5215-S

AN ACT Relating to protecting Puget Sound and other waters of Washington; amending RCW 36.70A.070, 58.17.110, 43.21B.300, 90.70.011, 90.70.070, and 43.84.092; reenacting and amending RCW 70.146.060; adding new sections to chapter 90.48 RCW; adding a new chapter to Title 36 RCW; creating a new section; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

PART I

LOCAL FUNDING OF WATERSHED PROTECTION

NEW SECTION. Sec. 1. (1) The legislative authority of a county may create one or more watershed protection districts for the purpose of funding water resource protection activities, programs, projects, and planning within the district or districts.

(2) When a county legislative authority proposes to create a watershed protection district it shall conduct a public hearing on the proposal. Notice of the public hearing shall be published at least once, not less than ten days prior to the hearing, in a newspaper of general circulation within the proposed district. The public hearing may be continued to other times, dates, and places announced at the public hearing, without publication of the notice. At the public hearing, the county legislative authority shall hear objections and comments from anyone interested in the proposed district.

After the public hearing, the county legislative authority may by ordinance create a watershed protection district, if the county legislative authority finds that the creation of the watershed protection district would be in the public interest. The ordinance shall: (a) Describe the boundaries of the proposed watershed protection district; and (b) find that its creation is in the public interest.

Where the proposed district includes territory located within a city or town, the county shall seek approval from the city or town legislative authority for inclusion within the district. If the city or town agrees to participate, the county shall develop procedures for the participation of the city or town in determining the boundaries of the proposed district, in establishing and collecting fees or charges to be collected within the incorporated area, and in carrying out watershed protection programs funded by the district. The legislative authority of more than one county may by agreement provide for the creation of a district including areas within each of those counties. The legislative authority or authorities creating an area may abolish that area on its or their motion or by submitting the question to the voters of the district and obtaining a majority vote.

(3) The county legislative authority establishing a watershed protection district may finance the district's programs through:

(a) County tax revenues;

(b) Inspection fees and similar fees for services performed;

(d) Federal, state, or private grants.

Counties may fix, alter, regulate, and control rates or charges in the manner determined by the county legislative authority. A district may also receive gifts, grants, and donations to carry out its activities.

A county may contract with existing public utilities to collect the fees or charges, or collect the fees or charges itself.

A county may adopt an ordinance reducing the level of fees that are imposed upon the residential property of a class or classes of low-income persons.

(4) Within available funding, watershed protection districts may: (a) Contract with conservation districts or others for implementation of plans to control pollution effects of farm animal waste; (b) make use of conservation corps surface water action teams to assist landowners in reaching best management practices to reduce pollution; (c) assist in funding county health departments for water quality activities within the watershed, including implementation of plans to monitor, inspect, and cause on-site and off-site septic drainfield systems to be adequately maintained and working properly; and (d) provide grants or other assistance for public involvement and education in water quality protection activities within the watershed.

(5) Where a district program includes addressing sources of nonpoint pollution to lakes, the county legislative authority shall adopt an ordinance requiring use of best management practices to control such pollution within six years of the creation of the district.

NEW SECTION. Sec. 2. Counties may issue general obligation bonds, revenue bonds, and other evidences of indebtedness to assist in carrying out the programs of watershed protection districts, and counties may issue revenue bonds and other revenue obligations payable from fees, rates, charges, and other revenue of districts. Any such obligations shall be issued in accordance with chapter 36.67 or 36.94 RCW.

NEW SECTION. Sec. 3. Revenues collected under this chapter may be used to fund any activity, program, project, or planning related to water resource protection in the watershed protection district, including sewage treatment, the protection of ground water and drinking water, the management of storm water runoff, the prevention and management of nonpoint source pollution generally, and the construction, maintenance, and operation of facilities for these purposes.

PART II

STORM WATER MANAGEMENT

Sec. 4. RCW 36.70A.070 and 1990 1st ex.s. c 17 s 7 are each amended to read as follows:

STORM WATER PROGRAMS IN LOCAL COMPREHENSIVE PLANS. The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan. The plan shall be an internally consistent document and all elements shall be consistent with the future land use map. A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.

