NOTICE: Formatting and page numbering in this document may be different

from that in the original published version.


SECOND DAY


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AFTERNOON SESSION


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Senate Chamber, Olympia, Tuesday, January 9, 1996

      The Senate was called to order at 3:30 p.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present.

      The Sergeant at Arms Color Guard, consisting of Pages Reed McNeil and Steven McCarron, presented the Colors. Reverend Bruce Armstrong, pastor of the Lacey Presbyterian Church, offered the prayer.


MOTION


      On motion of Senator Spanel, the reading of the Journal of the previous day was dispensed with and it was approved.


MESSAGES FROM THE GOVERNOR

GUBERNATORIAL APPOINTMENTS


January 4, 1996

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following appointment, subject to your confirmation.

      Kristianne Blake, appointed January 4, 1996, for a term ending September 30, 1997, as a member of the Spokane Joint Center for Higher Education.

Sincerely,

MIKE LOWRY, Governor

      Referred to Committee on Higher Education.


January 4, 1996

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following reappointment, subject to your confirmation.

      David Clack, reappointed January 4, 1996, for a term ending September 30, 1999, as a member of the Spokane Joint Center for Higher Education.

Sincerely,

MIKE LOWRY, Governor

      Referred to Committee on Higher Education.


January 4, 1996

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following reappointment, subject to your confirmation.

      Maurice McGrath, reappointed January 4, 1996, for a term ending September 30, 1999, as a member of the Spokane Joint Center for Higher Education.

Sincerely,

MIKE LOWRY, Governor

      Referred to Committee on Higher Education.


January 4, 1996

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following reappointment, subject to your confirmation.

      Judge Michael Spearman, reappointed January 4, 1996, for a term ending August 2, 1998, as a member of the Sentencing Guidelines Commission.

Sincerely,

MIKE LOWRY, Governor

      Referred to Committee on Law and Justice.


January 4, 1996

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following reappointment, subject to your confirmation.

      Carol A. Wendle, reappointed January 4, 1996, for a term ending September 30, 1999, as a member of the Spokane Joint Center for Higher Education.

Sincerely,

MIKE LOWRY, Governor

      Referred to Committee on Higher Education.


INTRODUCTION AND FIRST READING

 

SB 6196             by Senator Morton

 

AN ACT Relating to shoreline management exemptions; and reenacting and amending RCW 90.58.030.

 

Referred to Committee on Ecology and Parks.

 

SB 6197             by Senator Swecker

 

AN ACT Relating to water supply augmentation; amending RCW 90.03.370; adding new sections to chapter 90.03 RCW; adding a new section to chapter 90.44 RCW; and creating new sections.

 

Referred to Committee on Ecology and Parks.

 

SB 6198             by Senators Long and Fraser (by request of Department of Retirement Systems)

 

AN ACT Relating to collection of state retirement system overpayments; and adding new sections to chapter 41.50 RCW.

 

Referred to Committee on Ways and Means.

 

SB 6199             by Senator Snyder

 

AN ACT Relating to tax deferrals for a new destination resort hotel; and adding a new chapter to Title 82 RCW.

 

Referred to Committee on Ways and Means.

 

SB 6200             by Senators Hargrove, A. Anderson, Fraser, Owen, Swecker, Spanel, Morton, Haugen and Rasmussen

 

AN ACT Relating to county excise tax on harvesters of timber; and amending RCW 84.33.051.

 

Referred to Committee on Ways and Means.

 

SB 6201             by Senators Haugen, Winsley, A. Anderson and McCaslin

 

AN ACT Relating to the powers of initiative and referendum within counties; and adding new sections to chapter 36.01 RCW.

 

Referred to Committee on Government Operations.

 

SB 6202             by Senators Haugen and McCaslin

 

AN ACT Relating to five-member boards of county commissioners; and amending RCW 36.32.055.

 

Referred to Committee on Government Operations.

 

SB 6203             by Senators Haugen, Winsley and Fraser

 

AN ACT Relating to acquiring and maintaining conservation areas; amending RCW 82.46.070; adding a new section to chapter 82.45 RCW; adding a new section to chapter 43.99 RCW; and providing for submission of this act to a vote of the people.

 

Referred to Committee on Government Operations.

 

SB 6204             by Senators Haugen, Smith, Winsley, Hale and Schow

 

AN ACT Relating to penalties for driving without a driver's license and negligent driving; amending RCW 46.61.525; reenacting and amending RCW 46.20.021 and 46.63.020; adding a new section to chapter 46.61 RCW; and prescribing penalties.

 

Referred to Committee on Law and Justice.

 

SB 6205             by Senators Haugen, Winsley, Quigley and Long

 

AN ACT Relating to new counties; amending RCW 36.09.010, 36.09.020, 2.06.030, 36.32.020, and 84.09.030; adding new sections to chapter 36.09 RCW; adding a new section to chapter 47.01 RCW; creating new sections; recodifying RCW 36.09.010 and 36.09.020; repealing RCW 4.12.070, 36.09.035, 36.09.040, and 36.09.050; and prescribing penalties.

 

Referred to Committee on Government Operations.

 

SB 6206             by Senators Haugen, Pelz, Winsley, Hale and Prentice

 

AN ACT Relating to the program regulating cosmetology, barbering, esthetics, and manicuring; amending RCW 18.16.050, 18.16.150, and 18.16.175; and adding a new section to chapter 18.16 RCW.

 

Referred to Committee on Labor, Commerce and Trade.

 

SB 6207             by Senators Haugen, Smith, Winsley, Hale, Long, Schow, Roach, Kohl, Prentice and Heavey

 

AN ACT Relating to investigative interviews of child victim witnesses; adding a new section to chapter 9.73 RCW; and creating new sections.

 

Referred to Committee on Law and Justice.

 

SB 6208             by Senators Haugen, Johnson, Bauer, Winsley and Schow

 

AN ACT Relating to misdemeanant probation services; and amending RCW 10.64.120.

 

Referred to Committee on Human Services and Corrections.

 

SB 6209             by Senators Wojahn, Snyder, McDonald and Sellar

 

AN ACT Relating to special license plates for vehicles registered to foreign organizations; and amending RCW 46.16.371.

 

Referred to Committee on Transportation.

 

SB 6210             by Senators Fraser, Swecker, Drew, Owen, Oke, Prentice, A. Anderson, Strannigan, Haugen, Bauer and Rasmussen

 

AN ACT Relating to habitat mitigation; adding new sections to chapter 90.48 RCW; and adding new sections to chapter 75.20 RCW.

 

Referred to Committee on Ecology and Parks.

 

SB 6211             by Senators Haugen, Smith, Hale, McCaslin and Hochstatter

 

AN ACT Relating to criminal justice costs; adding a new section to chapter 39.34 RCW; and providing an effective date.

 

Referred to Committee on Government Operations.

 

SB 6212             by Senators Winsley, Rasmussen and Haugen

 

AN ACT Relating to noxious aquatic weeds; adding new sections to chapter 90.48 RCW; creating a new section; and declaring an emergency.

 

Referred to Committee on Ecology and Parks.

 

SB 6213             by Senators Morton, Loveland, Haugen, Swecker, Hale, McDonald, Sellar and Schow

 

AN ACT Relating to definitions for emergency management; and amending RCW 38.52.010.

 

Referred to Committee on Government Operations.

 

SB 6214             by Senators Snyder, Newhouse, Rasmussen, Morton, Prince and Hargrove

 

AN ACT Relating to horticultural facilities; amending RCW 19.27.015; adding a new section to chapter 19.27 RCW; and declaring an emergency.

 

Referred to Committee on Agriculture and Agricultural Trade and Development.

 

SB 6215             by Senators Bauer, Long, Fraser and Winsley (by request of Joint Committee on Pension Policy)

 

AN ACT Relating to the provision of a one-time adjustment of one and three hundred sixty-six thousands cents to the retirement allowance annual increase; adding a new section to chapter 41.32 RCW; adding a new section to chapter 41.40 RCW; creating a new section; and repealing RCW 41.04.275.

 

Referred to Committee on Ways and Means.

 

SB 6216             by Senator McAuliffe (by request of Board of Education and Superintendent of Public Instruction Billings)

 

AN ACT Relating to state board of education office staff; and amending RCW 28A.305.110 and 28A.300.020.

 

Referred to Committee on Education.

 

SB 6217             by Senators Johnson and McAuliffe (by request of Board of Education)

 

AN ACT Relating to demonstrating basic skills for entrance into a teacher preparation program; and amending RCW 28A.410.020.

 

Referred to Committee on Education.

 

SB 6218             by Senators Hargrove, Long and Kohl

 

AN ACT Relating to the protection of community public health and safety network members; and amending RCW 4.92.060, 4.92.070, and 4.92.075.

 

Referred to Committee on Human Services and Corrections.

 

SB 6219             by Senators Hargrove, Long and Kohl

 

AN ACT Relating to revisions to the membership of community public health and safety networks; amending RCW 70.190.060; and creating a new section.

 

Referred to Committee on Human Services and Corrections.

 

SB 6220             by Senators Owen, Moyer, Swecker, Sutherland, Drew, Rinehart, Goings, Snyder, Quigley, Haugen, Winsley, Oke, Roach, Bauer, Prentice, Hargrove, Sheldon, Wojahn, Finkbeiner and Rasmussen

 

AN ACT Relating to increased benefits for volunteer fire fighters; amending RCW 41.24.150 and 41.24.160; and providing an effective date.

 

Referred to Committee on Ways and Means.

 

SB 6221             by Senators Kohl, Long, Fairley, McAuliffe, Prentice, Franklin, Winsley, Oke, Bauer and Rasmussen

 

AN ACT Relating to biennial background checks of persons providing services to children, developmentally disabled persons, and vulnerable adults; amending RCW 43.43.832, 43.43.834, and 43.43.838; reenacting and amending RCW 43.43.840; and creating a new section.

 

Referred to Committee on Human Services and Corrections.

 

SB 6222             by Senators Pelz, Deccio and Newhouse (by request of Department of Labor and Industries)

 

AN ACT Relating to self-insurance administrative procedures; and amending RCW 51.14.090 and 51.32.190.

 

Referred to Committee on Labor, Commerce and Trade.

 

SB 6223             by Senators Pelz, Deccio and Newhouse (by request of Department of Labor and Industries)

 

AN ACT Relating to uniform construction trade administrative procedures; and amending RCW 18.27.030, 18.106.020, 18.106.100, 18.106.180, 18.106.200, 19.28.123, 19.28.350, 19.28.540, and 19.28.620.

 

Referred to Committee on Labor, Commerce and Trade.

 

SB 6224             by Senators Pelz, Deccio, Wojahn and Newhouse (by request of Department of Labor and Industries)

 

AN ACT Relating to providing flexibility for vocational rehabilitation benefits within the long-term disability pilot projects; amending RCW 51.32.095; and adding a new section to chapter 51.60 RCW.

 

Referred to Committee on Labor, Commerce and Trade.

 

SB 6225             by Senators Pelz, Deccio and Newhouse (by request of Department of Labor and Industries)

 

AN ACT Relating to employer assessments; amending RCW 51.16.155; and repealing RCW 51.48.070.

