6108-S.E AMH APP H5320.5

6108-S.E AMH APP H5320.5

ESSB 6108 - H COMM AMD

By Committee on Appropriations

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) A budget is hereby adopted and, subject to the provisions set forth in the following sections, the several amounts specified in parts I through VIII of this act, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for salaries, wages, and other expenses of the agencies and offices of the state and for other specified purposes for the fiscal biennium beginning July 1, 1997, and ending June 30, 1999, except as otherwise provided, out of the several funds of the state hereinafter named.

(2) Unless the context clearly requires otherwise, the definitions in this section apply throughout this act.

(a) "Fiscal year 1998" or "FY 1998" means the fiscal year ending June 30, 1998.

(b) "Fiscal year 1999" or "FY 1999" means the fiscal year ending June 30, 1999.

(d) "Lapse" or "revert" means the amount shall return to an unappropriated status.

(e) "Provided solely" means the specified amount may be spent only for the specified purpose. Unless otherwise specifically authorized in this act, any portion of an amount provided solely for a specified purpose which is unnecessary to fulfill the specified purpose shall lapse.

PART I

GENERAL GOVERNMENT

Sec. 101. 1997 c 149 s 101 (uncodified) is amended to read as follows:

FOR THE HOUSE OF REPRESENTATIVES

General Fund Appropriation (FY 1998)........... $ ((~~24,241,000~~))

24,219,000

General Fund Appropriation (FY 1999)........... $ ((~~25,637,000~~))

25,709,000

Department of Retirement Systems Expense

Account Appropriation...................... $ 25,000

TOTAL APPROPRIATION................. $ ((~~49,878,000~~))

49,953,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $75,000 of the general fund fiscal year 1998 appropriation and $75,000 of the general fund fiscal year 1999 appropriation are provided solely for the independent operations of the legislative ethics board. Expenditure decisions of the board, including employment of staff, shall be independent of the senate and house of representatives.

(2) (($25,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Substitute Senate Concurrent Resolution No. 8408 (water policy report). If the concurrent resolution is not enacted by June 30, 1997, the amount provided in this subsection shall lapse)) The department of retirement systems expense account appropriation is provided solely to implement the provisions relating the actuarial audit of the pension contribution rates in Substitute House Bill No. 2544 (funding state retirement systems). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 102. 1997 c 149 s 102 (uncodified) is amended to read as follows:

FOR THE SENATE

General Fund Appropriation (FY 1998)........... $ ((~~19,357,000~~))

19,360,000

General Fund Appropriation (FY 1999)........... $ ((~~20,663,000~~))

20,785,000

Department of Retirement Systems Expense Account

Appropriation.............................. $ 25,000

TOTAL APPROPRIATION......... ........ $ ((~~40,020,000~~))

40,170,000

The appropriations in this section are subject to the following conditions and limitations:

~~(3)~~)) $100,000 of the general fund appropriation for fiscal year 1998 is provided solely for a study of financial aid and tuition by the senate committee on ways and means and the house of representatives committee on appropriations.

(a) The study shall report on the current usage and distribution of financial aid, investigate other resources available to financial aid recipients, and shall compare alternative methods of financial aid distribution and their impacts on the sectors of higher education and students served within each sector.

(b) The study shall also provide comparative data from other states on methods of establishing tuition rates and the relationship of tuition to state funding.

(3) The department of retirement systems expense account appropriation is provided solely to implement the provisions relating to the actuarial audit of the pension contribution rates in Substitute House Bill No. 2544 (funding state retirement systems). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(4) $25,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the legislature and the office of financial management to contract jointly for a performance review of the state long-term care system. The review shall result in recommendations by October 1, 1998, on strategies for increasing the long-term affordability and cost-effectiveness of the system, and shall include a review of topics such as methods for matching service levels to recipient needs, options for managing growth in entitlement caseloads, and techniques for projecting the number of persons in need of publicly-funded services.

Sec. 103. 1997 c 454 s 101 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

General Fund Appropriation (FY 1998)................ $ ((~~1,421,000~~))

1,371,000

General Fund Appropriation (FY 1999)................ $ ((~~1,425,000~~))

1,875,000

TOTAL APPROPRIATION...................... $ ((~~2,846,000~~))

3,246,000

The appropriations in this section are subject to the following conditions and limitations: (($50,000 of the general fund appropriation for fiscal year 1998 is provided solely to implement Substitute Senate Bill No. 5071 (school district territory). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.))

(1) $340,000 of the general fund appropriation for fiscal year 1999 is provided solely for a study of the system of finance of the Washington common schools as required by section 501 of this act.

(2) $35,000 of the general fund appropriation for fiscal year 1999 is provided solely for a study of: (a) The effect of the state certificate of need program under chapter 70.38 RCW on the cost, quality, and availability of hospital, ambulatory surgery, home health, hospice, and kidney disease treatment services; and (b) the effect the repeal of the program would have on the cost, quality, and availability of any of these services, and on the availability of charity care and of health facilities and services in rural areas, including the experience in other states where such programs have been fully or partially repealed. The study shall be submitted to the legislature by January 1, 1999.

(3) $75,000 of the general fund appropriation for fiscal year 1999 is provided solely for completion of a management audit of the division of developmental disabilities, within the department of social and health services. The objectives of the review shall include, but are not limited to: (a) An analysis and evaluation of the current organizational structures, management practices, and performance measures that are in place to fulfill statutory responsibilities; (b) an assessment of the impact of overlapping statutory or administrative code responsibilities with other department of social and health services divisions and other state agencies; and (c) development of recommendations, as appropriate, that would result in significant management improvements in the division's operations. The audit report shall be provided to the senate committee on ways and means and the house of representatives committee on appropriations by January 8, 1999.

Sec. 104. 1997 c 149 s 104 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund Appropriation (FY 1998)................ $ 1,263,000

General Fund Appropriation (FY 1999)................ $ ((~~1,332,000~~))

1,482,000

TOTAL APPROPRIATION...................... $ ((~~2,595,000~~))

2,745,000

The appropriations in this section are subject to the following conditions and limitations: The committee shall conduct an inventory and examination of state data processing projects funded in this act and make recommendations to improve the accountability and legislative evaluation and oversight of these projects.

Sec. 105. 1997 c 149 s 110 (uncodified) is amended to read as follows:

FOR THE COURT OF APPEALS

General Fund Appropriation (FY 1998)................ $ ((~~10,225,000~~))

10,340,000

General Fund Appropriation (FY 1999)................ $ ((~~10,133,000~~))

10,307,000

TOTAL APPROPRIATION...................... $ ((~~20,358,000~~))

20,647,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $271,000 of the general fund fiscal year 1999 appropriation is provided solely for an additional judge position and related support staff in division I in King county, effective July 1, 1998.

(2) $490,000 of the general fund fiscal year 1998 appropriation is provided solely for remodeling existing space in division I court facilities to house additional staff.

Sec. 106. 1997 c 149 s 111 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON JUDICIAL CONDUCT

General Fund Appropriation (FY 1998)................ $ ((~~652,000~~))

692,000

General Fund Appropriation (FY 1999)................ $ ((~~653,000~~))

714,000

TOTAL APPROPRIATION...................... $ ((~~1,305,000~~))

1,406,000

Sec. 107. 1997 c 149 s 112 (uncodified) is amended to read as follows:

FOR THE ADMINISTRATOR FOR THE COURTS

General Fund Appropriation (FY 1998)........... $ 12,723,000

General Fund Appropriation (FY 1999)........... $ ((~~12,595,000~~))

12,870,000

Public Safety and Education Account

Appropriation.............................. $ ((~~31,134,000~~))

30,919,000

Judicial Information Systems Account

Appropriation.............................. $ ((~~16,305,000~~))

17,489,000

TOTAL APPROPRIATION................. $ ((~~72,757,000~~))

74,001,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Funding provided in the judicial information systems account appropriation shall be used for the operations and maintenance of technology systems that improve services provided by the supreme court, the court of appeals, the office of public defense, and the office of the administrator for the courts. $400,000 of the judicial information systems account appropriation is provided solely for the year 2000 date conversion.

(2) No moneys appropriated in this section may be expended by the administrator for the courts for payments in excess of fifty percent of the employer contribution on behalf of superior courts judges for insurance and health care plans and federal social security and medicare and medical aid benefits. Consistent with Article IV, section 13 of the state Constitution and 1996 Attorney General's Opinion No. 2, it is the intent of the legislature that the cost of these employer contributions shall be shared equally between the state and county or counties in which the judges serve. The administrator for the courts shall continue to implement procedures for the collection and disbursement of these employer contributions.

(3) ((~~$6,510,000~~)) $6,465,000 of the public safety and education account appropriation is provided solely for the continuation of treatment alternatives to street crimes (TASC) programs in Pierce, Snohomish, Clark, King, Spokane, and Yakima counties.

(4) $125,000 of the public safety and education account appropriation is provided solely for the workload associated with the increase in state cases filed in Thurston county superior court.

(5) $223,000 of the public safety and education account appropriation is provided solely for the gender and justice commission.

(6) $308,000 of the public safety and education account appropriation is provided solely for the minority and justice commission.

(7) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for judicial program enhancements. Within the funding provided in this subsection, the office of administrator of courts in consultation with the supreme court shall determine the program or programs to receive an enhancement.

(8) $35,000 of the general fund fiscal year 1998 appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 1771 (guardian certification). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(9) $100,000 of the general fund fiscal year 1998 appropriation is provided solely for the Snohomish county preprosecution diversion program.

(10) $175,000 of the general fund appropriation for fiscal year 1999 is provided solely for costs associated with the publication and distribution of a judicial voter pamphlet for the 1998 primary election.

(11) $100,000 of the general fund appropriation for fiscal year 1999 is provided solely for contract with the Washington state institute for public policy. The institute shall conduct a study of outcomes for offenders sentenced to the treatment alternatives for street crime (TASC) program. The study shall focus on recidivism outcomes and shall recommend which state agency should have administrative responsibility for TASC.

Sec. 108. 1997 c 149 s 113 (uncodified) is amended to read as follows:

FOR THE OFFICE OF PUBLIC DEFENSE

Public Safety and Education Account

Appropriation.............................. $ ((~~12,187,000~~))

12,103,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The cost of defending indigent offenders in death penalty cases has escalated significantly over the last four years. The office of public defense advisory committee shall analyze the current methods for reimbursing private attorneys and shall develop appropriate standards and criteria designed to control costs and still provide indigent defendants their constitutional right to representation at public expense. The office of public defense advisory committee shall report its findings and recommendations to the supreme court and the appropriate legislative committees by September 30, 1998.

(2) $688,000 of the public safety and education account appropriation is provided solely to increase the reimbursement for private attorneys providing constitutionally mandated indigent defense in nondeath penalty cases.

Sec. 109. 1997 c 149 s 114 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE GOVERNOR

General Fund--State Appropriation (FY 1998).... $ ((~~5,047,000~~))

5,068,000

General Fund--State Appropriation (FY 1999).... $ ((~~4,963,000~~))

5,020,000

General Fund--Federal Appropriation............. $.................................. ((~~188,000~~))

553,000

Water Quality Account Appropriation............. $ 700,000

TOTAL APPROPRIATION................. $ ((~~10,898,000~~))

11,341,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,618,000 of the general fund--state appropriation for fiscal year 1998, $1,520,000 of the general fund--state appropriation for fiscal year 1999, $700,000 of the water quality account appropriation, and $188,000 of the general fund--federal appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items PSAT-01 through PSAT-06.

(2) $12,000 of the general fund--state appropriation for fiscal year 1998 and $13,000 of the general fund--state appropriation for fiscal year 1999 are provided for the state law enforcement medal of honor committee for the purposes of recognizing qualified law enforcement officers as provided by chapter 41.72 RCW.

(3) $21,000 of the general fund‑-state appropriation for fiscal year 1998 and $57,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the office of the family and children's ombudsman for the Wenatchee investigation, support staff, and increased travel costs.

Sec. 110. 1997 c 149 s 116 (uncodified) is amended to read as follows:

FOR THE PUBLIC DISCLOSURE COMMISSION

General Fund Appropriation (FY 1998)................ $ ((~~1,457,000~~))

1,568,000

General Fund Appropriation (FY 1999)................ $ ((~~1,206,000~~))

1,262,000

TOTAL APPROPRIATION...................... $ ((~~2,663,000~~))

2,830,000

The appropriations in this section are subject to the following conditions and limitations: $306,000 of the general fund fiscal year 1998 appropriation and $72,000 of the general fund fiscal year 1999 appropriation are provided solely for technology for customer service improvements.

Sec. 111. 1997 c 149 s 117 (uncodified) is amended to read as follows:

FOR THE SECRETARY OF STATE

General Fund Appropriation (FY 1998)........... $ 8,055,000

General Fund Appropriation (FY 1999)........... $ ((~~5,901,000~~))

8,031,000

Archives & Records Management Account--State

Appropriation.............................. $ 4,032,000

Archives & Records Management Account--Private/Local

Appropriation.............................. $ ((~~2,553,000~~))

2,833,000

Department of Personnel Service Account

Appropriation.............................. $ 663,000

TOTAL APPROPRIATION................. $ ((~~21,204,000~~))

23,614,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,355,000 of the general fund appropriation for fiscal year 1998 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures.

(2) $2,011,000 of the general fund appropriation for fiscal year 1998 and $2,536,000 of the general fund appropriation for fiscal year 1999 are provided solely for the verification of initiative and referendum petitions, maintenance of related voter registration records, and the publication and distribution of the voters and candidates pamphlet.

(3) $99,000 of the general fund appropriation is provided solely for the state's participation in the United States census block boundary suggestion program.

(4) $125,000 of the fiscal year 1998 general fund appropriation is provided solely for legal advertising of state measures under RCW 29.27.072.

(5) $45,000 of the general fund fiscal year 1998 appropriation is provided solely for an economic feasibility study of a state horse park.

(6) The election review section under chapter 29.60 RCW shall be administered in a manner consistent with Engrossed Senate Bill No. 5565 (election procedures review).

(7)(a) $1,850,000 of the general fund appropriation for fiscal year 1999 is provided solely for contracting with a nonprofit organization to produce gavel-to-gavel television coverage of state government deliberations and other events of state-wide significance during fiscal year 1999. An eligible nonprofit organization must be formed solely for the purpose of, and be experienced in, providing gavel-to-gavel television coverage of state government deliberations and other events of state-wide significance and must have received a determination of tax-exempt status under section 501(c)(3) of the federal internal revenue code.

(b) The legislature finds that the commitment of on-going funding is necessary to ensure continuous, autonomous, and independent coverage of public affairs. For that purpose, the secretary of state shall enter into a four-year contract with the nonprofit organization to provide public affairs coverage through June 30, 2002. The funding level for each year of the contract shall be based on the amount provided in this subsection and adjusted to reflect the implicit price deflator for the previous year. The nonprofit organization shall be required to raise contributions or commitments to make contributions, in cash or in kind, in an amount equal to forty percent of the state contribution.

(c) The nonprofit organization shall prepare an annual independent audit, an annual financial statement, and an annual report, including benchmarks that measure the success of the nonprofit organization in meeting the intent of the program.

(d) No portion of any amounts disbursed pursuant to this subsection may be used, directly or indirectly, for any of the following purposes:

(i) Attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, by any county, city, town, or other political subdivision of the state of Washington, or by the congress, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency;

(ii) Making contributions reportable under chapter 42.17 RCW; or

(iii) Providing any: (A) Gift; (B) honoraria; or (C) travel, lodging, meals, or entertainment to a public officer or employee.

(8) $194,000 of the general fund fiscal year 1999 appropriation is provided solely to implement Engrossed Second Substitute House Bill No. 2882 (providing technical assistance to agency personnel and state contractors). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(9) $280,000 of the archives and records management account--private/local appropriation is provided solely for preserving and restoring security microfilm.

Sec. 112. 1997 c 149 s 120 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER

State Treasurer's Service Account

Appropriation.............................. $ ((~~11,567,000~~))

12,382,000

Sec. 113. 1997 c 149 s 121 (uncodified) is amended to read as follows:

FOR THE STATE AUDITOR

General Fund Appropriation (FY 1998)........... $ ((~~678,000~~))

688,000

General Fund Appropriation (FY 1999)........... $ ((~~678,000~~))

1,193,000

State Auditing Services Revolving Account

Appropriation.............................. $ ((~~11,928,000~~))

12,373,000

TOTAL APPROPRIATION................. $ ((~~13,284,000~~))

14,254,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Audits of school districts by the division of municipal corporations shall include findings regarding the accuracy of: (a) Student enrollment data; and (b) the experience and education of the district's certified instructional staff, as reported to the superintendent of public instruction for allocation of state funding.

(2) $420,000 of the general fund appropriation for fiscal year 1998 and $420,000 of the general fund appropriation for fiscal year 1999 are provided solely for staff and related costs to audit special education programs that exhibit unusual rates of growth, extraordinarily high costs, or other characteristics requiring attention of the state safety net committee, and other school districts for baseline purposes and to determine if there are common errors. The auditor shall consult with the superintendent of public instruction regarding training and other staffing assistance needed to provide expertise to the audit staff.

(3) $250,000 of the general fund fiscal year 1998 appropriation and $250,000 of the general fund fiscal year 1999 appropriation are provided solely for the budget and reporting system (BARS) to improve the reporting of local government fiscal data. Audits of counties and cities by the division of municipal corporations shall include findings regarding the completeness, accuracy, and timeliness of BARS data reported to the state auditor's office.

(4) The state auditor shall develop recommendations and curricula for preventing instances of improper governmental actions as defined in chapter 42.20 RCW, the state whistleblower act. In developing these recommendations and curricula, the state auditor shall involve the office of financial management, office of the attorney general, executive ethics board, department of personnel, employee organizations, and other interested parties. These recommendations shall be submitted to the governor and the legislature by June 30, 1998.

(5) $120,000 of the auditing services revolving fund appropriation is provided solely to implement Engrossed Second Substitute House Bill No. 2881 (auditing state contractors). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $25,000 of the general fund fiscal year 1999 appropriation is provided solely to implement Engrossed Second Substitute House Bill No. 2831 (a joint report to the legislature on the results of cost studies and service quality and reliability reports from electric utilities). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse. No fee may be collected from the electric utilities for this joint report.

(7) $10,000 of the general fund fiscal year 1998 appropriation and $490,000 of the general fund fiscal year 1999 appropriation are provided solely for staff and related costs to: Verify the accuracy of reported school district data submitted for state funding purposes or program audits of state funded public school programs; and establish the specific amount of funds to be recovered whenever the amount is not firmly established in the course of any public school audits conducted by the state auditor's office. The results of the audits shall be submitted to the superintendent of public instruction for corrections of data and adjustments of funds.

Sec. 114. 1997 c 149 s 122 (uncodified) is amended to read as follows:

FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund Appropriation (FY 1998)................ $ ((~~4,000~~))

11,000

General Fund Appropriation (FY 1999)................ $ 63,000

TOTAL APPROPRIATION...................... $ ((~~67,000~~))

74,000

Sec. 115. 1997 c 149 s 123 (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERAL

General Fund--State Appropriation (FY 1998).... $ ((~~4,361,000~~))

4,161,000

General Fund--State Appropriation (FY 1999).... $ ((~~3,631,000~~))

4,056,000

General Fund--Federal Appropriation............. $.................................. 2,248,000

Public Safety and Education Account

Appropriation.............................. $ ((~~1,300,000~~))

1,291,000

New Motor Vehicle Arbitration Account

Appropriation.............................. $ 1,094,000

Legal Services Revolving Account

Appropriation.............................. $ ((~~125,008,000~~))

125,758,000

TOTAL APPROPRIATION................. $ ((~~137,642,000~~))

138,608,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year.

(2) The attorney general shall include, at a minimum, the following information with each bill sent to agencies receiving legal services: (a) The number of hours and cost of attorney services provided during the billing period; (b) cost of support staff services provided during the billing period; (c) attorney general overhead and central support costs charged to the agency for the billing period; (d) direct legal costs, such as filing and docket fees, charged to the agency for the billing period; and (e) other costs charged to the agency for the billing period. The attorney general may, with approval of the office of financial management change its billing system to meet the needs of its user agencies.

(3) $300,000 of the fiscal year 1998 general fund--state appropriation is provided for a comprehensive assessment of environmental and public health impacts and for other costs related to pursuing remedies for pollution in the Spokane river basin.

(4) ((~~$640,000~~)) $440,000 of the fiscal year 1998 general fund--state appropriation and ((~~$210,000~~)) $410,000 of the fiscal year 1999 general fund--state appropriation are provided solely to implement the supervision management and recidivist tracking program to allow the department of corrections and local law enforcement agencies to share information concerning the activities of offenders on community supervision. ((~~No information on any person may be entered into or retained in the program unless the person is under the jurisdiction of the department of corrections.~~))

(5) $84,000 of the legal services revolving account appropriation for fiscal year 1999 is provided solely to implement Substitute House Bill No. 2521 (providing for curfews). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $141,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2845 (enacting the Washington state false claims act). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(7) Within the amounts provided in this section, the attorney general shall implement Engrossed Substitute House Bill No. 2769 (establishing procedures for reporting felonies by state employees). If the bill is not enacted by June 30, 1998, this subsection is null and void.

(8) Within the amounts provided in this section, the attorney general shall implement Second Substitute House Bill No. 2027 (regulating travel sales). If the bill is not enacted by June 30, 1998, this subsection is null and void.

Sec. 116. 1997 c 149 s 124 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FINANCIAL INSTITUTIONS

Securities Regulation Account Appropriation......... $ ((~~5,445,000~~))

5,482,000

The appropriation in this section is subject to the following conditions and limitations: $34,000 of the securities regulation account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

Sec. 117. 1997 c 454 s 103 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

General Fund--State Appropriation (FY 1998).... $ ((~~57,361,000~~))

57,041,000

General Fund--State Appropriation (FY 1999).... $ ((~~56,351,000~~))

58,710,000

General Fund--Federal Appropriation............. $.................................. ((~~155,278,000~~))

164,000,000

General Fund--Private/Local Appropriation.. ... $ 6,903,000

Public Safety and Education Account

Appropriation.............................. $ ((~~8,781,000~~))

8,720,000

Public Works Assistance Account

Appropriation.............................. $ 2,223,000

Building Code Council Account Appropriation.... $ ((~~1,318,000~~))

1,366,000

Administrative Contingency Account

Appropriation.............................. $ 1,776,000

Low-Income Weatherization Assistance Account

Appropriation.............................. $ 923,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ 6,042,000

Manufactured Home Installation Training Account

Appropriation.............................. $ 250,000

Washington Housing Trust Account

Appropriation.............................. $ 7,999,000

Public Facility Construction Loan Revolving Account

Appropriation.............................. $ 515,000

Clean Washington Account Appropriation (FY 1998) $ 11,000

TOTAL APPROPRIATION................. $ ((~~305,720,000~~))

316,479,000

The appropriations in this section are subject to the following conditions and limitations:

(1) ((~~$3,282,500~~)) $2,962,500 of the general fund‑-state appropriation for fiscal year 1998 and ((~~$3,282,500~~)) $3,602,500 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for a contract with the Washington technology center. For work essential to the mission of the Washington technology center and conducted in partnership with universities, the center shall not pay any increased indirect rate nor increases in other indirect charges above the absolute amount paid during the 1995-97 biennium.

(2) $155,000 of the general fund--state appropriation for fiscal year 1998 and ((~~$155,000~~)) $445,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington manufacturing extension partnership.

(3) $9,964,000 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 1998 as follows:

(a) $3,603,250 to local units of governments to continue the multi-jurisdictional narcotics task forces;

(b) $500,000 to the department to continue the state-wide drug prosecution assistance program in support of multijurisdictional narcotics task forces;

(c) $1,306,075 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

(d) $240,000 to the department for grants to support tribal law enforcement needs;

(e) $900,000 to drug courts in eastern and western Washington;

(f) $300,000 to the department for grants to provide sentencing alternatives training programs to defenders;

(g) $200,000 for grants to support substance-abuse treatment in county jails;

(h) $517,075 to the department for legal advocacy for victims of domestic violence and for training of local law enforcement officers and prosecutors on domestic violence laws and procedures;

(i) $903,000 to the department to continue youth violence prevention and intervention projects;

(j) $91,000 for the governor's council on substance abuse;

(k) $99,000 for program evaluation and monitoring;

(l) $100,000 for the department of corrections for a feasibility study of replacing or updating the offender based tracking system.

(m) $498,200 for development of a state-wide system to track criminal history records; and

(n) No more than $706,400 to the department for grant administration and reporting.

These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this section. If moneys in excess of those appropriated in this section become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold these moneys in reserve and may not expend them without a specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding fiscal year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.

(4) $11,715,000 of the general fund‑-federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 1999 as follows:

(a) $3,878,250 to local units of government to continue multijurisdictional narcotics task forces;

(b) $531,000 to the department to continue the drug prosecution assistance program in support of multijurisdictional narcotics task forces;

(c) $1,363,075 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

(d) $256,000 to the department for grants to support tribal law enforcement needs;

(e) $1,093,000 to drug courts in eastern and western Washington;

(f) $312,000 to the department for grants assisting in the development, conduct, and training on sentencing alternatives;

(g) $261,000 to the department to continue a substance-abuse treatment in jails program, to test the effect of treatment on future criminal behavior;

(h) $581,075 to the department to continue domestic violence legal advocacy;

(i) $949,000 to the department to continue youth violence prevention and intervention projects;

(j) $91,000 to the department to continue the governor's council on substance abuse;

(k) $99,000 to the department to continue evaluation of Byrne formula grant programs;

(l) $1,496,200 to the office of financial management for the criminal history records improvement program; and

(m) $804,400 to the department for required grant administration, monitoring and reporting on Byrne formula grant programs.

These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this subsection. If moneys in excess of those appropriated in this section become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold these moneys in reserve and may not expend them without specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.

((~~(4)~~)) (5) $1,000,000 of the general fund fiscal year 1998 appropriation and $1,000,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Engrossed Substitute House Bill No. 1576 (buildable lands) or Senate Bill No. 6094 (growth management). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(5) $4,800,000~~)) (6) $4,766,000 of the public safety and education account appropriation, $1,000,000 of the fiscal year 1998 general fund‑-state appropriation, and $1,000,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for indigent civil legal representation services contracts and contracts administration. The amounts provided in this subsection are contingent upon enactment of section 2 of Engrossed Substitute House Bill No. 2276 (civil legal services for indigent persons). If section 2 of the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

((~~(6)~~)) (7) $643,000 of the general fund--state fiscal year 1998 appropriation and $643,000 of the general fund--state fiscal year 1999 appropriation are provided solely to increase payment rates for contracted early childhood education assistance program providers. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

((~~(7)~~)) (8) $75,000 of the general fund--state fiscal year 1998 appropriation and $75,000 of the general fund--state fiscal year 1999 appropriation are provided solely as a grant for the community connections program in Walla Walla county.

((~~(8)~~)) (9) $300,000 of the general fund--state fiscal year 1998 appropriation and $300,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract with the Washington state association of court-appointed special advocates/guardians ad litem (CASA/GAL) to establish pilot programs in three counties to recruit additional community volunteers to represent the interests of children in dependency proceedings. Of this amount, a maximum of $30,000 shall be used by the department to contract for an evaluation of the effectiveness of CASA/GAL in improving outcomes for dependent children. The evaluation shall address the cost-effectiveness of CASA/GAL and to the extent possible, identify savings in other programs of the state budget where the savings resulted from the efforts of the CASA/GAL volunteers. The department shall report to the governor and legislature by October 15, 1998.

((~~(9)~~)) (10) $75,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for state sponsorship of the "BIO 99" international biotechnology conference and exhibition in the Seattle area in 1999.

((~~(10)~~)) (11) $698,000 of the general fund--state appropriation for fiscal year 1998, $697,000 of the general fund--state appropriation for fiscal year 1999, and $1,101,000 of the administrative contingency account appropriation are provided solely for contracting with associate development organizations.

((~~(11)~~)) (12) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to expand the long-term care ombudsman program.

((~~(12)~~)) (13) $60,000 of the general fund‑-state appropriation for fiscal year 1998 and $60,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for implementation of the Puget Sound work plan action item DCTED-01.

((~~(13)~~)) (14) $20,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a task force on tourism promotion and development. The task force shall report to the legislature on its findings and recommendations by January 31, 1998.

((~~(14)~~)) (15) $61,000 of the general fund--state appropriation for fiscal year 1998 and $60,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the pacific northwest economic region (PNWER).

((~~(15)~~)) (16) $123,000 of the general fund‑-state appropriation for fiscal year 1998 and $124,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the community development finance program.

((~~(16)~~)) (17) Within the appropriations provided in this section, the department shall conduct a study of possible financial incentives to assist in revitalization of commercial areas and report its findings and recommendations to the appropriate committees of the legislature by November 15, 1997.

(18) $49,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(19) $166,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Substitute House Bill No. 2898 (buildable lands programs). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(20) $150,000 of the general fund--state fiscal year 1999 appropriation is provided solely to implement Substitute House Bill No. 1800 (assisting crime stoppers programs). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(21) $600,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the development of housing for low-income, temporary or migrant farm workers, in accordance with Second Substitute Senate Bill No. 6168 (temporary worker housing), through grants awarded after the effective date of this act. The legislature finds that providing housing for low-income temporary or migrant workers is a public purpose. The department shall prioritize grants and shall award grants on a competitive basis to local governments, nonprofit corporations, or other entities. Grant moneys awarded by the department under this subsection may be matched by nonstate sources on a dollar-for-dollar basis, in cash or in-kind. Of the amount in this subsection, $100,000 is provided solely for restroom and shower facilities at the Horn Rapids Park in Benton county; no match need be provided for this project. The amount in this subsection is contingent upon enactment of sections 1 through 8 of Second Substitute Senate Bill No. 6168. If any of these sections of the bill are not enacted by June 30, 1998, this subsection is null and void, and the amounts provided in this subsection shall lapse. Any amounts in this section not committed to grants by June 30, 1999, shall lapse.

(22) The department shall report to the legislature on the services provided by licensed overnight youth shelters. The report shall describe their services in relation to other support services for youth living outside of a family structure, the funding sources used by these facilities, the types of clients served at these facilities, and shall report on whether any of the youth who receive services at these shelters are actually eligible for foster care services through the department of social and health services. In compiling the report, the department will consult staff of the children's administration of the department of social and health services. The report shall be provided by December 12, 1998, to the members of the appropriate house of representatives and senate committees.

Sec. 118. 1997 c 454 s 104 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund--State Appropriation (FY 1998).... $ ((~~10,530,000~~))

10,626,000

General Fund--State Appropriation (FY 1999).... $ ((~~10,253,000~~))

10,922,000

General Fund--Federal Appropriation............. $.................................. 23,331,000

General Fund‑-Local Appropriation.............. $ 190,000

TOTAL APPROPRIATION................. $ ((~~44,114,000~~))

45,069,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The office of financial management, in cooperation with the higher education coordinating board and the state board for community and technical colleges, shall develop long-term higher education enrollment forecasting models for consideration by the legislature. To the extent possible, the pilot models shall incorporate trends in demography, higher education applications, K-12 graduation rates, labor market needs, and state and national higher education policy and economic considerations. The public institutions of education shall cooperate in the development of models by providing any necessary data in a timely and organized manner. The private education institutions of the state are encouraged to participate in this effort. Pilot models will be provided to the legislature by November 1, 1998.

(2) $139,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2880 (task force on vendor contracting practices). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(3) $12,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2882 (providing technical assistance to agency personnel and state contractors). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 119. 1997 c 149 s 129 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF PERSONNEL

General Fund‑-State Appropriation (FY 1999).... $ 30,000

Department of Personnel Service Account

Appropriation.............................. $ ((~~16,493,000~~))

16,563,000

Higher Education Personnel Services Account

Appropriation.............................. $ 1,632,000

TOTAL APPROPRIATION................. $ ((~~18,125,000~~))

18,225,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department shall reduce its charge for personnel services to the lowest rate possible.

(2) $32,000 of the department of personnel service fund appropriation is provided solely for the creation, printing, and distribution of the personal benefits statement for state employees.

(3) The department of personnel service account appropriation contains sufficient funds to continue the employee exchange program with the Hyogo prefecture in Japan.

(4) $500,000 of the department of personnel service account appropriation is provided solely for the career transition program to assist state employees who are separated or are at risk of lay-off due to reduction-in-force. Services shall include employee retraining and career counseling.

(5) $800,000 of the department of personnel service account appropriation is provided solely for the human resource data warehouse to: Expand the type and amount of information available on the state-wide work force; and to provide the office of financial management, legislature, and state agencies with direct access to the data for policy and planning purposes. The department of personnel shall establish uniform reporting procedures, applicable to all state agencies and higher education institutions, for reporting data to the data warehouse by June 30, 1998. The department of personnel will report quarterly to the legislative fiscal committees, the office of financial management, the information services board, and the office of information technology oversight of the department of information services the following items: (a) The number of state agencies that have received access to the data warehouse (it is anticipated that approximately 40 agencies will receive access during the 1997-99 biennium); (b) the change in requests for downloads from the mainframe computer by agencies with access to the data warehouse, to reflect transferring customers use of the mainframe computer to the more economical use of data warehouse information; and (c) a summary of customer feedback from agencies with access to the data warehouse. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(6) The department of personnel has the authority to charge agencies for expenses associated with converting its payroll/personnel computer system to accommodate the year 2000 date change. Funding to cover these expenses shall be realized from the agency FICA savings associated with the pretax benefits contributions plan.

(7) The department of personnel shall charge all administrative services costs incurred by the department of retirement systems for the deferred compensation program. The billings to the department of retirement systems shall be for actual costs only.

Sec. 120. 1997 c 149 s 130 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE LOTTERY

Industrial Insurance Premium Refund

Appropriation................................... $ 9,000

Lottery Administrative Account

Appropriation................................... $ 19,966,000

TOTAL APPROPRIATION...................... $ 19,975,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The state lottery shall apportion 30 percent of fiscal year 1999 gross revenue to the state's general fund. If a lower percentage is apportioned to the general fund in fiscal year 1999, a dollar amount equal to the difference between the actual apportionment and 30 percent of fiscal year 1999 gross revenue shall lapse from the lottery administrative account appropriation.