Each comprehensive plan shall include a plan, scheme, or design for each of the following:

(1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, public utilities, public facilities, and other land uses. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall provide for protection of the quality and quantity of ground water used for public water supplies. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound. The land use element may incorporate any element of a storm water management program for the area adopted pursuant to the Puget Sound water quality management plan required under RCW 90.70.060.

(2) A housing element recognizing the vitality and character of established residential neighborhoods that: (a) Includes an inventory and analysis of existing and projected housing needs; (b) includes a statement of goals, policies, and objectives for the preservation, improvement, and development of housing; (c) identifies sufficient land for housing, including, but not limited to, government-assisted housing, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities; and (d) makes adequate provisions for existing and projected needs of all economic segments of the community.

(3) A capital facilities plan element consisting of: (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent.

(4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.

(5) Counties shall include a rural element including lands that are not designated for urban growth, agriculture, forest, or mineral resources. The rural element shall permit land uses that are compatible with the rural character of such lands and provide for a variety of rural densities.

(6) A transportation element that implements, and is consistent with, the land use element. The transportation element shall include the following subelements:

(a) Land use assumptions used in estimating travel;

(b) Facilities and services needs, including:

(i) An inventory of air, water, and land transportation facilities and services, including transit alignments, to define existing capital facilities and travel levels as a basis for future planning;

(ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system. These standards should be regionally coordinated;

(iii) Specific actions and requirements for bringing into compliance any facilities or services that are below an established level of service standard;

(iv) Forecasts of traffic for at least ten years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;

(v) Identification of system expansion needs and transportation system management needs to meet current and future demands;

(i) An analysis of funding capability to judge needs against probable funding resources;

(ii) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems;

(iii) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;

(d) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;

(e) Demand-management strategies.

(7) The land use, capital facilities, and transportation elements of comprehensive plans may incorporate applicable provisions of watershed management plans for the area adopted pursuant to the Puget Sound water quality management plan.

(8) After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies. For the purposes of this subsection ((~~(6)~~)) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.

The transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, must be consistent.

Sec. 5. RCW 58.17.110 and 1990 1st ex.s. c 17 s 52 are each amended to read as follows:

STORM WATER FACILITIES CONSIDERED IN SUBDIVISION APPROVAL. (1) The city, town, or county legislative body shall inquire into the public use and interest proposed to be served by the establishment of the subdivision and dedication. It shall determine: (a) If appropriate provisions are made for, but not limited to, the public health, safety, and general welfare, for open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary wastes, storm water management, parks and recreation, playgrounds, schools and schoolgrounds, and shall consider all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who only walk to and from school; and (b) whether the public interest will be served by the subdivision and dedication.

(2) A proposed subdivision and dedication shall not be approved unless the city, town, or county legislative body makes written findings that: (a) Appropriate provisions are made for the public health, safety, and general welfare and for such open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary wastes, storm water management, parks and recreation, playgrounds, schools and schoolgrounds and all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who only walk to and from school; and (b) the public use and interest will be served by the platting of such subdivision and dedication. If it finds that the proposed subdivision and dedication make such appropriate provisions and that the public use and interest will be served, then the legislative body shall approve the proposed subdivision and dedication. Dedication of land to any public body, provision of public improvements to serve the subdivision, and/or impact fees imposed under RCW 82.02.050 through 82.02.090 may be required as a condition of subdivision approval. Dedications shall be clearly shown on the final plat. No dedication, provision of public improvements, or impact fees imposed under RCW 82.02.050 through 82.02.090 shall be allowed that constitutes an unconstitutional taking of private property. The legislative body shall not as a condition to the approval of any subdivision require a release from damages to be procured from other property owners.