 

Referred to Committee on Labor, Commerce and Trade.

 

SB 6226             by Senators Bauer, Moyer, Haugen and Winsley

 

AN ACT Relating to the appointment of a medical examiner in more populous counties; amending RCW 36.16.030; and adding a new section to chapter 36.24 RCW.

 

Referred to Committee on Government Operations.

 

SB 6227             by Senators Kohl, Long, Fairley, Fraser, Thibaudeau, Franklin, Rasmussen, Oke and McAuliffe

 

AN ACT Relating to supervision of sex offenders; and amending RCW 72.09.340 and 9.94A.120.

 

Referred to Committee on Human Services and Corrections.

 

SB 6228             by Senators Kohl, Long, Fairley, Prentice, Thibaudeau, Fraser, Wojahn, Snyder, Sheldon, Franklin, Owen, Heavey, Rasmussen, Winsley, Bauer and McAuliffe

 

AN ACT Relating to protecting the developmentally disabled; adding a new section to chapter 4.16 RCW; and creating new sections.

 

Referred to Committee on Law and Justice.

 

SB 6229             by Senators Kohl, Pelz, Prentice, Fairley, Thibaudeau, Wojahn, Franklin and Quigley

 

AN ACT Relating to infant crib safety; adding a new chapter to Title 70 RCW; and prescribing penalties.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6230             by Senators Kohl, Fairley and Thibaudeau

 

AN ACT Relating to out-of-home care; amending RCW 74.13.090; adding new sections to chapter 74.15 RCW; creating a new section; and providing an effective date.

 

Referred to Committee on Human Services and Corrections.

 

SB 6231             by Senators Kohl, Long, Fairley, Strannigan, Wojahn, Hargrove, Haugen, Winsley, Bauer, Prentice and Rasmussen

 

AN ACT Relating to the placement of sexually aggressive youth; adding a new section to chapter 13.34 RCW; adding a new section to chapter 13.40 RCW; creating a new section; and providing an effective date.

 

Referred to Committee on Human Services and Corrections.

 

SB 6232             by Senators Fraser and Long (by request of Department of Retirement Systems)

 

AN ACT Relating to actuarially equivalent state retirement system survivor benefits; and amending RCW 41.40.270, 41.26.460, 41.32.530, 41.32.785, 41.40.188, 41.40.660, and 2.10.146.

 

Referred to Committee on Ways and Means.

 

SB 6233             by Senators Long and Oke (by request of Department of Retirement Systems)

 

AN ACT Relating to implementing the military service credit requirements of the federal uniformed services employment and reemployment act; amending RCW 41.26.520, 41.32.810, 41.32.865, and 41.40.710; and providing an effective date.

 

Referred to Committee on Ways and Means.

 

SB 6234             by Senators Fraser and Long (by request of Department of Retirement Systems)

 

AN ACT Relating to a member who dies prior to receiving the first disability retirement payment; and amending RCW 41.40.270.

 

Referred to Committee on Ways and Means.

 

SB 6235             by Senators Drew, McDonald, Haugen, Rinehart, Snyder, Kohl, Winsley, Sheldon, Bauer, Wood and Finkbeiner

 

AN ACT Relating to ethics, technology, and federal standards for conflicts in public service; and amending RCW 42.52.010, 42.52.020, 42.52.030, 42.52.050, 42.52.110, 42.52.120, and 42.52.160.

 

Referred to Committee on Government Operations.

 

SB 6236             by Senator Swecker

 

AN ACT Relating to shoreline management project completion timelines; and adding a new section to chapter 90.58 RCW.

 

Referred to Committee on Ecology and Parks.

 

SB 6237             by Senators Prince, Owen, Wood and Prentice

 

AN ACT Relating to vehicles using wireless communications and computer systems; and amending RCW 46.37.480.

 

Referred to Committee on Transportation.

 

SB 6238             by Senators Deccio, Loveland, Hale, Owen, McCaslin, Schow, Haugen, Moyer, Zarelli, Prince, Roach, Wood, Hochstatter, Newhouse, McDonald, Oke, Sellar, Swecker, A. Anderson, Johnson, West, Hargrove, Rasmussen, Bauer, McAuliffe and Finkbeiner

 

AN ACT Relating to the employment of minors; amending RCW 49.12.121; repealing RCW 49.12.123; and declaring an emergency.

 

Referred to Committee on Labor, Commerce and Trade.

 

SB 6239             by Senators Wojahn, Winsley, Thibaudeau, Loveland, Kohl, Long, Fairley, A. Anderson, Prentice, McAuliffe, Sheldon, Wood, Rinehart, Roach, Spanel, Hale, Drew, Franklin, Rasmussen, Snyder, Haugen, Fraser and Bauer

 

AN ACT Relating to osteoporosis prevention and treatment education; adding new sections to chapter 43.70 RCW; creating a new section; and making an appropriation.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6240             by Senators Wojahn, Winsley, Thibaudeau, Loveland, Kohl, Long, Fairley, Wood, Prentice, McAuliffe, Sheldon, Roach, Rinehart, Hale, Spanel, Franklin, Drew, Snyder, Rasmussen, Fraser and Bauer

 

AN ACT Relating to osteoporosis health services coverage; adding a new section to chapter 41.05 RCW; adding new sections to chapter 48.20 RCW; adding a new section to chapter 48.21 RCW; adding a new section to chapter 48.44 RCW; adding a new section to chapter 48.46 RCW; and creating new sections.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6241             by Senators Sellar and Snyder

 

AN ACT Relating to hotel and motel taxes in certain towns; and adding a new section to chapter 67.28 RCW.

 

Referred to Committee on Ways and Means.

 

SB 6242             by Senators Spanel, A. Anderson, Snyder, McDonald, Haugen and Kohl

 

AN ACT Relating to managing of salmon fisheries to assure harvest by Washington citizens of their full nontribal share; adding a new section to chapter 75.08 RCW; and creating a new section.

 

Referred to Committee on Natural Resources.

 

SB 6243             by Senators Goings, Hargrove, Rasmussen, Quigley, Bauer, Fraser, Drew, Smith, Wojahn, Franklin, Sheldon, Pelz, Snyder, Haugen, Heavey, Long, Oke, Wood and Johnson

 

AN ACT Relating to health care services for offenders sentenced to death; and amending RCW 72.10.020.

 

Referred to Committee on Human Services and Corrections.

 

SB 6244             by Senators Deccio, Winsley and Haugen

 

AN ACT Relating to election costs; and amending RCW 29.13.047.

 

Referred to Committee on Government Operations.

 

SB 6245             by Senators Thibaudeau, Prentice, Goings, Wood, Sheldon, Winsley, Quigley, Wojahn, Smith, Fraser, Moyer, Franklin, McAuliffe, Deccio and Rasmussen

 

AN ACT Relating to child death investigations; and adding a new section to chapter 74.13 RCW.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6246             by Senators Smith, Winsley, Oke, Long and Johnson

 

AN ACT Relating to false accusations of child abuse or neglect; amending RCW 26.09.191; adding new sections to chapter 26.44 RCW; and prescribing penalties.

 

Referred to Committee on Law and Justice.

 

SB 6247             by Senators Sheldon, Roach, Long, Quigley, Owen, Hale, Fairley, Swecker and Drew

 

AN ACT Relating to economic development; amending RCW 43.163.210; and declaring an emergency.

 

Referred to Committee on Ways and Means.

 

SB 6248             by Senators Quigley, Smith and Goings

 

AN ACT Relating to gifts to state officers and employees; and amending RCW 42.52.150.

 

Referred to Committee on Government Operations.

 

SB 6249             by Senators Quigley, Smith and Goings

 

AN ACT Relating to campaign finance reform; amending RCW 42.17.390, 42.17.395, 42.17.640, 42.17.510, 42.17.690, and 42.17.090; adding new sections to chapter 42.17 RCW; adding a new section to chapter 29.80 RCW; creating a new section; and prescribing penalties.

 

Referred to Committee on Law and Justice.

 

SB 6250             by Senators Owen, Swecker, McAuliffe, Haugen, Sheldon, Winsley, Rinehart, Fairley, Sellar and Cantu

 

AN ACT Relating to personal flotation devices; amending RCW 88.12.115; and prescribing penalties.

 

Referred to Committee on Ecology and Parks.

 

SB 6251             by Senators Rinehart and West (by request of Office of Financial Management)

 

AN ACT Relating to fiscal matters; amending 1995 2nd sp.s. c 18 ss 104, 110, 112, 113, 114, 117, 118, 119, 120, 121, 122, 125, 126, 128, 129, 134, 135, 137, 138, 139, 143, 144, 146, 152, 201, 202, 203, 204, 205, 206, 207, 208, 209, 211, 212, 213, 215, 218, 219, 221, 222, 223, 225, 226, 303, 304, 307, 309, 310, 312, 401, 402, 501, 502, 503, 504, 506, 508, 509, 510, 511, 513, 514, 515, 518, 519, 520, 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611, 615, 616, 617, 618, 619, 701, 702, 703, 704, 705, 711, 713, 714, 801, 802, 803, and 805 (uncodified); adding new sections to 1995 2nd sp.s. c 18 (uncodified); making appropriations; and declaring an emergency.

 

Referred to Committee on Ways and Means.

 

SB 6252             by Senators Smith, Kohl and Long (by request of Sentencing Guidelines Commission)

 

AN ACT Relating to classification of felonies; amending RCW 9.92.010; adding a new section to chapter 9.94A RCW; and prescribing penalties.

 

Referred to Committee on Law and Justice.

 

SB 6253             by Senators Smith, Kohl and Long (by request of Sentencing Guidelines Commission)

 

AN ACT Relating to the sentencing guidelines commission; amending RCW 9.94A.040, 9.94A.060, 13.40.025, 13.40.030, 13.50.010, and 72.09.300; amending 1995 c 269 s 3603 (uncodified); adding a new section to chapter 9.94A RCW; repealing RCW 13.40.027; providing an effective date; and declaring an emergency.

 

Referred to Committee on Law and Justice.

 

SB 6254             by Senators Wojahn, Winsley, Franklin, Rasmussen, Oke and Goings

 

AN ACT Relating to charitable, educational, penal, and reformatory real property; creating a new section; and declaring an emergency.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6255             by Senators Franklin, Wojahn, Kohl, Prentice, Quigley, Thibaudeau and Fairley

 

AN ACT Relating to approval by the insurance commissioner of premium rates; amending RCW 48.44.022, 48.44.023, 48.46.064, and 48.46.066; adding a new section to chapter 48.44 RCW; and adding a new section to chapter 48.46 RCW.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6256             by Senators Franklin, Winsley, Wojahn, Kohl, Pelz, Owen, Bauer, Fairley, Rasmussen, Fraser, Thibaudeau, Prentice, Heavey, Quigley and McAuliffe

 

AN ACT Relating to funding severe trauma care services to individuals who are unable to pay; amending RCW 43.72.900; adding a new section to chapter 70.168 RCW; and creating new sections.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6257             by Senators Franklin, Hargrove, Goings, Long, Sheldon, Fairley, Wojahn, Prentice, Thibaudeau, Fraser and Heavey

 

AN ACT Relating to guardians and guardians ad litem for minors and incapacitated persons; amending RCW 2.56.030, 4.08.060, 8.25.270, 11.16.083, 11.52.014, 11.52.020, 11.76.080, 11.88.090, 11.92.190, 11.96.180, 13.24.050, 13.34.100, 13.34.120, 26.12.175, 26.26.140, 26.33.070, 26.44.053, 65.12.145, 90.03.150, and 91.08.230; adding a new section to chapter 2.56 RCW; adding new sections to chapter 11.88 RCW; adding new sections to chapter 13.34 RCW; adding new sections to chapter 26.12 RCW; and creating new sections.

