BILL REQ. #:  H-2983.1 

Read first time 04/21/2003.   Referred to Committee on Capital Budget.

     AN ACT Relating to expanding the criteria for habitat conservation programs; amending RCW 79A.15.010, 79A.15.030, 79A.15.040, 79A.15.050, 79A.15.060, 79A.15.070, and 79A.15.080; reenacting and amending RCW 43.84.092; adding new sections to chapter 79A.15 RCW; adding a new section to chapter 79.70 RCW; adding a new section to chapter 79.71 RCW; and providing an effective date.

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

Sec. 1   RCW 79A.15.010 and 1990 1st ex.s. c 14 s 2 are each amended to read as follows:
     The definitions set forth in this section apply throughout this chapter.
     (1) "Acquisition" means the purchase on a willing seller basis of fee or less than fee interests in real property. These interests include, but are not limited to, options, rights of first refusal, conservation easements, leases, and mineral rights.
     (2) "Committee" means the interagency committee for outdoor recreation.
     (3) "Critical habitat" means lands important for the protection, management, or public enjoyment of certain wildlife species or groups of species, including, but not limited to, wintering range for deer, elk, and other species, waterfowl and upland bird habitat, fish habitat, and habitat for endangered, threatened, or sensitive species.
     (4) "Farmlands" means any land defined as "farm and agricultural land" in RCW 84.34.020(2).
     (5) "Local agencies" means a city, county, town, tribe, special purpose district, port district, or other political subdivision of the state providing services to less than the entire state.
     (((5))) (6) "Natural areas" means areas that have, to a significant degree, retained their natural character and are important in preserving rare or vanishing flora, fauna, geological, natural historical, or similar features of scientific or educational value.
     (((6))) (7) "Riparian habitat" means land adjacent to water bodies, as well as submerged land such as streambeds, which can provide functional habitat for salmonids and other fish and wildlife species. Riparian habitat includes, but is not limited to, shorelines and near-shore marine habitat, estuaries, lakes, wetlands, streams, and rivers.
     (8) "Special needs populations" means physically restricted people or people of limited means.
     (((7))) (9) "State agencies" means the state parks and recreation commission, the department of natural resources, the department of general administration, and the department of fish and wildlife.
     (10) "Trails" means public ways constructed for and open to pedestrians, equestrians, or bicyclists, or any combination thereof, other than a sidewalk constructed as a part of a city street or county road for exclusive use of pedestrians.
     (((8))) (11) "Urban wildlife habitat" means lands that provide habitat important to wildlife in proximity to a metropolitan area.
     (((9))) (12) "Water access" means boat or foot access to marine waters, lakes, rivers, or streams.

Sec. 2   RCW 79A.15.030 and 2000 c 11 s 66 are each amended to read as follows:
     (1) Moneys appropriated for this chapter shall be divided ((equally between the habitat conservation and outdoor recreation accounts and shall be used exclusively for the purposes specified in this chapter)) as follows:
     (a) Appropriations of forty million dollars or less must be allocated equally between the habitat conservation account and the outdoor recreation account.
     (b) If appropriations total more than forty million dollars, the money must be allocated as follows: (i) Twenty million dollars to the habitat conservation account and twenty million dollars to the outdoor recreation account; (ii) any remaining amounts must be allocated as follows: (A) Thirty percent to the habitat conservation account; (B) thirty percent to the outdoor recreation account; (C) thirty percent to the riparian protection account; and (D) ten percent to the farmlands preservation account.
     (2) Except as otherwise provided in this act, moneys deposited in these accounts shall be invested as authorized for other state funds, and any earnings on them shall be credited to the respective account.
     (3) All moneys deposited in the habitat conservation ((and)), outdoor recreation, riparian protection, and farmlands preservation accounts shall be allocated as provided under RCW 79A.15.040 ((and)), 79A.15.050, and sections 5 and 6 of this act as grants to state or local agencies for acquisition, development, and renovation within the jurisdiction of those agencies, or as grants to qualified nonprofit organizations, subject to legislative appropriation. The committee may use or permit the use of any funds appropriated for this chapter as matching funds where federal, local, or other funds are made available for projects within the purposes of this chapter.
     (4) Projects receiving grants under this chapter that are developed or otherwise accessible for public recreational uses shall be available to the public ((on a nondiscriminatory basis)).
     (5) The committee may make grants to an eligible project from ((both)) the habitat conservation ((and)), outdoor recreation, riparian protection, and farmlands preservation accounts and any one or more of the applicable categories under such accounts described in RCW 79A.15.040 ((and)), 79A.15.050, and sections 5 and 6 of this act.
     (6) The committee may accept private donations to the habitat conservation account, the outdoor recreation account, the riparian protection account, and the farmlands preservation account for the purposes specified in this chapter.
     (7) The committee may apply up to three percent of the funds appropriated for this chapter for the administration of the programs and purposes specified in this chapter.

