AN ACT Relating to children, youth, and family programs and education programs; adding a new chapter to Title 74 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating new sections; making an appropriation; and providing an effective date.@28

NEW SECTION. Sec. 1. DECLARATION OF PUBLIC POLICY. The purpose of this chapter, to be known as the children's initiative act, is to increase our state's commitment to addressing the needs of children for prevention, early detection, and treatment of abuse and neglect, for adequate nutrition and support, for access to necessary health care, for treatment of developmental disabilities, mental illness, and substance abuse, for affordable child care, for necessary social services, for a high quality education from early childhood through the twelfth grade, and for other services essential for their survival and well-being. It is the further purpose of this chapter to address these needs in an efficient and effective manner which minimizes administrative costs.

NEW SECTION. Sec. 2. CHILDREN'S INITIATIVE FUND. (1) There is created in the state treasury a fund to be known as the children's initiative fund.

(2) The children's initiative fund shall consist of the following two accounts:

(a) The children's services and support account; and

(b) The K-12 education account.

(3) Of the moneys deposited in the children's initiative fund, fifty percent shall be credited to the children's service and support account and fifty percent shall be credited to the K-12 education account.

(4) Except for unanticipated receipts under RCW 43.79.260 through 43.79.282, moneys in the children's initiative fund may be spent only after appropriation by statute.

(5) All earnings from investment of balances in the children's initiative fund, except as provided in RCW 43.84.090, shall be deposited in the children's initiative fund.

NEW SECTION. Sec. 3. LIMITATION OF USES OF CHILDREN'S INITIATIVE FUND MONEYS. (1) Moneys in the children's services and support account of the children's initiative fund may be appropriated by the legislature only to the department of social and health services, the department of community development, and other state agencies that provide services and support for children and their families for the following programs and purposes:

(a) Prevention and early intervention services;

(b) Services for abused and neglected children;

(d) Early childhood education;

(e) Child care;

(f) Family support services;

(g) Out-of-home placements;

(h) Children's mental health services;

(i) Developmental disabilities services;

(j) Prevention and treatment of substance abuse;

(k) Juvenile rehabilitation;

(l) The women, infant, and children nutrition program;

(m) Emergency services for homeless children;

(n) Increasing the availability of prenatal, delivery, and postnatal care for pregnant women and infants and the availability of health care for children;

(o) Increasing the payment standard for aid to families with dependent children; and

(p) Other programs that promote the health, protection, welfare, and education of children and their families, including the children's initiative fund oversight committee, except for programs eligible for funding under subsection (2) of this section.

(2) Moneys in the K-12 education account of the children's initiative fund may be appropriated by the legislature only to the superintendent of public instruction for the following common schools programs and purposes:

(a) Reducing class sizes, especially in elementary grades;

(b) Basic skills learning assistance programs;

(d) Programs for at-risk children and children from economically disadvantaged and minority backgrounds;

(e) In-service training for instructional staff; and

(f) Other programs and purposes which promote high quality education for children in kindergarten through the twelfth grade, including the children's initiative fund oversight committee.

Funds appropriated from the K-12 education account shall not be considered levy reduction funds as defined in RCW 84.52.0531(7).

NEW SECTION. Sec. 4. LIMITATION ON USE OF CHILDREN'S SERVICE AND SUPPORT ACCOUNT FUNDS IN THE BIENNIUM ENDING JUNE 30, 1991. From the children's service and support account of the children's initiative fund, there is appropriated $50,000,000, or so much thereof as may be necessary, for the fiscal year beginning July 1, 1990, and ending June 30, 1991, to the department of social and health services, not more than $25,000,000 of which is to be used to increase the payment standard for aid to families with dependent children by eight percent over the level of such payment standard as of July 1, 1988, which increase shall be added to any other increases in the payment standard in the biennium ending June 30, 1991, and, to the extent of the remaining available funds from this appropriation, to increase the availability of prenatal, delivery, and postnatal care for pregnant women and infants up to one year of age, and the availability of health care for children up to eight years of age, by expanding eligibility for medical assistance for categorically needy pregnant women and infants up to one year of age, and for children up to eight years of age, to the highest income and age levels for which federal financial participation is available under Title XIX of the federal social security act.

NEW SECTION. Sec. 5. INTENT TO PROHIBIT SUPPLANTING OF CURRENT PROGRAM FUNDING. Moneys may be appropriated from the children's initiative fund only to provide support and services in addition to such support and services as would be provided if the support and service levels of the programs eligible for funds from the children's initiative fund for the biennium ending June 30, 1989, adjusted in future biennia to reflect the impact of population change and inflation in the state, were fully funded in the biennium ending June 30, 1991, and in subsequent biennia. Nothing in this chapter shall prohibit additional funding from other sources of the agencies, programs, and purposes eligible for funds under this chapter.

NEW SECTION. Sec. 6. CHILDREN'S INITIATIVE FUND OVERSIGHT COMMITTEE. (1) To assist the governor and the legislature in determining which programs and purposes should be supported with appropriations from the children's initiative fund and whether children's initiative fund moneys are being spent in an efficient and effective manner that minimizes administrative costs, an oversight committee, to be known as the children's initiative fund oversight committee, is established. The committee shall have the authority to analyze the current and emerging needs of children in the state and to review and evaluate the efficiency and effectiveness of programs supported by the children's initiative fund in meeting these needs.

(2) All agency reports concerning program performance, including administrative review, quality control, and other internal audit or performance reports, which are requested by the committee, shall be furnished by the agency requested to provide such report.