 

Referred to Committee on Human Services and Corrections.

 

SB 6258             by Senators Wood, Moyer, Hochstatter, Hale, A. Anderson, McCaslin, Sellar, Morton, Oke, Roach, Strannigan, Johnson, McDonald, Winsley, Schow, Deccio, Swecker, Long, Zarelli, West, Newhouse, Cantu and Finkbeiner

 

AN ACT Relating to making welfare work; amending RCW 74.25.010, 74.25.020, 74.12.420, 26.16.205, 74.20A.020, 74.12.255, 13.34.160, 74.12.250, 74.08.025, 74.08.080, and 74.08.340; reenacting and amending RCW 74.04.005; adding new sections to chapter 74.25 RCW; adding new sections to chapter 74.12 RCW; adding a new section to chapter 44.28 RCW; creating new sections; repealing RCW 74.08.120 and 74.08.125; repealing 1993 c 312 s 7; repealing 1992 c 136 s 1; repealing 1992 c 165 s 1; and providing contingent effective dates.

 

Referred to Committee on Health and Long-Term Care.

 

SB 6259             by Senators Wood, Hochstatter, Prince, Winsley, Schow, Roach, Johnson and Finkbeiner

 

AN ACT Relating to motorcycle equipment; amending RCW 46.37.530 and 46.37.535.

 

Referred to Committee on Transportation.

 

SCR 8426          by Senators Wojahn, Winsley, Rasmussen, Franklin, Oke and Goings

 

Resolving to retain independent legal counsel to determine the legal status of granted lands in the Fort Steilacoom Military Reservation.

 

Referred to Committee on Health and Long-Term Care.


MOTION


      At 3:39 p.m., on motion of Senator Spanel, the Senate was declared to be at ease.


      The Senate was called to order at 4:03 p.m. by President Pritchard.


SECOND READING


      SENATE BILL NO. 6117, by Senators Quigley, Loveland, Snyder, Rinehart, Spanel, Rasmussen, Thibaudeau, Hale, Swecker, Prince, Long, Morton, West, Deccio, Moyer, Zarelli, McCaslin, Johnson, Strannigan, Finkbeiner, Hochstatter, Wood, A. Anderson, Cantu, Sellar, Schow, McDonald, Winsley, Sheldon, Haugen, Goings, Heavey, Bauer, Drew, McAuliffe, Franklin, Newhouse and Oke

 

Reducing business and occupation tax rates.


      The bill was read the second time.


MOTION


      Senator Deccio moved that the following amendment by Senators Deccio, Hale, Swecker, Morton, Strannigan, Roach, Schow, Zarelli, Newhouse, Wood, Anderson, Hochstatter, Moyer, Cantu, Oke, West, McCaslin, McDonald and Johnson be adopted:

      On page 1, beginning on line 7, strike all of sections 1 and 2 and insert the following:

      "Sec. 1. RCW 82.04.255 and 1993 sp.s. c 25 s 202 are each amended to read as follows:

      Upon every person engaging within the state as a real estate broker; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of ((2.0)) 1.5 percent.

      The measure of the tax on real estate commissions earned by the real estate broker shall be the gross commission earned by the particular real estate brokerage office including that portion of the commission paid to salesmen or associate brokers in the same office on a particular transaction: PROVIDED, HOWEVER, That where a real estate commission is divided between an originating brokerage office and a cooperating brokerage office on a particular transaction, each brokerage office shall pay the tax only upon their respective shares of said commission: AND PROVIDED FURTHER, That where the brokerage office has paid the tax as provided herein, salesmen or associate brokers within the same brokerage office shall not be required to pay a similar tax upon the same transaction.

      Sec. 2. RCW 82.04.290 and 1995 c 229 s 3 are each amended to read as follows:

      (1) Upon every person engaging within this state in the business of providing selected business services other than or in addition to those enumerated in RCW 82.04.250 or 82.04.270; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of ((2.5)) 1.5 percent.

      (2) Upon every person engaging within this state in banking, loan, security, investment management, investment advisory, or other financial businesses, other than or in addition to those enumerated in subsection (3) of this section; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of ((1.70)) 1.5 percent.

      (3) Upon every person engaging within this state in the business of providing international investment management services, as to such persons, the amount of tax with respect to such business shall be equal to the gross income or gross proceeds of sales of the business multiplied by a rate of 0.275 percent.

      (4) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, and 82.04.280, and subsections (1), (2), and (3) of this section; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of ((2.0)) 1.5 percent.

      This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale." The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section."

      Debate ensued.

      Senator West demanded a roll call and the demand was sustained.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Deccio, Hale, Swecker, Morton, Strannigan, Roach, Schow, Zarelli, Newhouse, Wood, Anderson, Hochstatter, Moyer, Cantu, Oke, West, McCaslin, McDonald and Johnson on page 1, beginning on line 7, to Senate Bill No. 6117.


ROLL CALL


      The Secretary called the roll and the amendment was not adopted by the following vote: Yeas, 23; Nays, 26; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Cantu, Deccio, Finkbeiner, Hale, Hochstatter, Johnson, Long, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Roach, Schow, Sellar, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 23.

      Voting nay: Senators Bauer, Drew, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Heavey, Kohl, Loveland, McAuliffe, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Sheldon, Smith, Snyder, Spanel, Sutherland, Thibaudeau and Wojahn - 26.


MOTION


      Senator McDonald moved that the following amendment by Senators McDonald, Finkbeiner, Schow, Johnson, McCaslin, Zarelli, Strannigan, Long, Prince, Roach, Swecker, Newhouse, Deccio, Morton, Hochstatter, Moyer, Hale and Cantu be adopted:

      On page 4, after line 18, strike all of section 5 and insert the following:

      "NEW SECTION. Sec. 5. This act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof."

      Debate ensued.


POINT OF INQUIRY


      Senator McDonald: "Senator Rinehart, if this is not adopted and if what, I think, is inevitable, the Governor vetoes this measure, is it your intention then to bring it up for a vote and have a positive vote on overriding his veto?"

      Senator Rinehart: "Senator McDonald, if in fact, that occurs, we will have a reasoned discussion and at that time we will make a decision. One of the first things I ever learned in this career is to never answer hypothetical questions."


POINT OF INQUIRY


      Senator McDonald: "Senator Snyder, we have had this discussion on several occasions and you have answered in the affirmative at least in those discussions and I wondered if it is your intention, if the Governor vetoes this, that we will have an override vote and a positive vote on this?"

      Senator Snyder: "I agree with Senator Rinehart. It is hard to deal in hypothetical questions, but it is our intent to have a reduction in the B & O tax in place before we leave here in sixty days or fifty-eight days or fifty-nine days, whatever it is--and by whatever means it takes to implement that."

      Further debate ensued.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators McDonald, Finkbeiner, Schow, Johnson, McCaslin, Zarelli, Strannigan, Long, Prince, Roach, Swecker, Newhouse, Deccio, Morton, Hochstatter, Moyer, Hale and Cantu on page 4, after line 18, to Senate Bill No. 6117.

      The motion by Senator McDonald failed and the amendment was not adopted.


MOTION


      On motion of Senator Rinehart, the rules were suspended, Senate Bill No. 6117 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6117.

 

ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 6117 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 3; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.

      Voting nay: Senators Fraser, Pelz and Sutherland - 3.

       SENATE BILL NO. 6117, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 6118, by Senators Sheldon, Loveland, Snyder, Rinehart, Spanel, Rasmussen, Thibaudeau, Hale, Long, Morton, West, Finkbeiner, Sellar, Winsley, Haugen, Goings, Heavey, Bauer, Drew, Quigley, McAuliffe, Newhouse and Oke

 

Reducing the state property tax levy for 1996 and thereafter.


      The bill was read the second time.


MOTION


      Senator Rinehart moved that the following amendment by Senators Rinehart and West be adopted:

       Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 84.55 RCW to read as follows:

      (1) As used in this section, "full levy" means the levy amount that would be allowed otherwise under this chapter without regard to this section or RCW 84.55.012.

      (2) The state levy for collection in 1996 shall be reduced by five percent of the full levy for that year. State levies for collection after 1996 shall not exceed the amount that would be allowed otherwise under this chapter if the state levy for collection in 1996 had been set at ninety-five percent of the full levy for that year.

      (3) Levies collected before 1996 shall not be used as a base for calculating limits for state levies for collection after 1996.

      (4) Levies collected before any reduction under RCW 43.135.045 shall not be used as a base for calculating limits for state levies for collection in following years.

      Sec. 2. RCW 43.135.045 and 1994 c 2 s 3 are each amended to read as follows:

      (1) The property tax reduction fund and the emergency reserve fund ((is)) are established in the state treasury. During each fiscal year, the state treasurer shall deposit in the ((emergency reserve)) property tax reduction fund all general fund--state revenues in excess of the state expenditure limit for that fiscal year. Deposits shall be made at the end of each fiscal quarter based on projections of state revenues and the state expenditure limit.

      The amount transferred into the property tax reduction fund in any fiscal year may not exceed the amount of tax that would otherwise be levied by the state for the support of the common schools for collection in the second calendar year following the end of the fiscal year, as forecast by the economic and revenue forecast council. All general fund--state revenues for any fiscal year in excess of the amount of tax that would otherwise be levied by the state for the support of the common schools for collection in the second calendar year following the end of the fiscal year, as forecast by the economic and revenue forecast council, shall be deposited into the emergency reserve fund.

      The budget document submitted to the legislature by the governor under RCW 43.88.030 shall include a transfer to the general fund, for purposes of reducing the state levy for the support of the common schools, of the amounts deposited in the property tax reduction fund for the previous fiscal year. Moneys deposited in the property tax reduction fund during a fiscal year are subject in the next fiscal year to either: (a) Transfer to the general fund for purposes of reducing the state levy for the support of the common schools in the calendar year following the fiscal year in which the transfer is made; or (b) transfer by the legislature to the emergency reserve fund. Any moneys transferred to the general fund for this purpose shall be credited against the levy under RCW 84.52.065 for collection in the calendar year following the fiscal year in which the transfer is made. Any moneys deposited into the property tax reduction fund in any fiscal year that are not transferred by the legislature in the following fiscal year shall be transferred by the state treasurer to the emergency reserve fund under subsection (2) of this section on September 1st of the second fiscal year following the year in which the moneys were deposited into the property tax reduction fund.

      (2) The legislature may appropriate moneys from the emergency reserve fund only with approval of at least two-thirds of the members of each house of the legislature, and then only if the appropriation does not cause total expenditures to exceed the state expenditure limit under this chapter.