Sec. 3   RCW 79A.15.040 and 1999 c 379 s 917 are each amended to read as follows:
     (1) Moneys appropriated for this chapter to the habitat conservation account shall be distributed in the following way:
     (a) Not less than ((thirty-five)) forty-five percent for the acquisition and development of critical habitat;
     (b) Not less than ((twenty)) thirty percent for the acquisition and development of natural areas;
     (c) Not less than ((fifteen)) twenty percent for the acquisition and development of urban wildlife habitat; and
     (d) The remaining amount shall be considered unallocated and shall be used by the committee to fund high priority acquisition and development needs for critical habitat, natural areas, and urban wildlife habitat. ((During the fiscal biennium ending June 30, 2001, the remaining amount reappropriated from the fiscal biennium ending June 30, 1999, may be allocated for matching grants for riparian zone habitat protection projects that implement watershed plans under the program established in section 329(6), chapter 235, Laws of 1997.))
     (2) In distributing these funds, the committee retains discretion to meet the most pressing needs for critical habitat, natural areas, and urban wildlife habitat, and is not required to meet the percentages described in subsection (1) of this section in any one biennium.
     (3) Only state agencies may apply for acquisition and development funds for ((critical habitat and)) natural areas projects under subsection (1)(((a),)) (b)((,)) and (d) of this section.
     (4) State and local agencies may apply for acquisition and development funds for critical habitat and urban wildlife habitat projects under subsection (1)(a), (c), and (d) of this section.
     (5) State agencies receiving grants for acquisition of land under this section shall pay an amount in lieu of real property taxes and an additional amount for control of noxious weeds as determined in RCW 77.12.203.

Sec. 4   RCW 79A.15.050 and 1999 c 379 s 941 are each amended to read as follows:
     (1) Moneys appropriated for this chapter to the outdoor recreation account shall be distributed in the following way:
     (a) Not less than ((twenty-five)) thirty percent to ((the)) state ((parks and recreation commission)) agencies for the acquisition and development of state parks, state campgrounds, and other recreation facilities, with at least ((seventy-five)) fifty percent of ((this)) the money granted to the state agencies to be used only for acquisition costs((. However, during the 1999-2001 biennium, distributions for acquisition and development of state parks shall not exceed four million two hundred fifty thousand dollars, and the proportion for acquisition costs shall be determined by the commission));
     (b) Not less than ((twenty-five)) thirty percent for the acquisition, development, and renovation of local parks, with at least fifty percent of this money for acquisition costs;
     (c) Not less than ((fifteen)) twenty percent for the acquisition and development of trails;
     (d) Not less than ((ten)) fifteen percent for the acquisition and development of water access sites, with at least seventy-five percent of this money for acquisition costs; and
     (e) The remaining amount shall be considered unallocated and shall be distributed by the committee to state and local agencies to fund high priority acquisition and development needs for state parks, state campgrounds, and other recreation facilities, local parks, trails, and water access sites.
     (2) In distributing these funds, the committee retains discretion to meet the most pressing needs for state ((and)) parks, state campgrounds, and other recreation facilities, local parks, trails, and water access sites, and is not required to meet the percentages described in subsection (1) of this section in any one biennium.
     (3) Only state agencies may apply for acquisition and development funds under subsection (1)(a) of this section.
     (4) Only local agencies may apply for acquisition, development, or renovation funds for local parks under subsection (1)(b) of this section.
     (((4))) (5) Only state and local agencies may apply for funds for trails under subsection (1)(c) of this section.
     (((5))) (6) Only state and local agencies may apply for funds for water access sites under subsection (1)(d) of this section.