(3) The committee shall annually report to the governor and the legislature. The committee's annual report shall include findings and recommendations on matters relating to the committee's purposes as defined in this section.

(4) The committee shall consist of fifteen members. Eleven of the members shall be appointed by the governor, six of whom shall be experienced authorities on the programs eligible for funding by the children's initiative fund and five of whom shall be representatives of the general public. One member of the committee shall be selected by the two largest political caucuses in each house of the state legislature. The chair of the committee shall be designated by the governor from among the representatives of the general public.

(5) The initial members shall be appointed within sixty days of the effective date of this section. Of the initial members, four nonlegislative members and one legislative member shall be appointed for three years, four nonlegislative members and two legislative members shall be appointed for two years, and three nonlegislative members and one legislative member shall be appointed for one year. A legislative member shall serve as long as he or she is a member of the caucus from which he or she was appointed. Successors to the initial members shall serve for a term of three years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which the predecessor was appointed shall be appointed for the remainder of such term. Vacancies shall be filled within sixty days of their occurrence.

(6) Nonlegislative members of the committee shall receive reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060. Legislative members shall be reimbursed pursuant to RCW 44.04.120.

NEW SECTION. Sec. 7. INTENT ON SOURCE OF MONEYS FOR CHILDREN'S INITIATIVE FUND. (1) It is the intent of this chapter that the raising of revenues for the purposes of this chapter, as well as the raising of revenues for all other purposes of state government, shall be done in a fashion which fairly and equitably distributes the burdens of taxation among the state's taxpayers, protects those with the lowest incomes, promotes business development and economic growth in the state, and assures a stable funding base for state services that is sufficient to meet the needs of state government, including the purposes of this chapter. No cause of action may lie to enforce this subsection.

(2) The source of moneys for the children's initiative fund shall be new or increased taxes, which means one or more of the following:

(a) An increase in the rate of any tax which was in effect as of July 1, 1988;

(b) An increase in the base of any tax which was in effect as of July 1, 1988; or

Funding from sources other than the children's initiative fund for the activities of state government, including those eligible for support from the children's initiative fund, shall not be reduced in order to provide moneys for the children's initiative fund.

(3) The tax increases specified in sections 8 and 9 of this act are imposed only for the purpose of making this chapter legally enforceable in the event the legislature fails to impose new or increased taxes which meet the specifications of subsection (1) of this section in order to provide sufficient moneys for the purposes of this chapter. It is the intent of this chapter that if the tax increases specified in sections 8 and 9 of this act are imposed, such increases will be repealed as soon as possible and replaced with taxes that meet the specifications of subsection (1) of this section, and that provide support for the children's initiative fund comparable to that provided by the tax increases imposed in sections 8 and 9 of this act.

NEW SECTION. Sec. 8. ALTERNATIVE ADDITIONAL TAX. A new section is added to chapter 82.08 RCW to read as follows:

Prior to June 1, 1990, if new or increased taxes sufficient to generate at least $360,000,000 during the fiscal year beginning July 1, 1990, and ending June 30, 1991, have not been imposed and if at least $360,000,000 of the proceeds of such new or increased taxes have not been directed to be deposited in the children's initiative fund during such fiscal year, there is levied and shall be collected, as of June 1, 1990, an additional tax on each retail sale in this state equal to nine-tenths of one percent of the selling price. The moneys collected as a result of the increases specified in this section shall be deposited in the general fund for transfer to the children's initiative fund.

NEW SECTION. Sec. 9. ALTERNATIVE ADDITIONAL TAX. A new section is added to chapter 82.12 RCW to read as follows:

Prior to June 1, 1990, if new or increased taxes sufficient to generate at least $360,000,000 during the fiscal year beginning July 1, 1990, and ending June 30, 1991, have not been imposed and if at least $360,000,000 of the proceeds of such new or increased taxes have not been directed to be deposited in the children's initiative fund during such fiscal year, there is levied and shall be collected, as of June 1, 1990, an additional tax on each use by any person of property subject to tax under RCW 82.12.020 equal to nine-tenths of one percent of the value of the article used by the taxpayer. For purposes of computing the tax under this chapter, the rate of this additional tax shall be added to the rate in effect for the retail sales tax under RCW 82.08.020, in the county in which the article is used. The moneys collected as a result of the increase specified in this section shall be deposited in the general fund for transfer to the children's initiative fund.

NEW SECTION. Sec. 10. IMPLEMENTATION OF INCREASED TAXES. The director of revenue shall immediately take all necessary steps, within the authority granted to the director under RCW 82.01.060, to ensure that any new or increased taxes imposed to carry out the purposes of this act are assessed and collected on the applicable effective date of such tax increases.

NEW SECTION. Sec. 11. SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12. CONSTRUCTION. The provisions of this act are to be liberally construed to effectuate the policies and purposes of this act. In the event of conflict between the provisions of this act and any other act, the provisions of this act shall govern.

NEW SECTION. Sec. 13. CAPTIONS. As used in this act, captions constitute no part of the law.

NEW SECTION. Sec. 14. SHORT TITLE. This act shall be known as the children's initiative act.

NEW SECTION. Sec. 15. LEGISLATIVE DIRECTIVE. Sections 1 through 3 and 5 through 7 of this act shall constitute a new chapter in Title 74 RCW.

NEW SECTION. Sec. 16. EFFECTIVE DATE. This act shall take effect June 1, 1990.