      (3) The emergency reserve fund balance shall not exceed five percent of biennial general fund--state revenues as projected by the official state revenue forecast. Any balance in excess of five percent shall be transferred on a quarterly basis by the state treasurer to the education construction fund hereby created in the treasury.

      (4)(a) Funds may be appropriated from the education construction fund exclusively for common school construction or higher education construction.

      (b) Funds may be appropriated for any other purpose only if approved by a two-thirds vote of each house of the legislature and if approved by a vote of the people at the next general election. An appropriation approved by the people under this subsection shall result in an adjustment to the state expenditure limit only for the fiscal period for which the appropriation is made and shall not affect any subsequent fiscal period.

      Sec. 3. RCW 84.48.080 and 1995 2nd sp.s. c 13 s 3 are each amended to read as follows:

      (1) Annually during the months of September and October, the department of revenue shall examine and compare the returns of the assessment of the property in the several counties of the state, and the assessment of the property of railroad and other companies assessed by the department, and proceed to equalize the same, so that each county in the state shall pay its due and just proportion of the taxes for state purposes for such assessment year, according to the ratio the valuation of the property in each county bears to the total valuation of all property in the state.

      First. The department shall classify all property, real and personal, and shall raise and lower the valuation of any class of property in any county to a value that shall be equal, so far as possible, to the true and fair value of such class as of January 1st of the current year for the purpose of ascertaining the just amount of tax due from each county for state purposes. In equalizing personal property as of January 1st of the current year, the department shall use the assessment level of the preceding year. Such classification may be on the basis of types of property, geographical areas, or both. For purposes of this section, for each county that has not provided the department with an assessment return by December 1st, the department shall proceed, using facts and information and in a manner it deems appropriate, to estimate the value of each class of property in the county.

      Second. The department shall keep a full record of its proceedings and the same shall be published annually by the department.

      (2) The department shall levy the state taxes authorized by law. The amount levied in any one year for general state purposes shall not exceed the lawful dollar rate on the dollar of the assessed value of the property of the entire state, which assessed value shall be one hundred percent of the true and fair value of such property in money. The department shall apportion the amount of tax for state purposes levied by the department, among the several counties, in proportion to the valuation of the taxable property of the county for the year as equalized by the department: PROVIDED, That for purposes of this apportionment, the department shall recompute the previous year's levy and the apportionment thereof to correct for changes and errors in taxable values reported to the department after October 1 of the preceding year and shall adjust the apportioned amount of the current year's state levy for each county by the difference between the apportioned amounts established by the original and revised levy computations for the previous year. For purposes of this section, changes in taxable values mean a final adjustment made by a county board of equalization, the state board of tax appeals, or a court of competent jurisdiction and shall include additions of omitted property, other additions or deletions from the assessment or tax rolls, any assessment return provided by a county to the department subsequent to December 1st, or a change in the indicated ratio of a county. Errors in taxable values mean errors corrected by a final reviewing body.

      In addition to computing a levy under this subsection that is reduced under RCW 43.135.045 or 84.55.012, the department shall compute a hypothetical levy without regard to the reduction under RCW 43.135.045 or 84.55.012. This hypothetical levy shall also be apportioned among the several counties in proportion to the valuation of the taxable property of the county for the year, as equalized by the department, in the same manner as the actual levy and shall be used by the county assessors for the purpose of recomputing and establishing a consolidated levy under RCW 84.52.010.

      (3) The department shall have authority to adopt rules and regulations to enforce obedience to its orders in all matters in relation to the returns of county assessments, the equalization of values, and the apportionment of the state levy by the department.

      (4) After the completion of the duties prescribed in this section, the director of the department shall certify the record of the proceedings of the department under this section, the tax levies made for state purposes and the apportionment thereof among the counties, and the certification shall be available for public inspection.

      Sec. 4. RCW 84.52.010 and 1995 2nd sp.s. c 13 s 4 are each amended to read as follows:

      Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

      The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

      When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

      (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows: (a) The portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; (b) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

      (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

      (a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

      (b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

      (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

      (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

      (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, library districts, metropolitan park districts under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

      In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 43.135.045 or 84.55.012.

      Sec. 5. RCW 84.56.010 and 1994 c 301 s 50 are each amended to read as follows:

      On or before the first Monday in January next succeeding the date of levy of taxes the county treasurer shall establish tax rolls of his or her county as certified by the county assessor for such assessment year, and said rolls shall be preserved as a public record in the office of the county treasurer. The amount of said taxes levied and extended upon said rolls shall be charged to the treasurer in an account to be designated as treasurer's "Tax roll account" for . . . . . . and said rolls shall be full and sufficient authority for the county treasurer to receive and collect all taxes therein levied: PROVIDED, That the county treasurer shall in no case collect such taxes or issue receipts for the same or enter payment or satisfaction of such taxes upon said assessment rolls before the fifteenth day of February following: AND PROVIDED FURTHER, That in 1996 the county treasurer shall in no case collect such taxes or issue receipts for the same or enter payment or satisfaction of such taxes upon said assessment rolls before the fifteenth day of March.

      Sec. 6. RCW 84.56.070 and 1991 c 245 s 19 are each amended to read as follows:

      On the fifteenth day of February succeeding the levy of taxes, and for taxes collected in 1996 on the fifteenth day of March, the county treasurer shall proceed to collect all personal property taxes. The treasurer shall give notice by mail to all persons charged with personal property taxes, and if such taxes are not paid before they become delinquent, the treasurer shall forthwith proceed to collect the same. In the event that he or she is unable to collect the same when due, the treasurer shall prepare papers in distraint, which shall contain a description of the personal property, the amount of taxes, the amount of the accrued interest at the rate provided by law from the date of delinquency, and the name of the owner or reputed owner. The treasurer shall without demand or notice distrain sufficient goods and chattels belonging to the person charged with such taxes to pay the same, with interest at the rate provided by law from the date of delinquency, together with all accruing costs, and shall proceed to advertise the same by posting written notices in three public places in the county in which such property has been distrained, one of which places shall be at the county court house, such notice to state the time when and place where such property will be sold. The county treasurer, or the treasurer's deputy, shall tax the same fees for making the distraint and sale of goods and chattels for the payment of taxes as are allowed by law to sheriffs for making levy and sale of property on execution; traveling fees to be computed from the county seat of the county to the place of making distraint. If the taxes for which such property is distrained, and the interest and costs accruing thereon, are not paid before the date appointed for such sale, which shall be not less than ten days after the taking of such property, such treasurer or treasurer's designee shall proceed to sell such property at public auction, or so much thereof as shall be sufficient to pay such taxes, with interest and costs, and if there be any excess of money arising from the sale of any personal property, the treasurer shall pay such excess less any cost of the auction to the owner of the property so sold or to his or her legal representative: PROVIDED, That whenever it shall become necessary to distrain any standing timber owned separately from the ownership of the land upon which the same may stand, or any fish trap, pound net, reef net, set net or drag seine fishing location, or any other personal property as the treasurer shall determine to be incapable or reasonably impracticable of manual delivery, it shall be deemed to have been distrained and taken into possession when the treasurer shall have, at least thirty days before the date fixed for the sale thereof, filed with the auditor of the county wherein such property is located a notice in writing reciting that the treasurer has distrained such property, describing it, giving the name of the owner or reputed owner, the amount of the tax due, with interest, and the time and place of sale; a copy of the notice shall also be sent to the owner or reputed owner at his last known address, by registered letter at least thirty days prior to the date of sale: AND PROVIDED FURTHER, That if the county treasurer has reasonable grounds to believe that any personal property upon which taxes have been levied, but not paid, is about to be removed from the county where the same has been assessed, or is about to be destroyed, sold or disposed of, the county treasurer may demand such taxes, without the notice provided for in this section, and if necessary may forthwith distrain sufficient goods and chattels to pay the same.

      Sec. 7. RCW 43.84.092 and 1995 c 394 s 1 and 1995 c 122 s 12 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 Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services 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 municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the property tax reduction fund, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water 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 central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the department of licensing services account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the gasohol exemption holding account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, 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 small city account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation revolving loan 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. 8. 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 shall take effect immediately."


MOTION


      Senator Swecker moved that the following amendment by Senators Swecker, McCaslin and Strannigan to the striking amendment by Senators Rinehart and West be adopted:

      On page 1, beginning on line 7, strike section 1 and insert the following:

      "Sec. 1. RCW 84.52.065 and 1991 sp.s. c 31 s 16 are each amended to read as follows:

      (1) Subject to the limitations in RCW 84.55.010, in each year the state shall levy for collection in the following year for the support of common schools of the state a tax ((of three dollars and sixty cents per thousand dollars of assessed value)) at the rate specified in subsection (2) of this section upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue.

      (2) The rate of state tax in subsection (1) of this section shall be as follows:

      (a) Three dollars and sixty cents per thousand dollars of assessed value for taxes levied for collection in 1996, and before;

      (b) Three dollars per thousand dollars of assessed value for taxes levied for collection in 1997;

      (c) Two dollars and forty cents per thousand dollars of assessed value for taxes levied for collection in 1998;

      (d) One dollar and eighty cents per thousand dollars of assessed value for taxes levied for collection in 1999;

      (e) One dollar and twenty cents per thousand dollars of assessed value for taxes levied for collection in 2000; and

      (f) Sixty cents per thousand dollars of assessed value for taxes levied for collection in 2001.

      No tax may be levied under this section for taxes levied for collection in 2002 and thereafter.

      (3) As used in this section, "the support of common schools" includes the payment of the principal and interest on bonds issued for capital construction projects for the common schools.

      Sec. 2. RCW 84.52.043 and 1995 c 99 s 3 are each amended to read as follows:

      Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:

      (1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed ((three dollars and sixty cents)) the dollar rate per thousand dollars of assessed value specified in RCW 84.52.065 adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.

      (2) The aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and ninety cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection shall not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW 84.34.230; (d) levies for emergency medical care or emergency medical services imposed under RCW 84.52.069; (e) levies to finance affordable housing for very low-income housing imposed under RCW 84.52.105; and (f) the portions of levies by metropolitan park districts that are protected under RCW 84.52.120.

      Sec. 3. RCW 84.52.050 and 1973 1st ex.s. c 194 s 1 are each amended to read as follows:

      (1) Except as hereinafter provided, the aggregate of all tax levies upon real and personal property by the state and all taxing districts, now existing or hereafter created, shall not in any year exceed ((one percentum)) the following percentage of the true and fair value of such property in money: ((PROVIDED, HOWEVER, That))

      (a) For taxes levied for collection in 1996, and before, 1.0 percent;

      (b) For taxes levied for collection in 1997, 0.94 percent;

      (c) For taxes levied for collection in 1998, 0.88 percent;

      (d) For taxes levied for collection in 1999, 0.82 percent;

      (e) For taxes levied for collection in 2000, 0.76 percent;

      (f) For taxes levied for collection in 2001, 0.70 percent; and

      (g) For taxes levied for collection in 2002 and thereafter, 0.64 percent.