(2) If the state lottery provides cash bonuses or cash marketing incentives to retailers, a dollar amount equal to the total cash bonuses and marketing incentives shall lapse from the lottery administrative account appropriation.

(3) The requirements of subsections (1) and (2) of this section are contingent upon the enactment of House Bill No. 3120 (regarding lottery revenues). If the bill is not enacted by June 30, 1998, subsections (1) and (2) of this section are null and void.

Sec. 121. 1997 c 149 s 134 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

Dependent Care Administrative Account

Appropriation.............................. $ 357,000

Department of Retirement Systems Expense Account

Appropriation.............................. $ ((~~31,415,000~~))

34,345,000

TOTAL APPROPRIATION................. $ ((~~31,772,000~~))

34,702,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,373,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the electronic document image management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(2) $1,259,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the receivables management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(3) The department of retirement systems shall complete a study examining whether it would be cost-effective to contract out the administration functions for the dependent care assistance program and shall report to the fiscal committees of the legislature by December 15, 1997.

(4) $118,000 of the department of retirement systems expense account appropriation is provided solely for the implementation of Substitute House Bill No. 2491 (TRS/PERS plan I gain sharing). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(5) $826,000 of the department of retirement systems expense account appropriation is provided solely for the implementation of Substitute Senate Bill No. 6306 (creating the Washington school employees' retirement system). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 122. 1997 c 149 s 136 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF REVENUE

General Fund Appropriation (FY 1998)........... $ 65,033,000

General Fund Appropriation (FY 1999)........... $ ((~~65,320,000~~))

65,603,000

Timber Tax Distribution Account

Appropriation.............................. $ 4,778,000

Waste Reduction/Recycling/Litter Control

Appropriation.............................. $ 100,000

State Toxics Control Account Appropriation..... $ 67,000

Solid Waste Management Account

Appropriation.............................. $ 92,000

Oil Spill Administration Account

Appropriation.............................. $ 14,000

TOTAL APPROPRIATION................. $ ((~~135,404,000~~))

135,687,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,540,000 of the general fund appropriation for fiscal year 1998 and ((~~$1,710,000~~)) $1,799,000 of the general fund appropriation for fiscal year 1999 are provided solely for senior citizen property tax deferral distribution. If neither Substitute Senate Bill No. 6321 nor Engrossed Substitute Senate Bill No. 6533 (senior/disabled property tax) is enacted by June 30, 1998, $89,000 of the general fund appropriation for fiscal year 1999 shall lapse.

(2) Within the amounts appropriated in this section the department shall conduct a study identifying the impacts of exempting all shellfish species from the tax imposed on enhanced food fish under chapter 82.27 RCW. The study shall include an estimate of the fiscal impacts to state revenues as well as an examination of how such an exemption would impact shellfish-based industries and communities where shellfish-based industries are located. The department shall complete this study and report its findings to the legislature by December 1, 1997.

(3) The department shall study the costs incurred by retailers in collecting and remitting state and local sales taxes. The study shall (a) identify and estimate the costs for small, medium, and large retailers, (b) estimate the cost to retailers of implementing changes in tax rates and/or the tax base, (c) identify current statutory and regulatory procedures that impose costs and burdens on retailers, as well as alternatives that would lessen these costs and burdens, (d) estimate any direct or indirect compensation retailers currently receive, if any, and (e) review how many other states provide compensation to retailers and the nature of the compensation. The department shall report its findings to the fiscal committees of the house of representatives and senate by December 31, 1998.

(4) $100,000 of the general fund appropriation for fiscal year 1999 is provided solely for the implementation of tax legislation enacted during the 1998 legislative session.

(5) $94,000 of the general fund appropriation for fiscal year 1999 is provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 123. 1997 c 149 s 141 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF INFORMATION SERVICES

General Fund Appropriation (FY 1999)........... $ 6,400,000

Data Processing Revolving Account

Appropriation.............................. $ 3,577,000

K-20 Technology Account Appropriation.......... $ 44,028,000

TOTAL APPROPRIATION................. $ ((~~47,605,000~~))

54,005,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The department shall provide a toll-free telephone number and operator service staff for the general public to call for information about state agencies. The department may provide such staff, equipment, and facilities as are necessary for this purpose. The director shall adopt rules to fix terms and charges for these services. All state agencies and the legislature shall participate in the information program and shall reimburse the department of information services in accordance with rules established by the director. The department shall also provide conference calling services for state and other public agencies on a fee-for-service basis.

(2) $44,028,000 of the K-20 technology account appropriation shall be expended in accordance with the expenditures authorized by the K-20 telecommunications oversight and policy committee as currently existing or as modified by Substitute House Bill No. 1698, Substitute Senate Bill No. 5002, or substantially similar legislation (K-20 telecommunications network).

(3) $6,400,000 of the general fund fiscal year 1999 appropriation is provided solely for deposit into the education and technology revolving fund for K-20 network transport, network operations, and maintenance costs, in accordance with the funding model adopted by the telecommunications oversight and policy committee.

Sec. 124. 1997 c 149 s 142 (uncodified) is amended to read as follows:

FOR THE INSURANCE COMMISSIONER

General Fund--Federal Appropriation............. $ 106,000

Insurance Commissioners Regulatory Account

Appropriation.............................. $ ((~~22,431,000~~))

22,331,000

TOTAL APPROPRIATION................. $ ((~~22,537,000~~))

22,437,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $532,000 of the insurance commissioner's regulatory account appropriation is provided solely for the expenditure of funds received under the consent order with the Prudential insurance company. These funds are provided solely for implementing the Prudential remediation process and for examinations of the Prudential company.

(2) (($206,000 of the insurance commissioner's regulatory account appropriation is provided solely to implement Substitute House Bill No. 1387 (basic health plan benefits). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

~~(3)~~)) $298,000 of the insurance commissioner's regulatory account appropriation is provided solely for technology improvements that will support the electronic filing of insurance rates and contracts and enable regulators and the industry to share information about licensed agents to protect the public from fraudulent sales practices.

(3) $50,000 of the insurance commissioner's regulatory account appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 125. 1997 c 149 s 146 (uncodified) is amended to read as follows:

FOR THE LIQUOR CONTROL BOARD

General Fund Appropriation (FY 1998)........... $ 1,603,000

General Fund Appropriation (FY 1999)........... $ ((~~1,242,000~~))

1,294,000

Liquor Control Board Construction and Maintenance

Account Appropriation...................... $ 9,919,000

Liquor Revolving Account Appropriation......... $ ((~~121,391,000~~))

122,426,000

TOTAL APPROPRIATION ................. $ ((~~134,155,000~~))

135,242,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,250,000 of the liquor revolving account appropriation is provided solely for the agency information technology upgrade. This item is conditioned on satisfying the requirements of section 902 of this act, including the development of a project management plan, a project schedule, a project budget, a project agreement, and incremental funding based on completion of key milestones.

(2) $1,603,000 of the general fund fiscal year 1998 appropriation and $1,242,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute Senate Bill No. 6084 or Engrossed Substitute House Bill No. 2272 (transferring enforcement provisions regarding cigarette and tobacco taxes to the liquor control board). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(3) $459,000 of the liquor revolving account appropriation is provided solely for implementation of Substitute Senate Bill No. 5664 (credit and debit cards purchases in state liquor stores). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(4) $154,000 of the liquor revolving account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $944,000 of the liquor revolving account appropriation is provided solely for the increase in vendor commissions due to the higher than expected growth in sales volume.

(6) Within the amounts provided in this section, the liquor control board shall prepare and submit a report on the liquor agency vendor system to the legislature by December 1, 1998. The report shall provide information on: (a) The development and changes to the liquor agency vendor store system during the last twenty years; (b) the business profile of liquor agency vendors including whether the number of liquor agency vendors that sell only liquor and the number of liquor agency vendors that sell other items besides liquor; (c) the growth in the number of liquor agency vendors during the last twenty years; (d) the locations served by liquor agency vendors; (e) the criteria used for establishing liquor agency vendors and determining when to open a state liquor store in a particular location; (f) the average annual commission paid per liquor agency vendor during the last twenty years; (g) the commission rate and components of the commissions provided to liquor agency vendors during the last twenty years; (h) the basis for any changes to the commission rate or components of the commissions provided to liquor agency vendors during the last twenty years; and (i) gross liquor sales by liquor agency vendors during the last twenty years.

(7) $66,000 of the liquor revolving account appropriation is provided solely for the implementation of Substitute Senate Bill No. 6253 (credit and debit card purchases in state liquor agency vendors). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(8) $26,000 of the liquor revolving fund appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(9) $52,000 of the general fund appropriation for fiscal year 1999 is provided solely for equipment for cigarette tax enforcement activities.

Sec. 126. 1997 c 149 s 148 (uncodified) is amended to read as follows:

FOR THE BOARD FOR VOLUNTEER FIREFIGHTERS

Volunteer Firefighters' Relief & Pension Administrative

Account Appropriation........................... $ ((~~529,000~~))

534,000

Sec. 127. 1997 c 454 s 105 (uncodified) is amended to read as follows:

FOR THE MILITARY DEPARTMENT

General Fund--State Appropriation (FY 1998).... $ ((~~8,151,000~~))

8,602,000

General Fund--State Appropriation (FY 1999).... $ ((~~8,154,000~~))

12,938,000

General Fund--Federal Appropriation............. $.................................. 34,314,000

General Fund--Private/Local Appropriation...... $ 238,000

Flood Control Assistance Account Appropriation. $ 3,000,000

Enhanced 911 Account Appropriation............. $ 26,782,000

Disaster Response Account‑-State Appropriation. $ ((~~23,977,000~~))

29,035,000

Disaster Response Account‑-Federal Appropriation $ ((~~95,419,000~~))

110,812,000

TOTAL APPROPRIATION................. $ ((~~200,035,000~~))

225,721,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $365,000 of the general fund‑-state appropriation for fiscal year 1998, $4,693,000 of the general fund--state appropriation for fiscal year 1999, $3,000,000 of the flood control assistance account appropriation, and $6,197,000 of the general fund--federal appropriation are provided solely for deposit in the disaster response account to cover costs pursuant to subsection (2) of this section.

(2) $23,977,000 of the disaster response account--state appropriation is provided solely for the state share of response and recovery costs associated with federal emergency management agency (FEMA) disaster number 1079 (November/December 1995 storms), FEMA disaster 1100 (February 1996 floods), FEMA disaster 1152 (November 1996 ice storm), FEMA disaster 1159 (December 1996 holiday storm), FEMA disaster 1172 (March 1997 floods) and to assist local governmental entities with the matching funds necessary to earn FEMA funds for FEMA disaster 1100 (February 1996 floods). $356,000 of the disaster response account‑-state appropriation is provided solely for fire mobilization costs. $9,000 of the disaster response account‑-state appropriation is provided solely for costs associated with FEMA disaster 1182 (Pend Oreille county 1997 spring flood).

(3) $100,000 of the general fund‑-state fiscal year 1998 appropriation and $100,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of a conditional scholarship program pursuant to chapter 28B.103 RCW.

(4) $35,000 of the general fund‑-state fiscal year 1998 appropriation and $35,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the north county emergency medical service.

(5) $36,000 of the general fund‑-state fiscal year 1998 appropriation and $72,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for emergency worker claims pursuant to chapter 38.52 RCW.

Sec. 128. 1997 c 149 s 152 (uncodified) is amended to read as follows:

FOR THE STATE CONVENTION AND TRADE CENTER

State Convention and Trade Center Operating Account

Appropriation.......................... ... $ ((~~27,175,000~~))

27,394,000

(End of part)

PART II

HUMAN SERVICES

Sec. 201. 1997 c 149 s 201 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES. (1) Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in ((~~this act~~)) subsection (3) of this section, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

(2) The department of social and health services shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(3) ((~~The appropriations in sections 202 through 213 of this act shall be expended for the programs and in the amounts listed in those sections.~~)) The appropriations to the department of social and health services in chapters 149 and 454, Laws of 1997, as amended, shall be expended for the programs and in the amounts specified therein. However, after May 1, 1998, unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 1998 among programs after approval by the director of financial management. However, the department shall not transfer general fund--state appropriations (a) from the medical assistance program, (b) from the payments to other agencies program, or (c) from the economic services program for the 1997-99 fiscal biennium. The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing prior to approving any allotment modifications.

Sec. 202. 1997 c 454 s 202 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-CHILDREN AND FAMILY SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~196,437,000~~))

199,953,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~208,861,000~~))

214,524,000

General Fund‑-Federal Appropriation............. $.................................. ((~~252,269,000~~))

252,310,000

General Fund‑-Private/Local Appropriation...... $ 400,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ ((~~4,230,000~~))

4,332,000

TOTAL APPROPRIATION................. $ ((~~662,197,000~~))

671,519,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $16,510,000 of the general fund‑-state appropriation for fiscal year 1998 and $17,508,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for purposes consistent with the maintenance of effort requirements under the federal temporary assistance for needy families program established under P.L. 104-193.

(2) ((~~$837,000~~)) $4,332,000 of the violence reduction and drug enforcement account appropriation and ((~~$7,228,000~~)) $3,773,000 of the general fund--federal appropriation are provided solely for the operation of the family policy council, the community public health and safety networks, and delivery of services authorized under the federal family preservation and support act. Within the funds provided, the family policy council shall contract for an evaluation of the community networks with the institute for public policy and shall provide for audits of ten networks. Within the funds provided, the family policy council may build and maintain a geographic information system database tied to community network geography.

(3) $577,000 of the general fund--state fiscal year 1998 appropriation and $577,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract for the operation of one pediatric interim care facility. The facility shall provide residential care for up to twelve children through two years of age. Seventy-five percent of the children served by the facility must be in need of special care as a result of substance abuse by their mothers. The facility also shall provide on-site training to biological, adoptive, or foster parents. The facility shall provide at least three months of consultation and support to parents accepting placement of children from the facility. The facility may recruit new and current foster and adoptive parents for infants served by the facility. The department shall not require case management as a condition of the contract.

(4) $481,000 of the general fund‑-state fiscal year 1998 appropriation and $481,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for up to three nonfacility-based programs for the training, consultation, support, and recruitment of biological, foster, and adoptive parents of children through age three in need of special care as a result of substance abuse by their mothers, except that each program may serve up to three medically fragile nonsubstance-abuse-affected children. In selecting nonfacility-based programs, preference shall be given to programs whose federal or private funding sources have expired or that have successfully performed under the existing pediatric interim care program.

(5) $640,000 of the general fund--state appropriation for fiscal year 1998 and $640,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to fund Second Substitute Senate Bill No. 5710 (juvenile care and treatment), including section 2 of the bill. Amounts provided in this subsection to implement Second Substitute Senate Bill No. 5710 must be used to serve families who are screened from the child protective services risk assessment process. Services shall be provided through contracts with community-based organizations. If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(6) $594,000 of the general fund--state appropriation for fiscal year 1998, $556,000 of the general fund--state appropriation for fiscal year 1999, and $290,000 of the general fund--federal appropriation are provided solely to fund the provisions of Engrossed Second Substitute House Bill No. 2046 (foster parent liaison). The department shall establish a foster parent liaison in each department of social and health services region of the state and contract with a private provider to implement a recruitment and retention program for foster parents and adoptive families. The department shall provide a minimum of two hundred additional adoptive and foster home placements by June 30, 1998. If the bill is not enacted by June 30, 1997, the amounts in this subsection shall lapse.

(7) $433,000 of the fiscal year 1998 general fund‑-state appropriation, $395,000 of the fiscal year 1999 general fund‑-state appropriation, and $894,000 of the general fund‑-federal appropriation are provided solely to increase the rate paid to private child-placing agencies.

(8) $580,000 of the general fund‑-state appropriation for fiscal year 1998 and $580,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for development and expansion of child care training requirements and optional training programs. The department shall adopt rules to require annual training in early childhood development of all directors, supervisors, and lead staff at child care facilities. Directors, supervisors, and lead staff at child care facilities include persons licensed as family child care providers, and persons employed at child care centers or school age child care centers. The department shall establish a program to fund scholarships and grants to assist persons in meeting these training requirements. The department shall also develop criteria for approving training programs and establish a system for tracking who has received the required level of training. In adopting rules, developing curricula, setting up systems, and administering scholarship programs, the department shall consult with the child care coordinating committee and other community stakeholders.

(9) The department shall provide a report to the legislature by November 1997 on the growth in additional rates paid to foster parents beyond the basic monthly rate. This report shall explain why exceptional, personal, and special rates are being paid for an increasing number of children and why the amount paid for these rates per child has risen in recent years. This report must also recommend methods by which the legislature may improve the current foster parent compensation system, allow for some method of controlling the growth in costs per case, and improve the department's and the legislature's ability to forecast the program's needs in future years.

(10) $100,000 of the general fund--state appropriation for fiscal year 1998 and $100,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for legal costs associated with the defense of vendors operating a secure treatment facility, for actions arising from the good faith performance of treatment services for behavioral difficulties or needs.

(11) $2,745,000 of the fiscal year 1998 general fund--state appropriation, $2,745,000 of the fiscal year 1999 general fund--state appropriation, and $1,944,000 of the general fund--federal appropriation are provided solely for the category of services titled "intensive family preservation services."

(12) ((~~$2,200,000~~)) $1,642,000 of the fiscal year 1998 general fund‑-state appropriation ((~~and $2,200,000~~)), $1,207,000 of the fiscal year 1999 general fund‑-state appropriation, and $1,551,000 of the general fund‑-federal appropriation are provided solely to continue existing continuum of care and street youth projects.

(13) $1,456,000 of the general fund‑-state appropriation for fiscal year 1998, $1,474,000 of the general fund‑-state appropriation for fiscal year 1999 and $1,141,000 of the general fund‑-federal appropriation are provided solely for the improvement of quality and capacity of the child care system and related consumer education. The activities funded by this appropriation shall include, but not be limited to: Expansion of child care resource and referral network services to serve additional families, to provide technical assistance to child care providers, and to cover currently unserved areas of the state; development of and incentives for child care during nonstandard work hours; and the development of care for infants, toddlers, preschoolers, and school age youth. These amounts are provided in addition to funding for child care training and fire inspections of child care facilities. These activities shall also improve the quality and capacity of the child care system.

(14)(a) $6,565,000 of the general fund‑-state appropriation for fiscal year 1998 and $7,454,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for distribution to county juvenile court administrators to fund the costs of processing truancy, children in need of services, and at-risk youth petitions. The department shall not retain any portion of these funds to cover administrative or any other departmental costs. The department shall work with the juvenile court administrators to develop an equitable funding distribution formula. The formula shall neither reward counties with higher than average per petition processing costs nor shall it penalize counties with lower than average per petition processing costs.

(b) Each quarter during the 1997-1999 fiscal biennium, each county shall report the number of petitions processed and the total costs of processing the petitions in each of the following categories: Truancy, children in need of services, and at-risk youth. Counties shall submit the reports to the department no later than 45 days after the end of the quarter. The department shall forward this information to the chair and ranking minority member of the house appropriations committee and the senate ways and means committee no later than 60 days after a quarter ends. These reports are deemed informational in nature and are not for the purpose of distributing funds.

(15) $244,000 of the general fund--state appropriation for fiscal year 1999 and $77,000 of the general fund--federal appropriation are provided solely for implementation of Substitute House Bill No. 2556 (child abuse prevention and treatment). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(16) $70,000 of the fiscal year 1999 general fund‑-state appropriation is provided solely for foster parent intervention support teams.

(17) The children's administration is directed to work with the foster parents' association of Washington state and other stakeholders to define "professional foster parents," and to make recommendations to the appropriate legislative committees by December 1, 1998. The report shall address ongoing foster care payments during an investigation of child abuse and neglect allegations, criteria for receiving exceptional care payments, and other issues related to professional foster parents.

(18) Amounts provided in this section are sufficient to implement Engrossed Second Substitute House Bill No. 3008 (drug affected-infants).

(19) To the extent funds are available, the department shall pay the expense of fingerprint criminal history record checks for low-income family day care homes through the federal bureau of investigation. The department may adopt rules to set eligibility levels.

Sec. 203. 1997 c 454 s 203 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-JUVENILE REHABILITATION PROGRAM

(1) COMMUNITY SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~32,305,000~~))

35,894,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~32,348,000~~))

35,622,000

General Fund‑-Federal Appropriation............. $.................................. ((~~16,125,000~~))

13,365,000

General Fund‑-Private/Local Appropriation...... $ 378,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ ((~~11,256,000~~))

13,880,000

TOTAL APPROPRIATION................. $ ((~~92,412,000~~))

99,139,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $527,000 of the violence reduction and drug enforcement account appropriation is provided solely for deposit in the county criminal justice assistance account solely for costs to the criminal justice system associated with the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. The amount provided in this subsection is intended to provide funding for county adult court costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 and shall be distributed in accordance with RCW 82.14.310.

(b) $2,917,000 of the violence reduction and drug enforcement account is provided solely for the implementation of Engrossed Third Substitute Senate Bill No. 3900 (revising the juvenile code). The amount provided in this subsection is intended to provide funding for county impacts associated with the implementation of Third Substitute Senate Bill No. 3900 and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula. If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) $2,350,000 of the general fund‑-state fiscal year 1998 appropriation and $2,350,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for an early intervention program to be administered at the county level. Moneys shall be awarded on a competitive basis to counties that have submitted plans for implementation of an early intervention program consistent with proven methodologies currently in place in the state. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.

(d) $1,221,000 of the violence reduction and drug enforcement appropriation is provided solely to implement alcohol and substance abuse treatment for locally committed offenders. The juvenile rehabilitation administration shall award these moneys on a competitive basis to counties that have submitted a plan for the provision of treatment services approved by the division of alcohol and substance abuse. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation. If Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions) is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(e) $100,000 of the general fund‑-state fiscal year 1998 appropriation and $100,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the juvenile rehabilitation administration to contract with the institute for public policy for the responsibilities assigned in Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(f) $400,000 of the violence reduction and drug enforcement account appropriation is provided solely for the development of standards measuring the effectiveness of chemical dependency treatment and for conducting evaluations of chemical dependency programs pursuant to Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. The juvenile rehabilitation administration shall consult with the division of alcohol and substance abuse and contract with the University of Washington to develop the standards and conduct the evaluations.

(g) $150,000 of the general fund‑-state fiscal year 1998 appropriation and $150,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for a contract to expand the services of the teamchild project to additional sites. Priority use of these funds shall be to provide teamchild service to early repeat offenders to help ensure they receive appropriate child welfare and educational services.

(h) $2,500,000 of the violence reduction and drug enforcement account appropriation is provided solely to implement community juvenile accountability grants pursuant to chapter 338, Laws of 1997 (juvenile justice). Funds provided in this subsection may be used solely for community juvenile accountability grants, administration of these grants, and evaluations of programs funded by these grants.

(i) $2,175,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to improve the safety and security of state run and contracted community residential facilities for juvenile offenders. Of this amount: $1,817,000 is provided solely for the gathering of additional information during the intake and assessment process, including predispositional diagnostics; $114,000 is provided solely for increased staffing at state operated facilities; and $244,000 is provided solely to increase vendor payment rates at contracted facilities, provided that the rate increase is made contingent upon increasing staffing at these facilities.

(j) $250,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the implementation of Engrossed Second Substitute House Bill No. 3054 (truant, expelled, and suspended students). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~44,782,000~~))

43,909,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~44,662,000~~))

45,933,000

General Fund‑-Private/Local Appropriation...... $ 727,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ 15,281,000

TOTAL APPROPRIATION................. $ ((~~105,452,000~~))

105,850,000

The appropriations in this subsection are subject to the following conditions and limitations: $3,680,000 of the violence reduction and drug enforcement account appropriation is provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(3) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ ((~~1,922,000~~))

1,930,000

General Fund‑-State Appropriation (FY 1999)......... $ ((~~1,610,000~~))

1,804,000

General Fund‑-Federal Appropriation.................. $ 156,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 421,000

TOTAL APPROPRIATION...................... $ ((~~4,109,000~~))

4,311,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $92,000 of the general fund‑-state fiscal year 1998 appropriation and $36,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(b) $206,000 of the general fund‑-state fiscal year 1998 appropriation is provided solely for the implementation of Engrossed Second Substitute Senate Bill No. 5710 (juvenile care and treatment). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

(c) $97,000 of the general fund‑-state fiscal year 1998 appropriation and $36,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(d) Within the amounts provided in this subsection, the juvenile rehabilitation administration (JRA) shall develop by January 1, 1998, a staffing model for noncustody functions at JRA institutions and work camps. The models should, whenever possible, reflect the most efficient practices currently being used within the system.

(e) $150,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to contract for the expansion of the experimental gallery program. The department shall contract with either the children's museum or directly with the experimental gallery program for the expansion.

(f) $15,000 of the general fund--state appropriation for fiscal year 1998 and $175,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of Engrossed House Bill No. 2570 (juvenile offender residential facilities). The department shall contract with the Washington state institute for public policy to conduct the study of community residential facilities mandated by the bill. If this bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

NEW SECTION. Sec. 204. A new section is added to 1997 c 149 (uncodified) to read as follows:

The sum of $1,000,000 from the state general fund for fiscal year 1999 is appropriated to the department of social and health services, juvenile rehabilitation administration, community services program, solely to implement the juvenile violence prevention grant program created by this section. The governor's juvenile justice advisory committee shall administer the grant program created under this section.

(1) All grant applications shall:

(a) Identify the program or proposed program;

(b) Identify the entity or organization proposing the program. Eligible organizations include, but are not limited to, nonprofit, civic and charitable organizations, local governments, tribes, and community networks;

(c) Include a plan for expenditure of the funds, including specifying what percentage of the grant will be spent on administration and evaluation costs; and

(d) Include a plan to analyze the effectiveness of the program.

(2) A program is eligible for a grant under this section only if the program:

(a) Is designed to reduce conditions associated with the entry of youth into the juvenile justice system;

(b) Is a new program or replicates in another location an existing program that meets the criteria of this section;

(c) Is based on research that supports the program's effectiveness in reducing the targeted populations risk for delinquency;

(d) Has community support and is community‑based;

(e) Will be used for prevention of juvenile crime and not as a disposition or confinement option for adjudicated or diverted juvenile offenders. This restriction shall not preclude serving juveniles who have been adjudicated or diverted prior to participation in the program or who are diverted or adjudicated during participation in the program; and

(f) Is in addition to any other state or locally funded juvenile violence deterrence program and will not supplant existing federal, state, or local funds. However, if a program is no longer eligible for federal, state, or local funds, funding provided in this section may supplant that lost federal, state, or local funding.

(3) To encourage local ownership of youth violence deterrence programs, grants awarded by the committee under this section shall:

(a) Have a duration of up to one year, with renewal options based on availability of funding and the achievement of outcomes; and

(b) Not exceed more than seventy‑five percent of the total estimated cost of a program. Entities or organizations applying for grants under this section must demonstrate that at least twenty‑five percent of the cost of the program will be funded from nonstate moneys.

(4) To encourage grant applications, the committee shall simplify the grant application process to the greatest extent possible.

(5) The committee may require that a percentage of the expenditures for a grant be spent to evaluate the program's effectiveness. The committee may also require that the evaluation be conducted by individuals or organizations that are not participating in the program.

(6) A review team is established to make recommendations to the governor's juvenile justice advisory committee on the funding of grants made under this section.

(a) The review team shall consist of no more than fifteen persons appointed by the committee. Appointees must represent the state's geographic and cultural diversity and must have demonstrated an interest in juvenile violence and its prevention. The review team shall include representatives from entities that disperse funds targeted at youth, including, but not limited to, the office of the superintendent of public instruction, the office of crime victims advocacy, the family policy council, the department of health, the stop youth violence advisory committee, the Washington council for the prevention of child abuse and neglect, and the division of alcohol and substance abuse within the department of social and health services.

(b) Review team members are eligible for reimbursement of expenses under RCW 43.03.050 and 43.03.060.

Sec. 205. 1997 c 149 s 204 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MENTAL HEALTH PROGRAM

(1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKS

General Fund‑-State Appropriation (FY 1998).... $ ((~~167,577,000~~))

170,940,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~170,803,000~~))

173,112,000

General Fund‑-Federal Appropriation............. $.................................. ((~~296,006,000~~))

299,064,000

General Fund‑-Private/Local Appropriation...... $ 4,000,000

TOTAL APPROPRIATION................. $ ((~~638,386,000~~))

647,116,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) Regional support networks shall use portions of the general fund‑-state appropriation for implementation of working agreements with the vocational rehabilitation program which will maximize the use of federal funding for vocational programs.

(b) From the general fund--state appropriations in this subsection, the secretary of social and health services shall assure that regional support networks reimburse the aging and adult services program for the general fund--state cost of medicaid personal care services that enrolled regional support network consumers use because of their psychiatric disability.

(c) (($2,413,000 of the general fund--state appropriation for fiscal year 1998 and $2,393,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to directly reimburse eligible providers for the medicaid share of mental health services provided to persons eligible for both medicaid and medicare. To be reimbursed, the service must be covered by and provided in accordance with the state medicaid plan.

~~(d)~~)) $1,304,000 of the general fund‑-state appropriation for fiscal year 1998, $3,356,000 of the general fund‑-state appropriation for fiscal year 1999, and $5,056,000 of the general fund‑-federal appropriation are provided solely for distribution to those regional support networks whose 1997-99 allocation would otherwise be less than the regional support network would receive if all funding appropriated in this subsection (1) of this section for medicaid outpatient mental health services were distributed among all regional support networks at the state-wide average per capita rate for each eligibility category.

((~~(e)~~)) (d) At least thirty days prior to entering contracts that would capitate payments for voluntary psychiatric hospitalizations, the mental health division shall report the proposed capitation rates, and the assumptions and calculations by which they were established, to the budget and forecasting divisions of the office of financial management, the appropriations committee of the house of representatives, and the ways and means committee of the senate.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~59,496,000~~))

61,886,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~59,508,000~~))

59,994,000

General Fund‑-Federal Appropriation............. $.................................. ((~~127,118,000~~))

133,305,000

General Fund‑-Private/Local Appropriation...... $ ((~~30,940,000~~))

24,805,000

TOTAL APPROPRIATION................. $ ((~~277,062,000~~))

279,990,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The state mental hospitals may use funds appropriated in this subsection to purchase goods and supplies through hospital group purchasing organizations when it is cost-effective to do so.

(b) The mental health program at Western state hospital shall continue to use labor provided by the Tacoma prerelease program of the department of corrections.

(c) $246,000 of the general fund‑-state fiscal year 1998 appropriation and $318,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for funding outside medical costs. The mental health division shall provide a report on outside medical costs to the fiscal committees of the legislature by September 30, 1998, and September 30, 1999. The report shall detail the monthly and per capita expenditures for outside medical costs at each state hospital.

(d) $256,000 of the general fund‑-state fiscal year 1998 appropriation and $254,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for funding pharmacy and new drug costs. The mental health division shall provide a report on pharmacy and new drug costs to the fiscal committees of the legislature by September 30, 1998, and September 30, 1999. The report shall detail monthly and per capita expenditures for pharmacy and new drug costs for each state hospital. Expenditures for each new generation atypical antipsychotic medication, including clozapine, resperidone, olanzapine, and any newly introduced medications of this nature, must be specifically reported.

(e) $1,700,000 of the general fund‑‑state fiscal year 1998 appropriation is provided solely for replacing lost federal revenues for medicare discharges in fiscal year 1998. The mental health division must aggressively pursue the prompt resolution of issues resulting in this loss of revenues with the federal health care financing administration (HCFA). In the event any or all of the lost federal revenues are restored, an equal amount of the general fund‑‑state fiscal year 1998 appropriation shall lapse.

(f) Within the amounts provided in this subsection, the mental health division shall develop by October 1, 1998, a staffing model for direct and indirect functions for the wards at each of the state hospitals. The model should, whenever possible, reflect the most efficient practices for providing treatment and therapeutic services appropriate to the characteristics and needs of the individual patient.

(3) CIVIL COMMITMENT

General Fund Appropriation (FY 1998)........... $ ((~~5,423,000~~))

7,174,000

General Fund Appropriation (FY 1999)........... $ ((~~6,082,000~~))

7,779,000

TOTAL APPROPRIATION................. $ ((~~11,505,000~~))

14,953,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $2,088,000 of the general fund fiscal year 1998 appropriation and $2,415,000 of the general fund fiscal year 1999 appropriation are provided solely for court-related costs for residents at the special commitment center.

(b) Within the amounts provided in this subsection, the mental health division shall develop by October 1, 1998, a staffing model for direct and indirect functions at the special commitment center. The model should, whenever possible, reflect the most efficient practices for providing treatment and therapeutic services appropriate to the characteristics and needs of the individual patient.

(c) Within the amounts provided in this subsection, the mental health division shall provide a report on outside medical costs to the fiscal committees of the legislature by September 30, 1998, and September 30, 1999. The report shall detail the monthly and per capita expenditures for outside medical costs at the special commitment center.

(d) Within the amounts provided in this subsection, the mental health division shall provide a report on pharmacy and new drug costs to the fiscal committees of the legislature by September 30, 1998, and September 30, 1999. The report shall detail monthly and per capita expenditures for pharmacy and new drug costs at the special commitment center. Expenditures for each new generation atypical antipsychotic medication, including clozapine, resperidone, olanzapine, and any newly introduced medications of this nature must be specifically reported.

