLANEOUS

Sec. 401. RCW 28B.50.095 and 1991 c 238 s 36 are each amended to read as follows:

In addition to other powers and duties, the college board may issue rules ((and regulations)) permitting a student to register at more than one community and technical college, provided that such student shall pay tuition and fees as if the student were registered at a single college, but not to exceed tuition and fees charged a full-time student as established ((by RCW 28B.15.502)) under chapter 28B.15 RCW.

NEW SECTION. Sec. 402. The following acts or parts of acts are each repealed:

(1) RCW 28B.15.202 and 1993 sp.s. c 18 s 8, 1993 c 379 s 202, 1992 c 231 s 7, 1985 c 390 s 19, 1982 1st ex.s. c 37 s 18, & 1981 c 257 s 6;

(2) RCW 28B.15.402 and 1993 sp.s. c 18 s 11, 1993 c 379 s 203, 1992 c 231 s 10, 1989 c 245 s 1, 1985 c 390 s 24, 1982 1st ex.s. c 37 s 19, & 1981 c 257 s 7; and

(3) RCW 28B.15.502 and 1993 sp.s. c 18 s 12, 1993 c 379 s 204, 1992 c 231 s 11, 1991 c 353 s 2, 1985 c 390 s 25, 1982 1st ex.s. c 37 s 10, & 1981 c 257 s 8.

NEW SECTION. Sec. 403. Captions and part headings used in this act do not constitute any part of the law.

NEW SECTION. Sec. 404. Sections 101 through 115, 201, 202, 204, 301 through 304, and 401 through 403 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 1, 1995.

NEW SECTION. Sec. 405. Section 203 of this act shall take effect July 1, 1997.

NEW SECTION. Sec. 406. 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."

On page 1, line 1 of the title, after "matters;" strike the remainder of the title and insert "amending RCW 28B.15.005, 28B.15.041, 28B.15.066, 28B.15.067, 28B.15.070, 28B.15.076, 28B.15.740, 43.19.19054, 41.06.382, 43.88.110, and 28B.50.095; reenacting and amending RCW 28B.15.031 and 28B.15.820; adding new sections to chapter 28B.15 RCW; adding a new section to chapter 28B.80 RCW; creating new sections; repealing RCW 28B.15.202, 28B.15.402, and 28B.15.502; providing effective dates; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Spanel, the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5325 and requests of the House a conference thereon.

APPOINTMENT OF CONFERENCE COMMITTEE

The President appointed as members of the Conference Committee on Substitute Senate Bill No. 5325 and the House amendments thereto: Senators Bauer, Wood and Spanel.

MOTION

On motion of Senator Snyder, the Conference Committee appointments were confirmed.

NOTICE FOR RECONSIDERATION

Senator Smith served notice that he would move to reconsider the vote by which Substitute House Bill No. 1560, without the Senate amendments, passed the Senate earlier today.

MOTION

At 4:14 p.m., on motion of Senator Spanel, the Senate adjourned until 9:00 a.m., Saturday, April 22, 1995.

JOEL PRITCHARD, President of the Senate

MARTY BROWN, Secretary of the Senate