PART III

CENTENNIAL CLEAN WATER FUND AND STORM WATER MANAGEMENT

Sec. 6. RCW 70.146.060 and 1987 c 527 s 1 and 1987 c 436 s 7 are each reenacted and amended to read as follows:

WATER QUALITY ACCOUNT DISTRIBUTIONS--LIMITATIONS--STORM WATER MANAGEMENT AND COMBINED SEWER OVERFLOW REDUCTION FUNDING. During the period from July 1, 1987, until June 30, 1995, the following limitations shall apply to the department's total distribution of funds appropriated from the water quality account:

(1) Not more than fifty percent for water pollution control facilities which discharge directly into marine waters and for activities to control or remediate the effects of such discharges, including projects and activities to reduce combined sewer overflows and projects to manage storm water runoff;

(2) Not more than twenty percent for water pollution control activities that prevent or mitigate pollution of underground waters and facilities that protect federally designated sole source aquifers with at least two-thirds for the Spokane-Rathdrum Prairie Aquifer;

(3) Not more than ten percent for water pollution control activities that protect freshwater lakes and rivers including but not limited to Lake Chelan and the Yakima and Columbia rivers;

(4) Not more than ten percent for activities which control nonpoint source water pollution;

(5) Ten percent and such sums as may be remaining from the categories specified in subsections (1) through (4) of this section for water pollution control activities or facilities as determined by the department; and

(6) Two and one-half percent of the total amounts of moneys under subsections (1) through (5) of this section from February 21, 1986, until December 31, 1995, shall be appropriated biennially to the state conservation commission for the purposes of this chapter. Not less than ten percent of the moneys received by the state conservation commission under the provisions of this section shall be expended on research activities.

The distribution under this section shall not be required to be met in any single fiscal year.

Funds provided for facilities and activities under this chapter may be used for payments to a service provider under a service agreement pursuant to RCW 70.150.060. If funds are to be used for such payments, the department may make periodic disbursements to a public body or may make a single lump sum disbursement. Disbursements of funds with respect to a facility owned or operated by a service provider shall be equivalent in value to disbursements that would otherwise be made if that facility were owned or operated by a public body. Payments under this chapter for waste disposal and management facilities made to public bodies entering into service agreements pursuant to RCW 70.150.060 shall not exceed amounts paid to public bodies not entering into service agreements.

Until January 1, 1997, the department shall place a priority upon providing assistance to projects for the reduction of combined sewer overflows, and programs for the inspection and maintenance of on-site sewage disposal systems, and that are otherwise eligible under this chapter.

PART IV

SEPTIC SYSTEMS

NEW SECTION. Sec. 7. A new section is added to chapter 90.48 RCW to read as follows:

SELLER DISCLOSURE OF SEPTIC SYSTEM IN SENSITIVE AREAS. Before the closing of the sale of real property located within a sensitive area designated under section 8 of this act, the seller shall provide a report to the purchaser that discloses whether the property being sold is served by a public or private sewer system, an on-site sewage disposal system, other means of waste disposal, or is undeveloped property. If the property is served by an on-site sewage disposal system, the report shall include:

(1) The location of the system and, if known, the location of drainfields identified on a scale drawing;

(2) Drawings of the system as it was built, if available from either the seller or the local health agency; and

(3) A statement of the most recent pumping of the system and a description of the most recent inspection of the system by a certified professional, if known.

NEW SECTION. Sec. 8. A new section is added to chapter 90.48 RCW to read as follows:

RULE MAKING. (1) On or before July 1, 1994, the department of health shall propose rules for adoption by the state board of health to implement section 7 of this act. The rules shall:

(a) Specify the contents of the report to be provided by the seller; and

(b) Specify criteria to guide local health agencies in the designation of sensitive areas under subsection (2) of this section. The criteria may include, but are not limited to, the number and density of on-site sewage disposal systems within an area, the presence of other potential contaminant sources, soil conditions and types prevalent in the area and that are more susceptible to system failures, and the presence of unique or important marine or environmental resources that may be adversely impacted, including any shellfish harvesting area restricted in harvest by the department of health.

(2) Before July 1, 1995, each local health agency having jurisdiction within counties whose waters drain into Puget Sound shall designate sensitive areas within which the requirements of section 7 of this act shall apply. The local health agency of any other county may elect to designate sensitive areas within which the requirements of section 7 of this act shall apply.