NEW SECTION.  Sec. 5   A new section is added to chapter 79A.15 RCW to read as follows:
     (1) The riparian protection account is established in the state treasury. The committee must administer the account in accordance with chapter 79A.25 RCW and this chapter, and hold it separate and apart from all other money, funds, and accounts of the committee.
     (2) Moneys appropriated for this chapter to the riparian protection account must be distributed for the acquisition and enhancement or restoration of riparian habitat. All enhancement or restoration projects must include the acquisition of a real property interest in order to be eligible. At least fifty percent of riparian protection account funds must be used for the acquisition of real property interests.
     (3) State and local agencies may apply for acquisition and enhancement or restoration funds for riparian habitat projects under subsection (1) of this section.
     (4) The committee may adopt rules establishing acquisition policies and priorities for distributions from the riparian protection account.
     (5) Except as provided in RCW 79A.15.030(7), moneys appropriated for this section may not be used by the committee to fund staff positions or other overhead expenses, or by a state, regional, or local agency to fund operation or maintenance of areas acquired under this chapter.
     (6) Moneys appropriated for this section may be used by grant recipients for costs incidental to acquisition, including, but not limited to, surveying expenses, fencing, and signing.
     (7) The committee may not approve a local or qualified nonprofit organization project where the local agency or qualified nonprofit organization share is less than the amount to be awarded from the riparian protection account. In-kind contributions, including contributions of a real property interest in land may be used to satisfy the local agency or qualified nonprofit organization's share.
     (8) State agencies receiving grants for acquisition of land under this section shall pay an amount in lieu of real property taxes and an additional amount for control of noxious weeds as determined in RCW 77.12.203.
     (9) In determining acquisition priorities with respect to the riparian protection account, the committee must consider, at a minimum, the following criteria:
     (a) Benefits to wild salmonids, including endangered salmonid species;
     (b) Benefits to other endangered, threatened, or sensitive species;
     (c) Estimated number of fish and species of fish that will benefit;
     (d) Community support;
     (e) A recommendation as part of a limiting factors or critical pathways analysis, a watershed plan or habitat conservation plan, or a coordinated regionwide prioritization effort;
     (f) Immediacy of threat to the site;
     (g) Integration with other salmon recovery efforts;
     (h) Quality of the habitat or for projects including restoration or enhancement, the potential for restoring quality habitat, including linkage of the site to other high quality habitat;
     (i) Consistency with a local land use plan, or a regional or statewide recreational or resource plan. The projects that assist in the implementation of local shoreline master plans updated according to RCW 90.58.080 or local comprehensive plans updated according to RCW 36.70A.130 must be highly considered in the process;
     (j) Design and cost-effectiveness; and
     (k) Educational and scientific value of the site.
     (10) Before November 1st of each even-numbered year, the committee will recommend to the governor a prioritized list of projects to be funded under this section. The governor may remove projects from the list recommended by the committee and will submit this amended list in the capital budget request to the legislature. The list must include, but not be limited to, a description of each project and any particular match requirement.