(4) SPECIAL PROJECTS

General Fund--State Appropriation (FY 1998)......... $ 50,000

General Fund--State Appropriation (FY 1999)......... $ 450,000

General Fund‑-Federal Appropriation.................. $.................................. 3,826,000

TOTAL APPROPRIATION...................... $ 4,326,000

The appropriations in this subsection are subject to the following conditions and limitations: $50,000 of the general fund--state appropriation for fiscal year 1998 and $450,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development and operation of the pilot project for mentally ill offenders described in Substitute Senate Bill No. 6002 (mentally ill offenders). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(5) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ ((~~2,560,000~~))

2,537,000

General Fund‑-State Appropriation (FY 1999)......... $ ((~~2,395,000~~))

2,373,000

General Fund‑-Federal Appropriation.................. $.................................. ((~~3,111,000~~))

3,085,000

TOTAL APPROPRIATION...................... $ ((~~8,066,000~~))

7,995,000

The appropriations in this subsection are subject to the following conditions and limitations: $60,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely to increase the department's capacity to carry out legislative intent set forth in RCW 71.24.400 through 71.24.415. To facilitate this activity, the secretary shall appoint an oversight committee of project stakeholders including representatives from: Service providers, mental health regional support networks, the department's mental health division, the department's division of alcohol and substance abuse, the department's division of children and family services, and the department's medical assistance administration. The oversight group shall continue to seek ways to streamline service delivery as set forth in RCW 71.24.405 until at least July 1, 1998.

Sec. 206. 1997 c 149 s 205 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-DEVELOPMENTAL DISABILITIES PROGRAM

(1) COMMUNITY SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~140,172,000~~))

148,033,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~142,643,000~~))

166,853,000

General Fund‑-Federal Appropriation............. $.................................. ((~~194,347,000~~))

227,123,000

Health Services Account Appropriation.......... $ ((~~1,695,000~~))

639,000

TOTAL APPROPRIATION................. $ ((~~478,857,000~~))

542,648,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $1,695,000 of the health services account appropriation and $1,835,000 of the general fund‑-federal appropriation are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for home care workers with family incomes at or above 200 percent of poverty shall be covered with general fund‑-state and matching general fund‑-federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.

(b) $365,000 of the general fund--state appropriation for fiscal year 1998 and $1,543,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for employment, or other day activities and training programs, for young people who complete their high school curriculum in 1997 or 1998.

(c) $22,974,000 of the general fund--state appropriation for fiscal year 1998 and $25,111,000 of the general fund--state appropriation for fiscal year 1999, plus any vendor rate increases allotted in accordance with section 213 of this act, are provided solely to deliver personal care services to an average of 6,250 children and adults in fiscal year 1998 and an average of 7,100 children and adults in fiscal year 1999. If the secretary of social and health services determines that total expenditures are likely to exceed these appropriated amounts, the secretary shall take action as required by RCW 74.09.520 to adjust either functional eligibility standards or service levels or both sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules and may not be taken to the extent that projected over-expenditures are offset by under-expenditures elsewhere within the program's general fund--state appropriation. Prior to adjusting eligibility standards, the secretary should first exercise all opportunities to manage the average cost per person served through methods such as promoting the use of informal and less expensive forms of care; reducing authorization of hours for stand-by assistance when unpaid caregivers are available in the home; and reducing on a sliding-scale basis the amount of service authorized per functional need level, with smaller reductions for greater levels of need.

(d) $453,000 of the general fund‑-state appropriation for fiscal year 1998, $214,000 of the general fund‑-state appropriation for fiscal year 1999, and $719,000 of the general fund‑-federal appropriation are provided solely to continue operation of the united cerebral palsy residential center during the period in which its residents are phasing into new community residences.

(e) $197,000 of the general fund‑-state appropriation for fiscal year 1998 and $197,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to contract with the Washington initiative for supported employment for the purpose of continuing the promotion of supported employment services for persons with disabilities.

(f) The department shall not reduce the number of persons served in community residential, employment and day program, family support, or personal care services below the levels identified in the Legislative Budget Notes, 1997-99 Biennium, as published by the legislative fiscal committees, in order to undertake activities proposed by the department but not funded in this supplemental appropriations act.

(g) $2,151,000 of the general fund--state appropriation for fiscal year 1998, $5,782,000 of the general fund--state appropriation for fiscal year 1999, and $8,362,000 of the general fund--federal appropriation are provided solely to develop and operate secure residential and day program placements for persons who seem likely to present a significant risk to the public safety if their current residential arrangement were to continue.

(h) $426,000 of the general fund--state appropriation for fiscal year 1999 and $469,000 of the general fund--federal appropriation are provided solely to develop and operate community services for persons residing at eastern and western state hospitals whose needs are such that they cannot be served in existing community vacancies.

(i) $200,000 of the general fund--state appropriation for fiscal year 1998 and $1,592,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for employment and day program services for adults, or residential placements for children or adults, who are not currently able to participate in such services because of funding limitations.

(j) $105,000 of the general fund--state appropriation for fiscal year 1998, $933,000 of the general fund--state appropriation for fiscal year 1999, and $1,029,000 of the general fund--federal appropriation are provided solely to develop and operate community services for persons moving from the residential habilitation centers as a result of an agreement with the federal department of justice or a settlement agreement to a lawsuit.

(k) $89,000 of the general fund‑-state appropriation for fiscal year 1998, $661,000 of the general fund‑-state appropriation for fiscal year 1999, and $825,000 of the general fund‑-federal appropriation are provided solely for medicaid personal care exceptional rates.

(l) Within amounts appropriated in this subsection, the division shall contract for a pilot program to test an alternative service delivery model for services to persons with autism. The division must utilize a competitive process to determine the site of the pilot. The pilot must be time limited and subject to an evaluation of client outcomes to determine the effectiveness and efficiency of the pilot compared to the standard service model for persons with autism.

(m) Within amounts appropriated in this section, the division of developmental disabilities may expend a maximum of $83,440 of the general fund‑-state appropriation for fiscal year 1999 and $83,440 of the general fund‑-federal appropriation to implement Substitute House Bill No. 2983 (developmentally disabled residents). If this bill is not enacted by June 30, 1998, this subsection is null and void.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~63,982,000~~))

65,277,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~63,206,000~~))

64,187,000

General Fund‑-Federal Appropriation............. $.................................. ((~~142,955,000~~))

145,897,000

General Fund‑-Private/Local Appropriation...... $ 9,729,000

TOTAL APPROPRIATION................. $ ((~~279,872,000~~))

285,090,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) With the funds appropriated in this subsection, the secretary of social and health services shall develop an eight-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

(b) $112,000 of the general fund--state appropriation for fiscal year 1998, $113,000 of the general fund--state appropriation for fiscal year 1999, and $75,000 of the general fund--federal appropriation are provided solely for a nursing community outreach project at Yakima valley school. Registered nursing staff are to provide nursing assessments, consulting services, training, and quality assurance on behalf of individuals residing in central Washington.

(c) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund--state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation are provided solely for the development of a sixteen-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

(3) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ ((~~2,543,000~~))

2,530,000

General Fund‑-State Appropriation (FY 1999)......... $ ((~~2,517,000~~))

2,501,000

General Fund‑-Federal Appropriation.................. $.................................. ((~~1,645,000~~))

1,637,000

TOTAL APPROPRIATION...................... $ ((~~6,705,000~~))

6,668,000

(4) SPECIAL PROJECTS

General Fund‑-Federal Appropriation.................. $.................................. 12,030,000

Sec. 207. 1997 c 149 s 206 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-AGING AND ADULT SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~392,045,000~~))

409,547,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~416,304,000~~))

415,166,000

General Fund‑-Federal Appropriation............. $.................................. ((~~878,169,000~~))

902,881,000

General Fund‑-Local Appropriation.............. $ 1,026,000

Health Services Account Appropriation.......... $ ((~~6,087,000~~))

2,232,000

TOTAL APPROPRIATION................. $ ((~~1,692,605,000~~))

1,730,852,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The entire health services account appropriation and ((~~$6,076,000~~)) $2,175,000 of the general fund‑-federal appropriation are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for home care workers with family incomes at or above 200 percent of poverty shall be covered with general fund‑-state and matching general fund‑-federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.

(2) $1,277,000 of the general fund--state appropriation for fiscal year 1998 and $1,277,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of the volunteer chore program.

(3) ((~~$107,997,000~~)) $117,221,000 of the general fund--state appropriation for fiscal year 1998 and ((~~$120,397,000~~)) $128,997,000 of the general fund--state appropriation for fiscal year 1999, ((~~plus any vendor rate increases allocated to these services in accordance with section 213 of this act,~~)) of which no less than forty-nine percent shall be allotted for expenditure during the first six months of fiscal year 1999, are provided solely to deliver chore, COPES, and medicaid personal care services. If the secretary of social and health services determines that total expenditures are likely to exceed these amounts, the secretary shall take action as required by RCW 74.09.520, 74.39A.120, and 74.09.530 to adjust functional eligibility standards and/or service levels sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules, and shall not be taken to the extent that projected over-expenditures are offset by under-expenditures resulting from lower than budgeted nursing home caseloads. Prior to adjusting eligibility standards, the secretary should first exercise all opportunities to manage the average cost per person served, through methods such as promoting the use of informal care; assuring that local offices are effectively and consistently authorizing the least expensive level of care which can meet recipient needs; using waiting lists for reducing authorization of hours for stand-by assistance when unpaid caregivers are available in the home; and reducing on a sliding-scale basis the amount of service authorized per functional need level, with smaller reductions for greater levels of need.

(4) $1,080,000 of the general fund--state appropriation for fiscal year 1999 is provided to maintain service eligibility for persons receiving services through the chore, COPES, or medicaid personal care programs in the event eligibility adjustments are made in accordance with subsection (3) of this section. The department may use seventy-five percent of amounts not needed for that purpose to implement quality of care enhancements.

(5) $26,000 of the general fund--state appropriation for fiscal year 1998, $59,000 of the general fund--state appropriation for fiscal year 1999, and $85,000 of the general fund--federal appropriation are provided solely to employ registered nurses rather than social workers to fill six of the new field positions to be filled in fiscal year 1998 and seven more of the new positions to be filled in fiscal year 1999. These registered nurses shall conduct assessments, develop and monitor service plans, and consult with social work staff to assure that persons with medical needs are placed in and receive the appropriate level of care.

((~~(5)~~)) (6) $425,000 of the general fund--state appropriation for fiscal year 1998 and $882,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Second Substitute Senate Bill No. 5179 (nursing facility reimbursement). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(6)~~)) (7) A maximum of $2,193,000 of the general fund--state appropriation for fiscal year 1998 and $2,351,000 of the general fund--federal appropriation for fiscal year 1998 are provided to fund the medicaid share of any new prospective payment rate adjustments as may be necessary in accordance with RCW 74.46.460.

((~~(7)~~)) (8) $242,000 of the general fund‑-state appropriation for fiscal year 1998, $212,000 of the general fund‑-state appropriation for fiscal year 1999, and $498,000 of the general fund‑-federal appropriation are provided solely for operation of a system for investigating allegations of staff abuse and neglect in nursing homes, as provided in Second Substitute House Bill No. 1850 (long-term care standards of care).

(((8) $350,000 of the general fund‑-state appropriation for fiscal year 1998 and $382,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to supplement the incomes of disabled legal immigrants who, because of loss of their federal supplemental security income benefit, would otherwise be at risk of placement into a more expensive long-term care setting.))

(9)(a) The department shall establish a shadow case mix payment system to educate facilities about payment system alternatives. The department shall provide shadow rates beginning July 1, 1997, based on the following:

(i) The direct care portion of the rate, usually called "nursing services," shall be set under a case mix methodology that classifies residents under the Resource Utilization Group III (RUG-III) Version 5.10 (or subsequent revision) 44 group index maximizing model based on the Minimum Data Set (MDS) Version 2.0.

(ii) Payment to a facility shall be based on facility weighted average case mix data which provides one rate to a facility reflecting its mix of residents. For purposes of determining the facility's cost per case mix unit, the facility average case mix score will be based on the case mix of all residents. For purposes of determining the facility's payment rate, the facility average case mix score shall be based on the case mix of medicaid residents.

(iii) The direct care rates shall be adjusted prospectively each quarter based on the facility's MDS 2.0 data from the quarter commencing six months preceding the rate effective date. For example, the MDSs for 1/1/97 - 3/31/97 shall be used to establish shadow rates for 7/1/97 - 9/30/97.

(iv) Those costs which currently comprise nursing services as defined by chapter 74.46 RCW, excluding therapies, shall be included in the direct care component for case mix.

(v) Data from 1994 cost reports (allowable and audited costs) shall be used to establish the shadow rates. The costs shall be inflated comparable to fiscal year 1998 payment rates, according to RCW 74.46.420.

(vi) Separate prices, ceilings, and corridors shall be established for the peer groups of metropolitan statistical area and nonmetropolitan statistical area.

(b) The following methods shall be used to establish the shadow case mix rates:

(i) A pricing system in which payment to a facility shall be based on a price multiplied by each facility's medicaid case mix. The price, per peer group, shall be established at the median direct care cost per case mix unit.

(ii) A pricing system in which payment to a facility shall be based on a price multiplied by each facility's medicaid case mix. The price, per peer group, shall be based on the cost per case-mix unit of a group of cost-effective benchmark facilities which meet quality standards.

(iii) A corridor-based system in which payment to a facility shall be the facility's allowable cost per case-mix unit adjusted for case mix up to a ceiling and no less than a floor. The floor, per peer group, shall be established at 90 percent of the cost per case-mix unit of a group of cost-effective benchmark facilities which meet quality standards. The ceiling, per peer group, shall be established at 110 percent of the cost per case-mix unit of the group of benchmark facilities.

(iv) A corridor-based system in which payment to a facility shall be the facility's allowable cost per case-mix unit adjusted for case mix up to a ceiling and no less than a floor. The floor, per peer group, shall be established at 90 percent of the industry-wide median direct care cost per case-mix unit. The ceiling, per peer group, shall be established at 110 percent of the industry-wide median direct care cost per case-mix unit.

(c) The department shall provide all data, information, and specifications of the methods used in establishing the shadow case mix rates to the nursing home provider associations.

(d) It is the legislature's intent that the average state payment for nursing facility services under the new system increase by no more than 175 percent of the health care financing administration nursing home input price index, excluding capital costs. In designing the new payment system, the department shall develop and propose options for the combined direct and indirect rate components that assure this.

(10) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for payments to any nursing facility licensed under chapter 18.51 RCW which meets all of the following criteria: (a) The nursing home entered into an arm's length agreement for a facility lease prior to January 1, 1980; (b) the lessee purchased the leased nursing home after January 1, 1980; and (c) the lessor defaulted on its loan or mortgage for the assets of the home after January 1, 1991, and prior to January 1, 1992. Payments provided pursuant to this subsection shall not be subject to the settlement, audit, or rate-setting requirements contained in chapter 74.46 RCW.

(11) ((~~$546,000~~)) $506,000 of the general fund‑-state appropriation for fiscal year 1998, ((~~$583,000~~)) $502,000 of the general fund‑-state appropriation for fiscal year 1999, and ((~~$1,220,000~~)) $1,095,000 of the general fund‑-federal appropriation are provided solely for an increase in the state payment rates for adult residential care and enhanced adult residential care.

(12) $132,000 of the general fund‑-state appropriation for fiscal year 1999 and $526,000 of the general fund‑-local appropriation are provided solely for implementation of House Bill No. 2410 (boarding homes). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

Sec. 208. 1997 c 454 s 204 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ECONOMIC SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~543,150,000~~))

509,743,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~529,985,000~~))

505,354,000

General Fund‑-Federal Appropriation............. $.................................. ((~~952,618,000~~))

951,615,000

TOTAL APPROPRIATION................. $ ((~~2,025,753,000~~))

1,966,712,000

The appropriations in this section are subject to the following conditions and limitations:

((~~(2)~~)) (1) The legislature finds that, with the passage of the federal personal responsibility and work opportunity act and Engrossed House Bill No. 3901, the temporary assistance for needy families is no longer an entitlement. The legislature declares that the currently appropriated level for the program is sufficient for the next few budget cycles. To the extent, however, that currently appropriated amounts exceed costs during the 1997-99 biennium, the department is encouraged to set aside excess federal funds for use in future years.

((~~(3)~~)) (2) $485,000 of the general fund‑-state fiscal year 1998 appropriation, $3,186,000 of the general fund‑-state fiscal year 1999 appropriation, and $3,168,000 of the general fund‑-federal appropriation are provided solely to continue to implement the previously competitively procured electronic benefits transfer system through the western states EBT alliance for distribution of cash grants and food stamps so as to meet the requirements of P.L. 104-193.

((~~(4)~~)) (3) $50,000 of the fiscal year 1998 general fund‑-state appropriation is provided solely for a study of child care affordability as directed in section 403 of Engrossed House Bill No. 3901 (implementing welfare reform). The study shall be performed by the Washington institute for public policy. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

((~~(5)~~)) (4) $500,000 of the fiscal year 1998 general fund‑-state appropriation and $500,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for an evaluation of the WorkFirst program as directed in section 705 of Engrossed House Bill No. 3901 (implementing welfare reform). The study shall be performed by the joint legislative audit and review committee. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

((~~(6)~~)) (5) $73,129,000 of the general fund‑-federal appropriation is provided solely for child care assistance for low-income families in the WorkFirst program and for low-income working families as authorized in Engrossed House Bill No. 3901 (implementing welfare reform). All child care assistance provided shall be subject to a monthly copay to be paid by the family receiving the assistance.

((~~(7)~~)) (6) $7,624,000 of the fiscal year 1998 general fund--state appropriation, $18,489,000 of the fiscal year 1999 general fund--state appropriation, and $29,781,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform), including sections 404 and 405. If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse. The level of benefits in the food program for legal immigrants authorized in the bill shall be equivalent to benefits provided by the federal food stamp program.

((~~(8) $89,722,000~~)) (7) $56,461,000 of the fiscal year 1998 general fund‑-state appropriation and ((~~$75,466,000~~)) $54,047,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for cash assistance to recipients in the general assistance‑-unemployable program. The department shall take any and all actions necessary to maintain expenditures within these amounts.

((~~(9)~~)) (8) $55,995,000 of the fiscal year 1998 general fund--state appropriation, $55,995,000 of the fiscal year 1999 general fund--state appropriation, and $184,510,000 of the general fund--federal appropriation are provided solely to administer a low-income child care program as authorized in Engrossed House Bill No. 3901 (implementing welfare reform). The child care program funds shall be allotted as follows:

(a) Each six-month period shall have $27,997,500 general fund--state and $46,127,500 general fund--federal funds allotted to be spent during that six-month period for low-income child care assistance.

(b) The department may spend up to the allotted amount for child care assistance during each six-month period. Any funds not spent during the six-month period may be held over and allotted in the next six-month period, subject to the provisions of subsection (6) of this section.

(c) Federal funds allotted for child care but not spent in fiscal year 1998 may be transferred to fiscal year 1999 for allotment but state funds must be spent in the year appropriated.

(9) Within the amounts provided in this section, the department shall implement the study requirements of Engrossed Substitute House Bill No. 2900 (pro rata calculation of temporary assistance for needy families grants).

Sec. 209. 1997 c 454 s 205 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ALCOHOL AND SUBSTANCE ABUSE PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~14,466,000~~))

15,459,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~14,334,000~~))

16,830,000

General Fund‑-Federal Appropriation............. $.................................. ((~~80,497,000~~))

81,112,000

General Fund‑-Private/Local Appropriation...... $ 630,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ ((~~72,900,000~~))

74,889,000

TOTAL APPROPRIATION................. $ ((~~182,827,000~~))

188,920,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,062,000 of the general fund‑-federal appropriation and $7,482,000 of the violence reduction and drug enforcement account appropriation are provided solely for the grant programs for school districts and educational service districts set forth in RCW 28A.170.080 through 28A.170.100, including state support activities, as administered through the office of the superintendent of public instruction.

(2) $1,902,000 of the general fund--state fiscal year 1998 appropriation, $1,902,000 of the general fund--state fiscal year 1999 appropriation, and $1,592,000 of the general fund‑-federal appropriation are provided solely for alcohol and substance abuse assessment, treatment, including treatment for drug affected infants and toddlers, and child care services for clients of the division of children and family services. Assessment shall be provided by approved chemical dependency treatment programs as requested by child protective services personnel in the division of children and family services. Child care shall be provided as deemed necessary by the division of children and family services while parents requiring alcohol and substance abuse treatment are attending treatment programs.

(3) $760,000 of the fiscal year 1998 general fund--state appropriation and $760,000 of the fiscal year 1999 general fund--state appropriation are provided solely to fund a program serving mothers of children affected by fetal alcohol syndrome and related conditions, known as the birth-to-three program. The program may be operated in two cities in the state.

(4) $1,500,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the expansion of drug courts into additional counties. The department shall contract for the expansion of drug courts in the three counties previously identified by the Washington state association of drug court professionals and the drug court steering committee. At least eighty percent of the funds provided in this section shall be used for direct services to clients, with not more than ten percent to be used for administration and an outcome evaluation, including measures of recidivism and reoffense rates.

(5) Amounts provided in this section are sufficient to implement Engrossed Second Substitute House Bill No. 3008 (drug affected-infants).

Sec. 210. 1997 c 149 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MEDICAL ASSISTANCE PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~684,033,000~~))

667,302,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~684,885,000~~))

684,118,000

General Fund‑-Federal Appropriation............. $.................................. ((~~2,038,101,000~~))

2,079,552,000

General Fund‑-Private/Local Appropriation...... $ ((~~223,900,000~~))

302,088,000

Health Services Account Appropriation.......... $ ((~~253,004,000~~))

254,506,000

Emergency Medical and Trauma Care Services

Account Appropriation...................... $ 4,600,000

TOTAL APPROPRIATION................. $ ((~~3,888,523,000~~))

3,992,166,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department shall continue to make use of the special eligibility category created for children through age 18 and in households with incomes below 200 percent of the federal poverty level made eligible for medicaid as of July 1, 1994.

(2) It is the intent of the legislature that Harborview medical center continue to be an economically viable component of the health care system and that the state's financial interest in Harborview medical center be recognized.

(3) Funding is provided in this section for the adult dental program for Title XIX categorically eligible and medically needy persons and to provide foot care services by podiatric physicians and surgeons.

(4) $1,622,000 of the general fund--state appropriation for fiscal year 1998 and $1,622,000 of the general fund--state appropriation for fiscal year 1999 are provided for treatment of low-income kidney dialysis patients.

(5) $80,000 of the general fund--state appropriation for fiscal year 1998, $80,000 of the general fund--state appropriation for fiscal year 1999, and $160,000 of the general fund--federal appropriation are provided solely for the prenatal triage clearinghouse to provide access and outreach to reduce infant mortality.

(6) The department shall employ the managed care contracting and negotiation strategies defined in Substitute Senate Bill No. 5125 to assure that the average per-recipient cost of managed care services for temporary assistance to needy families and expansion populations increases by no more than two percent per year in calendar years 1998 and 1999.

(7) The department shall seek federal approval to require adult medicaid recipients who are not elderly or disabled to contribute ten dollars per month toward the cost of their medical assistance coverage. The department shall report on the progress of this effort to the house of representatives and senate health care and fiscal committees by September 1 and November 15, 1997.

(8) $325,000 of the general fund--state appropriation for fiscal year 1998 and $325,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to increase rates paid for air ambulance services.

(9) By October 1, 1998, the department shall report to the health care and the fiscal committees of the legislature on the estimated average monthly number of nongrant medical assistance recipients who do not meet the earned income eligibility standards in effect prior to November 1997.

(10) The department shall negotiate with the federal department of health and human services' health care financing administration to obtain and implement a regulatory waiver of provisions of the medical assistance statute, Title XIX of the federal social security act, to permit Washington to provide family planning services under the medical assistance program to women and men with income at or under two hundred percent of the federal poverty level and report to the appropriate committees of the legislature by December 15, 1998. Family planning services means the provision of acceptable and effective risk reduction, education and counseling, preventive medical exams and testing, sexually transmitted disease testing and treatment, contraceptive supplies and devices, and, sterilization counseling and services for women and men. No federal moneys obtained through this waiver may be used for abortion services under any circumstances.

(11) All persons who require blood transfusions paid for by Medicaid funds shall have the opportunity to receive the blood transfusion from directed blood donors. Directed blood donations shall be allowed only if requested by the recipient and if the collection, handling, and transfusion of the blood meets or exceeds federal Food and Drug Administration regulations and/or any other necessary federal regulations. Any and all fees required by blood donor organizations for directed blood donations shall first be approved by the department before any such fees are implemented.

Sec. 211. 1997 c 149 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-VOCATIONAL REHABILITATION PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~8,652,000~~))

9,046,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~8,592,000~~))

8,603,000

General Fund‑-Federal Appropriation............. $.................................. ((~~79,542,000~~))

79,080,000

General Fund‑-Private/Local Appropriation...... $ 2,904,000

TOTAL APPROPRIATION................. $ ((~~99,690,000~~))

99,633,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The division of vocational rehabilitation shall negotiate cooperative interagency agreements with local organizations, including higher education institutions, mental health regional support networks, and county developmental disabilities programs to improve and expand employment opportunities for people with severe disabilities served by those local agencies.

(2) $363,000 of the general fund--state appropriation for fiscal year 1998, $506,000 of the general fund--state appropriation for fiscal year 1999, and $3,208,000 of the general fund--federal appropriation are provided solely for vocational rehabilitation services for individuals enrolled for services with the developmental disabilities program who complete their high school curriculum in 1997 or 1998.

Sec. 212. 1997 c 454 s 206 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~24,572,000~~))

25,818,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~23,956,000~~))

25,964,000

General Fund‑-Federal Appropriation............. $.................................. ((~~40,352,000~~))

43,411,000

General Fund‑-Private/Local Appropriation...... $ 270,000

TOTAL APPROPRIATION................. $ ((~~89,150,000~~))

95,463,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department may transfer up to $1,289,000 of the general fund--state appropriation for fiscal year 1998, $1,757,000 of the general fund--state appropriation for fiscal year 1999, and $2,813,000 of the general fund--federal appropriation to the administration and supporting services program from various other programs to implement administrative reductions.

(2) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.

((~~(4)~~)) (3) $60,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely for a welfare fraud pilot program as described by House Bill No. 1822 (welfare fraud investigation).

((~~(5)~~)) (4) $55,000 of the fiscal year 1998 general fund--state appropriation, $64,000 of the fiscal year 1999 general fund--state appropriation, and $231,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(5) $393,000 of the general fund‑-state appropriation for fiscal year 1999 and $485,000 of the general fund‑-federal appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(6) The department shall report on the allowance for clothing, personal maintenance, and necessary incidentals provided to persons who receive services funded by state and federal moneys under provisions of Title XIX of the social security act. The report shall discuss the range of allowances granted for different populations and programs and compare the allowances to those provided to similar populations in other western states. The report shall also evaluate the need for a uniform amount provided to all populations, and, if a uniform allowance is provided, at what level that allowance should be set. In compiling the report, the department shall consult with affected parties and divisions. The report shall be submitted by December 1, 1998, to the chairs and the ranking minority members of the appropriate house of representatives and senate committees.

Sec. 213. 1997 c 454 s 207 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-CHILD SUPPORT PROGRAM

General Fund‑-State Appropriation (FY 1998).... $ ((~~21,122,000~~))

21,344,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~20,877,000~~))

20,965,000

General Fund‑-Federal Appropriation............. $.................................. ((~~145,739,000~~))

145,321,000

General Fund‑-Private/Local Appropriation...... $ ((~~33,207,000~~))

32,673,000

TOTAL APPROPRIATION.... ............ $ ((~~220,945,000~~))

220,303,000

The appropriations provided in this section are subject to the following conditions and limitations:

(1) The department shall contract with private collection agencies to pursue collection of AFDC child support arrearages in cases that might otherwise consume a disproportionate share of the department's collection efforts. The department's child support collection staff shall determine which cases are appropriate for referral to private collection agencies. In determining appropriate contract provisions, the department shall consult with other states that have successfully contracted with private collection agencies to the extent allowed by federal support enforcement regulations.

((~~(3)~~)) (2) The amounts appropriated in this section for child support legal services shall be expended only by means of contracts with local prosecutor's offices.

((~~(4)~~)) (3) $305,000 of the general fund--state fiscal year 1998 appropriation, $494,000 of the general fund--state fiscal year 1999 appropriation, and $1,408,000 of the general fund--federal appropriation are provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

Sec. 214. 1997 c 454 s 208 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund‑-State Appropriation (FY 1998)..... $ ((~~47,435,000~~))

25,292,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~47,514,000~~))

24,792,000

General Fund‑-Federal Appropriation............. $.................................. ((~~54,366,000~~))

18,966,000

((~~Health Services Account Appropriation........ $ 1,502,000~~

~~Violence Reduction and Drug Enforcement Account~~

~~Appropriation.............................. $ 2,215,000~~))

TOTAL APPROPRIATION................. $ ((~~153,032,000~~))

69,050,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($22,893,000 of the general fund‑-state appropriation for fiscal year 1998, $22,835,000 of the general fund‑-state appropriation for fiscal year 1999, $35,431,000 of the general fund--federal appropriation, $2,215,000 of the violence reduction and drug enforcement account appropriation, and $1,502,000 of the health services account appropriation are provided solely to increase the rates of contracted service providers. The department need not provide all vendors with the same percentage rate increase. Rather, the department is encouraged to use these funds to help assure an adequate supply of qualified vendors. Vendors providing services in markets where recruitment and retention of qualified providers is a problem may receive larger rate increases than other vendors. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery. Any rate increases granted as a result of this section must be implemented so that the carry-forward costs into the 1999-01 biennium do not exceed the amounts provided in this subsection. Within thirty days of granting a vendor rate increase under this section, the department shall report the following information to the fiscal committees of the legislature: (a) The amounts and effective dates of any increases granted; (b) the process and criteria used to determine the increases; and (c) any data used in that process. In accordance with RCW 43.88.110(1), the department and the office of financial management shall allot funds appropriated in this section to the programs and budget units from which the funds will be expended. Such allotments shall be completed no later than September 15, 1997.

~~(2)~~)) $263,000 of the fiscal year 1998 general fund--state appropriation, $349,000 of the fiscal year 1999 general fund--state appropriation, and $1,186,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(2) $113,000 of the fiscal year 1999 general fund‑-state appropriation and $31,000 of the general fund‑-federal appropriation are provided solely for the implementation of Substitute House Bill No. 2556 (child abuse prevention and treatment). If this bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

Sec. 215. 1997 c 454 s 210 (uncodified) is amended to read as follows:

FOR THE STATE HEALTH CARE AUTHORITY

General Fund‑-State Appropriation (FY 1998).... $ 6,316,000

General Fund‑-State Appropriation (FY 1999).... $ 6,317,000

State Health Care Authority Administration

Account Appropriation...................... $ ((~~14,719,000~~))

14,969,000

Health Services Account Appropriation.......... $ ((~~330,628,000~~))

342,100,000

TOTAL APPROPRIATION................. $ ((~~357,980,000~~))

369,702,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The general fund‑-state appropriations are provided solely for health care services provided through local community clinics.

(2) Within funds appropriated in this section and sections 205 and 206 of chapter 149, Laws of 1997, the health care authority shall continue to provide an enhanced basic health plan subsidy option for foster parents licensed under chapter 74.15 RCW and workers in state-funded homecare programs. Under this enhanced subsidy option, foster parents and homecare workers with family incomes below 200 percent of the federal poverty level shall be allowed to enroll in the basic health plan at a cost of ten dollars per covered worker per month.

(3) Effective ((~~October 1997~~)) July 1998, the health care authority shall require organizations and individuals that are paid to deliver basic health plan services to contribute a minimum of ((~~thirty~~)) twenty dollars per enrollee per month if the organization or individual chooses to sponsor an individual's enrollment in the subsidized basic health plan.

(4) $150,000 of the health services account appropriation is provided solely to implement Substitute House Bill No. 1805 (health care savings accounts). If ((~~legislation requiring a pilot project of such accounts~~)) the bill is not enacted by June 30, ((~~1997~~)) 1998, the amount provided in this subsection shall lapse.

((~~(6)~~)) (5) $270,000 of the health services account appropriation is provided solely to pay commissions to agents and brokers in accordance with RCW 70.47.015(5) for application assistance provided to persons on the reservation list as of June 30, 1997, who enroll in the subsidized basic health plan on or after July 1, 1997.

(6) $250,000 of the state health care authority administrative account appropriation is provided solely to process claims arising from the settlement in Retired State Employees v. State of Washington (Thurston county superior court cause no. 92-2-01294-1).

(7) The health care authority administrator is directed to pay claims resulting from a court-approved stipulated settlement in Retired State Employees et. al v. State of Washington (Thurston county superior court cause no. 92-2-01294-1) using funds in the public employees' and retirees' insurance account. The legislature recognizes that payment of these claims may reduce premium stabilization reserves below target levels on an interim basis. It is the legislature's intent that the viability of health care authority-administered programs be preserved and that the benefit levels for health care authority-administered programs not be reduced in the event premium stabilization reserves are used to pay such claims.

Sec. 216. 1997 c 149 s 215 (uncodified) is amended to read as follows:

FOR THE HUMAN RIGHTS COMMISSION

General Fund‑-State Appropriation (FY 1998)......... $ 2,019,000

General Fund‑-State Appropriation (FY 1999)......... $ ((~~2,036,000~~))

2,468,000

General Fund‑-Federal Appropriation.................. $.................................. 1,444,000

General Fund‑-Private/Local Appropriation........... $ 259,000

TOTAL APPROPRIATION...................... $ ((~~5,758,000~~))

6,190,000

The appropriations in this section are subject to the following conditions and limitations: $432,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for elimination of caseload backlog by January 1, 1999, and reduction of case processing time.