      (2) Nothing herein shall prevent levies at the rates now provided by law by or for any port or public utility district. The term "taxing district" for the purposes of this section shall mean any political subdivision, municipal corporation, district, or other governmental agency authorized by law to levy, or have levied for it, ad valorem taxes on property, other than a port or public utility district. Such aggregate limitation or any specific limitation imposed by law in conformity therewith may be exceeded only as authorized by law and in conformity with the provisions of Article VII, section 2(a), (b), or (c) of the Constitution of the state of Washington.

      (3) Nothing herein contained shall prohibit the legislature from allocating or reallocating the authority to levy taxes between the taxing districts of the state and its political subdivisions in a manner which complies with the aggregate tax limitation set forth in this section.

      Sec. 4. RCW 36.58.150 and 1984 c 186 s 25 are each amended to read as follows:

      (1) A solid waste disposal district shall not have the power to levy an annual levy without voter approval, but it shall have the power to levy a tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one year period to be used for operating or capital purposes whenever authorized by the electors of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      A solid waste disposal district may issue general obligation bonds for capital purposes only, subject to the limitations prescribed in RCW 39.36.020(1), and may provide for the retirement of the bonds by voter-approved bond retirement tax levies pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056. Such general obligation bonds shall be issued and sold in accordance with chapter 39.46 RCW.

      A solid waste disposal district may issue revenue bonds to fund its activities. Such revenue bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.

      (2) Notwithstanding subsection (1) of this section, such revenue bonds may be issued and sold in accordance with chapter 39.46 RCW.

      Sec. 5. RCW 36.60.040 and 1983 c 303 s 11 are each amended to read as follows:

      A county rail district is not authorized to impose a regular ad valorem property tax levy but may:

      (1) Levy an ad valorem property tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one-year period to be used for operating or capital purposes whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) Provide for the retirement of voter approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 6. RCW 36.69.145 and 1994 c 156 s 3 are each amended to read as follows:

      (1) A park and recreation district may impose regular property tax levies in an amount equal to sixty cents or less per thousand dollars of assessed value of property in the district in each year for six consecutive years when specifically authorized so to do by a majority of at least three-fifths of the voters thereof approving a proposition authorizing the levies submitted at a special election or at the regular election of the district, at which election the number of voters voting "yes" on the proposition shall constitute three-fifths of a number equal to forty per centum of the number of voters voting in such district at the last preceding general election when the number of voters voting on the proposition does not exceed forty per centum of the number of voters voting in such taxing district in the last preceding general election; or by a majority of at least three-fifths of the voters thereof voting on the proposition if the number of voters voting on the proposition exceeds forty per centum of the number of voters voting in such taxing district in the last preceding general election. A proposition authorizing the tax levies shall not be submitted by a park and recreation district more than twice in any twelve-month period. Ballot propositions shall conform with RCW 29.30.111. In the event a park and recreation district is levying property taxes, which in combination with property taxes levied by other taxing districts subject to the ((one percent)) limitation provided for in ((Article 7, section 2, of our state Constitution)) RCW 84.52.050 result in taxes in excess of the limitation provided for in RCW 84.52.043, the park and recreation district property tax levy shall be reduced or eliminated before the property tax levies of other taxing districts are reduced.

      (2) The limitation in RCW 84.55.010 shall not apply to the first levy imposed under this section following the approval of the levies by the voters under subsection (1) of this section.

      Sec. 7. RCW 36.73.060 and 1987 c 327 s 6 are each amended to read as follows:

      (1) A transportation benefit district may levy an ad valorem property tax in excess of the ((one percent)) limitation in RCW 84.52.050 upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) A district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies in excess of the one percent limitation whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 8. RCW 36.83.030 and 1983 c 130 s 3 are each amended to read as follows:

      (1) A service district may levy an ad valorem property tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) A service district may provide for the retirement of voter approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 9. RCW 36.100.050 and 1988 ex.s. c 1 s 15 are each amended to read as follows:

      (1) A public facilities district may levy an ad valorem property tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one-year period to be used for operating or capital purposes whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) A public facilities district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 10. RCW 67.38.130 and 1984 c 131 s 4 are each amended to read as follows:

      The governing body of a cultural arts, stadium and convention district may levy or cause to levy the following ad valorem taxes:

      (1) Regular ad valorem property tax levies in an amount equal to twenty-five cents or less per thousand dollars of the assessed value of property in the district in each year for six consecutive years when specifically authorized so to do by a majority of at least three-fifths of the electors thereof approving a proposition authorizing the levies submitted at a general or special election, at which election the number of persons voting "yes" on the proposition shall constitute three-fifths of a number equal to forty percentum of the total votes cast in such taxing district at the last preceding general election; or by a majority of at least three-fifths of the electors thereof voting on the proposition when the number of electors voting yes on the proposition exceeds forty percentum of the total votes cast in such taxing district in the last preceding general election. Ballot propositions shall conform with RCW 29.30.111.

      In the event a cultural arts, stadium and convention district is levying property taxes, which in combination with property taxes levied by other taxing districts subject to the ((one percent)) limitation provided for in ((Article VII, section 2, of our state Constitution)) RCW 84.52.050 result in taxes in excess of the limitation provided for in RCW 84.52.043, the cultural arts, stadium and convention district property tax levy shall be reduced or eliminated before the property tax levies of other taxing districts are reduced: PROVIDED, That no cultural arts, stadium, and convention district may pledge anticipated revenues derived from the property tax herein authorized as security for payments of bonds issued pursuant to subsection (1) of this section: PROVIDED, FURTHER, That such limitation shall not apply to property taxes approved pursuant to subsections (2) and (3) of this section.

      The limitation in RCW 84.55.010 shall apply to levies after the first levy authorized under this section following the approval of such levy by voters pursuant to this section.

      (2) An annual excess ad valorem property tax for general district purposes when authorized by the district voters in the manner prescribed by ((section 2,)) Article VII, section 2 of the state Constitution and by RCW 84.52.052.

      (3) Multi-year excess ad valorem property tax levies used to retire general obligation bond issues when authorized by the district voters in the manner prescribed by ((section 2,)) Article VII, section 2 of the state Constitution and by RCW 84.52.056.

      The district shall include in its regular property tax levy for each year a sum sufficient to pay the interest and principal on all outstanding general obligation bonds issued without voter approval pursuant to RCW 67.38.110 and may include a sum sufficient to create a sinking fund for the redemption of all outstanding bonds.

      Sec. 11. RCW 84.52.010 and 1995 2nd sp.s. c 13 s 4 are each amended to read as follows:

      Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

      The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

      When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

      (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the ((one percent)) limitation under RCW 84.52.050 exceeds ((one percent of the true and fair value of any property)) the limitation under RCW 84.52.050, then these levies shall be reduced as follows: (a) The portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds ((one percent of the true and fair value of any property)) the limitation under RCW 84.52.050 or shall be eliminated; (b) if the combined rate of regular property tax levies that are subject to the ((one percent)) limitation under RCW 84.52.050 still exceeds ((one percent of the true and fair value of any property)) the limitation under RCW 84.52.050, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

      (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

      (a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

      (b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

      (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

      (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

      (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, library districts, metropolitan park districts under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

      In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 84.55.012.

      Sec. 12. RCW 84.69.020 and 1994 c 301 s 55 are each amended to read as follows:

      On the order of the county treasurer, ad valorem taxes paid before or after delinquency shall be refunded if they were:

      (1) Paid more than once; or

      (2) Paid as a result of manifest error in description; or

      (3) Paid as a result of a clerical error in extending the tax rolls; or

      (4) Paid as a result of other clerical errors in listing property; or

      (5) Paid with respect to improvements which did not exist on assessment date; or

      (6) Paid under levies or statutes adjudicated to be illegal or unconstitutional; or

      (7) Paid as a result of mistake, inadvertence, or lack of knowledge by any person exempted from paying real property taxes or a portion thereof pursuant to RCW 84.36.381 through 84.36.389, as now or hereafter amended; or

      (8) Paid as a result of mistake, inadvertence, or lack of knowledge by either a public official or employee or by any person with respect to real property in which the person paying the same has no legal interest; or

      (9) Paid on the basis of an assessed valuation which was appealed to the county board of equalization and ordered reduced by the board; or

      (10) Paid on the basis of an assessed valuation which was appealed to the state board of tax appeals and ordered reduced by the board: PROVIDED, That the amount refunded under subsections (9) and (10) of this section shall only be for the difference between the tax paid on the basis of the appealed valuation and the tax payable on the valuation adjusted in accordance with the board's order; or

      (11) Paid as a state property tax levied upon property, the assessed value of which has been established by the state board of tax appeals for the year of such levy: PROVIDED, HOWEVER, That the amount refunded shall only be for the difference between the state property tax paid and the amount of state property tax which would, when added to all other property taxes within the ((one percent)) limitation of Article VII, section 2 of the state Constitution equal ((one percent)) the percentage under RCW 84.52.050 of the assessed value established by the board;

      (12) Paid on the basis of an assessed valuation which was adjudicated to be unlawful or excessive: PROVIDED, That the amount refunded shall be for the difference between the amount of tax which was paid on the basis of the valuation adjudged unlawful or excessive and the amount of tax payable on the basis of the assessed valuation determined as a result of the proceeding; or

      (13) Paid on property acquired under RCW 84.60.050, and canceled under RCW 84.60.050(2).

      No refunds under the provisions of this section shall be made because of any error in determining the valuation of property, except as authorized in subsections (9), (10), (11), and (12) of this section nor may any refunds be made if a bona fide purchaser has acquired rights that would preclude the assessment and collection of the refunded tax from the property that should properly have been charged with the tax. Any refunds made on delinquent taxes shall include the proportionate amount of interest and penalties paid. The county treasurer may deduct from moneys collected for the benefit of the state's levy, refunds of the state levy including interest on the levy as provided by this section and chapter 84.68 RCW.

      The county treasurer of each county shall make all refunds determined to be authorized by this section, and by the first Monday in January of each year, report to the county legislative authority a list of all refunds made under this section during the previous year. The list is to include the name of the person receiving the refund, the amount of the refund, and the reason for the refund."

      Renumber the remaining sections and correct any internal references accordingly.

      Debate ensued.

      Senator West demanded a roll call and the demand was sustained.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Swecker, McCaslin and Strannigan on page 1, beginning on line 7, to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118.

ROLL CALL


      The Secretary called the roll and the amendment to the striking amendment was not adopted by the following vote: Yeas, 24; Nays, 25; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Cantu, Deccio, Finkbeiner, Hale, Hochstatter, Johnson, Long, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Prince, Roach, Schow, Sellar, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 24.

      Voting nay: Senators Bauer, Drew, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Heavey, Kohl, Loveland, McAuliffe, Owen, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Sheldon, Smith, Snyder, Spanel, Sutherland, Thibaudeau and Wojahn - 25.


MOTION


      Senator Swecker moved that the following amendment by Senators Swecker, McCaslin and Strannigan to the striking amendment by Senators Rinehart and West be adopted:

      On page 1, beginning on line 22, strike all of sections 2 through 7.

      Debate ensued.

      Senator West demanded a roll call and the demand was sustained.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Swecker, McCaslin and Strannigan on page 1, beginning on line 22, to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118.

ROLL CALL


      The Secretary called the roll and the amendment to the striking amendment was not adopted by the following vote: Yeas, 24; Nays, 25; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Cantu, Deccio, Finkbeiner, Hale, Hochstatter, Johnson, Long, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Prince, Roach, Schow, Sellar, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 24.