PART V

WATER QUALITY ENFORCEMENT

NEW SECTION. Sec. 9. A new section is added to chapter 90.48 RCW to read as follows:

CIVIL PENALTIES DEDICATED TO WATER QUALITY PURPOSES. All penalties collected under RCW 90.48.144, except for penalties deposited to the Puget Sound restoration account created by section 10 of this act, shall be deposited in the water quality protection account, which is hereby created in the state treasury. Moneys in the account shall be subject to legislative appropriation and shall be expended by the department as grants to local governments, conservation districts, and nonprofit service organizations for the purpose of water quality restoration projects. The department shall place a priority upon projects that will use volunteers. Not more than ten percent of the appropriated moneys shall be expended by the department for administering the grants. All earnings of balances in the water quality protection account shall remain in the fund and be available for distribution.

NEW SECTION. Sec. 10. A new section is added to chapter 90.48 RCW to read as follows:

CIVIL PENALTIES FOR PUGET SOUND WATER QUALITY VIOLATIONS DEDICATED TO PUGET SOUND RESTORATION. All penalties collected under RCW 90.48.144 for water quality violations in the waters of Puget Sound as defined by RCW 90.70.005, or waters draining to Puget Sound, shall be deposited to the Puget Sound restoration account, which is hereby created in the state treasury. Moneys in the account shall be subject to legislative appropriation and expended by the Puget Sound water quality authority for the funding of local programs for public involvement and education, including proper operation and maintenance of on-site sewage disposal system. The authority shall seek proposals which raise awareness of water quality issues by engaging people in actions to protect Puget Sound and through diverse education activities. A portion of the fund shall be directed to programs which specifically support the educational needs of local government directly related to the Puget Sound plan. Not more than ten percent of the appropriated moneys shall be expended by the authority for administering the grants. All earnings of balances in the Puget Sound restoration account shall remain in the fund and be available for distribution. Upon the termination of the authority, funds in the account shall be administered by the department of ecology.

Sec. 11. RCW 43.21B.300 and 1992 c 73 s 2 are each amended to read as follows:

(1) Any civil penalty provided in RCW 70.94.431, 70.105.080, 70.107.050, 88.46.090, 90.03.600, 90.48.144, 90.56.310, and 90.56.330 shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the penalty from the department, the administrator of the office of marine safety, or the local air authority, describing the violation with reasonable particularity. Within fifteen days after the notice is received, the person incurring the penalty may apply in writing to the department, the administrator, or the authority for the remission or mitigation of the penalty. Upon receipt of the application, the department, the administrator, or authority may remit or mitigate the penalty upon whatever terms the department, the administrator, or the authority in its discretion deems proper. The department or the authority may ascertain the facts regarding all such applications in such reasonable manner and under such rules as it may deem proper and shall remit or mitigate the penalty only upon a demonstration of extraordinary circumstances such as the presence of information or factors not considered in setting the original penalty.

(2) Any penalty imposed under this section may be appealed to the pollution control hearings board in accordance with this chapter if the appeal is filed with the hearings board and served on the department, the administrator, or authority thirty days after receipt by the person penalized of the notice imposing the penalty or thirty days after receipt of the notice of disposition of the application for relief from penalty.

(3) A penalty shall become due and payable on the later of:

(a) Thirty days after receipt of the notice imposing the penalty;

(b) Thirty days after receipt of the notice of disposition on application for relief from penalty, if such an application is made; or

(4) If the amount of any penalty is not paid to the department or the administrator within thirty days after it becomes due and payable, the attorney general, upon request of the department or the administrator, shall bring an action in the name of the state of Washington in the superior court of Thurston county, or of any county in which the violator does business, to recover the penalty. If the amount of the penalty is not paid to the authority within thirty days after it becomes due and payable, the authority may bring an action to recover the penalty in the superior court of the county of the authority's main office or of any county in which the violator does business. In these actions, the procedures and rules of evidence shall be the same as in an ordinary civil action.

(5) All penalties recovered shall be paid into the state treasury and credited to the general fund except those penalties imposed pursuant to RCW 70.94.431, the disposition of which shall be governed by that provision, RCW 70.105.080, which shall be credited to the hazardous waste control and elimination account, created by RCW 70.105.180, RCW 90.48.144, which shall be credited to either the water quality protection account created under section 9 of this act or the Puget Sound restoration account created under section 10 of this act, as applicable, and RCW 90.56.330, which shall be credited to the coastal protection fund created by RCW 90.48.390.