Sec. 217. 1997 c 149 s 217 (uncodified) is amended to read as follows:

FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

General Fund--State Appropriation (FY 1998).... $ 15,000

General Fund--State Appropriation (FY 1999).... $ 1,000,000

General Fund‑-Federal Appropriation............. $ 100,000

Death Investigations Account Appropriation..... $ 38,000

Public Safety and Education Account

Appropriation.............................. $ ((~~13,434,000~~))

13,341,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ 346,000

TOTAL APPROPRIATION................. $ ((~~13,918,000~~))

14,840,000

The appropriations made in this section are subject to the following conditions and limitations:

(1) $80,000 of the public safety and education account appropriation is provided solely to continue the study of law enforcement and corrections training begun in 1996. In conducting the study, the criminal justice training commission shall consult with the appropriate policy and fiscal committees of the legislature. Specific elements to be addressed in the study include: (a) The feasibility and the rationale for increasing basic law enforcement training from 440 to 600 hours; (b) the feasibility and rationale for creating a certification process for law enforcement officers; (c) the feasibility and rationale for expanding the correctional officers academy; (d) the feasibility and rationale for expanding the juvenile service workers academy and/or the adult services academy; and (e) any other items considered relevant by the commission. Any recommendations made shall include a plan and timeline for how they would be implemented. The board on correctional training standards and education and the board on law enforcement training standards and education shall be actively involved in the study effort. Copies of the study shall be provided to the appropriate policy and fiscal committees of the legislature and the director of financial management by October 1, 1997.

(2) $50,000 of the public safety and education account appropriation is provided solely to prepare a cost and fee study of the current and proposed criminal justice course offerings. The analysis shall identify total costs and major cost components for: (a) Any current training classes which are considered mandatory; and (b) any proposed or modified training courses which are considered mandatory. Mandatory classes include, but are not limited to, the following: Basic law enforcement academy, correctional officers academy, supervisory and management training of law enforcement officers, supervisory and management training of correctional officers, juvenile service workers academy, and the adult service academy. The study shall also recommend a methodology for estimating the future demand for these classes. The study shall also estimate the cost of implementing any recommendations made pursuant to subsection (1) of this section. The study shall be conducted by a private sector consultant selected by the office of financial management in consultation with the executive director of the criminal justice training commission. The final report shall be completed by January 1, 1998.

(3) $92,000 of the public safety and education account appropriation is provided solely for the purpose of training law enforcement managers and supervisors.

(4) $40,000 of the public safety and education account appropriation is provided solely to implement the provisions of Substitute House Bill No. 1423 (criminal justice training commission). If this bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $225,000 of the general fund--state fiscal year 1999 appropriation is provided solely for information technology upgrades and improvements for the criminal justice training commission.

(6) $15,000 of the general fund--state fiscal year 1998 appropriation and $25,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the relocation and new lease costs of the criminal justice training commission's headquarters in Thurston county.

(7) $500,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the training of law enforcement officers and prosecutors in recent changes in criminal justice statutes, especially those changes related to drunk driving. The training will be delivered state-wide, and moneys provided in this subsection may also be used to develop the infrastructure needed to provide training at locations throughout this state.

(8) $250,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for deposit into the extraordinary criminal investigations assistance account created by Second Substitute House Bill No. 2929 (extraordinary criminal justice assistance account). If the bill is not enacted by June 30, 1998, the amounts in this subsection shall lapse.

Sec. 218. 1997 c 454 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund Appropriation (FY 1998)........... $ 6,805,000

General Fund Appropriation (FY 1999)........... $ ((~~6,848,000~~))

7,176,000

Public Safety and Education Account‑-

State Appropriation........................ $ ((~~16,246,000~~))

16,082,000

Public Safety and Education Account‑-

Federal Appropriation...................... $ 6,002,000

Public Safety and Education Account‑-

Private/Local Appropriation................ $ ((~~2,014,000~~))

2,178,000

Electrical License Account Appropriation........ $...................................... 22,542,000

Farm Labor Revolving Account Appropriation..... $ 28,000

Worker and Community Right-to-Know Account

Appropriation.............................. $ 2,187,000

Public Works Administration Account

Appropriation.............................. $ ((~~1,975,000~~))

2,439,000

Accident Account‑-State Appropriation.......... $ ((~~146,901,000~~))

152,235,000

Accident Account‑-Federal Appropriation........ $ 9,112,000

Medical Aid Account‑-State Appropriation........ $...................................... ((~~155,276,000~~))

154,089,000

Medical Aid Account‑-Federal Appropriation..... $ 1,592,000

Plumbing Certificate Account Appropriation..... $ 947,000

Pressure Systems Safety Account Appropriation... $........................................... 2,106,000

TOTAL APPROPRIATION................. $ ((~~380,581,000~~))

385,520,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims service delivery", "electrical permitting and inspection system", and "credentialing information system" are conditioned upon compliance with section 902 of this act.

(2) Pursuant to RCW 7.68.015, the department shall operate the crime victims compensation program within the public safety and education account funds appropriated in this section. In the event that cost containment measures are necessary, the department may (a) institute copayments for services; (b) develop preferred provider and managed care contracts; (c) coordinate with the department of social and health services to use the public safety and education account as matching funds for federal Title XIX reimbursement, to the extent this maximizes total funds available for services to crime victims.

(3) $54,000 of the general fund appropriation for fiscal year 1998 and $54,000 of the general fund appropriation for fiscal year 1999 are provided solely for an interagency agreement to reimburse the board of industrial insurance appeals for crime victims appeals.

(4) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.

(5) The expenditures of the elevator, factory assembled structures, and contractors' registration and compliance programs may not exceed the revenues generated by these programs.

(6) $101,000 of the plumbing certificate account appropriation is provided solely for the implementation of Substitute Senate Bill No. 5749 (pipe installer). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

(7) $56,000 of the medical aid account appropriation and $52,000 of the accident account appropriation are provided solely for evaluating agency operational improvements.

(8) $593,000 of nonappropriated funds from the medical aid account shall be provided solely for allocation to the joint legislative audit and review committee for a performance audit and operations review of the state workers' compensation system pursuant to Substitute Senate Bill No. 6030.

(9) $464,000 of the public works administration account appropriation is provided solely for implementation of Substitute House Bill No. 3073 (requiring the use of a stratified random sampling survey methodology for determining prevailing wages), and for resolving backlogs in prevailing wage intent and affidavit forms, increasing survey frequency, and supporting the program review and improvement activities currently underway with the department and the prevailing wage advisory committee. The amount provided in this subsection shall be used to meet the following performance objectives:

(a) The department shall process all forms within 13 working days of their receipt; and

(b) The department shall make every reasonable effort to decrease the processing time and the backlog of forms.

The amount provided in this subsection is provided on a one‑time basis, and it is the intent of the legislature that ongoing funding for these purposes will not be provided in the future unless the department meets the performance objectives specified in this subsection.

By January 1, 1999, the director shall report to the commerce and labor committees of the legislature on the performance improvements realized in the prevailing wage program, including progress reports on the business plan review project. The department shall examine and report on the prevailing wage survey process, with recommendations for its improvement.

If Substitute House Bill No. 3073 is not enacted by June 30, 1998, this subsection is null and void and the amount provided in this subsection shall lapse.

(10) $148,000 of the general fund‑-state appropriation for fiscal year 1999 and $761,000 of the accident account‑-state appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(11) $686,000 of the accident account‑-state appropriation and $686,000 of the medical aid account‑-state appropriation for fiscal year 1999 are provided solely to fund 24 claims manager positions in fiscal year 1999 (12 worker compensation adjudicator 2 and 12 worker compensation adjudicator 3 positions). With these new positions, the department is expected to reduce time-loss duration in claims by 5 percent by June 30, 2000, and an additional 2.5 percent by June 30, 2001. The average caseload for level 2 claims managers should also drop to approximately 190 by June 30, 2000. The director of the department shall report to the appropriate fiscal and policy committees of the legislature and the office of financial management by June 30, 1998, and every year thereafter, on the measurable progress made toward attaining these goals. The 1998 report shall indicate the baseline figures from July 1, 1997. If substantial progress has not been achieved by June 30, 2000, the 24 claims manager positions and the funding associated with these positions shall be discontinued.

Sec. 219. 1997 c 454 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

(1) HEADQUARTERS

General Fund Appropriation (FY 1998)........... $ ((~~1,409,000~~))

1,609,000

General Fund Appropriation (FY 1999)........... $ 1,404,000

Industrial Insurance Premium Refund Account

Appropriation.............................. $ 80,000

Charitable, Educational, Penal, and Reformatory

Institutions Account Appropriation......... $ 4,000

TOTAL APPROPRIATION................. $ ((~~2,897,000~~))

3,097,000

(2) FIELD SERVICES

General Fund‑-State Appropriation (FY 1998).... $ 2,418,000

General Fund‑-State Appropriation (FY 1999).... $ 2,420,000

General Fund‑-Federal Appropriation............. $ 26,000

General Fund‑-Private/Local Appropriation...... $ 85,000

TOTAL APPROPRIATION................. $ 4,949,000

(3) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~6,101,000~~))

6,576,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~5,369,000~~))

5,522,000

General Fund‑-Federal Appropriation............. $.................................. ((~~19,556,000~~))

18,950,000

General Fund‑-Private/Local Appropriation...... $ ((~~14,583,000~~))

14,561,000

TOTAL APPROPRIATION................. $ 45,609,000

The appropriations in this subsection are subject to the following conditions and limitations: $200,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely as the state's contribution to the construction of a memorial on the state capitol grounds to the men and women who served in the nation's armed forces during the second world war. The department shall raise the remaining two-thirds of the memorial's cost from individual and corporate contributions.

Sec. 220. 1997 c 454 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF HEALTH

General Fund‑-State Appropriation (FY 1998).... $ ((~~62,996,000~~))

63,189,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~65,741,000~~))

73,258,000

General Fund‑-Federal Appropriation............. $.................................. ((~~259,139,000~~))

262,504,000

General Fund‑-Private/Local Appropriation...... $ ((~~24,351,000~~))

24,333,000

Hospital Commission Account Appropriation...... $ 3,089,000

Health Professions Account Appropriation........ $...................................... ((~~36,038,000~~))

35,524,000

Emergency Medical and Trauma Care Services Account

Appropriation.............................. $ 21,042,000

Safe Drinking Water Account Appropriation...... $ 2,494,000

Death Investigations Account Appropriation..... $ ((~~1,000,000~~))

650,000

Drinking Water Assistance Account‑-Federal

Appropriation.............................. $ 5,385,000

Waterworks Operator Certification

Appropriation.............................. $ 588,000

Water Quality Account Appropriation............. $.................................. 3,065,000

Violence Reduction and Drug Enforcement

Account Appropriation...................... $ 469,000

State Toxics Control Account Appropriation..... $ 2,854,000

Medical Test Site Licensure Account

Appropriation.............................. $ 1,624,000

Youth Tobacco Prevention Account Appropriation. $ 1,812,000

Health Services Account Appropriation.......... $ ((~~12,474,000~~))

6,115,000

TOTAL APPROPRIATION................. $ ((~~504,161,000~~))

507,995,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,134,000 of the health professions account appropriation is provided solely for the development and implementation of a licensing and disciplinary management system. Expenditures are conditioned upon compliance with section 902 of this act. These funds shall not be expended without appropriate project approval by the department of information systems.

(2) Funding provided in this section for the drinking water program data management system shall not be expended without appropriate project approval by the department of information systems. Expenditures are conditioned upon compliance with section 902 of this act.

(3) The department is authorized to raise existing fees charged to the nursing professions and midwives, by the pharmacy board, and for boarding home licenses, in excess of the fiscal growth factor established by Initiative Measure No. 601, if necessary, to meet the actual costs of conducting business.

(4) $1,633,000 of the general fund‑-state fiscal year 1998 appropriation and $1,634,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of the Puget Sound water work plan and agency action items, DOH-01, DOH-02, DOH-03, DOH-04, DOH-05, DOH-06, DOH-07, DOH-08, DOH-09, DOH-10, DOH-11, and DOH-12.

(5) $10,000,000 of the health services account appropriation is provided solely for distribution to local health departments for distribution on a per capita basis. Prior to distributing these funds, the department shall adopt rules and procedures to ensure that these funds are not used to replace current local support for public health programs.

(6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of a youth suicide prevention program at the state level, including a state-wide public educational campaign to increase knowledge of suicide risk and ability to respond and provision of twenty-four hour crisis hotlines, staffed to provide suicidal youth and caregivers a source of instant help.

(7) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(8) $259,000 of the health professions account appropriation is provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(9) $150,000 of the general fund--state fiscal year 1998 appropriation and $150,000 of the general fund--state fiscal year 1999 appropriation are provided solely for community‑based oral health grants that may fund sealant programs, education, prevention, and other oral health interventions. The grants may be awarded to state or federally funded community and migrant health centers, tribal clinics, or public health jurisdictions. Priority shall be given to communities with established oral health coalitions. Grant applications for oral health education and prevention grants shall include (a) an assessment of the community's oral health education and prevention needs; (b) identification of the population to be served; and (c) a description of the grant program's predicted outcomes.

(10) $21,042,000 of the emergency medical and trauma care services account appropriation is provided solely for implementation of Substitute Senate Bill No. 5127 (trauma care services). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(11) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for family support and provider training services for children with special health care needs.

(12) $300,000 of the general fund‑-federal appropriation is provided solely for an abstinence education program which complies with P.L. 104-193. $400,000 of the general fund--federal appropriation is provided solely for abstinence education projects at the office of the superintendent of public instruction and shall be transferred to the office of the superintendent of public instruction for the 1998-99 school year. The department shall apply for abstinence education funds made available by the federal personal responsibility and work opportunity act of 1996 and implement a program that complies with the requirements of that act.

(13) $50,000 of the general fund‑-state appropriation for fiscal year 1998 and $50,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of Second Substitute House Bill No. 1191 (mandated health benefit review). If the bill is not enacted by June 30, 1997, the amounts provided in this section shall lapse.

(14) $100,000 of the general fund‑-state appropriation for fiscal year 1998 and $100,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the volunteer retired provider program. Funds shall be used to increase children's access to dental care services in rural and underserved communities by paying malpractice insurance and professional licensing fees for retired dentists participating in the program.

(15) $852,000 of the drinking water assistance account‑-federal appropriation is provided solely for an interagency agreement with the department of community, trade, and economic development to administer, in cooperation with the public works board, loans to local governments and public water systems for projects and activities to protect and improve the state's drinking water facilities and resources.

(16) $3,347,000 of the fiscal year 1998 general fund‑-state appropriation and $3,347,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for the AIDS prescription drug program and HIV intervention program. The department shall operate the program within total appropriations. The department shall take such actions as are necessary to control expenditures, including administrative efficiencies such as reductions to provider reimbursement rates, modifications to financial eligibility, modifications to the scope of services, and client cost sharing mechanisms. The department shall identify program policy changes required to manage within the amounts provided.

(17) Funding provided in this section is sufficient to implement section 8 of Engrossed Substitute House Bill No. 2264 (eliminating the health care policy board).

(18) $2,075,000 of the fiscal year 1998 general fund‑-state appropriation and $2,075,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for the Washington poison center.

(19) $((~~1,000,000~~)) 650,000 of the death investigations account appropriation is provided solely for the implementation of state-wide child mortality reviews. Local health jurisdictions shall coordinate child mortality reviews for children from birth to eighteen years of age, develop local child mortality review protocols, and serve as the appointing authority and lead agency for local child death review teams. The department of health shall develop standard aggregate data elements, collect and analyze local child mortality review data, provide technical assistance to local child mortality review teams, and approve local child death review protocols. If House Bill No. 1269 (death investigations account) is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(20) $1,125,000 of the fiscal year 1998 general fund‑-state appropriation and $1,125,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for deposit in the county public health account.

(21) $60,000 of the general fund‑-state appropriation for fiscal year 1998 and $60,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for attorney general services and such other activities not covered by fee revenues as are necessary for implementation of Engrossed Substitute House Bill No. 2264 (health care policy). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(22) $250,000 of the fiscal year 1998 general fund‑-state appropriation $250,000 of the fiscal year 1999 general fund‑-state appropriation are provided solely for operation of a naturopathic health clinic constructed in 1996.

(23) $250,000 of the general fund--federal appropriation in this section is provided solely for the purpose of conducting monitoring for thyroid diseases for eligible people exposed to radiation from Hanford between 1945 and 1951, and this amount is contingent upon the execution of an agreement with Oregon that Washington will function as a subrecipient for the Hanford medical monitoring program grant. If such an agreement is not executed by September 30, 1998, the amount provided in this subsection shall lapse.

(24) $203,000 of the health professions account appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 2462 (surgical technologists registration). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(25) $54,000 of the general fund‑-state appropriation for fiscal year 1999 and $13,000 of the health professions account appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(26) $1,000,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the breast and cervical cancer screening program.

(27) Amounts provided in this section are sufficient to implement Engrossed Second Substitute House Bill No. 3008 (drug affected-infants).

(28) $300,000 of the general fund‑-state appropriation is provided solely for the implementation of a hepatitis A emergency vaccination program. This entire amount shall be passed through to county health districts that have employed a public education effort and have infection rates in excess of 500 per 100,000 population.

Sec. 221. 1997 c 454 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

(1) ADMINISTRATION AND PROGRAM SUPPORT

General Fund Appropriation (FY 1998)................ $ 13,926,000

General Fund Appropriation (FY 1999)................ $ 13,910,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 500,000

TOTAL APPROPRIATION...................... $ 28,336,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $187,000 of the general fund fiscal year 1998 appropriation and $155,000 of the general fund fiscal year 1999 appropriation are provided solely for implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by July 1, 1997, the amounts provided shall lapse.

(b) $500,000 of the violence reduction and drug enforcement account appropriation is provided solely for a feasibility study regarding the replacement of the department's offender based tracking system. The amount in this subsection is conditioned on satisfying the requirements of section 902, chapter 149, Laws of 1997.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998).... $ ((~~291,745,000~~))

289,665,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~304,000,000~~))

305,239,000

General Fund‑-Federal Appropriation............. $.................................. 18,097,000

Industrial Insurance Premium Rebate Account

Appropriation.............................. $ 673,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ 1,614,000

TOTAL APPROPRIATION................. $ ((~~616,129,000~~))

615,288,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The department shall provide funding for the pet partnership program at the Washington corrections center for women at a level at least equal to that provided in the 1995-97 biennium.

(b) ((~~$4,839,000~~)) $3,978,000 of the general fund‑-state fiscal year 1998 appropriation and ((~~$6,481,000~~)) $5,081,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the criminal justice costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

((~~(e)~~)) (d) $296,000 of the general fund‑-state appropriation for fiscal year 1998 and $297,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to increase payment rates for contracted education providers. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

((~~(f)~~)) (e) The department may expend funds generated by contractual agreements entered into for mitigation of severe overcrowding in local jails. If any funds are generated in excess of actual costs, they shall be deposited in the state general fund. Expenditures shall not exceed revenue generated by such agreements and shall be treated as recovery of costs.

(f) $240,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the implementation of House Bill No. 1129 (eluding a police vehicle). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(g) $8,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the implementation of House Bill No. 2628 (methamphetamine manufacture). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(h) $79,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the implementation of Second Substitute House Bill No. 2794 (sentencing conditions). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(i) $1,496,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to provide educational opportunities to offenders under the age of eighteen.

(3) COMMUNITY CORRECTIONS

General Fund Appropriation (FY 1998)........... $ ((~~89,377,000~~))

88,830,000

General Fund Appropriation (FY 1999)........... $ ((~~90,495,000~~))

90,781,000

TOTAL APPROPRIATION................. $ ((~~179,872,000~~))

179,611,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $27,000 of the general fund fiscal year 1998 appropriation and $185,000 of the general fund fiscal year 1999 appropriation are provided solely for the criminal justice costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, the amounts provided shall lapse.

(b) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

(c) $467,000 of the general fund appropriation for fiscal year 1998 and $505,000 of the general fund appropriation for fiscal year 1999 are provided solely to increase payment rates for contracted education providers and contracted work release facilities. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

(d) $156,000 of the general fund fiscal year 1999 appropriation is provided solely for the implementation of Second Substitute House Bill No. 2794 (sentencing conditions). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(e) $609,000 of the general fund fiscal year 1998 appropriation and $226,000 of the general fund fiscal year 1999 appropriation are provided solely for costs associated with allowing community corrections officers to carry firearms.

(4) CORRECTIONAL INDUSTRIES

General Fund Appropriation (FY 1998)................ $ 4,055,000

General Fund Appropriation (FY 1999)................ $ 4,167,000

TOTAL APPROPRIATION...................... $ 8,222,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for transfer to the jail industries board. The board shall use the amounts provided only for administrative expenses, equipment purchases, and technical assistance associated with advising cities and counties in developing, promoting, and implementing consistent, safe, and efficient offender work programs.

(b) $50,000 of the general fund appropriation for fiscal year 1998 and $50,000 of the general fund appropriation for fiscal year 1999 are provided solely for the correctional industries board of directors to hire one staff person, responsible directly to the board, to assist the board in fulfilling its duties.

(5) INTERAGENCY PAYMENTS

General Fund Appropriation (FY 1998)................ $ ((~~6,945,000~~))

6,851,000

General Fund Appropriation (FY 1999)................ $ ((~~6,444,000~~))

6,538,000

TOTAL APPROPRIATION...................... $ 13,389,000

Sec. 222. 1997 c 454 s 214 (uncodified) is amended to read as follows:

FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund‑-State Appropriation (FY 1998).... $ 1,260,000

General Fund‑-State Appropriation (FY 1999).... $ 1,261,000

General Fund‑-Federal Appropriation............. $.................................. ((~~173,595,000~~))

198,628,000

General Fund‑-Private/Local Appropriation...... $ ((~~24,842,000~~))

28,650,000

Unemployment Compensation Administration Account‑-

Federal Appropriation...................... $ ((~~181,985,000~~))

182,312,000

Administrative Contingency Account

Appropriation.............................. $ ((~~12,579,000~~))

13,527,000

Employment Service Administrative Account

Appropriation.............................. $ ((~~13,176,000~~))

14,500,000

Employment & Training Trust Account

Appropriation.............................. $ 600,000

TOTAL APPROPRIATION................. $ ((~~409,298,000~~))

440,738,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims and adjudication call centers", "data/wage quality initiative", and "one stop information connectivity" are conditioned upon compliance with section 902 of this act.

(2) $600,000 of the employment and training trust account appropriation is provided solely for the account's share of unemployment insurance tax collection costs.

(3) $1,126,000 of the general fund‑-federal appropriation is provided solely for the continuation of job placement centers colocated on community and technical college campuses.

(4) The employment security department shall spend no more than $25,049,511 of the unemployment compensation administration account‑-federal appropriation for the general unemployment insurance development effort (GUIDE) project, except that the department may exceed this amount by up to $2,600,000 to offset the cost associated with any vendor-caused delay. The additional spending authority is contingent upon the department fully recovering these moneys from any project vendors failing to perform in full. Authority to spend the amount provided by this subsection is conditioned on compliance with section 902 of this act.

(5) $60,000 of the general fund‑-state fiscal year 1998 appropriation and $61,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the King county reemployment support center.

(6) $1,200,000 of the general fund‑-state fiscal year 1998 appropriation and $1,200,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for labor market information and employer outreach activities.

(7) $327,000 of the unemployment compensation administration account‑-federal appropriation and $486,000 of the employment service administrative account appropriation are provided solely for the department to replace field office computers that are not compliant with Year 2000 conversion standards.

(8) $948,000 of the administrative contingency account appropriation and $838,000 of the employment service administrative account appropriation are provided solely for the department to address deficiencies in the tax information system (TAXIS).

(9) Within the amounts appropriated in this section, the commissioner shall improve the disclosure of information on the employer rate notice for 1999 rate year unemployment contributions. The information disclosed on the notice must be for the 1997 calendar year and for the period used to calculate the employer's experience rating for the 1999 rate year. The notice must include an explanation in plain language of the disclosed information and the disclosed information's relationship to the employer's contributions. The information must include, to the greatest extent possible:

(a) The contributions paid by the employer;

(b) The benefits charged to the employer's experience rating account; and

In addition, the commissioner shall include the following information paid from the unemployment trust fund for each of the three most recently completed calendar years for: Total benefits paid; benefits paid that were in excess of one percent of the base year earnings of all claimants; benefits paid to claimants and not charged to any employer because of a voluntary quit; and benefits paid to a claimant but not charged to any employer because of marginal labor force attachment. The information shall include a generic explanation of why these benefits were paid.

(End of part)

PART III

NATURAL RESOURCES

Sec. 301. 1997 c 454 s 301 (uncodified) is amended to read as follows:

FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund‑-State Appropriation (FY 1998)......... $ 213,000

General Fund‑-State Appropriation (FY 1999)......... $ 222,000

General Fund‑-Private/Local Appropriation........... $ ((~~435,000~~))

442,000

TOTAL APPROPRIATION...................... $ ((~~870,000~~))

877,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $120,000 of the general fund‑-state appropriation for fiscal year 1998((,)) and $120,000 of the general fund‑-state appropriation for fiscal year 1999((~~, and $240,000 of the general fund‑-local appropriation~~)) are provided solely for each Washington Columbia river gorge county to receive an $80,000 grant for the purposes of implementing the scenic area management plan. If a Columbia river gorge county has not adopted an ordinance to implement the scenic area management plan in accordance with the national scenic area act (P.L. 99-663), then the grant funds for that county may be used by the commission to implement the plan for that county.

(2) $30,000 of the general fund‑-state appropriation for fiscal year 1998 and $30,000 of the general fund‑-state appropriation for fiscal year 1999 provided to Clark county under subsection (1) of this section shall be transferred through an inter-local agreement to Skamania county solely for implementing the national scenic area act.

Sec. 302. 1997 c 454 s 302 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund‑-State Appropriation

(FY 1998)............................. $ ((~~27,748,000~~))

26,013,000

General Fund‑-State Appropriation

(FY 1999)............................. $ ((~~27,795,000~~))

25,860,000

General Fund‑-Federal Appropriation........ $.................................. ((~~45,315,000~~))

46,240,000

General Fund‑-Private/Local Appropriation. $ ((~~643,000~~))

1,200,000

Special Grass Seed Burning Research Account

Appropriation........................ $ ((~~42,000~~))

71,000

Reclamation Revolving Account

Appropriation...................... ... $ 2,441,000

Flood Control Assistance Account

Appropriation......................... $ 4,850,000

State Emergency Water Projects Revolving Account

Appropriation......................... $ 319,000

Waste Reduction/Recycling/Litter Control

Appropriation......................... $ 10,316,000

State and Local Improvements Revolving Account

(Waste Facilities) Appropriation...... $ 601,000

State and Local Improvements Revolving Account

(Water Supply Facilities)

Appropriation......................... $ 1,366,000

Basic Data Account Appropriation.......... $ 182,000

Vehicle Tire Recycling Account

Appropriation......................... $ ((~~1,194,000~~))

357,000

Water Quality Account Appropriation........ $.................................. 2,892,000

Wood Stove Education and Enforcement Account

Appropriation......................... $ ((~~1,055,000~~))

848,000

Worker and Community Right-to-Know Account

Appropriation......................... $ 469,000

State Toxics Control Account

Appropriation......................... $ 53,715,000

Local Toxics Control Account

Appropriation......................... $ ((~~4,342,000~~))

4,759,000

Water Quality Permit Account

Appropriation......................... $ 20,378,000

Underground Storage Tank Account

Appropriation......................... $ ((~~2,443,000~~))

2,638,000

Solid Waste Management Account

Appropriation......................... $ ((~~1,021,000~~))

971,000

Hazardous Waste Assistance Account

Appropriation......................... $ 3,615,000

Air Pollution Control Account

Appropriation......................... $ 16,224,000

Oil Spill Administration Account

Appropriation......................... $ ((~~6,958,000~~))

6,998,000

Air Operating Permit Account

Appropriation......................... $ ((~~4,033,000~~))

3,808,000

Freshwater Aquatic Weeds Account

Appropriation......................... $ 1,829,000

Oil Spill Response Account

Appropriation......................... $ 7,078,000

Metals Mining Account Appropriation........ $ 42,000

Water Pollution Control Revolving Account‑-State

Appropriation......................... $ 349,000

Water Pollution Control Revolving Account‑-Federal

Appropriation......................... $ 1,726,000

Biosolids Permit Account Appropriation.... $ 567,000

Environmental Excellence Account

Appropriation......................... $ 247,000

TOTAL APPROPRIATION............. $ ((~~251,795,000~~))

248,969,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,211,000 of the general fund‑-state appropriation for fiscal year 1998, $3,211,000 of the general fund‑-state appropriation for fiscal year 1999, $394,000 of the general fund‑-federal appropriation, $2,017,000 of the oil spill administration account, $819,000 of the state toxics control account appropriation, and $3,591,000 of the water quality permit fee account are provided solely for the implementation of the Puget Sound work plan and agency action items DOE-01, DOE-02, DOE-03, DOE-04, DOE-05, DOE-06, DOE-07, DOE-08, and DOE-09.

(2) $2,000,000 of the state toxics control account appropriation is provided solely for the following purposes:

(a) To conduct remedial actions for sites for which there are no potentially liable persons, for which potentially liable persons cannot be found, or for which potentially liable persons are unable to pay for remedial actions; and

(b) To provide funding to assist potentially liable persons under RCW 70.105D.070(2)(d)(xi) to pay for the cost of the remedial actions; and

(c) To conduct remedial actions for sites for which potentially liable persons have refused to conduct remedial actions required by the department; and

(d) To contract for services as necessary to support remedial actions.

((~~(6)~~)) (3) $200,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely for the implementation of Engrossed Substitute House Bill No. 1118 (reopening a water rights claim filing period). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

((~~(7)~~)) (4) $3,600,000 of the general fund‑-state appropriation for fiscal year 1998 and $3,600,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the auto emissions inspection and maintenance program. Expenditures of the amounts provided in this subsection are contingent upon a like amount being deposited in the general fund from the auto emission inspection fees in accordance with RCW 70.120.170(4).

((~~(8)~~)) (5) $170,000 of the oil spill administration account appropriation is provided solely for implementation of the Puget Sound work plan action item UW-02 through a contract with the University of Washington's Sea Grant program in order to develop an educational program that targets small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

((~~(9)~~)) (6) The merger of the office of marine safety into the department of ecology shall be accomplished in a manner that will maintain a priority focus on oil spill prevention, as well as maintain a strong oil spill response capability. The merged program shall be established to provide a high level of visibility and ensure that there shall not be a diminution of the existing level of effort from the merged programs.

((~~(10)~~)) (7) The entire environmental excellence account appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 1866 (environmental excellence). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. In implementing the bill, the department shall organize the needed expertise to process environmental excellence applications after an application has been received.

((~~(11)~~)) (8) $200,000 of the freshwater aquatic weeds account appropriation is provided solely to address saltcedar weed problems.

((~~(12)~~)) (9) $4,498,000 of the waste reduction, recycling, and litter control account appropriation is provided for fiscal year 1998 and $5,818,000 is provided for fiscal year 1999 to be expended in the following ratios: Fifty percent for a litter patrol program to employ youth and correctional work crews to remove litter from places that are most visible to the public; twenty percent for grants to local governments for litter cleanup under RCW 70.93.250; and thirty percent for public education and awareness programs and programs to foster local waste reduction and recycling efforts. From the amounts provided in this subsection, the department shall provide $352,000 through an interagency agreement to the department of corrections to hire correctional crews to remove litter in areas that are not accessible to youth crews.

((~~(13)~~)) (10) The entire biosolids permit account appropriation is provided solely for implementation of Engrossed Senate Bill No. 5590 (biosolids management). If the bill is not enacted by June 30, 1997, the entire appropriation is null and void.

((~~(14)~~)) (11) $29,000 of the general fund‑-state appropriation for fiscal year 1998 and $99,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(15)~~)) (12) $60,000 of the freshwater aquatic weeds account appropriation is provided solely for a grant to the department of fish and wildlife to control and eradicate purple loosestrife using the most cost-effective methods available, including chemical control where appropriate.

((~~(16)~~)) (13) $250,000 of the flood control assistance account appropriation is provided solely as a reappropriation to complete the Skokomish valley flood reduction plan. The amount provided in this subsection shall be reduced by the amount expended from this account for the Skokomish valley flood reduction plan during the biennium ending June 30, 1997.

((~~(18)~~)) (14) $600,000 of the flood control assistance account appropriation is provided solely to complete flood control projects that were awarded funds during the 1995-97 biennium. These funds shall be spent only to complete projects that could not be completed during the 1995-97 biennium due to delays caused by weather or delays in the permitting process.

((~~(19)~~)) (15) $113,000 of the general fund--state appropriation for fiscal year 1998 and $112,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5505 (assistance to water applicants). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(20)~~)) (16) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5785 (consolidation of groundwater rights). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(21)~~)) (17) $20,000 of the general fund--state appropriation for fiscal year 1998 and $20,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5276 (water right applications). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(23)~~)) (18) $500,000 of the general fund‑-state appropriation for fiscal year 1998 and $500,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the continuation of the southwest Washington coastal erosion study.

(19) It is the intent of the legislature that, within the general fund‑-state appropriations provided in this section, the department shall prioritize its resources to provide expedited assistance to businesses seeking permitting and technical assistance for rural economic development projects.

(20) Within the amounts provided in this section, the department shall conduct a wetlands technical assistance pilot program in accordance with Second Substitute House Bill No. 2340 (wetlands technical assistance). If the bill is not enacted by June 30, 1998, this subsection is null and void.

(21) Within the amounts provided in this section, the department shall cochair a work group to provide guidance to watershed groups in evaluating how mitigation efforts can support watershed restoration efforts in accordance with Engrossed Second Substitute House Bill No. 3049 (watershed planning/mitigation). If the bill is not enacted by June 30, 1998, this subsection is null and void.

(22) Within the amounts provided in this section, the department shall implement Engrossed Second Substitute House Bill No. 2925 (water systems). If the bill is not enacted by June 30, 1998, this subsection is null and void.

(23) Within the amounts provided in this section, the department shall contract for a scientific review by a panel selected by the society of environmental toxicology and chemistry of the following documents: 1992 Environmental Impact Statement on Aquatic Weeds; the KCM Phase 1 Study of Lake Steilacoom; the conditions and requirements of the first permit issued for the 1997 treatment season for Lake Steilacoom; and, studies done in respect to the listing of Lake Steilacoom as a possible model toxic control act site.