NEW SECTION.  Sec. 6   A new section is added to chapter 79A.15 RCW to read as follows:
     (1) The farmlands preservation account is established in the state treasury. The committee will administer the account in accordance with chapter 79A.25 RCW and this chapter, and hold it separate and apart from all other money, funds, and accounts of the committee. Moneys appropriated for this chapter to the farmlands preservation account must be distributed for the acquisition and preservation of farmlands in order to maintain the opportunity for agricultural activity upon these lands.
     (2) Moneys appropriated for this chapter to the farmlands preservation account must be distributed for the fee simple or less than fee simple acquisition of farmlands, and for the enhancement or restoration of ecological functions on those properties. In order for a farmland preservation grant to provide for an environmental enhancement or restoration project, the project must include the acquisition of a real property interest in perpetuity.
     (3) Local agencies and qualified nonprofit organizations may apply for acquisition and enhancement or restoration funds for farmland preservation projects under subsection (1) of this section.
     (4) The committee may adopt rules establishing acquisition and enhancement or restoration policies and priorities for distributions from the farmlands preservation account.
     (5) Except as provided in RCW 79A.15.030(7), moneys appropriated for this section may not be used by the committee to fund staff positions or other overhead expenses, or by a state, regional, or local agency to fund operation or maintenance of areas acquired under this chapter.
     (6) Moneys appropriated for this section may be used by grant recipients for costs incidental to acquisition, including, but not limited to, surveying expenses, fencing, and signing.
     (7) The committee may not approve a local or qualified nonprofit organization where the local agency or qualified nonprofit organization's share is less than the amount to be awarded from the farmlands preservation account. In-kind contributions, including contributions of a real property interest in land may be used to satisfy the local agency or qualified nonprofit organization's share.
     (8) In determining the acquisition priorities, the committee must consider, at a minimum, the following criteria:
     (a) Community support;
     (b) A recommendation as part of a limiting factors or critical pathways analysis, a watershed plan or habitat conservation plan, or a coordinated regionwide prioritization effort;
     (c) The likelihood of the conversion of the site to nonagricultural or more highly developed usage;
     (d) Consistency with a local land use plan, or a regional or statewide recreational or resource plan. The projects that assist in the implementation of local shoreline master plans updated according to RCW 90.58.080 or local comprehensive plans updated according to RCW 36.70A.130 must be highly considered in the process;
     (e) Benefits to wild salmonids;
     (f) Benefits to other fish and wildlife habitat;
     (g) Integration with recovery efforts for endangered, threatened, or sensitive species;
     (h) The viability of the site for continued agricultural production, including, but not limited to:
     (i) Soil types;
     (ii) On-site production and support facilities such as barns, irrigation systems, crop processing and storage facilities, wells, housing, livestock sheds, and other farming infrastructure;
     (iii) Suitability for producing different types or varieties of crops;
     (iv) Farm-to-market access;
     (v) Water availability; and
     (i) Other community values provided by the property when used as agricultural land, including, but not limited to:
     (i) Viewshed;
     (ii) Aquifer recharge;
     (iii) Occasional or periodic collector for storm water runoff;
     (iv) Agricultural sector job creation;
     (v) Migratory bird habitat and forage area; and
     (vi) Educational and curriculum potential.
     (9) In allotting funds for environmental enhancement or restoration projects, the committee will require the projects to meet the following criteria:
     (a) Enhancement or restoration projects must further the ecological functions of the farmlands;
     (b) The projects, such as fencing, bridging watercourses, replanting native vegetation, replacing culverts, clearing of waterways, etc., must be less than fifty percent of the acquisition cost of the project including any in-kind contribution by any party;
     (c) The projects should be based on accepted methods of achieving beneficial enhancement or restoration results; and
     (d) The projects should enhance the viability of the preserved farmland to provide agricultural production while conforming to any legal requirements for habitat protection.
     (10) Before November 1st of each year, the committee will recommend to the governor a prioritized list of all projects to be funded under this section. The governor may remove projects from the list recommended by the committee and must submit this amended list in the capital budget request to the legislature. The list must include, but not be limited to, a description of each project and any particular match requirement.