      Voting nay: Senators Bauer, Drew, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Heavey, Kohl, Loveland, McAuliffe, Owen, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Sheldon, Smith, Snyder, Spanel, Sutherland, Thibaudeau and Wojahn - 25.


MOTION


      At 4:47 p.m., on motion of Senator Spanel, the Senate retired to the House Chamber for the purpose of a Joint Session.


JOINT SESSION


      The Sergeant at Arms of the House announced the arrival of the Senate at the bar of the House.


      The Speaker of the House of Representatives instructed the Sergeant at Arms of the House and the Senate to escort the President of the Senate, Lieutenant Governor Joel Pritchard; President Pro Tempore R. Lorraine Wojahn; Vice President Pro Tempore Rosa Franklin; Majority Leader Sid Snyder and Minority Leader Dan McDonald to seats on the rostrum.


      The Speaker of the House of Representatives invited the Senators to seats within the House Chamber.


      The Speaker of the House of Representatives presented the gavel to President Pritchard.


      The Clerk of the House called the roll of members of the House.


      The Secretary of the Senate called the roll of members of the Senate.


      The President of the Senate announced the purpose of the Joint Session was to receive a message from His Excellency, Governor Mike Lowry.


      The President of the Senate appointed Senators Kohl and Morton and Representatives Foreman and Murray as a special committee to inform Governor Mike Lowry that the Joint Session had assembled and to escort him from his office to the House Chamber.


      The President of the Senate appointed Senators Johnson, Goings, Spanel and Long and Representatives Sheahan, Delvin, Lambert, Dellwo and Costa as a special committee to escort the Supreme Court Justices from the State Reception Room to the House Chamber.


      The President of the Senate appointed Senators Sheldon, Bauer, Oke and Winsley and Representatives Mitchell, Cairnes and Poulsen as a special committee to escort the State Elected Officials from the State Reception Room to the House Chamber.


      The President of the Senate greeted and introduced the Supreme Court Justices: Chief Justice Barbara Durham, Justice James M. Dolliver, Justice Richard Guy, Justice Charles Z. Smith, Justice Barbara Madson, Justice Gerry Alexander, Justice Phil Talmadge and Justice Richard Sanders.


      The President of the Senate greeted and introduced the State Elected Officials: Secretary of State, Ralph Munro; State Treasurer, Dan Grimm; State Attorney General, Christine Gregoire; Insurance Commissioner, Deborah Senn; State Auditor, Brian Sonntag and Superintendent of Public Instruction, Judith Billings.


      The President of the Senate welcomed and introduced the members of the Consular Corps:

      From the Russian Federation: Consul General Georgi Vlaskin, Dean of the Consular Corps of Washington. From Canada: Consul General Bernard Gagosz, First Vice Dean of the Consular Corps of Washington, and Consul Terry Storms. From Britain: Her Majesty's Consul Michael Upton. From the Federal Republic of Germany: Consul General Dr. Manfred Birmelin and Mrs. Birmelin. From Japan: Consul General Naotoshi Sugiuchi and Senior Consul Toyoshi Matsuyama. From the Republic of Korea: Consul General Kewin Kim and Mrs Kim. From Mexico: Consul Hugo Abel Castro and Mrs. Castro. From Taiwan: Director General Katharine Chang and Division Director Robert Chen.


      The President of the Senate welcomed and introduced Governor Lowry's wife, Mary, who was seated in the gallery.

  

      The President of the Senate turned the gavel over to the Speaker of the House of Representatives.


INTRODUCTION OF GOVERNOR BY SPEAKER BALLARD


      Speaker Ballard: "Having completed a year and now heading into a second session as Speaker of the House, one of the things that stands out in my mind is the good working relationship I have had with the Governor of our great state. Our Governor has been open and forthright in his dealings with the Legislature. On virtually every issue, he has been willing to work with the Legislature in an attempt to reach common ground.

      "Now, there are a few subjects on which we simply could not come to an agreement, yet I respect the Governor for being consistent in sticking with his philosophy and most especially for being true to his word. Even though, we don't agree on every issue, and you can rest assured that I will continue to do everything I can to persuade the Governor to support our proposals, but the bottom line is this Governor's willingness to engage in open discussions with the Legislature and to consider our ideas, contributes to our ability to accomplish good things for the people that we represent.

      "Ladies and gentlemen, it is my privilege to introduce the Governor of the state of Washington, the Honorable Mike Lowry."


STATE OF THE STATE ADDRESS

BY GOVERNOR MIKE LOWRY


      Governor Lowry: "Thank you, Mr. President, Mr. Speaker, distinguished members of the State Supreme Court, distinguished state elected officials, distinguished members of the Washington State Legislature, members of the Washington Consular Corps, and citizens of our great state. Thank you for the privilege of serving as your Governor.

      "As we meet today, our state is in excellent shape and our future looks bright. I want to thank all of you in this chamber and those watching at home and at work for making that happen. Three years ago, we were facing serious economic problems, and the state had a one and a half billion dollar deficit. Today, we have reversed that and we now have a six hundred and seventy-seven million dollar reserve.

      "Three years ago, we were in the midst of huge job layoffs. Today, we have reversed that, creating a hundred and twenty thousand net new jobs in the last two years. Three years ago, we all set out together to make state government more efficient. Since then, we have cut the growth of the state general fund in half and we have reduced the annual growth of state employees to less than a quarter of what it had been in the previous decade.

      "Our hard-working public employees, who are often under-recognized for their dedicated work, are a major reason for this success. Washington, as a whole, is in good shape. We have increased our reputation as the nation̓s top international trade state and we are well on our way to achieving our goal of being one of the world̓s major high-technology centers. Major manufacturers are choosing to locate here, investing billions of dollars and creating thousands of good-paying jobs. Over the past few months, we have welcomed a number of world-class companies to our state--companies like Intel, BHP Steel, Ponderosa Fibres. So, it̓s no wonder that state economist Dr. Chang Mook Sohn recently announced, 'There are no dark clouds on the horizon--this strong growth will continue throughout 1996 and 1997.' That is good news, and something we can all be proud of.

      "I would like to pause for a moment to recognize and thank the hard-working legislators and the statewide elected officials who are a major part of our success. Thank you, Speaker Ballard, Majority Leader Snyder, and Representative Appelwick, Senator McDonald and all of you who have shown time and again just how much we can accomplish if we join together in a spirit of cooperation. No elected official in this state has a longer record of bipartisan cooperation than Lieutenant Governor Joel Pritchard.

      "The strength of our economy is in the strength of the people who live here. People who care about quality of life, about our environment, and about our schools; People with a strong work ethic in a skilled workforce that has employers around the world taking notice; People who are committed to moving into the future without sacrificing the gains of the past. That commitment is part of the reason why some of the best companies in the world are moving to Washington, because the people who live here, and those who make decisions that guide public policy, share that vision. Our state is a great place to live.

      "There is another reason why companies are choosing to move here. We have taken significant, deliberate steps over the past three years to make Washington a great place to do business. We have implemented tax incentives that allow companies, that provide family-wage jobs, to spend less on taxes and more on investments. Three years ago, our state was ranked as one of the worst for manufacturing investment. We are now ranked as one of the very best. Our distressed-area incentive programs have encouraged more than one hundred and seventy companies to move to or expand in counties with high unemployment rates. Our workers̓ compensation premiums are now the lowest in the country, with the highest level of benefits and our state has gained a remarkable reputation for regulatory teamwork.

      "Last October, during the dedication ceremony for the largest economic development project in a decade, in Southeast Washington, Ponderosa Fibres, President Martin Bernstein, said that the application process his company went through for business in our state would have taken three years in other states. In Washington, it took less than six months. Mr. Bernstein said, 'We've not been able to do something like this in the state of Pennsylvania; We've not been able to do something like this in the state of New York; We've not been able to do something like this in the state of Georgia, We've not been able to do something like this in the state of Wisconsin.' But in Washington, Ponderosa Fibres found not only tax policies that were superior to those of most other states, but a spirit of cooperation among government and local communities that gave new meaning to the phrase 'Customer Service.'

      "There are other keys to our success. Among those is improved government efficiency. Over the past three years, state spending increases have been held under the rate of inflation and population growth. Travel and equipment costs are down and state agencies recently gave back one hundred and eight million dollars in unspent appropriations.

      "In the final analysis, however, all the tax incentives and government efficiency in the world will not, by themselves, convince companies to move to our state. Time after time, business people have told me they are also looking for a skilled workforce with a quality of life that will make their employees want to stay here. In that regard, all roads lead to Washington. We have been under extreme pressure to compromise our commitment to education, to the environment and to our children. We have not done that, and our economy is much better off because we did not. Our work is not finished, but our momentum is clear.

      "Today, we are starting to make progress in education reform, so that a childs' advancement in school will be based not on what he or she is taught, but on what he or she has learned. There is no higher goal for our state than to achieve our paramount duty of providing an excellent education system. At the same time, we must take steps to ensure that all children come to school ready to learn and that they are not hungry, or sick, or abused-- and that our schools are a safe place to learn. We ask our educators to be miracle workers and they come amazingly close, but we must make sure that they have the support they need to do their very important jobs.

      "We have begun to increase access to higher education, opening college doors to more students and helping others who may be long on desire to learn, but short on dollars for tuition. We must continue that commitment.

      "We have taken steps to ensure more people have access to health care, including the working poor and their children. We have made health care more affordable for small-business employers and we have reformed our insurance laws so that no one with a pre-existing condition will ever be denied health coverage. We must continue that commitment.

      "And, we have maintained our pledge to protect the environment. Good environmental policy is good economic policy and we never, never want to forget that. By the way, for years, our state has carried more than its fair share of high-level U.S. Government nuclear waste. It is time that others accept their responsibility and stop trying to ship dangerous waste products through our ports.

      "When you step back and look at how much we have going for us in this state, it is easy to see why so many of us have chosen to live, and work, and raise families here. The challenge before us today is to preserve and enhance what is working in our state, improve where we can, and plan for the future with vision and courage.

      "The supplemental budget and legislative agenda I am submitting to the 1996 Legislature will help do that. That budget includes investments in education, children and the environment, an expansion of job-creating tax policies, and a fiscally prudent reserve, in the bank, to prepare for the future. My request to you is to keep enough money in the bank to help offset unexpected emergencies and expected federal cuts of up to $4.2 billion over the next seven years. Congress has made no secret of their commitment to deep spending reductions and shifting to the states, the funding responsibility for the elderly, children, people with disabilities, education, health care, transportation and the environment.

      "Here in Washington, the deepest cuts will not be felt for a while. Under Congress' plan, the cuts will escalate each year, and in seven years, the effect on the state budget will be thirty-three times greater than in 1996. Of course, until Congress and the President agree on a final budget plan, no one will know exactly what's really in store for Washington. We do know, however, that any plan to balance the federal budget in seven years will require a significant reduction in the flow of federal funding to the states and Washington State will be no exception. Therefore, we must resist the call to pass the buck to future Legislatures, future Governors, and future voters.