(24) $195,000 of the underground storage tank account appropriation is provided solely for the implementation of Substitute Senate Bill No. 6130 (underground storage tanks). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(25) $417,000 of the local toxics account appropriation is provided solely to implement Second Substitute House Bill No. 2618 (fertilizer regulation). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(26) Using up to $19,000 of the special grass seed burning research account appropriation the department shall provide funding to Washington State University to conduct a grass burning emissions study.

NEW SECTION. Sec. 303. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund‑-State Appropriation (FY 1998)......... $ 3,800,000

General Fund‑-State Appropriation (FY 1999)......... $ 3,550,000

General Fund‑-Federal Appropriation.................. $ 30,000

Water Quality Permit Account Appropriation.......... $ 14,000

Air Pollution Control Account Appropriation......... $ 12,000

TOTAL APPROPRIATION...................... $ 7,406,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,500,000 of the general fund‑-state appropriation for fiscal year 1998 and $2,652,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement sections 4 through 16 of Engrossed Substitute House Bill No. 2514 (integrated watershed management). If any of sections 4 through 16 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse. Of the amounts in this subsection, $3,500,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,500,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for grants to local watershed planning units, and $1,152,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for technical assistance to local watershed planning groups.

(2) $400,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement sections 3 through 19 of Engrossed Second Substitute House Bill No. 2915 (dairy nutrients). If any of sections 3 through 19 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(3) $300,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the department to conduct a preconstruction analysis of Pine Hollow, located near the communities of Wiley City and Tampico in Yakima county, regarding its suitability as a site for the construction of a retainment dam and water storage reservoir and the reservoir site's potential to enhance and maintain anadromous fish and other aquatic life and agriculture. The analysis shall include, but is not limited to, a hydrologic and water rights assessment of the Ahtanum Creek watershed to determine water availability to Pine Hollow, an analysis of the geology and hydrology of the site and appropriate dam design and dynamics, its impact on water-related issues, and on Yakama Indian Nation and other water rights. Using amounts appropriated in this section and the associated local match, the department shall conduct portions of its analysis through contracts with private entities and through contracts with, or by providing grant moneys to, the Yakama Indian Nation and other public entities, which may include other state agencies, irrigation districts local to the area, cities, Yakima county, and federal agencies. The department shall consult with stakeholders before conducting this preconstruction analysis. The analysis shall be completed by June 30, 1999. The amount provided in this subsection is contingent upon the provision of an equal cash match from the Ahtanum irrigation district, and if such a match is not received the amount provided in this subsection shall lapse.

(4) $268,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Substitute House Bill No. 2924 (water rights). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(5) $196,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2339 (wetlands mitigation banking). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $34,000 of the general fund‑-state appropriation for fiscal year 1999, $30,000 of the general fund‑-federal appropriation, $14,000 of the water quality permit account appropriation, and $12,000 of the air pollution control account appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

Sec. 304. 1997 c 454 s 303 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund‑-State Appropriation (FY 1998).... $ ((~~20,526,000~~))

20,489,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~20,335,000~~))

20,595,000

General Fund‑-Federal Appropriation............. $.................................. ((~~2,428,000~~))

3,122,000

General Fund‑-Private/Local Appropriation...... $ 59,000

Winter Recreation Program Account

Appropriation.............................. $ ((~~759,000~~))

779,000

Off Road Vehicle Account Appropriation......... $ 251,000

Snowmobile Account Appropriation............... $ ((~~2,290,000~~))

3,260,000

Aquatic Lands Enhancement Account Appropriation $ 321,000

Public Safety and Education Account

Appropriation.............................. $ 48,000

Industrial Insurance Premium Refund

Appropriation.............................. $ 10,000

Waste Reduction/Recycling/Litter Control

Appropriation.............................. $ 34,000

Water Trail Program Account Appropriation...... $ 14,000

Parks Renewal and Stewardship Account

Appropriation.............................. $ ((~~25,344,000~~))

25,894,000

TOTAL APPROPRIATION................. $ ((~~72,419,000~~))

74,876,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $189,000 of the aquatic lands enhancement account appropriation is provided solely for the implementation of the Puget Sound work plan agency action items P&RC-01 and P&RC-03.

(2) $264,000 of the general fund--federal appropriation is provided for boater programs state-wide and for implementation of the Puget Sound work plan.

(3) $45,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely for a feasibility study of a public/private effort to establish a reserve for recreation and environmental studies in southwest Kitsap county.

(4) Within the funds provided in this section, the state parks and recreation commission shall provide to the legislature a status report on implementation of the recommendations contained in the 1994 study on the restructuring of Washington state parks. This status report shall include an evaluation of the campsite reservation system including the identification of any incremental changes in revenues associated with implementation of the system and a progress report on other enterprise activities being undertaken by the commission. The report may also include recommendations on other revenue generating options. In preparing the report, the commission is encouraged to work with interested parties to develop a long-term strategy to support the park system. The commission shall provide this report by December 1, 1997.

(5) ((~~$85,000~~)) $48,000 of the general fund‑-state appropriation for fiscal year 1998 and ((~~$165,000~~)) $202,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for development of underwater park programs and facilities. The department shall work with the underwater parks program task force to develop specific plans for the use of these funds.

(6) Pursuant to RCW 43.135.055, during the 1997-99 fiscal biennium, the department is authorized to increase the following fees in excess of the fiscal growth factor: Group campsite fees from $15.00 to $23.00; Fort Worden conference center and recreational housing user fees up to 14.5 percent on average for all fees increased; special groomed trail permits from $20.00 to $40.00; and, wood debris collection from $10.00 to $25.00.

(7) $20,000 of the winter recreation program account appropriation and $20,000 of the snowmobile account appropriation are provided solely for a grant for the operation of the Northwest avalanche center.

Sec. 305. 1997 c 149 s 304 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Firearms Range Account Appropriation........... $ 46,000

Recreation Resources Account‑-State

Appropriation.............................. $ 2,352,000

Recreation Resources Account‑-Federal

Appropriation.............................. $ 11,000

NOVA Program Account Appropriation............. $ 590,000

TOTAL APPROPRIATION................. $ ((~~2,988,000~~))

2,999,000

The appropriations in this section are subject to the following conditions and limitations: Any proceeds from the sale of the PRISM software system shall be deposited into the recreation resources account.

Sec. 306. 1997 c 149 s 306 (uncodified) is amended to read as follows:

FOR THE CONSERVATION COMMISSION

General Fund Appropriation (FY 1998)................ $ 838,000

General Fund Appropriation (FY 1999)................ $ ((~~840,000~~))

3,840,000

Water Quality Account Appropriation.................. $ 440,000

TOTAL APPROPRIATION...................... $ ((~~2,118,000~~))

5,118,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $181,000 of the general fund appropriation for fiscal year 1998, $181,000 of the general fund appropriation for fiscal year 1999, and $130,000 of the water quality account appropriation are provided solely for the implementation of the Puget Sound work plan agency action item CC-01.

(2) $1,000,000 of the general fund appropriation for fiscal year 1999 is provided solely for grants to conservation districts to provide technical assistance to landowners enrolling in the conservation reserve enhancement program.

(3) $200,000 of the general fund appropriation for fiscal year 1999 is provided solely for technical assistance for dairy farmers to implement sections 3 through 19 of Engrossed Second Substitute House Bill No. 2915 (dairy nutrients). If any of sections 3 through 19 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(4) $800,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely to conduct limiting factor analysis in accordance with sections 7 through 11 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If these sections of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse. To the extent possible, the commission shall establish partnerships with the federal natural resources conservation service and other entities conducting watershed or limiting factor analysis. Of this amount: (a) $150,000 is provided for limiting factor analysis in the lower Columbia evolutionarily significant unit; (b) $150,000 is provided for limiting factor analysis in the Snake river evolutionarily significant unit; and (c) $500,000 is provided for limiting factor analysis in the Puget Sound area.

(5) $1,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a contract with a nonprofit entity on a pilot program basis to develop and implement a volunteer habitat initiative. Approximately one-third of the initiative shall be implemented in the lower Columbia evolutionarily significant unit. The initiative must include: A training program for volunteers; a public outreach and education program; and a program to encourage landowners and land managers to use volunteers in salmon habitat improvement projects.

Sec. 307. 1997 c 454 s 304 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

General Fund‑-State Appropriation (FY 1998).... $ ((~~36,049,000~~))

35,852,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~36,571,000~~))

42,150,000

General Fund‑-Federal Appropriation............. $.................................. ((~~73,015,000~~))

75,037,000

General Fund‑-Private/Local Appropriation...... $ ((~~26,758,000~~))

26,983,000

Off Road Vehicle Account Appropriation......... $ 488,000

Aquatic Lands Enhancement Account

Appropriation.............................. $ 5,593,000

Public Safety and Education Account

Appropriation.............................. $ ((~~590,000~~))

586,000

Industrial Insurance Premium Refund

Appropriation.............................. $ 120,000

Recreational Fisheries Enhancement

Appropriation.............................. $ 2,387,000

Warm Water Game Fish Account Appropriation..... $ 2,419,000

Wildlife Account Appropriation.................. $............................. ((~~52,372,000~~))

51,622,000

Game Special Wildlife Account‑-State

Appropriation.............................. $ 1,911,000

Game Special Wildlife Account‑-Federal

Appropriation.............................. $ 10,844,000

Game Special Wildlife Account‑-Private/Local

Appropriation.............................. $ 350,000

Oil Spill Administration Account Appropriation. $ 843,000

Environmental Excellence Account Appropriation. $ 20,000

Eastern Washington Pheasant Enhancement Account

Appropriation.............................. $ 547,000

Regional Fisheries Enhancement--State

Appropriation.............................. $ 500,000

Regional Fisheries Enhancement--Federal

Appropriation.............................. $ 750,000

TOTAL APPROPRIATION................. $ ((~~250,877,000~~))

259,002,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,181,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,181,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action items DFW-01, DFW-03, DFW-04, and DFW-8 through DFW-15.

(2) $188,000 of the general fund‑-state appropriation for fiscal year 1998 and $155,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for a maintenance and inspection program for department-owned dams. The department shall submit a report to the governor and the appropriate legislative committees by October 1, 1998, on the status of department-owned dams. This report shall provide a recommendation, including a cost estimate, on whether each facility should continue to be maintained or should be decommissioned.

(3) $832,000 of the general fund‑-state appropriation for fiscal year 1998 and $825,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to implement salmon recovery activities and other actions required to respond to federal listings of salmon species under the endangered species act.

(4) $350,000 of the wildlife account appropriation, $72,000 of the general fund--state appropriation for fiscal year 1998, and $73,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for control and eradication of class B designate weeds on department owned and managed lands. The amounts from the general fund‑-state appropriations are provided solely for control of spartina.

(5) $140,000 of the wildlife account appropriation is provided solely for a cooperative effort with the department of agriculture for research and eradication of purple loosestrife on state lands.

(6) In controlling weeds on state-owned lands, the department shall use the most cost-effective methods available, including chemical control where appropriate, and the department shall report to the appropriate committees of the legislature by January 1, 1998, on control methods, costs, and acres treated during the previous year.

(7) ((A maximum of $1,000,000 is provided from the wildlife fund for fiscal year 1998. The amount provided in this subsection is for the emergency feeding of deer and elk that may be starving and that are posing a risk to private property due to severe winter conditions during the winter of 1997-98. The amount expended under this subsection must not exceed the amount raised pursuant to section 3 of Substitute House Bill No. 1478. Of the amount expended under this subsection, not more than fifty percent may be from fee revenue generated pursuant to section 3 of Substitute House Bill No. 1478. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

~~(8)~~)) $193,000 of the general fund--state appropriation for fiscal year 1998, $194,000 of the general fund--state appropriation for fiscal year 1999, and $300,000 of the wildlife account appropriation are provided solely for the design and development of an automated license system.

((~~(9)~~)) (8) The department is directed to offer for sale its Cessna 421 aircraft by June 30, 1998. Proceeds from the sale shall be deposited in the wildlife account.

((~~(10)~~)) (9) $500,000 of the general fund‑-state appropriation for fiscal year 1998 and $500,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to continue the department's habitat partnerships program during the 1997-99 biennium.

((~~(11)~~)) (10) $350,000 of the general fund--state appropriation for fiscal year 1998 and $350,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for purchase of monitoring equipment necessary to fully implement mass marking of coho salmon.

((~~(12)~~)) (11) $238,000 of the general fund‑-state appropriation for fiscal year 1998 and $219,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(13)~~)) (12) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the United States department of agriculture to carry out animal damage control projects throughout the state related to cougars, bears, and coyotes.

((~~(14)~~)) (13) $97,000 of the general fund--state appropriation for fiscal year 1998 and $98,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement animal damage control programs for Canada geese in the lower Columbia river basin.

((~~(15)~~)) (14) $170,000 of the general fund--state appropriation for fiscal year 1998, $170,000 of the general fund--state appropriation for fiscal year 1999, and $360,000 of the wildlife account appropriation are provided solely to hire additional enforcement officers to address problem wildlife throughout the state.

((~~(17)~~)) (15) $133,000 of the general fund--state appropriation for fiscal year 1998 and $133,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5442 (flood control permitting). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(18)~~)) (16) $100,000 of the aquatic lands enhancement account appropriation is provided solely for grants to the regional fisheries enhancement groups.

((~~(19)~~)) (17) $547,000 of the eastern Washington pheasant enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5104 (pheasant enhancement program). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

((~~(20)~~)) (18) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to hire Washington conservation corps crews to maintain department-owned and managed lands.

((~~(21)~~)) (19) The entire environmental excellence account appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 1866 (environmental excellence). If the bill is not enacted by June 30, 1997, the entire appropriation is null and void.

((~~(22)~~)) (20) $156,000 of the recreational fisheries enhancement appropriation is provided solely for Substitute Senate Bill No. 5102 (fishing license surcharge). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

((~~(23)~~)) (21) $25,000 of the general fund‑-state appropriation for fiscal year 1998 and $25,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for staffing and operation of the Tennant Lake interpretive center.

(22) It is the intent of the legislature that, within the general fund‑-state appropriations provided in this section, the department shall prioritize its resources to provide expedited assistance to businesses seeking permitting and technical assistance for rural economic development projects.

(23) Within the amounts provided in this section, the department shall expedite permitting for fish habitat enhancement projects in accordance with Second Substitute House Bill No. 2879 (fish enhancement projects). If the bill is not enacted by June 30, 1998, this subsection is null and void.

(24) $750,000 of the regional fisheries enhancement‑-federal appropriation is provided solely for the regional fisheries enhancement groups. The amount in this section may be spent for project identification, design, permitting, and implementation; volunteer coordination; and administrative costs as approved under RCW 75.50.100 and 75.50.115(1)(d). All amounts not committed to approved project, volunteer coordination, or administrative costs by May 31, 1998, shall be made available to any of the regional fisheries enhancement groups that have submitted project approval requests that exceed their available funding from the regional fisheries enhancement group account and the regional fisheries enhancement salmonid recovery account. Redistribution of the moneys shall be based on the criteria established in RCW 75.50.115(1)(e), and shall ensure to the greatest extent possible that the funds are spent during the 1998 in-stream season.

(25) $700,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for grants to regional councils formed in accordance with sections 7 through 11 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If these sections of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse. Of this amount: (a) $100,000 is provided as a grant to the regional committee lead entity in the lower Columbia evolutionarily significant unit; (b) $100,000 is provided as a grant to the regional committee lead entity for administrative activities in the Snake river evolutionarily significant unit; and (c) $500,000 is provided for five separate grants to lead entities for restoration activities in the Puget Sound region.

(26) $75,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for implementation of the salmon recovery office in accordance with sections 7 through 11 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If these sections of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(27) $25,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for operation of the independent science panel in accordance with section 6 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If this section of the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(28) $450,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for fish passage technical assistance in accordance with sections 7 through 11 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). The department shall contract with the department of transportation to train staff at the department of transportation to become proficient in providing fish passage technical assistance. If these sections of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(29) $250,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for excessive deer and elk damage claims.

(30) $200,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for development and implementation of a remote site incubator program. The funding is solely for activities in the tributaries of the lower Columbia river in accordance with Substitute Senate Bill No. 6324 (fish remote site incubators). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(31) $775,000 of the general fund--state appropriation for fiscal year 1999, $400,000 of the general fund--federal appropriation, and $225,000 of the general fund--local appropriation are provided solely to contract for the mass marking of all appropriate state-wide department chinook salmon hatchery production in accordance with Second Substitute Senate Bill No. 6264 (chinook salmon mass marking). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(32) $500,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for implementation of sections 7 through 11 of Second Substitute House Bill No. 2496 (salmon recovery planning). The entire amount shall be used for regional fisheries enhancement group projects located in the Puget Sound region.

(33) $546,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for implementation of sections 7 through 11 of Second Substitute House Bill No. 2496 (salmon recovery planning). The entire amount shall be used for salmonid restoration projects located in the Puget Sound region.

(34) $2,204,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for implementation of sections 7 through 11 of Second Substitute House Bill No. 2496 (salmon recovery planning). Of these amounts: (a) $1,454,000 is provided solely for salmon restoration projects located in the Puget Sound region; (b) $250,000 is provided solely to the lead entity in the lower Columbia evolutionarily significant unit for salmon restoration projects and administration; and (c) $500,000 is provided solely for salmon restoration projects ready to be implemented located in the Snake river evolutionarily significant unit. If these sections of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(35) $50,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the department to: (a) Establish a more accurate annual population estimate for elk and deer herds, particularly those herds in areas where conservation restrictions have been imposed in recent history; and (b) determine as accurately as possible annual elk or deer mortality from: Cougar and bear predation, hunting, poaching, starvation, and all other sources of harvest or depredation.

(36) $500,000 of the general fund--state appropriation for fiscal year 1999 and $3,500,000 of the general fund--federal appropriation are provided solely to implement a license buy-back program for commercial fishing licenses.

Sec. 308. 1997 c 454 s 305 (uncodified) is each amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund‑-State Appropriation (FY 1998).... $ 23,767,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~24,168,000~~))

24,340,000

General Fund‑-Federal Appropriation............. $.................................. 1,156,000

General Fund‑-Private/Local Appropriation...... $ 422,000

Forest Development Account Appropriation........ $...................................... ((~~49,923,000~~))

49,953,000

Off Road Vehicle Account Appropriation......... $ 3,628,000

Surveys and Maps Account Appropriation......... $ 2,088,000

Aquatic Lands Enhancement Account

Appropriation.............................. $ 4,869,000

Resources Management Cost Account

Appropriation.............................. $ ((~~89,613,000~~))

89,759,000

Waste Reduction/Recycling/Litter Control

Appropriation.............................. $ 450,000

Surface Mining Reclamation Account

Appropriation.............................. $ 1,420,000

Aquatic Land Dredged Material Disposal Site Account

Appropriation.............................. $ 751,000

Natural Resources Conservation Areas Stewardship

Account Appropriation...................... $ 77,000

Air Pollution Control Account Appropriation.... $ 890,000

Metals Mining Account Appropriation............. $ 62,000

Natural Resources Equipment Account

Appropriation.............................. $ 750,000

TOTAL APPROPRIATION ................. $ ((~~203,284,000~~))

204,382,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $7,017,000 of the general fund‑-state appropriation for fiscal year 1998 and $6,900,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for emergency fire suppression.

(2) $18,000 of the general fund‑-state appropriation for fiscal year 1998, $18,000 of the general fund‑-state appropriation for fiscal year 1999, and $957,000 of the aquatic lands enhancement account appropriation are provided solely for the implementation of the Puget Sound work plan agency action items DNR-01, DNR-02, and DNR-04.

(3) $450,000 of the resource management cost account appropriation is provided solely for the control and eradication of class B designate weeds on state lands. The department shall use the most cost-effective methods available, including chemical control where appropriate, and report to the appropriate committees of the legislature by January 1, 1998, on control methods, costs, and acres treated during the previous year.

(4) $1,332,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,713,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for fire protection activities.

(5) $541,000 of the general fund‑-state appropriation for fiscal year 1998 and $549,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the stewardship of natural area preserves, natural resource conservation areas, and the operation of the natural heritage program.

(6) $2,300,000 of the aquatic lands enhancement account appropriation is provided for the department's portion of the Eagle Harbor settlement.

(7) $195,000 of the general fund‑-state appropriation for fiscal year 1998 and $220,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(8) $600,000 of the general fund--state appropriation for fiscal year 1998 and $600,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the cooperative monitoring, evaluation, and research projects related to implementation of the timber-fish-wildlife agreement.

(9) $6,568,000 of the forest development account appropriation is provided solely for silviculture activities on forest board lands. To the extent that forest board counties apply for reconveyance of lands pursuant to Substitute Senate Bill No. 5325 (county land transfers), the amount provided in this subsection shall be reduced by an amount equal to the estimated silvicultural expenditures planned in each county that applies for reconveyance.

(10) The entire natural resources equipment account appropriation is provided solely for replacement of equipment and development of infrastructure necessary to meet new federal communications commission regulations.

(11) $55,000 of the general fund--state appropriation for fiscal year 1999, $25,000 from the resource management cost account appropriation, and $30,000 from the forest development account appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(12) $71,000 of the resource management cost account appropriation is provided solely for a study of the current method for determining water-dependent rents in accordance with Second Substitute Senate Bill No. 6156 (state aquatic lands leases). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(13) $117,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a geographic information systems inventory of Washington sand, gravel, and construction rock resources.

(14) $50,000 of the resource management cost account appropriation is provided solely for a field study of biological control methods for eradication of spartina.

Sec. 309. 1997 c 149 s 309 (uncodified) is each amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

General Fund‑-State Appropriation (FY 1998).... $ ((~~7,596,000~~))

7,605,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~7,008,000~~))

7,982,000

General Fund‑-Federal Appropriation............. $.................................. ((~~4,716,000~~))

5,077,000

General Fund‑-Private/Local Appropriation...... $ 405,000

Aquatic Lands Enhancement Account

Appropriation.............................. $ 806,000

Industrial Insurance Premium Refund

Appropriation.............................. $ 184,000

State Toxics Control Account Appropriation..... $ 1,338,000

Local Toxics Control Account Appropriation..... $ 303,000

TOTAL APPROPRIATION................. $ ((~~22,053,000~~))

23,700,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $35,000 of the general fund‑-state appropriation for fiscal year 1998 and $36,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for technical assistance on pesticide management including the implementation of the Puget Sound work plan agency action item DOA-01.

(2) $461,000 of the general fund‑-state appropriation for fiscal year 1998, $421,000 of the general fund‑-state appropriation for fiscal year 1999, and ((~~$361,000~~)) $722,000 of the general fund‑-federal appropriation are provided solely to monitor and eradicate the Asian gypsy moth.

(3) $138,000 of the general fund--state appropriation for fiscal year 1998 and $138,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for two additional staff positions in the plant protection program.

(4) $12,000 of the general fund‑-state appropriation for fiscal year 1998 and $13,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute Senate Bill No. 5077 (integrated pest management). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $303,000 of the local toxics account appropriation is provided solely to implement Second Substitute House Bill No. 2618 (fertilizer regulation). The amount provided in this subsection shall be used to conduct a comprehensive study of plant uptake of metals and to implement new fertilizer registration requirements. If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $60,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for the implementation of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(7) $95,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for deposit into the livestock identification account for implementation of Engrossed Substitute House Bill No. 2887 (livestock identification). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 310. 1997 c 149 s 310 (uncodified) is each amended to read as follows:

FOR THE WASHINGTON POLLUTION LIABILITY REINSURANCE PROGRAM

Pollution Liability Insurance Program Trust Account

Appropriation................................... $ ((~~909,000~~))

1,009,000

(End of part)

PART IV

TRANSPORTATION

Sec. 401. 1997 c 149 s 401 (uncodified) is each amended to read as follows:

FOR THE DEPARTMENT OF LICENSING

General Fund Appropriation (FY 1998)........... $ ((~~4,536,000~~))

4,686,000

General Fund Appropriation (FY 1999)........... $ ((~~4,409,000~~))

4,532,000

Architects' License Account Appropriation...... $ ((~~857,000~~))

829,000

Cemetery Account Appropriation.................. $............................. ((~~188,000~~))

232,000

Professional Engineers' Account Appropriation... $........................................... ((~~2,674,000~~))

2,700,000

Real Estate Commission Account Appropriation... $ ((~~6,708,000~~))

7,062,000

Master License Account Appropriation........... $ ((~~6,998,000~~))

6,963,000

Uniform Commercial Code Account Appropriation... $........................................... ((~~4,291,000~~))

3,521,000

Real Estate Education Account Appropriation.... $ 606,000

Funeral Directors And Embalmers Account

Appropriation.............................. $ ((~~409,000~~))

418,000

TOTAL APPROPRIATION................. $ ((~~31,676,000~~))

31,549,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $21,000 of the general fund fiscal year 1998 appropriation and $22,000 of the general fund fiscal year 1999 appropriation are provided solely to implement House Bill No. 1827 or Senate Bill No. 5754 (boxing, martial arts, wrestling). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(2) $40,000 of the master license account appropriation is provided solely to implement Substitute Senate Bill No. 5483 (whitewater river outfitters). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(3) $229,000 of the general fund fiscal year 1998 appropriation and $195,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of Senate Bill No. 5997 (cosmetology inspections). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(4) $31,000 of the general fund fiscal year 1998 appropriation, $1,000 of the general fund fiscal 1999 appropriation, $7,000 of the architects' license account appropriation, $18,000 of the professional engineers' account appropriation, $14,000 of the real estate commission account appropriation, $40,000 of the master license account appropriation, and $3,000 of the funeral directors and embalmers account appropriation are provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(5) $17,000 of the professional engineers' account appropriation is provided solely to implement Senate Bill No. 5266 (engineers/land surveyors). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(6) $110,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Senate Bill No. 5998 (cosmetology advisory board). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(7) (($74,000 of the uniform commercial code account appropriation is provided solely to implement Engrossed Senate Bill No. 5163 (UCC filing). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

~~(8)~~)) $11,000 of the general fund fiscal year 1998 appropriation and $2,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute House Bill No. 1748 or Substitute Senate Bill No. 5513 (vessel registration). If neither bill is enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(8)(a) Pursuant to RCW 43.135.055, during the 1997-99 fiscal biennium, the department may increase fees in excess of the fiscal growth factor in the appraisers and camp resorts programs; however, such increases shall not exceed an annual increase of eight percent.

(b) Pursuant to RCW 43.135.055, during the 1997-99 fiscal biennium, the department may increase fees in excess of the fiscal growth factor in the professional athletics, employment agencies, and security guards programs to the extent necessary to defray the costs of the administration of these programs as set forth in RCW 43.24.086.

(c) Before raising fees in excess of the fiscal growth factor pursuant to this subsection, the department shall notify the chairs and ranking minority members of the appropriate fiscal committees of the legislature.

(9) Within the funds provided in this section, the department shall provide information detailing each specific component of the overhead costs allocated to each program within the business and professions division. The department shall establish procedures to allow each program within the business and professions division to review and modify its business processes in order to reduce administrative costs. The department of licensing shall provide a report to the fiscal committees of the legislature by October 1, 1998, detailing the specific procedures established pursuant to the requirements of this subsection.

Sec. 402. 1997 c 149 s 402 (uncodified) is each amended to read as follows:

FOR THE STATE PATROL

General Fund--State Appropriation (FY 1998).... $ ((~~7,712,000~~))

8,380,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~7,850,000~~))

19,366,000

General Fund‑-Federal Appropriation............. $.................................. ((~~3,990,000~~))

5,784,000

General Fund‑-Private/Local Appropriation...... $ 341,000

Public Safety and Education Account

Appropriation.............................. $ ((~~4,652,000~~))

4,483,000

County Criminal Justice Assistance Account

Appropriation.............................. $ 3,905,000

Municipal Criminal Justice Assistance Account

Appropriation.............................. $ 1,573,000

Fire Service Trust Account Appropriation........ $ 92,000

Fire Service Training Account Appropriation.... $ ((~~1,762,000~~))

2,295,000

State Toxics Control Account Appropriation..... $ 439,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ ((~~310,000~~))

570,000

Fingerprint Identification Account

Appropriation.............................. $ ((~~3,082,000~~))

3,220,000

TOTAL APPROPRIATION................. $ ((~~35,708,000~~))

50,448,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $254,000 of the fingerprint identification account appropriation is provided solely for an automated system that will facilitate the access of criminal history records remotely by computer or telephone for preemployment background checks and other non-law enforcement purposes. The agency shall submit an implementation status report to the office of financial management and the legislature by September 1, 1997.

(2) $264,000 of the general fund‑-federal appropriation is provided solely for a feasibility study to develop a criminal investigation computer system. The study will report on the feasibility of developing a system that uses incident-based reporting as its foundation, consistent with FBI standards. The system will have the capability of connecting with local law enforcement jurisdictions as well as fire protection agencies conducting arson investigations. The study will report on the system requirements for incorporating case management, intelligence data, imaging, and geographic information. The system will also provide links to existing crime information databases such as WASIS and WACIC. The agency shall submit a copy of the proposed study workplan to the office of financial management and the department of information services for approval prior to expenditure. A final report shall be submitted to the appropriate committees of the legislature, the office of financial management, and the department of information services no later than June 30, 1998.

(3) Pursuant to chapter 43.135 RCW, during the 1997-99 fiscal biennium, the Washington state patrol is authorized to raise existing fees charged for background fingerprint checks on current and potential school district and educational service district employees by six dollars.

(4) $166,000 of the general fund--state appropriation for fiscal year 1998 and $499,000 of the general fund--state appropriation for fiscal year 1999 are provided solely as state matching funds required to complete changes to the WACIC and WASIS systems.

(5) To address year 2000 concerns about the automated fingerprint identification system (AFIS), the Washington state patrol may contract with an intergovernmental consortium for the use of a year 2000 compatible AFIS system. Under this approach, the state patrol would begin paying a monthly usage fee starting in fiscal year 2000.

(End of part)

PART V

EDUCATION

NEW SECTION. Sec. 501. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR A STUDY OF K-12 FINANCE. A study of the system of finance of the Washington common schools shall be conducted by the joint legislative audit and review committee subject to the following conditions and limitations:

(1) The study shall address:

(a) The revenue and expenditure practices of local school districts. To the extent data is available, the study shall identify patterns of resource allocations to selected districts, buildings, and classrooms. The study shall document the extent to which meaningful analysis of resource allocations is limited by data currently available and shall identify means necessary to obtain information necessary to analyze the efficiency and effectiveness of common school expenditures. The study shall also seek to identify districts that have financial data available in a form that facilitates understanding by persons without specialized expertise in public finance.

(b) The ratio of students to teachers and other personnel in selected districts, buildings, and classrooms. To the extent data is obtainable, class-size shall include analysis of the use of certificated and noncertificated classroom instructors and assistants, the education and experience of instructional staff, the composition of students in classrooms by status including students who qualify for special education, learning assistance, bilingual education, gifted education, free and reduced lunch and other characteristics, including educational outcomes relevant to understanding the nature of class-size and the nature of students and teachers in those classes.

(2) The final report shall be presented no later than June 30, 1999. Before the final report is presented, an interim briefing shall be presented to the fiscal committees of the legislature for review and comment.

(3) Funds appropriated to the joint legislative audit and review committee for the study specified in this section may be used for consulting services as deemed necessary, including, but not limited to, review of studies of a similar nature and consultation with experts in the field of public school finance on the feasibility and best approaches to a state fiscal study with the objectives specified in this section.

Sec. 502. 1997 c 454 s 501 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR STATE ADMINISTRATION

General Fund‑-State Appropriation (FY 1998).... $ ((~~20,758,000~~))

21,408,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~40,775,000~~))

61,156,000

General Fund‑-Federal Appropriation............. $.................................. 49,439,000

Public Safety and Education Account

Appropriation.............................. $ 2,598,000

Violence Reduction and Drug Enforcement Account

Appropriation.............................. $ 3,672,000

Education Savings Account Appropriation........ $ 39,312,000

TOTAL APPROPRIATION................. $ ((~~156,554,000~~))

177,585,000

The appropriations in this section are subject to the following conditions and limitations:

(1) AGENCY OPERATIONS

(a) $394,000 of the general fund‑-state appropriation for fiscal year 1998 and $394,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the operation and expenses of the state board of education, including basic education assistance activities.

(b)(i) $250,000 of the general fund‑-state appropriation for fiscal year 1998 and $250,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for enhancing computer systems and support in the office of superintendent of public instruction. These amounts shall be used to: Make a database of school information available electronically to schools, state government, and the general public; reduce agency and school district administrative costs through more effective use of technology; and replace paper reporting and publication to the extent feasible with electronic media. The superintendent, in cooperation with the commission on student learning, shall develop a state student record system including elements reflecting student achievement. The system shall be made available to the office of financial management and the legislature with suitable safeguards of student confidentiality. The superintendent shall report to the office of financial management and the legislative fiscal committees by December 1 of each year of the biennium on the progress and plans for the expenditure of these amounts.

(ii) The superintendent, in cooperation with the commission on student learning, shall develop a feasibility plan for a state student record system, including elements reflecting student academic achievement on goals 1 and 2 under RCW 28A.150.210. The feasibility plan shall be made available to the office of financial management and the fiscal and education committees of the legislature for approval before a student records database is established, and shall identify data elements to be collected and suitable safeguards of student confidentiality and proper use of database records, with particular attention to eliminating unnecessary and intrusive data about nonacademic related information.

(c) $348,000 of the public safety and education account appropriation is provided solely for administration of the traffic safety education program, including in-service training related to instruction in the risks of driving while under the influence of alcohol and other drugs.

(d) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5394 (school audit resolutions).

(e) The superintendent shall conduct a study and make recommendations to the 1999 legislature regarding a definition of and standards for skills centers. The standards shall be related to the cost differential of skills centers as compared to secondary vocational education allocations provided in the appropriations act. The study shall also address proposals for new skills centers known as of August 31, 1998, and compare and analyze, insofar as possible, the proposals with the recommended standards. The study shall be submitted to the governor and the appropriate committees of the legislature by November 25, 1998.