Sec. 7   RCW 79A.15.060 and 2000 c 11 s 67 are each amended to read as follows:
     (1) The committee may adopt rules establishing acquisition policies and priorities for distributions from the habitat conservation account.
     (2) Except as provided in RCW 79A.15.030(7), moneys appropriated for this chapter may not be used by the committee to fund ((additional)) staff positions or other overhead expenses, or by a state, regional, or local agency to fund operation ((and)) or maintenance of areas acquired under this chapter((, except that the committee may use moneys appropriated for this chapter for the fiscal biennium ending June 30, 2001, for the administrative costs of implementing the pilot watershed plan implementation program established in section 329(6), chapter 235, Laws of 1997, and developing an inventory of publicly owned lands established in section 329(7), chapter 235, Laws of 1997)).
     (3) Moneys appropriated for this chapter may be used by grant recipients for costs incidental to acquisition, including, but not limited to, surveying expenses, fencing, and signing.
     (4) ((Except as provided in subsection (5) of this section,)) The committee may not approve a local project where the local agency share is less than the amount to be awarded from the habitat conservation account.
     (5) ((During the fiscal biennium ending June 30, 2001, the committee may approve a riparian zone habitat protection project established in section 329(6), chapter 235, Laws of 1997, where the local agency share is less than the amount to be awarded from the habitat conservation account.
     (6))) In determining acquisition priorities with respect to the habitat conservation account, the committee shall consider, at a minimum, the following criteria:
     (a) For critical habitat and natural areas proposals:
     (i) Community support;
     (ii) Recommendations as part of a limiting factors or critical pathways analysis, a watershed plan or habitat conservation plan, or a coordinated regionwide prioritization effort;
     (iii) Immediacy of threat to the site;
     (((iii))) (iv) Uniqueness of the site;
     (((iv))) (v) Diversity of species using the site;
     (((v))) (vi) Quality of the habitat;
     (((vi))) (vii) Long-term viability of the site;
     (((vii))) (viii) Presence of endangered, threatened, or sensitive species;
     (((viii))) (ix) Enhancement of existing public property;
     (((ix))) (x) Consistency with a local land use plan, or a regional or statewide recreational or resource plan, including projects that assist in the implementation of local shoreline master plans updated according to RCW 90.58.080 or local comprehensive plans updated according to RCW 36.70A.130; ((and
     (x))) (xi) Educational and scientific value of the site;
     (xii) Integration with recovery efforts for endangered, threatened, or sensitive species;
     (xiii) For critical habitat proposals by local agencies and qualified nonprofit organizations, the statewide significance of the site.
     (b) For urban wildlife habitat proposals, in addition to the criteria of (a) of this subsection:
     (i) Population of, and distance from, the nearest urban area;
     (ii) Proximity to other wildlife habitat;
     (iii) Potential for public use; and
     (iv) Potential for use by special needs populations.
     (((7))) (6) Before ((October)) November 1st of each even-numbered year, the committee shall recommend to the governor a prioritized list of state agency projects to be funded under RCW 79A.15.040(1) (a), (b), and (c). The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project; and shall describe for each project any anticipated restrictions upon recreational activities allowed prior to the project.
     (((8))) (7) Before ((October)) November 1st of each year, the committee shall recommend to the governor a prioritized list of all local projects to be funded under RCW 79A.15.040(1)(c). The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project and any particular match requirement, and describe for each project any anticipated restrictions upon recreational activities allowed prior to the project.