      "That is why, last year, I had to veto tax cuts that were so large that they were a great danger to our state̓s future if Congress comes even close to the size of funding cuts that they have already announced. In addition, the tax cuts I vetoed would have provided very little tax relief for average-income families in our state, while significantly reducing our savings and jeopardizing our future.

      "The property tax bill that I vetoed would have saved nineteen dollars a year, a dollar sixty a month on a hundred thousand dollar house. However, it would have cut the tax on a major downtown office building, such as the Seattle Columbia Center more than thirty-three thousand dollars a year. The B&O tax bill I vetoed last session would have saved a sixty thousand dollar barbershop about a hundred and fifty-six dollar a year--thirteen dollars a month. Meanwhile, it would have saved a five million dollar law firm twenty-five thousand dollars a year. It's pretty obvious to me who would have benefitted from those tax cuts and it wasn't 'Mom and Pop.'

      "There is a clear question before the 1996 Legislature. Do we maintain a healthy financial reserve and sound fiscal policies designed to meet major financial unknowns and keep the future bright or do we gamble that future on election-year tax cuts that have a clear vision for November, 1996, but a much cloudier vision for the rest of the decade and the Twenty-first Century?

      "I know there are those, for whom I have very great respect, who did not agree with my tax cut vetoes, and there are others, whom I also greatly respect, who advocate large tax cuts now. As individuals, and as friends, I hold you in high regard, but this debate is not about whether there should be tax cuts or not--there will be tax cuts. The question is, will those tax cuts be so large that they damage our state̓s future? The real debate, is how much should we save today?

      "While there are some things that I have asked you not to do this session, and it's primarily the one I just referred to, there are also some things that we must do. Those include protecting children, helping working families, and safeguarding the environment. We must bring more students into the state's higher education system, by increasing the number of spaces available, by offering additional financial aid, and by expanding electronic communications between campuses and communities. We must take steps to protect our watersheds We must continue the successful Jobs for the Environment program, and we must reauthorize the critically needed Puget Sound Water Quality Authority. We must strengthen our juvenile system, by increasing sentences on juvenile sex offenders, by improving security at crowded juvenile institutions, and by helping young offenders 'go straight' and avoid a life of crime.

      "We must keep violent sexual predators locked up. As a father, a husband, and a Governor, I want to find a way that guarantees that our communities are protected from these very dangerous individuals. I know you do, too. I commend you for your leadership, and we will find a way to get that done. We must increase counseling and treatment services for runaway youth and their families. We must put a stop to this epidemic of domestic violence. Last year, felony charges linked to domestic violence increased forty-six percent. This is absolutely intolerable. We must make sure that working families have access to child-care assistance, and we must provide real property tax relief for people who need it the most--those who stand to lose their homes when property tax bills rise faster than their incomes.

      "Finally, we must do a better job of protecting children who are in the state̓s care. To start with, we simply must reduce the impossible workload of thirty-six at-risk children to one state social worker. That ratio keeps children in too great a danger. There are other challenges ahead. I am deeply concerned that in our nation today, discrimination keeps raising its ugly head. I want to be very clear. The state of Washington is committed to equal opportunity, equal rights and respect for diversity. To those who would bring hate and intolerance of any person into our state, I say, 'hands off.' We will not tolerate discrimination in any form, for any reason and we will not tolerate the sort of back-door discrimination against families and children that many today call 'welfare reform.' The welfare system, which is less than three percent of the state budget--the welfare system is less than three percent of the state budget--may well be broken, but the answer to repairing it is not to break kids.

      "Punishing children to get their parents off public assistance is not the answer. It is not fair and it is not welfare reform. True welfare reform promotes self-reliance through education and training, quality child care, affordable health care, and making sure non-custodial parents meet their financial obligations. Anything short of this is discrimination against poor kids. We have in place some of those components of real welfare reform, and this Legislature has done great work for real welfare reform.

      "This year, more than sixty-four hundred parents left the welfare system, for a savings to taxpayer of more than thirty-four million dollars. In all, more than ten thousand welfare recipients joined the workforce in 1995--an increase of forty-three percent over the previous year. Real welfare reform that addresses health care, education and training, child care and non-custodial parents make meeting our financial responsibilities work.

      "Today, we are facing also a challenge of keeping our communities safe in a world where, despite our important gains in the war against crime, we have seen a terrible increase in violent crime committed by teen-agers. And all too often, kids, are killing kids. That cycle of violence begins during the most impressionable time of life, when a child is abused or sees parents hitting each other. Until we deal with the root causes of violence, until we deal with child abuse and neglect, with domestic violence, with fetal alcohol syndrome, we will continue to spend millions of dollars on new prisons, and our streets won̓t be much safer. Make no mistake, responsibility, accountability, and tough penalties for serious crimes are important, but until we can stop a child from picking up a gun for the wrong purpose, we have failed.

      "Earlier, I spoke of the economic growth that has been such good news for Washington. However, in the midst of this very bright future is a dark reality for a lot of working people. More and more, people̓s wages are simply not meeting their expenses. Nationally, wages are growing at the smallest rate on record. Economists are calling the national economy a 'wageless recovery,' with record business profits and stagnant wages. We̓re doing a little better here in our state, but I want us to do a whole lot better.

      "Many of us today have become part of the new 'stretch generation,' struggling to contribute toward our childrens' expenses, whether that means college tuition or braces, while also caring for aging parents. I know what that̓s like. A lot of families today never imagined that they would have a hard time making ends meet on incomes they once only dreamed of. Most of them never imagined that they might not be able to buy a house or send their kids to college. It is not just two-parent families with college-aged kids that are feeling stressed out these days. People in their twenties and thirties are facing tough choices also about where they can afford to live, and whether they will be able to go on and advance their education--even whether they can afford to start their own families. The 'stretch generation' and others for whom slow-growing wages are a major problem are the reason we must maintain our commitment to affordable higher education, affordable child care for working people, affordable health care, and property tax reform that helps middle-income people afford to buy and stay in their homes.

      "There are other hard-working people who aren't getting a fair shake these days either. Tomorrow, tens of thousands of Washington citizens will get out of bed before sunrise, go to work, and put in an eight-hour day and at the end of the day, they will take home about thirty-three dollars in pay--thirty-three dollars. With that, they have to put food on the table, pay part of the rent, and hope no one gets sick before the next payday. People who work forty hours a week ought to be paid enough to survive. That is why I am submitting legislation this session that will take a small step toward wage fairness, by raising the state's minimum wage to $5.30 an hour. It is the right thing to do. Today, corporate CEOs earn, on an average, one hundred and forty times more than their employees. Surely no one could question that raising the minimum wage is the right thing to do.

      "Despite these challenges, our future, as a state, looks bright. We have weathered storms. We have strengthened and diversified our economy and we have created a quality of life that is the envy of people throughout the world. The question today is whether we will have the vision and the courage to make decisions that will carry us forward, not backward--decisions that will continue the course of economic growth that has turned our economy around and positioned our state so well for the years ahead.

      "Will we have the vision to look beyond the next election, and say no to short-term political expediency? Will we have the courage to do what is right for our children and for generations to come? In the end, that is more important than anything else. If we take care of our children, they will take care of our future. Our obligations, as elected officials and as citizens, is to create for our children a safe place to live, a chance to grow up healthy, an opportunity to realize their dreams--the chance to learn and to live in a world free of discrimination.

      "Years from now, when people look back on the decisions that we make today, my hope is that they will see our past the way I visualize our future. Let them say that we helped hard-working people get a fair deal out of life. Let them say that we created a cleaner environment, a stronger education system, and a better quality of life. Let them say that we spoke for those who had no voice, that we cared for those who most needed help, and that, in the twilight of their lives, we honored those who had given us so much. Most importantly, let them say that we made our decisions with vision and courage.

      "Thank you very much."


      The President of the Senate instructed the special committee to escort the Governor from the House Chamber.


      The President of the Senate instructed the special committee to escort the State Elected Officials from the House Chamber.


      The President of the Senate instructed the special committee to escort the Supreme Court Justices from the House Chamber.


MOTION


      On motion of Representative Horn, the Joint Session was dissolved.


      The President of the Senate returned the gavel to the Speaker of the House of Representatives.


      The Speaker instructed the Sergeant at Arms of the House and the Senate to escort the President of the Senate, Lieutenant Governor Joel Pritchard; President Pro Tempore R. Lorraine Wojahn; Vice President Pro Tempore Rosa Franklin; Majority Leader Sid Snyder; Minority Leader Dan McDonald and the members of the Washington State Senate from the House Chamber.


      The Senate was called to order at 5:51 p.m. by President Pritchard.


      There being no objection, the Senate resumed consideration of Senate Bill No. 6118, deferred before the Senate retired to the House of Representatives for a Joint Session.


MOTION


      On motion of Senator Rinehart, the following amendment by Senators Sheldon, Loveland and West to the striking amendment by Senators Rinehart and West was adopted:

      On page 7 of the amendment, after line 4, strike all of sections 5 and 6

      Renumber the sections consecutively and correct any internal references accordingly


STATEMENT FOR THE JOURNAL


      I am hereby protesting, in accordance with Senate Rule 34, a ruling made on the Senate floor on the evening of January 9, 1996.

      Senate Bill No. 6118 was moved and amendments were being considered. The amendment on page 11, after line 33 to the striking amendment, sponsored by me, was moved for adoption and debate began. I spoke in favor of the amendment and at least three other members offered their remarks. Senator Haugen then spoke to the merits of the amendment before raising a point of order regarding the scope and object of the amendment. At that point, I questioned whether Reed's Rules allowed this motion after debate had begun on the merits of the amendment.

      Senate Rule 40 states, in part, that, 'The rules of parliamentary practice as contained in Reed's Parliamentary Rules shall govern the senate in all cases to which there are applicable....'

      Reed's Rules outlines when a point of order can be raised in rules 111 and 112. Rule 112 states, 'Both these objections to present action must be presented before consideration has been entered upon. After debate has begun or other action has been taken it is too late.'

      Clearly, the point of order requested by Senator Haugen was out of order. I protest the ruling made on the floor to recognize Senator Haugen's point of order.

SENATOR MICHAEL HEAVEY, 34th District


MOTION


      Senator Heavey moved that the following amendment to the striking amendment by Senators Rinehart and West be adopted:

      On page 11, after line 33 of the amendment, insert the following:

      "Sec. 8. RCW 84.55.120 and 1995 c 251 s 1 are each amended to read as follows:

      A taxing district, other than the state, that collects regular levies shall hold a public hearing on revenue sources for the district's following year's current expense budget. The hearing must include consideration of possible increases in property tax revenues and shall be held prior to the time the taxing district levies the taxes or makes the request to have the taxes levied. The county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district, shall hold the hearing. The levy for a taxing district for collection the following year shall not increase from the current year, other than an additional dollar amount calculated by multiplying the increase in assessed value in that district resulting from new construction, improvements to property, and any increase in the assessed value of state-assessed property for the year, without an affirmative vote of a majority of the members of the county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district.

      For purposes of this section, "current expense budget" means that budget which is primarily funded by taxes and charges and reflects the provision of ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities, towns, counties, or special purpose districts.

      If the taxing district is otherwise required to hold a public hearing on its proposed regular tax levy, a single public hearing may be held on this matter."