PART VI

PUGET SOUND WATER QUALITY AUTHORITY

Sec. 12. RCW 90.70.011 and 1990 c 115 s 2 are each amended to read as follows:

AUTHORITY CHAIR SELECTION. (1) There is established the Puget Sound water quality authority composed of eleven members. Nine members shall be appointed by the governor and confirmed by the senate. In addition, the commissioner of public lands ((~~or the commissioner's designee~~)) and the director of ecology ((~~or the director's designee~~)) shall serve as ex officio members. Three of the members shall include a representative from the counties, a representative from the cities, and a tribal representative. The director of ecology shall be chair of the authority. In making these appointments, the governor shall seek to include representation of the variety of interested parties concerned about Puget Sound water quality. Of the appointed members, at least one shall be selected from each of the six congressional districts surrounding Puget Sound. All votes shall be cast by members. Designees or alternates may not vote. Members shall serve four-year terms. Of the initial members appointed to the authority, two shall serve for two years, two shall serve for three years, and two shall serve for four years. Thereafter members shall be appointed to four-year terms. Members representing cities, counties, and the tribes shall also serve four-year staggered terms, as determined by the governor. Vacancies shall be filled by appointment for the remainder of the unexpired term of the position being vacated. The executive director of the authority shall be selected by the governor and shall serve at the pleasure of the governor. The executive director shall not be a member of the authority.

(2) Members shall be compensated as provided in RCW 43.03.250. Members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(3) The executive director of the authority shall be a full-time employee responsible for the administration of all functions of the authority, including hiring and terminating staff, contracting, coordinating with the governor, the legislature, and other state and local entities, and the delegation of responsibilities as deemed appropriate. The executive director shall report to the authority and shall serve to carry out the policy direction of the authority. The salary of the executive director shall be comparable to those of other agency directors and shall be fixed by the governor, subject to RCW 43.03.040.

(4) The authority shall prepare a budget and a work plan.

(5) Not more than four employees of the authority may be exempt from the provisions of chapter 41.06 RCW.

(6) The executive director and staff of the authority shall be located in the Olympia area((~~, as space becomes available. The department of general administration shall house the authority within the department of ecology~~)).

Sec. 13. RCW 90.70.070 and 1990 c 115 s 6 are each amended to read as follows:

(1) In conducting planning, regulatory, and appeals actions, the state agencies and local governments identified in the plan must evaluate, and incorporate as applicable, subject to the availability of appropriated funds or other funding sources, the provisions of the plan, including any guidelines, standards, and timetables contained in the plan.

(2) The authority shall review the progress of state agencies and local governments regarding the timely implementation of the plan. Where prescribed actions have not been accomplished in accordance with the plan, the responsible state agencies and local governments shall, at the request of the authority, submit written explanations for the shortfalls, together with their proposed remedies, to the authority.

The results of the review and a description of the actions necessary to comply with the plan shall be included in the biennial state of the Sound report.

(3) The state agencies and local governments identified in the plan shall review their activities biennially and document their consistency with the plan. They shall submit written reports or updates of their findings to the authority.

(4) The authority shall review the major actions ((~~affected by the plan~~)) affecting the Sound being considered by the state agencies and local governments and shall comment in a timely manner regarding consistency with the plan and may participate in administrative and subsequent judicial proceedings with respect to such actions. Any deviations from the plan, identified by the authority, shall be transmitted in writing by the authority to the responsible state agency or local government.

Sec. 14. RCW 43.84.092 and 1992 c 235 s 4 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the Eastern Washington University capital projects account, the federal forest revolving account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local sales and use tax account, the medical aid account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puget Sound restoration account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water quality protection account, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (2)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, and the urban arterial trust account.

(3) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 15. Sections 1 through 3 of this act shall constitute a new chapter in Title 36 RCW.

NEW SECTION. Sec. 16. CAPTIONS. Part headings and section captions as used in this act constitute no part of the law.