(2) STATE-WIDE PROGRAMS

(a) $2,174,000 of the general fund‑-state appropriation is provided for in-service training and educational programs conducted by the Pacific Science Center.

(b) $63,000 of the general fund‑-state appropriation is provided for operation of the Cispus environmental learning center.

(c) $2,754,000 of the general fund‑-state appropriation is provided for educational centers, including state support activities. $100,000 of this amount is provided to help stabilize funding through distribution among existing education centers that are currently funded by the state at an amount less than $100,000 a biennium.

(d) $100,000 of the general fund‑-state appropriation is provided for an organization in southwest Washington that received funding from the Spokane educational center in the 1995-97 biennium and provides educational services to students who have dropped out.

(e) ((~~$2,500,000~~)) $2,150,000 of the general fund--state fiscal year 1998 appropriation and ((~~$2,500,000~~)) $2,150,000 of the general fund--state fiscal year 1999 appropriation are provided solely for implementation of reading initiatives to improve reading in early grades as enacted by the 1997 legislature. Of this amount((~~: (ii)~~)), $4,300,000 is provided solely to implement Engrossed Substitute House Bill No. 2042. Funds shall be used solely for the selection and purchase of the second grade reading tests in accordance with section 2 of the bill, scoring costs associated with the administration of the tests in the 1998-99 school year in accordance with section 5 of the bill, and grants to school districts in accordance with sections 4 and 7 of the bill.

(f) $3,672,000 of the violence reduction and drug enforcement account appropriation and $2,250,000 of the public safety education account appropriation are provided solely for matching grants to enhance security in schools. Not more than seventy-five percent of a district's total expenditures for school security in any school year may be paid from a grant under this subsection. The grants shall be expended solely for the costs of employing or contracting for building security monitors in schools during school hours and school events. Of the amount provided in this subsection, at least $2,850,000 shall be spent for grants to districts that, during the 1988-89 school year, employed or contracted for security monitors in schools during school hours. However, these grants may be used only for increases in school district expenditures for school security over expenditure levels for the 1988-89 school year.

(g) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund‑-state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation transferred from the department of health are provided solely for a program that provides grants to school districts for media campaigns promoting sexual abstinence and addressing the importance of delaying sexual activity, pregnancy, and childbearing until individuals are ready to nurture and support their children. Grants to the school districts shall be for projects that are substantially designed and produced by students. The grants shall require a local private sector match equal to one-half of the state grant, which may include in-kind contribution of technical or other assistance from consultants or firms involved in public relations, advertising broadcasting, and graphics or video production or other related fields.

(h) $1,500,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for school district petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. Allocation of this money to school districts shall be based on the number of petitions filed.

(i) $300,000 of the general fund‑-state appropriation is provided for alcohol and drug prevention programs pursuant to RCW 66.08.180.

(j)(i) $19,656,000 of the education savings account appropriation for fiscal year 1998 and $19,656,000 of the education savings account appropriation for fiscal year 1999 are provided solely for matching grants and related state activities to provide school district consortia with programs utilizing technology to improve learning. A maximum of ((~~$100,000~~)) $150,000 each fiscal year of this amount is provided for administrative support and oversight of the K-20 network by the superintendent of public instruction. The superintendent of public instruction shall convene a technology grants committee representing private sector technology, school districts, and educational service districts to recommend to the superintendent grant proposals that have the best plans for improving student learning through innovative curriculum using technology as a learning tool and evaluating the effectiveness of the curriculum innovations. After considering the technology grants committee recommendations, the superintendent shall make matching grant awards, including granting at least fifteen percent of funds on the basis of criteria in (ii)(A) through (C) of this subsection (2)(j).

(ii) Priority for award of funds will be to (A) school districts most in need of assistance due to financial limits, (B) school districts least prepared to take advantage of technology as a means of improving student learning, and (C) school districts in economically distressed areas. The superintendent of public instruction, in consultation with the technology grants committee, shall propose options to the committee for identifying and prioritizing districts according to criteria in (i) and (ii) of this subsection (2)(j).

(iii) Options for review criteria to be considered by the superintendent of public instruction include, but are not limited to, free and reduced lunches, levy revenues, ending fund balances, equipment inventories, and surveys of technology preparedness. An "economically distressed area" is (A) a county with an unemployment rate that is at least twenty percent above the state-wide average for the previous three years; (B) a county that has experienced sudden and severe or long-term and severe loss of employment, or erosion of its economic base resulting in decline of its dominant industries; or (C) a district within a county which (I) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (II) has an unemployment rate which is at least forty percent higher than the county's unemployment rate.

(k) $50,000 of the general fund--state appropriations is provided as matching funds for district contributions to provide analysis of the efficiency of school district business practices. The superintendent of public instruction shall establish criteria, make awards, and provide a report to the fiscal committees of the legislature by December 15, 1997, on the progress and details of analysis funded under this subsection (2)(k).

(l) ((~~$19,977,000~~)) $24,797,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the purchase of classroom instructional materials and supplies. The superintendent shall allocate the funds at a maximum rate of $20.82 per full-time equivalent student, beginning September 1, 1998, and ending June 30, 1999. The expenditure of the funds shall be determined at each school site by the ((~~school building staff, parents, and the community~~)) individual teacher. School districts shall distribute all funds received to school buildings without deduction. $5,000,000 of the amount in this subsection is provided solely for a classroom collection of books selected by classroom teachers at a maximum rate of $102.22 per teacher. Funds shall be provided to teachers without deduction.

(m) $15,000 of the general fund--state appropriation is provided solely to assist local districts vocational education programs in applying for low frequency FM radio licenses with the federal communications commission.

(n) $35,000 of the general fund--state appropriation is provided solely to the state board of education to design a program to encourage high school students and other adults to pursue careers as vocational education teachers in the subject matter of agriculture.

(o) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for allocation to the primary coordinators of the state geographic alliance to improve the teaching of geography in schools.

(p) ((~~$1,000,000~~)) $2,000,000 of the general fund--state appropriation is provided for state administrative costs and start-up grants for alternative programs and services that improve instruction and learning for at-risk and expelled students consistent with the objectives of Engrossed House Bill No. 1581 (disruptive students/offenders). Each grant application shall contain proposed performance indicators and an evaluation plan to measure the success of the program and its impact on improved student learning. Applications shall contain the applicant's plan for maintaining the program and/or services after the grant period, shall address the needs of students who cannot be accommodated within the framework of existing school programs or services and shall address how the applicant will serve any student within the proposed program's target age range regardless of the reason for truancy, suspension, expulsion, or other disciplinary action. Up to $50,000 per year may be used by the superintendent of public instruction for grant administration. The superintendent shall submit an evaluation of the alternative program start-up grants provided under this section, and section 501(2)(q), chapter 283, Laws of 1996, to the fiscal and education committees of the legislature by November 15, 1998. Grants shall be awarded to applicants showing the greatest potential for improved student learning for at-risk students including:

(i) Students who have been suspended, expelled, or are subject to other disciplinary actions;

(ii) Students with unexcused absences who need intervention from community truancy boards or family support programs;

(iii) Students who have left school; and

(iv) Students involved with the court system.

A minimum of $200,000 is provided solely for a pilot program for junior high school students who have received out of school suspensions. The program shall include the formal participation of local law enforcement, senior citizen organizations, local youth organizations, and city government.

The office of the superintendent of public instruction shall prepare a report describing student recruitment, program offerings, staffing practices, and available indicators of program effectiveness of alternative education programs funded with state and, to the extent information is available, local funds. The report shall contain a plan for conducting an evaluation of the educational effectiveness of alternative education programs.

(q) $1,600,000 of the general fund‑-state appropriation is provided for grants for magnet schools to be distributed as recommended by the superintendent of public instruction pursuant to chapter 232, section 516(13), Laws of 1992.

(r) $4,300,000 of the general fund‑-state appropriation is provided for complex need grants. Grants shall be provided according to amounts shown in LEAP Document 30C as developed on April 27, 1997, at 03:00 hours.

(s) $216,000 of the general fund‑-state appropriation is provided solely for development of assessments of teaching reading and other costs necessary to implement Substitute House Bill No. 2418 (reading improvement). The office of superintendent of public instruction shall provide these funds to the state board of education without deductions. If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(t) $14,200,000 of the general fund‑-state appropriation is provided solely for costs necessary to implement a reading improvement program in accordance with Engrossed Second Substitute Senate Bill No. 6509. If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(i) A maximum of $9,100,000 of the amount in this subsection is provided for professional development, purchase of instructional materials, and related costs necessary to implement section 2(1) and section 2(2) of the bill.

(ii) A maximum of $100,000 of the amount in this subsection is provided for professional development materials for school principals and interested volunteers in accordance with section 2(3) of the bill.

(iii) A maximum of $5,000,000 of the amount in this subsection is provided for teacher training in the use of volunteer tutors and mentors and related costs in accordance with section 2(7) of the bill. Funds may be spent on programs that include kindergarten through 6th grade students.

(u) $85,000 of the general fund‑-state appropriation is provided solely for a study and recommendations on parent participation, school-to-home communication, and parental management in the education of children from prekindergarten through higher education in accordance with Second Substitute House Bill No. 2604 (parental involvement in education). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(v) $115,000 of the general fund‑-state appropriation is provided solely for a study and recommendations related to education of offenders prosecuted as adults in accordance with Substitute House Bill No. 2793 (offender education). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(w) $375,000 of the general fund‑-state appropriation is provided solely for increased costs of providing a norm-referenced test to all third grade students and retests of certain third grade students and other costs in accordance with Second Substitute House Bill No. 2849 (student achievement). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(x) $69,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for membership dues in the education commission for the states. The funds shall be provided to the state board of education without deductions and the state board shall provide a report on the benefits of membership to the appropriate committees of the legislature by January 15, 1999.

(y) $50,000 of the general fund‑-state appropriation is provided solely for development and operation of a skills center in Port Angeles, contingent on meeting the standard for qualifying for skills center funding as developed by the superintendent of public instruction in subsection (1)(e) of this section.

Sec. 503. 1997 c 149 s 502 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR GENERAL APPORTIONMENT (BASIC EDUCATION)

General Fund Appropriation (FY 1998)........... $ ((~~3,429,727,000~~))

3,405,645,000

General Fund Appropriation (FY 1999)........... $ ((~~3,511,157,000~~))

3,473,603,000

TOTAL APPROPRIATION................. $ ((~~6,940,884,000~~))

6,879,248,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) Allocations for certificated staff salaries for the 1997-98 and 1998-99 school years shall be determined using formula‑generated staff units calculated pursuant to this subsection. Staff allocations for small school enrollments in (d) through (f) of this subsection shall be reduced for vocational full-time equivalent enrollments. Staff allocations for small school enrollments in grades K-6 shall be the greater of that generated under (a) of this subsection, or under (d) and (e) of this subsection. Certificated staffing allocations shall be as follows:

(a) On the basis of each 1,000 average annual full-time equivalent enrollments, excluding full-time equivalent enrollment otherwise recognized for certificated staff unit allocations under (c) through (f) of this subsection:

(i) Four certificated administrative staff units per thousand full-time equivalent students in grades K-12;

(ii) 49 certificated instructional staff units per thousand full-time equivalent students in grades K-3;

(iii) An additional 5.3 certificated instructional staff units for grades K-3. Any funds allocated for these additional certificated units shall not be considered as basic education funding;

(A) Funds provided under this subsection (2)(a)(iii) in excess of the amount required to maintain the statutory minimum ratio established under RCW 28A.150.260(2)(b) shall be allocated only if the district documents an actual ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3. For any school district documenting a lower certificated instructional staff ratio, the allocation shall be based on the district's actual grades K-3 certificated instructional staff ratio achieved in that school year, or the statutory minimum ratio established under RCW 28A.150.260(2)(b), if greater;

(B) Districts at or above 51.0 certificated instructional staff per one thousand full-time equivalent students in grades K-3 may dedicate up to 1.3 of the 54.3 funding ratio to employ additional classified instructional assistants assigned to basic education classrooms in grades K-3. For purposes of documenting a district's staff ratio under this section, funds used by the district to employ additional classified instructional assistants shall be converted to a certificated staff equivalent and added to the district's actual certificated instructional staff ratio. Additional classified instructional assistants, for the purposes of this subsection, shall be determined using the 1989-90 school year as the base year;

(C) Any district maintaining a ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3 may use allocations generated under this subsection (2)(a)(iii) in excess of that required to maintain the minimum ratio established under RCW 28A.150.260(2)(b) to employ additional basic education certificated instructional staff or classified instructional assistants in grades 4-6. Funds allocated under this subsection (2)(a)(iii) shall only be expended to reduce class size in grades K-6. No more than 1.3 of the certificated instructional funding ratio amount may be expended for provision of classified instructional assistants; and

(iv) Forty‑six certificated instructional staff units per thousand full-time equivalent students in grades 4-12;

(b) For school districts with a minimum enrollment of 250 full-time equivalent students whose full-time equivalent student enrollment count in a given month exceeds the first of the month full-time equivalent enrollment count by 5 percent, an additional state allocation of 110 percent of the share that such increased enrollment would have generated had such additional full-time equivalent students been included in the normal enrollment count for that particular month;

(i) Vocational education programs approved by the superintendent of public instruction, a maximum of 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each 18.3 full-time equivalent vocational students for the 1997-98 school year and for each 19.5 full-time equivalent vocational students in the 1998-99 school year. Beginning with the 1998-99 school year, districts documenting staffing ratios of less than 1 certificated staff per ((~~18.3~~)) 19.5 students shall be allocated the greater of the total ratio in subsections (2)(a)(i) and (iv) of this section or the actual documented ratio;

(ii) Skills center programs approved by the superintendent of public instruction for skills centers approved prior to September 1, 1997, 0.92 certificated instructional staff units and 0.08 certificated administrative units for each 16.67 full-time equivalent vocational students;

(iii) Indirect cost charges, as defined by the superintendent of public instruction, to vocational-secondary programs shall not exceed 10 percent; and

(iv) Vocational full-time equivalent enrollment shall be reported on the same monthly basis as the enrollment for students eligible for basic support, and payments shall be adjusted for reported vocational enrollments on the same monthly basis as those adjustments for enrollment for students eligible for basic support.

(d) For districts enrolling not more than twenty‑five average annual full-time equivalent students in grades K-8, and for small school plants within any school district which have been judged to be remote and necessary by the state board of education and enroll not more than twenty‑five average annual full-time equivalent students in grades K-8:

(i) For those enrolling no students in grades 7 and 8, 1.76 certificated instructional staff units and 0.24 certificated administrative staff units for enrollment of not more than five students, plus one‑twentieth of a certificated instructional staff unit for each additional student enrolled; and

(ii) For those enrolling students in grades 7 or 8, 1.68 certificated instructional staff units and 0.32 certificated administrative staff units for enrollment of not more than five students, plus one‑tenth of a certificated instructional staff unit for each additional student enrolled;

(e) For specified enrollments in districts enrolling more than twenty‑five but not more than one hundred average annual full-time equivalent students in grades K-8, and for small school plants within any school district which enroll more than twenty‑five average annual full-time equivalent students in grades K-8 and have been judged to be remote and necessary by the state board of education:

(i) For enrollment of up to sixty annual average full-time equivalent students in grades K-6, 2.76 certificated instructional staff units and 0.24 certificated administrative staff units; and

(ii) For enrollment of up to twenty annual average full-time equivalent students in grades 7 and 8, 0.92 certificated instructional staff units and 0.08 certificated administrative staff units;

(f) For districts operating no more than two high schools with enrollments of less than three hundred average annual full-time equivalent students, for enrollment in grades 9-12 in each such school, other than alternative schools:

(i) For remote and necessary schools enrolling students in any grades 9-12 but no more than twenty‑five average annual full-time equivalent students in grades K-12, four and one‑half certificated instructional staff units and one‑quarter of a certificated administrative staff unit;

(ii) For all other small high schools under this subsection, nine certificated instructional staff units and one‑half of a certificated administrative staff unit for the first sixty average annual full time equivalent students, and additional staff units based on a ratio of 0.8732 certificated instructional staff units and 0.1268 certificated administrative staff units per each additional forty‑three and one‑half average annual full time equivalent students.

Units calculated under (f)(ii) of this subsection shall be reduced by certificated staff units at the rate of forty‑six certificated instructional staff units and four certificated administrative staff units per thousand vocational full-time equivalent students.

(g) For each nonhigh school district having an enrollment of more than seventy annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-8 program or a grades 1-8 program, an additional one-half of a certificated instructional staff unit; and

(h) For each nonhigh school district having an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-6 program or a grades 1-6 program, an additional one‑half of a certificated instructional staff unit.

(3) Allocations for classified salaries for the 1997‑98 and 1998‑99 school years shall be calculated using formula‑generated classified staff units determined as follows:

(a) For enrollments generating certificated staff unit allocations under subsection (2)(d) through (h) of this section, one classified staff unit for each three certificated staff units allocated under such subsections;

(b) For all other enrollment in grades K-12, including vocational full-time equivalent enrollments, one classified staff unit for each sixty average annual full-time equivalent students; and

(c) For each nonhigh school district with an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, an additional one‑half of a classified staff unit.

(4) Fringe benefit allocations shall be calculated at a rate of 20.22 percent in the 1997‑98 and 1998-99 school years for certificated salary allocations provided under subsection (2) of this section, and a rate of 18.65 percent in the 1997‑98 and 1998-99 school years for classified salary allocations provided under subsection (3) of this section.

(5) Insurance benefit allocations shall be calculated at the maintenance rate specified in section 504(2) of this act, based on the number of benefit units determined as follows:

(a) The number of certificated staff units determined in subsection (2) of this section; and

(b) The number of classified staff units determined in subsection (3) of this section multiplied by 1.152. This factor is intended to adjust allocations so that, for the purposes of distributing insurance benefits, full-time equivalent classified employees may be calculated on the basis of 1440 hours of work per year, with no individual employee counted as more than one full-time equivalent.

(6)(a) For nonemployee-related costs associated with each certificated staff unit allocated under subsection (2)(a), (b), and (d) through (h) of this section, there shall be provided a maximum of $7,950 per certificated staff unit in the 1997‑98 school year and a maximum of ((~~$8,165~~)) $8,053 per certificated staff unit in the 1998-99 school year.

(b) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c) of this section, there shall be provided a maximum of $15,147 per certificated staff unit in the 1997‑98 school year and a maximum of ((~~$15,556~~)) $19,775 per certificated staff unit in the 1998-99 school year.

(c) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c)(ii) of this section, there shall be provided a maximum of $15,147 per certificated staff unit in the 1997-98 school year and a maximum of $15,344 per certificated staff unit in the 1998-99 school year.

(7) Allocations for substitute costs for classroom teachers shall be distributed at a maintenance rate of $354.64 per allocated classroom teachers exclusive of salary increase amounts provided in section 504 of this act. Solely for the purposes of this subsection, allocated classroom teachers shall be equal to the number of certificated instructional staff units allocated under subsection (2) of this section, multiplied by the ratio between the number of actual basic education certificated teachers and the number of actual basic education certificated instructional staff reported state‑wide for the 1996-97 school year.

(8) Any school district board of directors may petition the superintendent of public instruction by submission of a resolution adopted in a public meeting to reduce or delay any portion of its basic education allocation for any school year. The superintendent of public instruction shall approve such reduction or delay if it does not impair the district's financial condition. Any delay shall not be for more than two school years. Any reduction or delay shall have no impact on levy authority pursuant to RCW 84.52.0531 and local effort assistance pursuant to chapter 28A.500 RCW.

(9) The superintendent may distribute a maximum of ((~~$6,124,000~~)) $6,114,000 outside the basic education formula during fiscal years 1998 and 1999 as follows:

(a) For fire protection for school districts located in a fire protection district as now or hereafter established pursuant to chapter 52.04 RCW, a maximum of $447,000 may be expended in fiscal year 1998 and a maximum of ((~~$459,000~~)) $453,000 may be expended in fiscal year 1999;

(b) For summer vocational programs at skills centers, a maximum of $1,948,000 may be expended each fiscal year;

(d) A maximum of $500,000 per fiscal year may be expended for programs providing skills training for secondary students who are enrolled in extended day school-to-work programs, as approved by the superintendent of public instruction. The funds shall be allocated at a rate not to exceed $500 per full-time equivalent student enrolled in those programs.

(10) For the purposes of RCW 84.52.0531, the increase per full-time equivalent student in state basic education appropriations provided under this act, including appropriations for salary and benefits increases, is 2.5 percent from the 1996‑97 school year to the 1997‑98 school year, and 1.1 percent from the 1997‑98 school year to the 1998‑99 school year.

(11) If two or more school districts consolidate and each district was receiving additional basic education formula staff units pursuant to subsection (2)(b) through (h) of this section, the following shall apply:

(a) For three school years following consolidation, the number of basic education formula staff units shall not be less than the number of basic education formula staff units received by the districts in the school year prior to the consolidation; and

(b) For the fourth through eighth school years following consolidation, the difference between the basic education formula staff units received by the districts for the school year prior to consolidation and the basic education formula staff units after consolidation pursuant to subsection (2)(a) through (h) of this section shall be reduced in increments of twenty percent per year.

Sec. 504. 1997 c 454 s 503 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS

General Fund Appropriation (FY 1998)........... $ ((~~79,966,000~~))

79,412,000

General Fund Appropriation (FY 1999)........... $ ((~~116,310,000~~))

115,149,000

TOTAL APPROPRIATION................. $ ((~~196,276,000~~))

194,561,000

The appropriations in this section are subject to the following conditions and limitations:

(1) ((~~$176,525,000~~)) $174,999,000 is provided for a cost of living adjustment of 3.0 percent effective September 1, 1997, for state formula staff units. The appropriations include associated incremental fringe benefit allocations at rates of 19.58 percent for certificated staff and 15.15 percent for classified staff.

(a) The appropriations in this section include the increased portion of salaries and incremental fringe benefits for all relevant state-funded school programs in part V of this act. Salary adjustments for state employees in the office of superintendent of public instruction and the education reform program are provided in part VII of this act. Increases for general apportionment (basic education) are based on the salary allocation schedules and methodology in section 502 of this act. Increases for special education result from increases in each district's basic education allocation per student. Increases for educational service districts and institutional education programs are determined by the superintendent of public instruction using the methodology for general apportionment salaries and benefits in section 502 of this act.

(b) The appropriations in this section provide salary increase and incremental fringe benefit allocations based on formula adjustments as follows:

(i) For pupil transportation, an increase of $0.60 per weighted pupil‑mile for the 1997‑98 school year and maintained for the 1998-99 school year;

(ii) For education of highly capable students, an increase of $6.81 per formula student for the 1997‑98 school year and maintained for the 1998-99 school year; and

(iii) For transitional bilingual education, an increase of $17.69 per eligible bilingual student for the 1997‑98 school year and maintained for the 1998-99 school year; and

(iv) For learning assistance, an increase of $8.74 per entitlement unit for the 1997‑98 school year and maintained for the 1998-99 school year.

(c) The appropriations in this section include ((~~$912,000~~)) $903,000 for salary increase adjustments for substitute teachers at a rate of $10.64 per unit in the 1997-98 school year and maintained in the 1998-99 school year.

(2) ((~~$19,751,000~~)) $19,600,000 is provided for adjustments to insurance benefit allocations. The maintenance rate for insurance benefit allocations is $314.51 per month for the 1997-98 and 1998-99 school years. The appropriations in this section provide ((~~increases of $2.83~~)) for a rate increase to $317.34 per month for the 1997-98 school year and ((~~$18.41~~)) $335.75 per month for the 1998-99 school year at the following rates:

(a) For pupil transportation, an increase of $0.03 per weighted pupil‑mile for the 1997‑98 school year and $0.19 for the 1998-99 school year;

(b) For education of highly capable students, an increase of $0.20 per formula student for the 1997‑98 school year and $1.35 for the 1998-99 school year;

(c) For transitional bilingual education, an increase of $.46 per eligible bilingual student for the 1997‑98 school year and $3.44 for the 1998-99 school year; and

(d) For learning assistance, an increase of $.36 per funded unit for the 1997‑98 school year and $2.70 for the 1998-99 school year.

(3) The rates specified in this section are subject to revision each year by the legislature.

(4)((~~(a)~~)) For the 1997-98 school year, the superintendent shall prepare a report showing the allowable derived base salary for certificated instructional staff in accordance with RCW 28A.400.200 and LEAP Document 12D, and the actual derived base salary paid by each school district as shown on the S-275 report and shall make the report available to the fiscal committees of the legislature no later than February 15, 1998.

Sec. 505. 1997 c 149 s 505 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR PUPIL TRANSPORTATION

General Fund Appropriation (FY 1998)........... $ ((~~174,344,000~~))

175,168,000

General Fund Appropriation (FY 1999)........... $ ((~~179,560,000~~))

179,439,000

TOTAL APPROPRIATION................. $ ((~~353,904,000~~))

354,607,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) A maximum of ((~~$1,451,000~~)) $1,441,000 may be expended for regional transportation coordinators and related activities. The transportation coordinators shall ensure that data submitted by school districts for state transportation funding shall, to the greatest extent practical, reflect the actual transportation activity of each district.

(3) $30,000 of the fiscal year 1998 appropriation and $40,000 of the fiscal year 1999 appropriation are provided solely for the transportation of students enrolled in "choice" programs. Transportation shall be limited to low-income students who are transferring to "choice" programs solely for educational reasons.

(4) Allocations for transportation of students shall be based on reimbursement rates of $34.47 per weighted mile in the 1997-98 school year and ((~~$34.76~~)) $34.61 per weighted mile in the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. Allocations for transportation of students transported more than one radius mile shall be based on weighted miles as determined by superintendent of public instruction times the per mile reimbursement rates for the school year pursuant to the formulas adopted by the superintendent of public instruction. Allocations for transportation of students living within one radius mile shall be based on the number of enrolled students in grades kindergarten through five living within one radius mile of their assigned school times the per mile reimbursement rate for the school year times 1.29.

Sec. 506. 1997 c 149 s 506 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SCHOOL FOOD SERVICE PROGRAMS

General Fund‑-State Appropriation (FY 1998).... $ 3,075,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~3,075,000~~))

3,100,000

General Fund‑-Federal Appropriation............. $.................................. 194,483,000

TOTAL APPROPRIATION................. $ ((~~200,633,000~~))

200,658,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $6,000,000 of the general fund‑-state appropriations are provided for state matching money for federal child nutrition programs.

(2) ((~~$150,000~~)) $175,000 of the general fund--state appropriations are provided for summer food programs for children in low-income areas.

Sec. 507. 1997 c 149 s 507 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SPECIAL EDUCATION PROGRAMS

General Fund‑-State Appropriation (FY 1998).... $ ((~~370,486,000~~))

371,687,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~374,327,000~~))

378,405,000

General Fund‑-Federal Appropriation............. $.................................. ((~~135,106,000~~))

143,106,000

TOTAL APPROPRIATION................. $ ((~~879,919,000~~))

893,198,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) The superintendent of public instruction shall distribute state funds to school districts based on two categories, the optional birth through age two program for special education eligible developmentally delayed infants and toddlers, and the mandatory special education program for special education eligible students ages three to twenty-one. A "special education eligible student" means a student receiving specially designed instruction in accordance with a properly formulated individualized education program.

(3) For the 1997-98 and 1998-99 school years, the superintendent shall distribute state funds to each district based on the sum of:

(a) A district's annual average headcount enrollment of developmentally delayed infants and toddlers ages birth through two, times the district's average basic education allocation per full-time equivalent student, times 1.15; and

(b) A district's annual average full-time equivalent basic education enrollment times the funded enrollment percent determined pursuant to subsection (4)(c) of this section, times the district's average basic education allocation per full-time equivalent student times 0.9309.

(4) The definitions in this subsection apply throughout this section.

(a) "Average basic education allocation per full-time equivalent student" for a district shall be based on the staffing ratios required by RCW 28A.150.260 (i.e., 49/1000 certificated instructional staff in grades K-3, and 46/1000 in grades 4-12) and shall not include enhancements for K-3, secondary vocational education, or small schools.

(b) "Annual average full-time equivalent basic education enrollment" means the resident enrollment including students enrolled through choice (RCW 28A.225.225) and students from nonhigh districts (RCW 28A.225.210) and excluding students residing in another district enrolled as part of an interdistrict cooperative program (RCW 28A.225.250).

(c) "Enrollment percent" means the district's resident special education annual average enrollment including those students counted under the special education demonstration projects, excluding the birth through age two enrollment, as a percent of the district's annual average full-time equivalent basic education enrollment. For the 1997-98 and the 1998-99 school years, each district's funded enrollment percent shall be:

(i) For districts whose enrollment percent for 1994-95 was at or below 12.7 percent, the lesser of the district's actual enrollment percent for the school year for which the allocation is being determined or 12.7 percent.

(ii) For districts whose enrollment percent for 1994-95 was above 12.7 percent, the lesser of:

(A) The district's actual enrollment percent for the school year for which the special education allocation is being determined; or

(B) The district's actual enrollment percent for the school year immediately prior to the school year for which the special education allocation is being determined if greater than 12.7 percent; or

(C) For 1997-98, the 1994-95 enrollment percent reduced by 75 percent of the difference between the district's 1994-95 enrollment percent and 12.7 percent and for 1998-99, 12.7 percent.

(5) At the request of any interdistrict cooperative of at least 15 districts in which all excess cost services for special education students of the districts are provided by the cooperative, the maximum enrollment percent shall be 12.7, and shall be calculated in the aggregate rather than individual district units. For purposes of this subsection (4) of this section, the average basic education allocation per full-time equivalent student shall be calculated in the aggregate rather than individual district units.

(6) A maximum of $12,000,000 of the general fund‑-state appropriation for fiscal year 1998 and a maximum of $12,000,000 of the general fund‑-state appropriation for fiscal year 1999 are provided as safety net funding for districts with demonstrated needs for state special education funding beyond the amounts provided in subsection (3) of this section. Safety net funding shall be awarded by the state safety net oversight committee.

(a) The safety net oversight committee shall first consider the needs of districts adversely affected by the 1995 change in the special education funding formula. Awards shall be based on the amount required to maintain the 1994-95 state special education excess cost allocation to the school district in aggregate or on a dollar per funded student basis.

(b) The committee shall then consider unusual needs of districts due to a special education population which differs significantly from the assumptions of the state funding formula. Awards shall be made to districts that convincingly demonstrate need due to the concentration and/or severity of disabilities in the district. Differences in program costs attributable to district philosophy or service delivery style are not a basis for safety net awards.

(7) Prior to June 1st of each year, the superintendent shall make available to each school district from available data the district's maximum funded enrollment percent for the coming school year.

(8) The superintendent of public instruction may adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. Prior to revising any standards, procedures, or rules in place for the 1996-97 school year, the superintendent shall consult with the office of financial management and the fiscal committees of the legislature.

(9) The safety net oversight committee appointed by the superintendent of public instruction shall consist of:

(a) Staff of the office of superintendent of public instruction;

(b) Staff of the office of the state auditor;

(d) One or more representatives from school districts or educational service districts knowledgeable of special education programs and funding.

(10) A maximum of $4,500,000 of the general fund‑-federal appropriation shall be expended for safety net funding to meet the extraordinary needs of one or more individual special education students.

(11) A maximum of $678,000 may be expended from the general fund‑-state appropriations to fund 5.43 full-time equivalent teachers and 2.1 full-time equivalent aides at children's orthopedic hospital and medical center. This amount is in lieu of money provided through the home and hospital allocation and the special education program.

(12) A maximum of $1,000,000 of the general fund‑-federal appropriation is provided for projects to provide special education students with appropriate job and independent living skills, including work experience where possible, to facilitate their successful transition out of the public school system. The funds provided by this subsection shall be from federal discretionary grants.

(13) A school district may carry over up to 10 percent of general fund‑-state funds allocated under this program; however, carry over funds shall be expended in the special education program.

(14) Beginning in the 1997-98 school year, the superintendent shall increase the percentage of federal flow-through to school districts to at least 84 percent. In addition to other purposes, school districts may use increased federal funds for high cost students, for purchasing regional special education services from educational service districts, and for staff development activities particularly relating to inclusion issues.

(15) Up to one percent of the general fund--federal appropriation shall be expended by the superintendent for projects related to use of inclusion strategies by school districts for provision of special education services. The superintendent shall prepare an information database on laws, best practices, examples of programs, and recommended resources. The information may be disseminated in a variety of ways, including workshops and other staff development activities.

(16) Amounts appropriated within this section are sufficient to fund ((~~section 5 of Second Substitute House Bill No. 1709 (mandate on school districts)~~)) the provisions of House Bill No. 2682 (school medicaid incentive payments).

Sec. 508. 1997 c 149 s 508 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR TRAFFIC SAFETY EDUCATION PROGRAMS

Public Safety and Education Account

Appropriation.............................. $ ((~~17,179,000~~))

16,883,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) A maximum of $507,000 shall be expended for regional traffic safety education coordinators.

(3) The maximum basic state allocation per student completing the program shall be $137.16 in the 1997-98 and 1998-99 school years.

(4) Additional allocations to provide tuition assistance for students from low-income families who complete the program shall be a maximum of $66.81 per eligible student in the 1997-98 and 1998-99 school years.

Sec. 509. 1997 c 454 s 504 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR LOCAL EFFORT ASSISTANCE

General Fund Appropriation (FY 1998)........... $ ((~~84,347,000~~))

82,079,000

General Fund Appropriation (FY 1999)........... $ ((~~89,605,000~~))

86,272,000

TOTAL APPROPRIATION................. $ ((~~173,952,000~~))

168,351,000

Sec. 510. 1997 c 454 s 505 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR INSTITUTIONAL EDUCATION PROGRAMS

General Fund‑-State Appropriation (FY 1998).... $ ((~~18,026,000~~))

16,897,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~18,983,000~~))

17,400,000

General Fund‑-Federal Appropriation............. $.................................. 8,548,000

TOTAL APPROPRIATION......... ........ $ ((~~45,557,000~~))

42,845,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The general fund‑-state appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) State funding provided under this section is based on salaries and other expenditures for a 220‑day school year. The superintendent of public instruction shall monitor school district expenditure plans for institutional education programs to ensure that districts plan for a full-time summer program.

