"Sec. 1   RCW 43.19.565 and 1998 c 111 s 3 are each amended to read as follows:
     The department of general administration shall establish a motor vehicle transportation service which is hereby empowered to:
     (1) Provide suitable motor vehicle transportation services to any state agency on either a temporary or permanent basis upon requisition from a state agency and upon such demonstration of need as the department may require;
     (2) Provide motor pools for the use of state agencies located in the Olympia ((and Seattle)) area((s)) and such additional motor pools at other locations in the state as may be necessary to provide economic, efficient, and effective motor vehicle transportation services to state agencies. Such additional motor pools may be under either the direct control of the department or under the supervision of another state agency by agreement with the department;
     (3) Establish an equitable schedule of rental and mileage charges to agencies for motor vehicle transportation services furnished which shall be designed to provide funds to cover replacement of vehicles after one hundred twenty thousand miles of use, working capital reserves, and to recover the actual total costs of motor pool operations including but not limited to vehicle operation expense, depreciation expense, interest and other financing expenses, overhead, and nonrecoverable collision or other damage to vehicles((. Additions to capital such as the purchase of additional vehicles shall be budgeted and purchased from funds appropriated for such purposes under such procedures as may be provided by law; and));
     (4) Adopt a vehicle retention policy that retains vehicles until at least one hundred twenty thousand miles of use. The vehicle retention policy shall specify the extent of damage to a vehicle that would require disposal prior to one hundred twenty thousand miles of use. Disposal of vehicles without significant damage prior to one hundred twenty thousand miles of use shall occur only after the department can demonstrate in a report to the appropriate committees of the legislature that earlier disposal of vehicles will reduce routine maintenance and repair costs and/or increase resale price sufficient to reduce the rates charged to state agencies. The reduced rates cited in this report shall be used in subsequent budget requests for the department; and
     (5) Establish guidelines, procedures, and standards for fleet operations that other state agencies and institutions of higher education may adopt. The guidelines, procedures, and standards shall be consistent with and carry out the objectives of any general policies adopted by the office of financial management under RCW 43.41.130.

Sec. 2   RCW 43.19.615 and 1998 c 105 s 13 are each amended to read as follows:
     The director of general administration shall deposit in the general administration services account all receipts, including the initial transfer of automobile pool capital from the highway equipment fund and any other funds transferred, rentals or other fees and charges for transportation services furnished, proceeds from the sale of surplus or replaced property under the control of the supervisor of motor transport and other income, and from which shall be paid operating costs, including salaries and wages, administrative expense, overhead, the cost of replacement vehicles, additional passenger vehicles ((authorized pursuant to RCW 43.19.565)), and any other expenses. ((If it is necessary at any time for the department to request any appropriation from the general fund or various dedicated, revolving, or trust funds to purchase additional vehicles, any appropriation therefor may provide that such advance shall be repaid together with reasonable interest from surpluses of the general administration services account.))

NEW SECTION.  Sec. 3   RCW 43.19.605 (Motor vehicle transportation service -- Reimbursement for property transferred -- Credits -- Accounting-- Disputes) and 1998 c 105 s 11, 1989 c 57 s 6, & 1975 1st ex.s. c 167 s 11 are each repealed."