Sec. 8   RCW 79A.15.070 and 2000 c 11 s 68 are each amended to read as follows:
     (1) In determining which state parks proposals and local parks proposals to fund, the committee shall use existing policies and priorities.
     (2) Except as provided in RCW 79A.15.030(7), moneys appropriated for this chapter may not be used by the committee to fund ((additional)) staff or other overhead expenses, or by a state, regional, or local agency to fund operation ((and)) or maintenance of areas acquired under this chapter((, except that the committee may use moneys appropriated for this chapter for the fiscal biennium ending June 30, 2001, for the administrative costs of implementing the pilot watershed plan implementation program established in section 329(6), chapter 235, Laws of 1997, and developing an inventory of publicly owned lands established in section 329(7), chapter 235, Laws of 1997)).
     (3) Moneys appropriated for this chapter may be used by grant recipients for costs incidental to acquisition, including, but not limited to, surveying expenses, fencing, and signing.
     (4) The committee may not approve a project of a local agency where the share contributed by the local agency is less than the amount to be awarded from the outdoor recreation account.
     (5) The committee may adopt rules establishing acquisition policies and priorities for the acquisition and development of trails and water access sites to be financed from moneys in the outdoor recreation account.
     (6) In determining the acquisition and development priorities, the committee shall consider, at a minimum, the following criteria:
     (a) For trails proposals:
     (i) Community support;
     (ii) Immediacy of threat to the site;
     (iii) Linkage between communities;
     (iv) Linkage between trails;
     (v) Existing or potential usage;
     (vi) Consistency with ((an existing)) a local land use plan, or a regional or statewide recreational or resource plan, including projects that assist in the implementation of local shoreline master plans updated according to RCW 90.58.080 or local comprehensive plans updated according to RCW 36.70A.130;
     (vii) Availability of water access or views;
     (viii) Enhancement of wildlife habitat; and
     (ix) Scenic values of the site.
     (b) For water access proposals:
     (i) Community support;
     (ii) Distance from similar water access opportunities;
     (iii) Immediacy of threat to the site;
     (iv) Diversity of possible recreational uses; ((and))
     (v) Public demand in the area; and
     (vi) Consistency with a local land use plan, or a regional or statewide recreational or resource plan, including projects that assist in the implementation of local shoreline master plans updated according to RCW 90.58.080 or local comprehensive plans updated according to RCW 36.70A.130.
     (7) Before ((October)) November 1st of each even-numbered year, the committee shall recommend to the governor a prioritized list of state agency projects to be funded under RCW 79A.15.050(1) (a), (c), and (d). The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project; and shall describe for each project any anticipated restrictions upon recreational activities allowed prior to the project.
     (8) Before ((October)) November 1st of each year, the committee shall recommend to the governor a prioritized list of all local projects to be funded under RCW 79A.15.050(1) (b), (c), and (d). The governor may remove projects from the list recommended by the committee and shall submit this amended list in the capital budget request to the legislature. The list shall include, but not be limited to, a description of each project and any particular match requirement, and describe for each project any anticipated restrictions upon recreational activities allowed prior to the project.

Sec. 9   RCW 79A.15.080 and 1990 1st ex.s. c 14 s 9 are each amended to read as follows:
     The committee shall not sign contracts or otherwise financially obligate funds from the habitat conservation account ((or)), the outdoor recreation account, the riparian protection account, or the farmlands preservation account as provided in this chapter before the legislature has appropriated funds for a specific list of projects. The legislature may remove projects from the list recommended by the governor.

NEW SECTION.  Sec. 10   A new section is added to chapter 79.70 RCW to read as follows:
     For lands acquired under this chapter, the department shall pay an amount in lieu of real property tax and an additional amount for control of noxious weeds as determined in RCW 77.12.203.

NEW SECTION.  Sec. 11   A new section is added to chapter 79.71 RCW to read as follows:
     For lands acquired under this chapter, the department shall pay an amount in lieu of real property tax and an additional amount for control of noxious weeds as determined in RCW 77.12.203.

Sec. 12   RCW 43.84.092 and 2002 c 242 s 2, 2002 c 114 s 24, and 2002 c 56 s 402 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the farmlands preservation account, the federal forest revolving account, the habitat conservation account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the outdoor recreation account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the Puyallup tribal settlement account, the regional transportation investment district account, the resource management cost account, the riparian protection account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 13   Sections 1 through 11 of this act take effect July 1, 2005.