(3) State funding for each institutional education program shall be based on the institution's annual average full-time equivalent student enrollment. Staffing ratios for each category of institution shall remain the same as those funded in the 1995-97 biennium.

(((4) $341,000 of the general fund--state fiscal year 1998 appropriation and $407,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.))

Sec. 511. 1997 c 149 s 513 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS

General Fund Appropriation (FY 1998)........... $ ((~~5,752,000~~))

5,701,000

General Fund Appropriation (FY 1999)........... $ ((~~6,176,000~~))

6,121,000

TOTAL APPROPRIATION................. $ ((~~11,928,000~~))

11,822,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) Allocations for school district programs for highly capable students shall be distributed at a maximum rate of $311.12 per funded student for the 1997-98 school year and ((~~$311.58~~)) $311.35 per funded student for the 1998-99 school year, exclusive of salary and benefit adjustments pursuant to section 504 of this act. The number of funded students shall be a maximum of two percent of each district's full-time equivalent basic education enrollment.

(3) $350,000 of the appropriation is for the centrum program at Fort Worden state park.

(4) $186,000 of the appropriation is for the odyssey of the mind and future problem-solving programs.

Sec. 512. 1997 c 454 s 506 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-EDUCATION REFORM PROGRAMS

General Fund Appropriation (FY 1998)........... $ ((~~18,905,000~~))

18,605,000

General Fund Appropriation (FY 1999)........... $ ((~~21,868,000~~))

21,218,000

TOTAL APPROPRIATION................. $ ((~~40,773,000~~))

39,823,000

The appropriations in this section are subject to the following conditions and limitations:

(1) ((~~$18,103,000~~)) $17,153,000 is provided for the operation of the commission on student learning and the development and implementation of student assessments. The commission shall cooperate with the superintendent of public instruction in defining measures of student achievement to be included in the student record system developed by the superintendent pursuant to section 501(1)(b) of this act.

(2) $2,190,000 is provided solely for training of paraprofessional classroom assistants and certificated staff who work with classroom assistants as provided in RCW 28A.415.310.

(3) $2,970,000 is provided for mentor teacher assistance, including state support activities, under RCW 28A.415.250 and 28A.415.260. Funds for the teacher assistance program shall be allocated to school districts based on the number of beginning teachers.

(4) $4,050,000 is provided for improving technology infrastructure, monitoring and reporting on school district technology development, promoting standards for school district technology, promoting statewide coordination and planning for technology development, and providing regional educational technology support centers, including state support activities, under chapter 28A.650 RCW.

(5) $7,200,000 is provided for grants to school districts to provide a continuum of care for children and families to help children become ready to learn. Grant proposals from school districts shall contain local plans designed collaboratively with community service providers. If a continuum of care program exists in the area in which the school district is located, the local plan shall provide for coordination with existing programs to the greatest extent possible. Grant funds shall be allocated pursuant to RCW 70.190.040.

(6) $5,000,000 is provided solely for the meals for kids program under RCW 28A.235.145 through 28A.235.155.

(7) $1,260,000 is provided for technical assistance related to education reform through the office of the superintendent of public instruction, in consultation with the commission on student learning, as specified in RCW 28A.300.130 (center for the improvement of student learning).

(8) Amounts provided in Engrossed House Bill No. 2432 (educator internships) are sufficient to implement the bill.

Sec. 513. 1997 c 454 s 507 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR TRANSITIONAL BILINGUAL PROGRAMS

General Fund Appropriation (FY 1998).. ........ $ ((~~31,146,000~~))

30,712,000

General Fund Appropriation (FY 1999)........... $ ((~~33,414,000~~))

32,184,000

TOTAL APPROPRIATION................. $ ((~~64,560,000~~))

62,896,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996-97 school year.

(2) The superintendent of public instruction shall study the formula components proposed for the 1998-99 school year and prepare a report to the legislature no later than January 15, 1998.

(3) The superintendent shall distribute a maximum of $643.78 per eligible bilingual student in the 1997-98 and 1998-99 school years, exclusive of salary and benefit adjustments provided in section 503 of this act.

Sec. 514. 1997 c 149 s 516 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR THE LEARNING ASSISTANCE PROGRAM

General Fund Appropriation (FY 1998)........... $ ((~~60,309,000~~))

60,224,000

General Fund Appropriation (FY 1999)........... $ ((~~60,862,000~~))

61,000,000

TOTAL APPROPRIATION................. $ ((~~121,171,000~~))

121,224,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) For making the calculation of the percentage of students scoring in the lowest quartile as compared with national norms, beginning with the 1991-92 school year, the superintendent shall multiply each school district's 4th and 8th grade test results by 0.86.

(3) Funding for school district learning assistance programs shall be allocated at maximum rates of $378.33 per funded unit for the 1997-98 school year and ((~~$379.47~~)) $378.88 per funded unit for the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. School districts may carryover up to 10 percent of funds allocated under this program; however, carryover funds shall be expended for the learning assistance program.

(a) A school district's funded units for the 1997-98 and 1998-99 school years shall be the sum of the following:

(i) The district's full-time equivalent enrollment in kindergarten through 6th grade, times the 5-year average 4th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and

(ii) The district's full-time equivalent enrollment in grades 7 through 9, times the 5-year average 8th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and

(iii) If in the prior school year the district's percentage of October headcount enrollment in grades K-12 eligible for free and reduced price lunch exceeded the state average, subtract the state average percentage of students eligible for free and reduced price lunch from the district's percentage and multiply the result by the district's K-12 annual average full-time equivalent enrollment for the current school year times 22.30 percent.

Sec. 515. 1997 c 454 s 508 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-LOCAL ENHANCEMENT FUNDS

General Fund Appropriation (FY 1998)........... $ ((~~49,815,000~~))

49,493,000

General Fund Appropriation (FY 1999)........... $ ((~~56,962,000~~))

56,457,000

TOTAL APPROPRIATION................. $ ((~~106,777,000~~))

105,950,000

The appropriations in this section are subject to the following conditions and limitations:

(1) A maximum of ((~~$50,841,000~~)) $50,418,000 is provided for learning improvement allocations to school districts to enhance the ability of instructional staff to teach and assess the essential academic learning requirements for reading, writing, communication, and math in accordance with the timelines and requirements established under RCW 28A.630.885. However, special emphasis shall be given to the successful teaching of reading. Allocations under this section shall be subject to the following conditions and limitations:

(a) In accordance with the timetable for the implementation of the assessment system by the commission on student learning, the allocations for the 1997-98 and 1998-99 school years shall be at a maximum annual rate per full-time equivalent student of $36.69 for students enrolled in grades K-4, $30.00 for students enrolled in grades 5-7, and $22.95 for students enrolled in grades 8-12. Allocations shall be made on the monthly apportionment schedule provided in RCW 28A.510.250.

(b) A district receiving learning improvement allocations shall:

(i) Develop and keep on file at each building a student learning improvement plan to achieve the student learning goals and essential academic learning requirements and to implement the assessment system as it is developed. The plan shall delineate how the learning improvement allocations will be used to accomplish the foregoing. The plan shall be made available to the public upon request;

(ii) Maintain a policy regarding the involvement of school staff, parents, and community members in instructional decisions;

(iii) File a report by October 1, 1998, and October 1, 1999, with the office of the superintendent of public instruction, in a format developed by the superintendent that: Enumerates the activities funded by these allocations; the amount expended for each activity; describes how the activity improved understanding, teaching, and assessment of the essential academic learning requirements by instructional staff; and identifies any amounts expended from this allocation for supplemental contracts; and

(iv) Provide parents and the local community with specific information on the use of this allocation by including in the annual performance report required in RCW 28A.320.205, information on how funds allocated under this subsection were spent and the results achieved.

(c) The superintendent of public instruction shall compile and analyze the school district reports and present the results to the office of financial management and the appropriate committees of the legislature no later than November 15, 1998, and November 15, 1999.

(2) ((~~$55,937,000~~)) $55,533,000 is provided for local education program enhancements to meet educational needs as identified by the school district, including alternative education programs. This amount includes such amounts as are necessary for the remainder of the 1996-97 school year. Allocations for the 1997-98 and 1998-99 school years shall be at a maximum annual rate of $29.86 per full-time equivalent student as determined pursuant to subsection (3) of this section. Allocations shall be made on the monthly apportionment payment schedule provided in RCW 28A.510.250.

(3) Allocations provided under this section shall be based on school district annual average full-time equivalent enrollment in grades kindergarten through twelve: PROVIDED, That for school districts enrolling not more than one hundred average annual full-time equivalent students, and for small school plants within any school district designated as remote and necessary schools, the allocations shall be as follows:

(a) Enrollment of not more than 60 average annual full-time equivalent students in grades kindergarten through six shall generate funding based on sixty full-time equivalent students;

(b) Enrollment of not more than 20 average annual full-time equivalent students in grades seven and eight shall generate funding based on twenty full-time equivalent students; and

(c) Enrollment of not more than 60 average annual full-time equivalent students in grades nine through twelve shall generate funding based on sixty full-time equivalent students.

(4) Funding provided pursuant to this section does not fall within the definition of basic education for purposes of Article IX of the state Constitution and the state's funding duty thereunder.

(5) Receipt by a school district of one-fourth of the district's allocation of funds under this section, shall be conditioned on a finding by the superintendent that:

(a) The district is enrolled as a medicaid service provider and is actively pursuing federal matching funds for medical services provided through special education programs, pursuant to RCW 74.09.5241 through 74.09.5256 (Title XIX funding); and

(b) The district is filing truancy petitions as required under chapter 312, Laws of 1995 and RCW 28A.225.030.

(End of part)

PART VI

HIGHER EDUCATION

Sec. 601. 1997 c 454 s 601 (uncodified) is amended to read as follows:

The appropriations in sections 603 through 609 of this act are subject to the following conditions and limitations:

(1) "Institutions" means the institutions of higher education receiving appropriations under sections 603 through 609 of this act.

(2)(a) The salary increases provided or referenced in this subsection shall be the allowable salary increases provided at institutions of higher education, excluding increases associated with normally occurring promotions and increases related to faculty and professional staff retention, and excluding increases associated with employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015.

(b) Each institution of higher education shall provide to each classified staff employee as defined by the office of financial management a salary increase of 3.0 percent on July 1, 1997. Each institution of higher education shall provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants as classified by the office of financial management, and all other nonclassified staff, including those employees under RCW 28B.16.015, an average salary increase of 3.0 percent on July 1, 1997. For employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015, distribution of the salary increases will be in accordance with the applicable collective bargaining agreement. However, an increase shall not be provided to any classified employee whose salary is above the approved salary range maximum for the class to which the employee's position is allocated. To collect consistent data for use by the legislature, the office of financial management, and other state agencies for policy and planning purposes, institutions of higher education shall report personnel data to be used in the department of personnel's human resource data warehouse in compliance with uniform reporting procedures established by the department of personnel.

(c) Each institution of higher education receiving appropriations under sections 604 through 609 of this act may provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015, an additional average salary increase of 1.0 percent on July 1, 1997, and an average salary increase of 2.0 percent on July 1, 1998. Any salary increases authorized under this subsection (2)(c) shall not be included in an institution's salary base. It is the intent of the legislature that general fund‑-state support for an institution shall not increase during the current or any future biennium as a result of any salary increases authorized under this subsection (2)(c).

(d) Specific salary increases authorized in sections 603 through 609 of this act are in addition to any salary increase provided in this subsection.

(3)(a) Each institution receiving appropriations under sections 604 through 609 of this act shall submit plans for achieving measurable and specific improvements in academic years 1997-98 and 1998-99 to the higher education coordinating board. The plans, to be prepared at the direction of the board, shall be submitted by August 15, 1997 (for academic year 1997-98) and June 30, 1998 (for academic year 1998-99). The following measures and goals will be used for the 1997-99 biennium:

Goal

(i) Undergraduate graduation efficiency index:

For students beginning as freshmen 95

For transfer students 90

(ii) Undergraduate student retention, defined as the percentage of all undergraduate students who return for the next year at the same

institution, measured from fall to fall:

Research universities 95%

Comprehensive universities and college 90%

(iii) Graduation rates, defined as the percentage of an entering

freshmen class at each institution that graduates within five years:

Research universities 65%

Comprehensive universities and college 55%

(iv) A measure of faculty productivity, with goals and targets in accord with the legislative intent to achieve measurable and specific improvements, to be determined by the higher education coordinating board, in consultation with the institutions receiving appropriations under sections 604 through 609 of this act.

(v) An additional measure and goal to be selected by the higher education coordinating board for each institution, in consultation with each institution.

(b) Academic year 1995-96 shall be the baseline year against which performance in academic year 1997-98 shall be measured. Academic year 1997-98 shall be the baseline year against which performance in academic year 1998-99 shall be measured. The difference between each institution's baseline year and the state-wide performance goals shall be calculated and shall be the performance gap for each institution for each measure for each year. The higher education coordinating board shall set performance targets for closing the performance gap for each measure for each institution. Performance targets shall be set at levels that reflect meaningful and substantial progress towards the state-wide performance goals. Each institution shall report to the higher education coordinating board on its actual performance achievement for each measure for academic year 1997-98 by ((~~June 30, 1998, except that performance reporting for the student retention measure shall be completed by October 15, 1998~~)) November 1, 1998.

(4) The state board for community and technical colleges shall develop an implementation plan for measurable and specific improvements in productivity, efficiency, and student retention in academic years 1997-98 and 1998-99 consistent with the performance management system developed by the work force training and education coordinating board and for the following long-term performance goals:

Goal

(a) Hourly wages for vocational graduates $12/hour

(b) Academic students transferring to Washington

higher education institutions 67%

(d) Graduation efficiency index 95

(5) The state's public institutions of higher education increasingly are being called upon to become more efficient in conducting the business operations necessary to support the carrying out of their academic missions. The legislature recognizes that state laws and regulations may have the unintended effect of acting as barriers to efficient operation in some instances, and desires to encourage the institutions of higher education to think beyond the constraints of current law in identifying opportunities for improved efficiency. Accordingly, the legislature requests that the institutions of higher education, working together through the council of presidents' office and the state board for community and technical colleges, identify opportunities for changes in state law that would form the basis for a new efficiency compact with the state, for consideration no later than the 1999 legislative session.

(6) Pursuant to RCW 43.135.055, institutions of higher education receiving appropriations under sections 603 through 609 of this act are authorized to increase summer term tuition in excess of the fiscal growth factor during the 1997-99 fiscal biennium. Tuition levels increased pursuant to this subsection shall not exceed the per credit hour rate calculated from the academic year tuition levels established by the legislature in RCW 28B.15.067.

Sec. 602. 1997 c 454 s 602 (uncodified) is amended to read as follows:

((~~(1)~~)) The appropriations in sections 603 through 609 of this act provide state general fund support or employment and training trust account support for full-time equivalent student enrollments at each institution of higher education. Listed below are the annual full-time equivalent student enrollments by institution assumed in this act.

1997-98 1998-99

Annual Annual

Average Average

University of Washington

Main campus 31,297 31,527

Bothell branch 775 895

Tacoma branch 847 992

Washington State University

Main campus 17,403 ((~~17,723~~))

17,272

Spokane branch 352 442

Tri-Cities branch 754 ((~~814~~))

754

Vancouver branch 851 971

Central Washington University 7,346 7,446

Eastern Washington University 7,739 7,739

The Evergreen State College 3,496 3,576

Western Washington University 10,188 10,338

State Board for Community and

Technical Colleges 116,426 118,526

Higher Education Coordinating

Board 50 50

Sec. 603. 1997 c 454 s 603 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

General Fund‑-State Appropriation (FY 1998).... $ ((~~382,891,000~~))

380,445,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~420,961,000~~))

420,853,000

General Fund‑-Federal Appropriation............. $.................................. 11,404,000

Employment and Training Trust Account

Appropriation.............................. $ ((~~26,346,000~~))

29,114,000

TOTAL APPROPRIATION................. $ ((~~841,602,000~~))

841,816,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,718,000 of the general fund‑-state appropriation for fiscal year 1998 and $4,079,000 of the general fund‑-state appropriation for fiscal year 1999 shall be held in reserve by the board. These funds are provided for improvements in productivity, efficiency, and student retention. The board may approve the fiscal year 1998 allocation of funds under this subsection upon completion of an implementation plan. The implementation plan shall be submitted by the board to the appropriate legislative committees and the office of financial management in accordance with section 601(4) of this act by September 1, 1997. The board may approve the fiscal year 1999 allocation of funds under this subsection based on the board's evaluation of:

(a) College performance compared to the goals for productivity, efficiency, and student retention as submitted in the plan required in section 601(4) of this act; and

(b) The quality and effectiveness of the strategies the colleges propose to achieve continued improvement in quality and efficiency during the 1998-99 academic year.

(2) ((~~$2,553,000 of the general fund‑-state appropriation for fiscal year 1998, $28,761,000~~)) $28,546,000 of the general fund‑-state appropriation for fiscal year 1999((,)) and the entire employment and training trust account appropriation are provided solely as special funds for training and related support services, including financial aid, child care, and transportation, as specified in chapter 226, Laws of 1993 (employment and training for unemployed workers) and Substitute House Bill No. 2214.

(a) Funding is provided to support up to 7,200 full-time equivalent students in each fiscal year.

(b) The state board for community and technical colleges shall submit a plan for the allocation of the full-time equivalent students provided in this subsection to the workforce training and education coordinating board for review and approval.

(3) $1,441,000 of the general fund--state appropriation for fiscal year 1998 and $1,441,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for 500 FTE enrollment slots to implement RCW 28B.50.259 (timber-dependent communities).

(4) $1,862,500 of the general fund--state appropriation for fiscal year 1998 and $1,862,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for assessment of student outcomes at community and technical colleges.

(5) $706,000 of the general fund--state appropriation for fiscal year 1998 and $706,000 of general fund--state appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(6) Up to $1,035,000 of the general fund--state appropriation for fiscal year 1998 and up to $2,102,000 of the general fund--state appropriation for fiscal year 1999 may be used in combination with salary and benefit savings from faculty turnover to provide faculty salary increments and associated benefits. To the extent general salary increase funding is used to pay faculty increments, the general salary increase shall be reduced by the same amount.

(7) To address part-time faculty salary disparities and to increase the ratio of full-time to part-time faculty instructors, the board shall provide salary increases to part-time instructors or hire additional full-time instructional staff under the following conditions and limitations: (a) The amount used for such purposes shall not exceed an amount equivalent to an additional salary increase of 1.0 percent on July 1, 1997, and an additional salary increase of 2.0 percent on July 1, 1998, for instructional faculty as classified by the office of financial management; and (b) at least $2,934,000 shall be spent for the purposes of this subsection.

(8) $83,000 of the general fund--state appropriation for fiscal year 1998 and ((~~$1,567,000~~)) $867,000 of the general fund--state appropriation for fiscal year 1999 are provided for personnel and expenses to develop curricula, library resources, and operations of Cascadia Community College. It is the legislature's intent to use the opportunity provided by the establishment of the new institution to conduct a pilot project of budgeting based on instructional standards and outcomes. The college shall use a portion of the available funds to develop a set of measurable standards and outcomes as the basis for budget development in the 1999-01 biennium.

(9) The technical colleges may increase tuition and fees to conform with the percentage increase in community college operating fees enacted by the 1997 legislature. The community colleges may charge up to the maximum level authorized for services and activities fees in RCW 28B.15.069.

(10) Community and technical colleges with below-average faculty salaries may use funds identified by the state board in the 1997-98 and 1998-99 operating allocations to increase faculty salaries no higher than the system-wide average.

(11) $1,000,000 of the general fund--state appropriation for fiscal year 1998 and $1,000,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for tuition support for students enrolled in work-based learning programs.

(12) $700,000 of the general fund-‑state appropriation for fiscal year 1999 is provided solely for a technology equipment matching program for community and technical colleges. Each college district shall match its allocation of this appropriation with an equal amount of cash donations from private sources.

Sec. 604. 1997 c 454 s 604 (uncodified) is amended to read as follows:

FOR UNIVERSITY OF WASHINGTON

General Fund Appropriation (FY 1998)........... $ ((~~283,923,000~~))

283,948,000

General Fund Appropriation (FY 1999)........... $ ((~~289,807,000~~))

293,542,000

Death Investigations Account Appropriation..... $ ((~~1,810,000~~))

2,162,000

Industrial Insurance Premium Refund Account

Appropriation.............................. $ 514,000

Accident Account Appropriation.................. $............................. 4,969,000

Medical Aid Account Appropriation.............. $ 4,989,000

TOTAL APPROPRIATION................. $ ((~~586,012,000~~))

590,124,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,019,000 of the general fund appropriation for fiscal year 1998 and $3,029,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $800,000 of the general fund appropriation for fiscal year 1998 and $1,896,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tacoma branch campus above the 1996-97 budgeted FTE level.

(3) $593,000 of the general fund appropriation for fiscal year 1998 and $1,547,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Bothell branch campus above the 1996-97 budgeted FTE level.

(4) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(5) $324,000 of the general fund appropriation for fiscal year 1998 and $324,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(6) $130,000 of the general fund appropriation for fiscal year 1998 and $130,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item UW-01.

(7) $1,200,000 of the general fund appropriation for fiscal year 1998 and $1,200,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(8) $47,000 of the fiscal year 1998 general fund appropriation and $47,000 of the fiscal year 1999 general fund appropriation are provided solely to employ a fossil preparator/educator in the Burke Museum. The entire amounts provided in this subsection shall be provided directly to the Burke Museum.

(9) $75,000 of the general fund appropriation for fiscal year 1998 and $75,000 of the general fund appropriation for fiscal year 1999 are provided solely for enhancements to research capabilities at the Olympic natural resources center.

(10) $150,000 of the general fund appropriation for fiscal year 1999 is provided solely for remodeling and equipment necessary to accommodate enrollment growth at the Bothell branch campus.

(11) $560,000 of the general fund appropriation for fiscal year 1999 is provided solely for the disabilities, opportunities, internetworking, and technology program.

(12) $3,000,000 of the general fund appropriation for fiscal year 1999 is provided solely to establish a high speed internet‑2 hub.

(13) $150,000 of the general fund appropriation for fiscal year 1999 is provided solely to support the physician's assistant program in Spokane.

(14) $352,000 of the death investigations account appropriation is provided solely for staff and equipment for the state toxicology laboratory to support implementation of quality control procedures and laboratory certification, and for enhanced screening of sexual assault victims, blood alcohol and volatile intoxicants analysis, and blood tests for marijuana in driving cases.

(15) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to the health policy analysis program of the University of Washington to organize a task force of the key parties, including consumer and family advocates, and facilitate a study of the design and implementation of managed care in the public mental health system. The health policy analysis program through the study shall make recommendations to the appropriate committees of the legislature by December 1, 1998, regarding actions necessary to: (i) Develop the managed public mental health care system based on established principles for effective managed mental health care and best business practices for efficiency; (ii) establish performance and outcome standards; (iii) provide for consumer protection, consumer rights, and consumer and family involvement; and (iv) meet the needs of vulnerable populations, including the requirement to promote early identification of and services to mentally ill children, and ensure system accountability as required by chapter 71.24 RCW.

Sec. 605. 1997 c 454 s 605 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

General Fund Appropriation (FY 1998)........... $ ((~~166,644,000~~))

169,894,000

General Fund Appropriation (FY 1999)........... $ ((~~172,819,000~~))

170,164,000

Air Pollution Control Account Appropriation.... $ 206,000

TOTAL APPROPRIATION................. $ ((~~339,669,000~~))

340,264,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,204,000 of the general fund appropriation for fiscal year 1998 and $1,807,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $1,059,000 of the general fund appropriation for fiscal year 1999 is provided solely to support additional upper-division and graduate level enrollments at the Vancouver branch campus above the 1996-97 budgeted FTE level.

(3) $263,000 of the general fund appropriation for fiscal year 1998 and ((~~$789,000~~)) $263,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tri-Cities branch campus above the 1996-97 budgeted FTE level.

(4) $971,000 of the general fund appropriation for fiscal year 1999 is provided solely to support additional upper-division and graduate level enrollments at the Spokane branch campus above the 1996-97 budgeted FTE level.

(5) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(6) $140,000 of the general fund appropriation for fiscal year 1998 and $140,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(7) $157,000 of the general fund appropriation for fiscal year 1998 and $157,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item WSU-01.

(8) $600,000 of the general fund appropriation for fiscal year 1998 and $600,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(9) $50,000 of the general fund appropriation for fiscal year 1998 and $50,000 of the general fund appropriation for fiscal year 1999 are provided solely for yellow star thistle research.

(10) $55,000 of the general fund appropriation for fiscal year 1998 and $55,000 of the general fund appropriation for fiscal year 1999 are provided solely for the Goldendale distance learning center.

(11) $3,250,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely for legal costs and settlement payments associated with construction claims for the Vancouver branch campus and the veterinary teaching hospital capital projects.

(12) Pursuant to RCW 28B.15.910 and within current appropriation levels, the waiver limit for Washington State University is increased from 20 percent to 21 percent during the 1997-99 fiscal biennium. The increased waiver authority is provided solely for nonresident students participating in the western interstate commission for higher education undergraduate exchange program and attending the Washington State University in Spokane.

Sec. 606. 1997 c 454 s 606 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998)................ $ 39,211,000

General Fund Appropriation (FY 1999)................ $ 39,489,000

TOTAL APPROPRIATION...................... $ 78,700,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $285,000 of the general fund appropriation for fiscal year 1998 and $428,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $93,000 of the general fund appropriation for fiscal year 1998 and $93,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $53,000 of the general fund‑-state appropriation for fiscal year 1998 and $54,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(5) $3,188,000 of the general fund appropriation for fiscal year 1998 and $3,188,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve pending attainment of budgeted enrollments of 6,942 FTEs. The office of financial management shall approve the allotment of funds under this subsection at the annual rate of $4,000 for annual student FTEs in excess of 6,942 based on tenth day quarterly enrollment and the office of financial management's quarterly budget driver report. In addition, allotments of reserve funds in this section shall be approved by the office of financial management upon approval by the higher education coordinating board for (a) actions that will result in additional enrollment growth, and (b) contractual obligations in fiscal year 1998 to the extent such funds are required.

(6) Pursuant to RCW 28B.15.910 and within current appropriation levels, the waiver limit for Eastern Washington University is increased from 11 percent to 14 percent during the 1997-99 fiscal biennium. The increased waiver authority is provided solely for nonresident students participating in the western interstate commission for higher education undergraduate exchange program and attending Eastern Washington University.

Sec. 607. 1997 c 454 s 607 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998)........... $ ((~~37,214,000~~))

37,244,000

General Fund Appropriation (FY 1999)........... $ ((~~38,616,000~~))

38,676,000

TOTAL APPROPRIATION................. $ ((~~75,830,000~~))

75,920,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $269,000 of the general fund appropriation for fiscal year 1998 and $403,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $70,000 of the general fund appropriation for fiscal year 1998 and $70,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $51,000 of the general fund appropriation for fiscal year 1998 and $51,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The college shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

Sec. 608. 1997 c 454 s 608 (uncodified) is amended to read as follows:

FOR THE EVERGREEN STATE COLLEGE

General Fund Appropriation (FY 1998)........... $ ((~~20,151,000~~))

20,401,000

General Fund Appropriation (FY 1999)........... $ ((~~20,518,000~~))

20,603,000

TOTAL APPROPRIATION................. $ ((~~40,669,000~~))

41,004,000

The appropriations in this section is subject to the following conditions and limitations:

(1) $144,000 of the general fund appropriation for fiscal year 1998 and $217,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $47,000 of the general fund appropriation for fiscal year 1998 and $47,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $29,000 of the general fund appropriation for fiscal year 1998 and $29,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The college shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(5) $35,000 of the general fund appropriation for fiscal year 1999 is provided solely to the Washington state institute for public policy for a study of college students' employment. The study shall include, but need not be limited to, matching student enrollment information with unemployment insurance information. The study shall be conducted in collaboration with the office of financial management, higher education coordinating board, state board for community and technical colleges and the employment security department. Results of the study are to be reported to the legislature by January 15, 1999.

(6) $250,000 of the general fund appropriation for fiscal year 1998 is provided solely for equipment and expenses necessary to accommodate enrollment growth.

(7) $50,000 of the general fund‑-state for fiscal year 1999 is provided solely to the Washington state institute for public policy for a study of the state's requirements to provide special education as a result of federal law and the Washington basic education act. A preliminary report will be provided the policy and fiscal committees of the legislature by October 15, 1998, and a final report will be provided by December 15, 1998.

Sec. 609. 1997 c 454 s 610 (uncodified) is amended to read as follows:

FOR THE HIGHER EDUCATION COORDINATING BOARD‑-POLICY COORDINATION AND ADMINISTRATION

General Fund‑-State Appropriation (FY 1998)......... $ 2,734,000

General Fund‑-State Appropriation (FY 1999)......... $ ((~~2,615,000~~))

3,510,000

General Fund‑-Federal Appropriation.................. $.................................. ((~~693,000~~))

704,000

TOTAL APPROPRIATION...................... $ ((~~6,042,000~~))

6,948,000

The appropriations in this section are provided to carry out the accountability, performance measurement, policy coordination, planning, studies and administrative functions of the board and are subject to the following conditions and limitations:

(1) The board shall set performance targets, review, recommend changes if necessary, and approve plans defined in section 601(3)(a) of this act for achieving measurable and specific improvements in academic years 1997-98 and 1998-99. By October 1, 1997, the board shall notify the office of financial management to allot institutions' fiscal year 1998 performance funds held in reserve, based upon the adequacy of plans prepared by the institutions.

(2) The board shall develop criteria to assess institutions' performance and shall use those criteria in determining the allotment of performance and accountability funds. The board shall evaluate each institution's achievement of performance targets for the 1997-98 academic year and, by ((~~August 1~~)) November 15, 1998, the board shall notify the office of financial management to allot institutions' fiscal year 1999 performance funds held in reserve, based upon each institution's performance((, except for performance funds held for achievement of the student retention measure. For the student retention measure, the board shall notify the office of financial management by November 1, 1998, to allot institutions' fiscal year 1999 performance funds held in reserve, based upon each institution's performance)).

(3) By January, 1999, the board shall recommend to the office of financial management and appropriate legislative committees any recommended additions, deletions, or revisions to the performance and accountability measures in sections 601(3) of this act as part of the next master plan for higher education. The recommendations shall be developed in consultation with the institutions of higher education and may include additional performance indicators to measure successful student learning and other student outcomes for possible inclusion in the 1999-01 operating budget. The recommendations shall include measures of performance demonstrating specific and measurable improvements related to distance education and education provided primarily through technology, to be determined by the board, in consultation with the institutions of higher education.

(4) $280,000 of the general fund--state appropriation for fiscal year 1998 and $280,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for enrollment to implement RCW 28B.80.570 through 28B.80.585 (rural natural resources impact areas). The number of students served shall be 50 full-time equivalent students per fiscal year. The board shall ensure that enrollments reported under this subsection meet the criteria outlined in RCW 28B.80.570 through 28B.80.585.

(5) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided to develop a competency based admissions system for higher education institutions. The board shall complete the competency based admissions system and issue a report outlining the competency based admissions system by January 1999.

(6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for activities related to higher education facilities planning, project monitoring, and access issues related to capital facilities. Of this amount, $50,000 is provided for a study of higher education needs of Okanogan county and surrounding communities with consideration given to alternative approaches to educational service delivery, facility expansion, relocation or partnership, and long-term growth and future educational demands of the region.

(7) $150,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely as one-time funding for computer upgrades.

(8) $85,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for implementation of Substitute Senate Bill No. 6655 (changing the Spokane intercollegiate research and technology institute) or Substitute Senate Bill No. 6717 (providing for the transfer of the Spokane riverpoint campus to Washington State University and eliminating the joint center for higher education), or both. If neither bill is enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(9) $810,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to complete the cooperative library project for the four year public higher education institutions. Moneys shall be transferred to the University of Washington for one-time equipment acquisition, ongoing support of the system, and acquisition of shared electronic journals for use by all the member institutions.

Sec. 610. 1997 c 454 s 611 (uncodified) is amended to read as follows:

FOR THE HIGHER EDUCATION COORDINATING BOARD‑-FINANCIAL AID AND GRANT PROGRAMS

General Fund‑-State Appropriation (FY 1998).... $ ((~~89,369,000~~))

89,781,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~96,209,000~~))

97,232,000

General Fund‑-Federal Appropriation............. $.................................. ((~~8,255,000~~))

8,278,000

Advanced College Tuition Payment Program

Account Appropriation...................... $ 1,198,000

TOTAL APPROPRIATION................. $ ((~~193,833,000~~))

196,489,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $527,000 of the general fund--state appropriation for fiscal year 1998 and $526,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the displaced homemakers program.

(2) $216,000 of the general fund--state appropriation for fiscal year 1998 and $220,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the western interstate commission for higher education.

(3) $118,000 of the general fund‑-state appropriation for fiscal year 1998 and $118,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the health personnel resources plan.

(4) $1,000,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,000,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the scholarships and loans program under chapter 28B.115 RCW, the health professional conditional scholarship program. This amount shall be deposited to the health professional loan repayment and scholarship trust fund to carry out the purposes of the program.

(5) $86,783,000 of the general fund--state appropriation for fiscal year 1998 and $93,728,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for student financial aid, including all administrative costs. The amounts in (a), (b), and (c) of this subsection are sufficient to implement Second Substitute House Bill No. 1851 (higher education financial aid). Of these amounts:

(a) $67,266,000 of the general fund‑-state appropriation for fiscal year 1998 and $73,968,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the state need grant program. ((~~(ii)~~)) After April 1 of each fiscal year, up to one percent of the annual appropriation for the state need grant program may be transferred to the state work study program.

(b) $15,350,000 of the general fund‑-state appropriation for fiscal year 1998 and $15,350,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the state work study program. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state work study program may be transferred to the state need grant program;

(c) $2,420,000 of the general fund‑-state appropriation for fiscal year 1998 and $2,420,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for educational opportunity grants. For the purpose of establishing eligibility for the equal opportunity grant program for placebound students under RCW 28B.101.020, Thurston county lies within the branch campus service area of the Tacoma branch campus of the University of Washington;

(d) A maximum of 2.1 percent of the general fund‑-state appropriation for fiscal year 1998 and 2.1 percent of the general fund‑-state appropriation for fiscal year 1999 may be expended for financial aid administration, excluding the four percent state work study program administrative allowance provision;

(e) $230,000 of the general fund‑-state appropriation for fiscal year 1998 and $201,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the educator's excellence awards. Any educator's excellence moneys not awarded by April 1st of each year may be transferred by the board to either the Washington scholars program or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;

(f) $1,011,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,265,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to implement the Washington scholars program. Any Washington scholars program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;

(g) $456,000 of the general fund‑-state appropriation for fiscal year 1998 and $474,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to implement Washington award for vocational excellence program. Any Washington award for vocational program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or the Washington scholars program;

(h) $51,000 of the general fund‑-state appropriation for fiscal year 1998 and $51,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for community scholarship matching grants of $2,000 each. To be eligible for the matching grant, a nonprofit community organization organized under section 501(c)(3) of the internal revenue code must demonstrate that it has raised $2,000 in new moneys for college scholarships after the effective date of this act. No organization may receive more than one $2,000 matching grant; and

(6) (($175,000 of the general fund--state appropriation for fiscal year 1998 and $175,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely to implement Engrossed Second Substitute House Bill No. 1372 or Second Substitute Senate Bill No. 5106 (Washington advanced college tuition payment program). If neither Engrossed Second Substitute House Bill No. 1372 nor Second Substitute Senate Bill No. 5106 is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.)) $587,000 of the general fund‑‑state appropriation for fiscal year 1998 and $1,198,000 of the general fund‑‑state appropriation for fiscal year 1999 are provided solely for working capital for the advanced tuition payment program. The amounts provided in this subsection may be expended only to the extent that revenues from application fees and interest earnings deposited in the Washington advanced college tuition payment program account are insufficient to support program operation. Prior to the end of fiscal year 1999 there shall be a transfer of expenditures between general fund--state and the Washington advanced college tuition payment program account to the extent that program application fees and interest earnings are available to minimize the expenditure from the general fund.

(7) $187,000 of the general fund‑-state appropriation for fiscal year 1998 and $188,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for a demonstration project in the 1997-99 biennium to provide undergraduate fellowships based upon the graduate fellowship program.

(8) Funding is provided in this section for the development of three models for tuition charges for distance learning programs. Institutions involved in distance education or extended learning shall provide information to the board on the usage, cost, and revenue generated by such programs.

Sec. 611. 1997 c 149 s 614 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE LIBRARY

General Fund‑-State Appropriation (FY 1998).... $ ((~~7,483,000~~))

7,533,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~7,281,000~~))

7,631,000

General Fund‑-Federal Appropriation............. $.................................. ((~~4,847,000~~))

6,817,000

TOTAL APPROPRIATION................. $ ((~~19,611,000~~))

21,981,000

The appropriations in this section are subject to the following conditions and limitations:

(1) At least $2,524,000 shall be expended for a contract with the Seattle public library for library services for the Washington book and braille library.

(2) $198,000 of the general fund‑-state appropriation for fiscal year 1998 ((is)) and $200,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state library to continue the government information locator service in accordance with chapter 171, Laws of 1996. The state library, in consultation with interested parties, shall prepare an evaluation of the government information locator service by October 1, 1997. The evaluation shall include a cost-benefit analysis, a determination of fiscal impacts to the state, and programmatic information. The evaluation report shall be provided to the appropriate legislative fiscal committees.

Sec. 612. 1997 c 149 s 616 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE HISTORICAL SOCIETY

General Fund Appropriation (FY 1998)................ $ ((~~2,502,000~~))

2,658,000

General Fund Appropriation (FY 1999)................ $ ((~~2,531,000~~))

2,745,000

TOTAL APPROPRIATION...................... $ ((~~5,033,000~~))

5,403,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $216,200 of the general fund appropriation for fiscal year 1998 and $216,200 of the general fund appropriation for fiscal year 1999 are provided solely for exhibit and educational programming.

(2) $156,000 of the general fund appropriation for fiscal year 1998 and $164,000 of the general fund appropriation for fiscal year 1999 are provided solely for temporary relocation of research center operations.

(3) $50,000 of the general fund appropriation for fiscal year 1999 is provided solely for activities related to the Lewis and Clark Bicentennial.

Sec. 613. 1997 c 149 s 618 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE BLIND

General Fund‑-State Appropriation (FY 1998)......... $ ((~~3,714,000~~))

3,723,000

General Fund‑-State Appropriation (FY 1999)......... $ ((~~3,738,000~~))

3,747,000

General Fund‑-Private/Local Appropriation........... $ ((~~192,000~~))

418,000

TOTAL APPROPRIATION...................... $ ((~~7,644,000~~))

7,888,000

Sec. 614. 1997 c 149 s 619 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE DEAF

General Fund Appropriation (FY 1998)........... $ ((~~6,458,000~~))

6,467,000

General Fund Appropriation (FY 1999)........... $ ((~~6,459,000~~))

6,468,000

TOTAL APPROPRIATION................. $ ((~~12,917,000~~))

12,935,000

(End of part)

PART VII

SPECIAL APPROPRIATIONS

Sec. 701. 1997 c 149 s 701 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL FUND BOND DEBT

General Fund Appropriation (FY 1998)........... $ ((~~447,283,000~~))

448,355,000

General Fund Appropriation (FY 1999)........... $ ((~~485,077,000~~))

484,005,000

General Fund Bonds Subject to the Limit Bond

Retirement Account Appropriation................ $ 932,360,000

TOTAL APPROPRIATION...................... $ $1,864,720,000

The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds subject to the limit bond retirement account.

Sec. 702. 1997 c 149 s 703 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED AS PRESCRIBED BY STATUTE

General Fund Appropriation (FY 1998)........... $ ((~~23,096,000~~))

23,186,000

General Fund Appropriation (FY 1999)........... $ ((~~25,603,000~~))

25,642,000

General Fund Bonds Excluded from the Limit

Bond Retirement Account Appropriation...... $ ((~~48,699,000~~))

48,828,000

Reimbursable Bonds Excluded from the Limit Bond

Retirement Account Appropriation........... $ 104,933,000

Reimbursable Bonds Subject to the Limit Bond

Retirement Account Appropriation........... $ ((~~402,000~~))

2,264,000

TOTAL APPROPRIATION................. $ ((~~202,733,000~~))

204,853,000

The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds excluded from the limit bond retirement account.

Sec. 703. 1997 c 149 s 705 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES

General Fund Appropriation (FY 1998)........... $ 475,000

General Fund Appropriation (FY 1999)........... $ 475,000

Higher Education Construction Account

Appropriation.............................. $ ((~~215,000~~))

440,000

State Building Construction Account

Appropriation.............................. $ ((~~6,374,000~~))

7,683,000

Public Safety Reimbursable Bond Account

Appropriation.............................. $ ((~~8,000~~))

23,000

TOTAL APPROPRIATION................. $ ((~~7,547,000~~))

9,096,000

Total Bond Retirement and Interest Appropriations

contained in sections 701 through 705 of this

act........................................ $ ((~~2,121,748,000~~))

2,125,417,000

NEW SECTION. Sec. 704. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-FOR PAYMENT OF TORT CLAIM

General Fund Appropriation (FY 1999)................ $ 6,733,000

Sec. 705. 1997 c 149 s 710 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-YEAR 2000 ALLOCATIONS

((~~General Fund‑-State Appropriation (FY 1998)... $........................................... 3,380,000~~

~~General Fund‑-State Appropriation (FY 1999).... $ 1,960,000~~))

General Fund‑-Federal Appropriation............. $.................................. 2,883,000

Liquor Revolving Account Appropriation......... $ 131,000

Health Care Authority Administrative Account

Appropriation.............................. $ 631,000

Accident Account Appropriation.................. $............................. 1,102,000

Medical Aid Account Appropriation.............. $ 1,102,000

Unemployment Compensation Administration Account--

Federal Appropriation...................... $ 1,313,000

((~~Administrative Contingency Account~~

~~Appropriation.............................. $ 948,000~~))

Employment Services Administrative Account

Appropriation.............................. $ ((~~500,000~~))

461,000

Forest Development Account Appropriation........ $ 156,000

Off Road Vehicle Account Appropriation......... $ 7,000

Surveys and Maps Account Appropriation......... $ 1,000

Aquatic Lands Enhancement Account Appropriation $ 8,000

Resource Management Cost Account Appropriation. $ 348,000

TOTAL APPROPRIATION................. $ ((~~14,470,000~~))

8,143,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations will be allocated by the office of financial management to agencies to complete Year 2000 date conversion maintenance on their computer systems. Agencies shall submit their estimated costs of conversion to the office of financial management by July 1, 1997.

(2) Up to $10,000,000 of the cash balance of the data processing revolving account may be expended on agency Year 2000 date conversion costs. The $10,000,000 will be taken from the cash balances of the data processing revolving account's two major users, as follows: $7,000,000 from the department of information services and $3,000,000 from the office of financial management. The office of financial management in consultation with the department of information services shall allocate these funds as needed to complete the date conversion projects.

(3) Agencies receiving these allocations shall report at a minimum to the information services board and to the governor every six months on the progress of Year 2000 maintenance efforts.

NEW SECTION. Sec. 706. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-YEAR 2000 CONVERSION

General Fund Appropriation (FY 1998)................ $ 233,000

General Fund Appropriation (FY 1999)................ $ 33,000

Hospital Commission Account Appropriation........... $ 115,000

Architects' License Account Appropriation........... $ 3,000

Professional Engineers' Account Appropriation........ $ 9,000

Real Estate Commission Account Appropriation........ $ 24,000

Health Professions Account Appropriation............. $ 275,000

Master License Account Appropriation................ $ 70,000

Safe Drinking Water Account Appropriation........... $ 50,000

Uniform Commercial Code Account Appropriation........ $ 11,000

Unemployment Compensation Administration Account‑-

Federal Appropriation........................... $ 3,245,000

Department of Retirement Systems Expense Account

Appropriation................................... $ 890,000

Health Services Account Appropriation............... $ 254,000

TOTAL APPROPRIATION...................... $ 5,212,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations will be allocated by the office of financial management to agencies to perform Year 2000 date conversion maintenance on their computer systems and are provided solely for these purposes.

(2) Agencies receiving these allocations shall report at a minimum to the information services board and to the governor every six months on the progress of Year 2000 maintenance efforts.

NEW SECTION. Sec. 707. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-YEAR 2000 CONTINGENCY POOL

General Fund Appropriation (FY 1998)................ $ 800,000

General Fund Appropriation (FY 1999)................ $ 4,200,000

Year 2000 Contingency Revolving Account

Appropriation................................... $ 5,000,000

TOTAL APPROPRIATION...................... $ 10,000,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations will be allocated by the office of financial management, in consultation with the department of information systems, to agencies to perform Year 2000 maintenance on their computer systems and are provided solely for these purposes.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the Year 2000 contingency revolving account, hereby created in the state treasury, in accordance with schedules provided by the office of financial management for additional Year 2000 maintenance on their computer systems.

(3) All agencies that receive these allocations will report upon request throughout the biennium to the information services board and to the governor on the progress of Year 2000 maintenance efforts.

Sec. 708. 1997 c 149 s 712 (uncodified) is amended to read as follows:

FOR THE GOVERNOR‑-COMPENSATION‑-INSURANCE BENEFITS

General Fund‑-State Appropriation (FY 1998).... $ 823,000

General Fund‑-State Appropriation (FY 1999).... $ ((~~6,257,000~~))

10,185,000

General Fund‑-Federal Appropriation............. $.................................. ((~~2,431,000~~))

3,153,000

General Fund‑-Private/Local Appropriation...... $ ((~~146,000~~))

190,000

Salary and Insurance Increase Revolving Account

Appropriation....... ...................... $ ((~~5,465,000~~))

7,084,000

TOTAL APPROPRIATION................. $ ((~~15,122,000~~))

21,435,000

The appropriations in this section are subject to the following conditions and limitations:

(1)(a) The monthly ((~~contribution~~)) employer funding rate for insurance benefit premiums shall not exceed $312.35 per eligible employee for fiscal year 1998, and ((~~$331.31~~)) $338.21 for fiscal year 1999.

(b) The monthly ((~~contribution~~)) employer funding rate for the operating costs of the health care authority shall not exceed $4.99 per eligible employee for fiscal year 1998, and ((~~$4.44~~)) $4.67 for fiscal year 1999.

(c) The fiscal year 1999 monthly employer funding rate for insurance benefit premiums includes $1.12 per eligible employee to increase life insurance coverage, contingent on court approval by August 1, 1998, of the stipulated settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8).

(d) The fiscal year 1999 monthly employer funding rate for insurance benefit premiums includes $5.78 per eligible employee to begin repaying the public employees' and retirees' insurance account for any claims paid as a result of a court-approved stipulated settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1).

(e) Surplus moneys accruing to the public employees' and retirees' insurance account due to lower-than-projected insurance costs may not be reallocated by the health care authority to increase the actuarial value of public employee insurance plans. Such funds shall be held in reserve in the public employees' and retirees' insurance account and may not be expended without prior legislative authorization.

((~~(d)~~)) (f) In order to achieve the level of funding provided for health benefits, the public employees' benefits board may require employee premium co-payments, increase point-of-service cost sharing, and/or implement managed competition.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the special fund salary and insurance contribution increase revolving fund in accordance with schedules provided by the office of financial management.

(3) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for parts A and B of medicare, pursuant to RCW 41.05.085. From January 1, 1998, through December 31, 1998, the subsidy shall be $41.26 per month. Starting January 1, 1999, the subsidy shall be $43.16 per month.

(4) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120:

(a) For each full-time employee, $14.80 per month beginning September 1, 1997;

(b) For each part-time employee who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $14.80 each month beginning September 1, 1997, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.

The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.

(5) The salary and insurance increase revolving account appropriation includes amounts sufficient to fund health benefits for ferry workers at the premium levels specified in subsection (1) of this section, consistent with the 1997-99 transportation appropriations act.

NEW SECTION. Sec. 709. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER‑-FOR THE PUBLIC EMPLOYEES' AND RETIREES' INSURANCE ACCOUNT

Pension Funding Account Appropriation............... $ 25,000,000

The appropriation in this section is provided solely to pay claims resulting from a court-approved stipulated agreement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1).

Sec. 710. 1997 c 454 s 704 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-COMPENSATION ACTIONS OF PERSONNEL RESOURCES BOARD

General Fund--State Appropriation (FY 1998)......... $ 5,289,000

General Fund--State Appropriation (FY 1999)......... $ 10,642,000

General Fund--Federal Appropriation.................. $.................................. 2,777,000

Salary and Insurance Increase Revolving

Account Appropriation........................... $ ((~~8,862,000~~))

6,085,000

TOTAL APPROPRIATION...................... $ 24,793,000

The appropriations in this section shall be expended solely for the purposes designated in this section and are subject to the conditions and limitations in this section.

(1) Funding is provided to fully implement the recommendations of the Washington personnel resources board consistent with the provisions of chapter 319, Laws of 1996.

(2) Implementation of the salary adjustments for the various clerical classes, physicians, dental classifications, pharmacists, maintenance custodians, medical records technicians, fish/wildlife biologists, fish/wildlife enforcement, habitat technicians, and fiscal technician classifications will be effective July 1, 1997. Implementation of the salary adjustments for safety classifications, park rangers, park aides, correctional officers/sergeants, community corrections specialists, tax information specialists, industrial relations specialists, electrical classifications at the department of labor and industries, fingerprint technicians, some labor relations classifications, health benefits specialists, foresters/land managers, and liquor enforcement officers will be effective July 1, 1998.

NEW SECTION. Sec. 711. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR SUNDRY CLAIMS. The following sums, or so much thereof as may be necessary, are appropriated from the general fund, unless otherwise indicated, for relief of various individuals, firms, and corporations for sundry claims. These appropriations are to be disbursed on vouchers approved by the director of general administration, except as otherwise provided, as follows:

(1) Reimbursement of criminal defendants acquitted on the basis of self-defense, pursuant to RCW 9A.16.110:

(a) Steven M. Lauritz, claim number SCJ 97-11 $ 2,534

(b) George Greenland, claim number SCJ 97-13 $ 16,235

(d) Bryan E. Vance, claim number SCJ 97-16 $ 14,866

(e) Jesse L. Smith, claim number SCJ 97-17 $ 23,027

(f) Thomas N. Klein, claim number SCJ 97-18 $ 14,338

(g) John F. Richards, claim number SCJ 97-19 $ 7,335

(h) Anthony C. Otto, claim number SCJ 97-09 $ 16,962

(i) Eric C. Swanson, claim number SCJ 97-21 $ 86,152

(j) Mark J. Campbell, claim number SCJ 98-01 $ 7,218

(2) Payment from the state wildlife account for damage to crops by wildlife, pursuant to RCW 77.36.040:

(a) D.F. Spurgeon, claim number SCG 97-03 $ 980

(b) Kenneth Kunes, claim number SCG 97-06 $ 2,288

NEW SECTION. Sec. 712. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER‑‑FOR THE COUNTY CRIMINAL JUSTICE ASSISTANCE ACCOUNT

General Fund Appropriation (FY 1999)................ $ 1,240,000

The appropriation in this section is subject to the following conditions and limitations: The amount appropriated in this section shall be distributed in accordance with RCW 82.14.310. This funding is provided to counties for the costs of implementing criminal justice legislation including, but not limited to, Second Substitute House Bill No. 3070 (DUI penalties), Second Substitute House Bill No. 3089 (deferred prosecution), and Second Substitute House Bill No. 2962 (criminal mistreatment).

NEW SECTION. Sec. 713. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER‑‑FOR THE MUNICIPAL CRIMINAL JUSTICE ASSISTANCE ACCOUNT

General Fund Appropriation (FY 1999)................ $ 760,000

The appropriation in this section is subject to the following conditions and limitations: The amount appropriated in this section shall be distributed in accordance with RCW 82.14.320. This funding is provided to cities for the costs of implementing criminal justice legislation including, but not limited to, Second Substitute House Bill No. 3070 (DUI penalties), Second Substitute House Bill No. 3089 (deferred prosecution), and Second Substitute House Bill No. 2962 (criminal mistreatment).

NEW SECTION. Sec. 714. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER--FOR THE MOTOR VEHICLE FUND

General Fund Appropriation (FY 1999)................ $ 3,000,000

(End of part)

PART VIII

OTHER TRANSFERS AND APPROPRIATIONS

Sec. 801. 1997 c 454 s 801 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-STATE REVENUES FOR DISTRIBUTION

General Fund Appropriation for fire insurance

premiums distribution...................... $ 6,617,250

General Fund Appropriation for public utility

district excise tax distribution........... $ 35,183,803

General Fund Appropriation for prosecuting attorneys

salaries................................... $ 2,960,000

General Fund Appropriation for motor vehicle excise

tax distribution........................... $ 84,721,573

General Fund Appropriation for local mass transit

assistance................................. $ 383,208,166

General Fund Appropriation for camper and travel

trailer excise tax distribution............. $ 3,904,937

General Fund Appropriation for boating

safety/education and law enforcement

distribution............................... $ 3,616,000

Aquatic Lands Enhancement Account Appropriation

for harbor improvement revenue distribution $ 142,000

Liquor Excise Tax Account Appropriation for liquor

excise tax distribution.................... $ 22,287,746

Liquor Revolving Fund Appropriation for liquor

profits distribution....................... $ 36,989,000

Timber Tax Distribution Account Appropriation

for distribution to "Timber" counties...... $ 107,146,000

Municipal Sales and Use Tax Equalization Account

Appropriation.............................. $ 66,860,014

County Sales and Use Tax Equalization Account

Appropriation.............................. $ 11,843,224

Death Investigations Account Appropriation for

distribution to counties for publicly funded

autopsies.................................. $ 1,266,000

County Criminal Justice Account Appropriation... $........................................... ((~~80,634,471~~))

81,874,471

Municipal Criminal Justice Account

Appropriation.............................. $ ((~~32,042,450~~))

32,802,450

County Public Health Account Appropriation..... $ 43,773,588

TOTAL APPROPRIATION................. $ 923,196,222

The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.

Sec. 802. 1997 c 454 s 802 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-TRANSFERS

General Fund: For transfer to the Water Quality

Account.................................... $ ((~~26,607,000~~))

28,595,900

General Fund: For transfer to the Flood Control

Assistance Account............ ............ $ 4,000,000

State Convention and Trade Center Account: For

transfer to the State Convention and Trade

Center Operations Account.................. $ 3,877,000

Water Quality Account: For transfer to the Water

Pollution Control Account. Transfers shall be

made at intervals coinciding with deposits of

federal capitalization grant money into the

account. The amounts transferred shall not

exceed the match required for each federal

deposit.................................... $ 21,688,000

State Treasurer's Service Account: For transfer to

the general fund on or before June 30, 1999 an

amount up to $3,600,000 in excess of the cash

requirements of the State Treasurer's Service

Account.................................... $ 3,600,000

Public Works Assistance Account: For transfer to

the Drinking Water Assistance Account...... $ 9,949,000

County Sales and Use Tax Equalization Account:

For transfer to the County Public Health

Account.................................... $ ((~~1,686,000~~))

1,767,000

(End of part)

PART IX

MISCELLANEOUS

Sec. 901. RCW 50.24.014 and 1994 c 187 s 3 are each amended to read as follows:

(1)(a) A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund. Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at a basic rate of two one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010.

(b) For the first calendar quarter of 1994 only, the basic two one-hundredths of one percent contribution payable under (a) of this subsection shall be increased by one-hundredth of one percent to a total rate of three one-hundredths of one percent. The proceeds of this incremental one-hundredth of one percent shall be used solely for the purposes described in section 22, chapter 483, Laws of 1993, and for the purposes described in RCW 50.40.060. During the 1997-1999 fiscal biennium, any surplus from contributions payable under this subsection (b) ((~~will~~)) may be deposited in the unemployment compensation trust fund, used to support tax and wage automated systems projects that simplify and streamline employer reporting, or both.

(2)(a) Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

(b) In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

(3) If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st.

Sec. 902. 1997 c 149 s 905 (uncodified) is amended to read as follows:

STATUTORY APPROPRIATIONS. In addition to the amounts appropriated in this act for revenues for distribution, state contributions to the law enforcement officers' and fire fighters' retirement system, and bond retirement and interest including ongoing bond registration and transfer charges, transfers, interest on registered warrants, and certificates of indebtedness, there is also appropriated such further amounts as may be required or available for these purposes under any statutory formula or under chapters 39.94 and 39.96 RCW or any proper bond covenant made under law.

Sec. 903. RCW 70.105D.070 and 1997 c 406 s 5 are each amended to read as follows:

(1) The state toxics control account and the local toxics control account are hereby created in the state treasury.

(2) The following moneys shall be deposited into the state toxics control account: (a) Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-three one-hundredths of one percent; (b) the costs of remedial actions recovered under this chapter or chapter 70.105A RCW; (c) penalties collected or recovered under this chapter; and (d) any other money appropriated or transferred to the account by the legislature. Moneys in the account may be used only to carry out the purposes of this chapter, including but not limited to the following activities:

(i) The state's responsibility for hazardous waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.105 RCW;

(ii) The state's responsibility for solid waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.95 RCW;

(iii) The hazardous waste cleanup program required under this chapter;

(iv) State matching funds required under the federal cleanup law;

(v) Financial assistance for local programs in accordance with chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;

(vi) State government programs for the safe reduction, recycling, or disposal of hazardous wastes from households, small businesses, and agriculture;

(vii) Hazardous materials emergency response training;

(viii) Water and environmental health protection and monitoring programs;

(ix) Programs authorized under chapter 70.146 RCW;

(x) A public participation program, including regional citizen advisory committees;

(xi) Public funding to assist potentially liable persons to pay for the costs of remedial action in compliance with cleanup standards under RCW 70.105D.030(2)(e) but only when the amount and terms of such funding are established under a settlement agreement under RCW 70.105D.040(4) and when the director has found that the funding will achieve both (A) a substantially more expeditious or enhanced cleanup than would otherwise occur, and (B) the prevention or mitigation of unfair economic hardship; and

(xii) Development and demonstration of alternative management technologies designed to carry out the top two hazardous waste management priorities of RCW 70.105.150.

(3) The following moneys shall be deposited into the local toxics control account: Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-seven one-hundredths of one percent.

(a) Moneys deposited in the local toxics control account shall be used by the department for grants or loans to local governments for the following purposes in descending order of priority: (i) Remedial actions; (ii) hazardous waste plans and programs under chapter 70.105 RCW; and (iii) solid waste plans and programs under chapters 70.95, 70.95C, 70.95I, and 70.105 RCW. Funds for plans and programs shall be allocated consistent with the priorities and matching requirements established in chapters 70.105, 70.95C, 70.95I, and 70.95 RCW. During the 1997-1999 fiscal biennium, moneys in the account may also be used for the following activities: Conducting a study of whether dioxins occur in fertilizers, soil amendments, and soils; reviewing applications for registration of fertilizers; and conducting a study of plant uptake of metals.

(b) Funds may also be appropriated to the department of health to implement programs to reduce testing requirements under the federal safe drinking water act for public water systems. The department of health shall reimburse the account from fees assessed under RCW 70.119A.115 by June 30, 1995.

(4) Except for unanticipated receipts under RCW 43.79.260 through 43.79.282, moneys in the state and local toxics control accounts may be spent only after appropriation by statute.

(5) One percent of the moneys deposited into the state and local toxics control accounts shall be allocated only for public participation grants to persons who may be adversely affected by a release or threatened release of a hazardous substance and to not-for-profit public interest organizations. The primary purpose of these grants is to facilitate the participation by persons and organizations in the investigation and remedying of releases or threatened releases of hazardous substances and to implement the state's solid and hazardous waste management priorities. No grant may exceed sixty thousand dollars. Grants may be renewed annually. Moneys appropriated for public participation from either account which are not expended at the close of any biennium shall revert to the state toxics control account.

(6) No moneys deposited into either the state or local toxics control account may be used for solid waste incinerator feasibility studies, construction, maintenance, or operation.

(7) The department shall adopt rules for grant or loan issuance and performance.

Sec. 904. RCW 69.50.520 and 1997 c 451 s 2 and 1997 c 338 s 69 are each reenacted and amended to read as follows:

The violence reduction and drug enforcement account is created in the state treasury. All designated receipts from RCW 9.41.110(8), 66.24.210(4), 66.24.290(2), 69.50.505(h)(1), 82.08.150(5), 82.24.020(2), 82.64.020, and section 420, chapter 271, Laws of 1989 shall be deposited into the account. Expenditures from the account may be used only for funding services and programs under chapter 271, Laws of 1989 and chapter 7, Laws of 1994 sp. sess., including state incarceration costs. Funds from the account may also be appropriated to reimburse local governments for costs associated with implementing criminal justice legislation including chapter 338, Laws of 1997. During the 1997-1999 biennium, funds from the account may also be used for costs associated with conducting a feasibility study of the department of corrections' offender-based tracking system and providing grants to local governments in accordance with chapter 338, Laws of 1997. After July 1, 1999, at least seven and one-half percent of expenditures from the account shall be used for providing grants to community networks under chapter 70.190 RCW by the family policy council.

NEW SECTION. Sec. 905. This act shall not be construed as affecting any right or cause of action asserted in Washington State Legislature v. State of Washington (Thurston county superior court cause no. 98-2-00105-1).

Sec. 906. 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.

Sec. 907. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

(End of part)

INDEX PAGE #

ADMINISTRATOR FOR THE COURTS.................................... 6

ATTORNEY GENERAL............................................... 14

BOARD FOR VOLUNTEER FIRE FIGHTERS.............................. 32

CENTRAL WASHINGTON UNIVERSITY................................. 162

CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS......... 14

COLUMBIA RIVER GORGE COMMISSION................................ 90

COMMISSION ON JUDICIAL CONDUCT.................................. 6

CONSERVATION COMMISSION....................................... 100

COURT OF APPEALS................................................ 5

CRIMINAL JUSTICE TRAINING COMMISSION........................... 72

DEPARTMENT OF AGRICULTURE..................................... 111

DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT....... 16

DEPARTMENT OF CORRECTIONS...................................... 83

DEPARTMENT OF ECOLOGY.......................................... 90

DEPARTMENT OF FINANCIAL INSTITUTIONS........................... 16

DEPARTMENT OF FISH AND WILDLIFE............................... 102

DEPARTMENT OF HEALTH........................................... 78

DEPARTMENT OF INFORMATION SERVICES............................. 28

DEPARTMENT OF LABOR AND INDUSTRIES............................. 74

DEPARTMENT OF LICENSING....................................... 114

DEPARTMENT OF NATURAL RESOURCES............................... 108

DEPARTMENT OF PERSONNEL........................................ 24

DEPARTMENT OF RETIREMENT SYSTEMS

OPERATIONS..................................................... 26

DEPARTMENT OF REVENUE.......................................... 27

DEPARTMENT OF SOCIAL AND HEALTH SERVICES....................... 34

ADMINISTRATION AND SUPPORTING SERVICES PROGRAM................. 66

AGING AND ADULT SERVICES PROGRAM............................... 54

ALCOHOL AND SUBSTANCE ABUSE PROGRAM............................ 61

CHILD SUPPORT PROGRAM.......................................... 67

CHILDREN AND FAMILY SERVICES PROGRAM........................... 35

DEVELOPMENTAL DISABILITIES PROGRAM............................. 50

ECONOMIC SERVICES PROGRAM...................................... 59

JUVENILE REHABILITATION PROGRAM................................ 40

MEDICAL ASSISTANCE PROGRAM..................................... 63

MENTAL HEALTH PROGRAM.......................................... 46

PAYMENTS TO OTHER AGENCIES PROGRAM............................. 68

VOCATIONAL REHABILITATION PROGRAM.............................. 65

DEPARTMENT OF VETERANS AFFAIRS................................. 77

EASTERN WASHINGTON UNIVERSITY................................. 161

EMPLOYMENT SECURITY DEPARTMENT................................. 87

GOVERNOR

COMPENSATION--INSURANCE BENEFITS.............................. 177

HIGHER EDUCATION COORDINATING BOARD

FINANCIAL AID AND GRANT PROGRAMS.............................. 167

POLICY COORDINATION AND ADMINISTRATION........................ 164

HOUSE OF REPRESENTATIVES........................................ 1

HUMAN RIGHTS COMMISSION........................................ 71

INSURANCE COMMISSIONER......................................... 29

INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION.................. 100

JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE.................... 4

LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE..... 5

LIQUOR CONTROL BOARD........................................... 30

MILITARY DEPARTMENT............................................ 32

OFFICE OF FINANCIAL MANAGEMENT................................. 22

COMPENSATION ACTIONS OF PERSONNEL RESOURCES BOARD............. 179

PAYMENT OF TORT CLAIM......................................... 174

YEAR 2000 ALLOCATIONS......................................... 174

YEAR 2000 CONVERSION.......................................... 176

OFFICE OF PUBLIC DEFENSE........................................ 8

OFFICE OF THE GOVERNOR.......................................... 8

PUBLIC DISCLOSURE COMMISSION.................................... 9

SECRETARY OF STATE............................................. 10

SENATE.......................................................... 2

STATE AUDITOR.................................................. 12

STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES.............. 154

STATE CONVENTION AND TRADE CENTER.............................. 33

STATE HEALTH CARE AUTHORITY.................................... 70

STATE PARKS AND RECREATION COMMISSION.......................... 98

STATE PATROL.................................................. 116

STATE SCHOOL FOR THE BLIND.................................... 171

STATE SCHOOL FOR THE DEAF..................................... 171

STATE TREASURER........................................... 12, 181

BOND RETIREMENT AND INTEREST............................. 173, 174

COUNTY CRIMINAL JUSTICE ASSISTANCE ACCOUNT.................... 181

MOTOR VEHICLE FUND............................................ 181

MUNICIPAL CRIMINAL JUSTICE ASSISTANCE ACCOUNT................. 181

PUBLIC EMPLOYEES' AND RETIREES' INSURANCE ACCOUNT............. 179

STATE REVENUES FOR DISTRIBUTION............................... 183

TRANSFERS..................................................... 184

STATUTORY APPROPRIATIONS...................................... 187

SUNDRY CLAIMS................................................. 180

SUPERINTENDENT OF PUBLIC INSTRUCTION

EDUCATION REFORM PROGRAMS..................................... 144

GENERAL APPORTIONMENT (BASIC EDUCATION)....................... 128

INSTITUTIONAL EDUCATION PROGRAMS.............................. 143

LEARNING ASSISTANCE PROGRAM................................... 146

LOCAL EFFORT ASSISTANCE....................................... 142

LOCAL ENHANCEMENT FUNDS....................................... 147

PROGRAMS FOR HIGHLY CAPABLE STUDENTS.......................... 144

PUPIL TRANSPORTATION.......................................... 137

SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS...................... 135

SCHOOL FOOD SERVICE PROGRAMS.................................. 138

SPECIAL EDUCATION PROGRAMS.................................... 138

STATE ADMINISTRATION.......................................... 120

TRAFFIC SAFETY EDUCATION PROGRAMS............................. 142

TRANSITIONAL BILINGUAL PROGRAMS............................... 146

THE EVERGREEN STATE COLLEGE................................... 163

UNIVERSITY OF WASHINGTON...................................... 157

WASHINGTON POLLUTION LIABILITY REINSURANCE PROGRAM............ 113

WASHINGTON STATE HISTORICAL SOCIETY........................... 171

WASHINGTON STATE LIBRARY...................................... 170

WASHINGTON STATE LOTTERY....................................... 25

WASHINGTON STATE UNIVERSITY.................................. 159"

Correct the title.