      Renumber the remaining sections consecutively and correct any internal references accordingly.

      Debate ensued.


POINT OF ORDER


      Senator Haugen: "Mr. President, I would like to raise a point of order. I would ask a ruling on whether this is within the scope and object of the bill, because the underlying bill, I believe, deals with the state and this deals with the local taxing authority."

 

POINT OF ORDER


      Senator Heavey: "I understand that the rules are probably different than in the House, but debate has begun. I believe under Reed's Rules that once debate has begun on an issue that the matter is to be heard. That is the rule in the House; I don't know what the rule is here, but I assume Reed's Rules apply."

      Further debate ensued.


RULING BY THE PRESIDENT


      President Pritchard: "On your first point, Senator Heavey, the President rules against you on the business of when we can take up a scope and object here in the Senate. It is appropriate anytime until we have a vote."


      There being no objection, the President deferred further consideration of the amendment by Senator Heavey on page 11, after line 33 to the striking amendment by Senator Rinehart and West to Senate Bill No. 6118.

      President Pro Tempore Wojahn assumed the Chair.


MOTION


      Senator Cantu moved that the following amendment to the striking amendment by Senators Rinehart and West be adopted:

      On page 11 of the amendment, after line 33, insert the following:

      "Sec. 8. RCW 84.55.010 and 1979 ex.s. c 218 s 2 are each amended to read as follows:

      (1) Except as provided in this chapter, the levy for a taxing district in any year shall be set so that the regular property taxes payable in the following year shall not exceed one hundred six percent or one hundred percent plus inflation, whichever is lower, of the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district plus an additional dollar amount calculated by multiplying the increase in assessed value in that district resulting from new construction, improvements to property, and any increase in the assessed value of state-assessed property by the regular property tax levy rate of that district for the preceding year.

      (2) For the purposes of this section, "inflation" means the percentage change in the implicit price deflator for the United States, as published by the federal department of commerce, for the fiscal year ending June 30th of the year preceding the year in which the taxes are due.

      Sec. 9. RCW 84.55.020 and 1971 ex.s. c 288 s 21 are each amended to read as follows:

      (1) Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts shall be set so that the regular property taxes payable in the following year shall not exceed one hundred six percent or one hundred percent plus inflation, whichever is lower, of the sum of the amount of regular property taxes lawfully levied for each component taxing district in the highest of the three most recent years in which such taxes were levied for such district plus the additional dollar amount calculated by multiplying the increase in assessed value in each component district resulting from new construction and improvements to property by the regular property tax rate of each component district for the preceding year.

      (2) For the purposes of this section, "inflation" means the percentage change in the implicit price deflator for the United States, as published by the federal department of commerce, for the fiscal year ending June 30th of the year preceding the year in which the taxes are due.

      Sec. 10. RCW 35.61.210 and 1990 c 234 s 3 are each amended to read as follows:

      The board of park commissioners may levy or cause to be levied a general tax on all the property located in said park district each year not to exceed fifty cents per thousand dollars of assessed value of the property in such park district. In addition, the board of park commissioners may levy or cause to be levied a general tax on all property located in said park district each year not to exceed twenty-five cents per thousand dollars of assessed valuation. Although park districts are authorized to impose two separate regular property tax levies, the levies shall be considered to be a single levy for purposes of the ((one hundred six percent)) limitation provided for in chapter 84.55 RCW.

      The board is hereby authorized to levy a general tax in excess of its regular property tax levy or levies when authorized so to do at a special election conducted in accordance with and subject to all the requirements of the Constitution and laws of the state now in force or hereafter enacted governing the limitation of tax levies. The board is hereby authorized to call a special election for the purpose of submitting to the qualified voters of the park district a proposition to levy a tax in excess of the seventy-five cents per thousand dollars of assessed value herein specifically authorized. The manner of submitting any such proposition, of certifying the same, and of giving or publishing notice thereof, shall be as provided by law for the submission of propositions by cities or towns.

      The board shall include in its general tax levy for each year a sufficient sum to pay the interest on all outstanding bonds and may include a sufficient amount to create a sinking fund for the redemption of all outstanding bonds. The levy shall be certified to the proper county officials for collection the same as other general taxes and when collected, the general tax shall be placed in a separate fund in the office of the county treasurer to be known as the "metropolitan park district fund" and paid out on warrants.

      Sec. 11. RCW 70.44.060 and 1990 c 234 s 2 are each amended to read as follows:

      All public hospital districts organized under the provisions of this chapter shall have power:

      (1) To make a survey of existing hospital and other health care facilities within and without such district.

      (2) To construct, condemn and purchase, purchase, acquire, lease, add to, maintain, operate, develop and regulate, sell and convey all lands, property, property rights, equipment, hospital and other health care facilities and systems for the maintenance of hospitals, buildings, structures, and any and all other facilities, and to exercise the right of eminent domain to effectuate the foregoing purposes or for the acquisition and damaging of the same or property of any kind appurtenant thereto, and such right of eminent domain shall be exercised and instituted pursuant to a resolution of the commission and conducted in the same manner and by the same procedure as in or may be provided by law for the exercise of the power of eminent domain by incorporated cities and towns of the state of Washington in the acquisition of property rights: PROVIDED, That no public hospital district shall have the right of eminent domain and the power of condemnation against any health care facility.

      (3) To lease existing hospital and other health care facilities and equipment and/or other property used in connection therewith, including ambulances, and to pay such rental therefor as the commissioners shall deem proper; to provide hospital and other health care services for residents of said district by facilities located outside the boundaries of said district, by contract or in any other manner said commissioners may deem expedient or necessary under the existing conditions; and said hospital district shall have the power to contract with other communities, corporations, or individuals for the services provided by said hospital district; and they may further receive in said hospitals and other health care facilities and furnish proper and adequate services to all persons not residents of said district at such reasonable and fair compensation as may be considered proper: PROVIDED, That it must at all times make adequate provision for the needs of the district and residents of said district shall have prior rights to the available hospital and other health care facilities of said district, at rates set by the district commissioners.

      (4) For the purpose aforesaid, it shall be lawful for any district so organized to take, condemn and purchase, lease, or acquire, any and all property, and property rights, including state and county lands, for any of the purposes aforesaid, and any and all other facilities necessary or convenient, and in connection with the construction, maintenance, and operation of any such hospitals and other health care facilities, subject, however, to the applicable limitations provided in subsection (2) of this section.

      (5) To contract indebtedness or borrow money for corporate purposes on the credit of the corporation or the revenues of the hospitals thereof, and the revenues of any other facilities or services that the district is or hereafter may be authorized by law to provide, and to issue and sell: (a) Revenue bonds, revenue warrants, or other revenue obligations therefor payable solely out of a special fund or funds into which the district may pledge such amount of the revenues of the hospitals thereof, and the revenues of any other facilities or services that the district is or hereafter may be authorized by law to provide, to pay the same as the commissioners of the district may determine, such revenue bonds, warrants, or other obligations to be issued and sold in the same manner and subject to the same provisions as provided for the issuance of revenue bonds, warrants, or other obligations by cities or towns under the Municipal Revenue Bond Act, chapter 35.41 RCW, as may hereafter be amended; (b) general obligation bonds therefor in the manner and form as provided in RCW 70.44.110 and 70.44.130, as may hereafter be amended; or (c) interest-bearing warrants to be drawn on a fund pending deposit in such fund of money sufficient to redeem such warrants and to be issued and paid in such manner and upon such terms and conditions as the board of commissioners may deem to be in the best interest of the district; and to assign or sell hospital accounts receivable, and accounts receivable for the use of other facilities or services that the district is or hereafter may be authorized by law to provide, for collection with or without recourse. General obligation bonds shall be issued and sold in accordance with chapter 39.46 RCW. Revenue bonds, revenue warrants, or other revenue obligations may be issued and sold in accordance with chapter 39.46 RCW.

      (6) To raise revenue by the levy of an annual tax on all taxable property within such public hospital district not to exceed fifty cents per thousand dollars of assessed value, and an additional annual tax on all taxable property within such public hospital district not to exceed twenty-five cents per thousand dollars of assessed value, or such further amount as has been or shall be authorized by a vote of the people. Although public hospital districts are authorized to impose two separate regular property tax levies, the levies shall be considered to be a single levy for purposes of the ((one hundred six percent)) limitation provided for in chapter 84.55 RCW. Public hospital districts are authorized to levy such a general tax in excess of their regular property taxes when authorized so to do at a special election conducted in accordance with and subject to all of the requirements of the Constitution and the laws of the state of Washington now in force or hereafter enacted governing the limitation of tax levies. The said board of district commissioners is authorized and empowered to call a special election for the purpose of submitting to the qualified voters of the hospital district a proposition or propositions to levy taxes in excess of its regular property taxes. The superintendent shall prepare a proposed budget of the contemplated financial transactions for the ensuing year and file the same in the records of the commission on or before the first Monday in September. Notice of the filing of said proposed budget and the date and place of hearing on the same shall be published for at least two consecutive weeks in a newspaper printed and of general circulation in said county. On the first Monday in October the commission shall hold a public hearing on said proposed budget at which any taxpayer may appear and be heard against the whole or any part of the proposed budget. Upon the conclusion of said hearing, the commission shall, by resolution, adopt the budget as finally determined and fix the final amount of expenditures for the ensuing year. Taxes levied by the commission shall be certified to and collected by the proper county officer of the county in which such public hospital district is located in the same manner as is or may be provided by law for the certification and collection of port district taxes. The commission is authorized, prior to the receipt of taxes raised by levy, to borrow money or issue warrants of the district in anticipation of the revenue to be derived by such district from the levy of taxes for the purpose of such district, and such warrants shall be redeemed from the first money available from such taxes when collected, and such warrants shall not exceed the anticipated revenues of one year, and shall bear interest at a rate or rates as authorized by the commission.

      (7) To enter into any contract with the United States government or any state, municipality, or other hospital district, or any department of those governing bodies, for carrying out any of the powers authorized by this chapter.

      (8) To sue and be sued in any court of competent jurisdiction: PROVIDED, That all suits against the public hospital district shall be brought in the county in which the public hospital district is located.

      (9) To pay actual necessary travel expenses and living expenses incurred while in travel status for (a) qualified physicians who are candidates for medical staff positions, and (b) other qualified persons who are candidates for superintendent or other managerial and technical positions, when the district finds that hospitals or other health care facilities owned and operated by it are not adequately staffed and determines that personal interviews with said candidates to be held in the district are necessary or desirable for the adequate staffing of said facilities.

      (10) To make contracts, employ superintendents, attorneys, and other technical or professional assistants and all other employees; to make contracts with private or public institutions for employee retirement programs; to print and publish information or literature; and to do all other things necessary to carry out the provisions of this chapter.

      Sec. 12. RCW 84.08.115 and 1991 c 218 s 2 are each amended to read as follows:

      (1) The department shall prepare a clear and succinct explanation of the property tax system, including but not limited to:

      (a) The standard of true and fair value as the basis of the property tax.

      (b) How the assessed value for particular parcels is determined.

      (c) The procedures and timing of the assessment process.

      (d) How district levy rates are determined, including the ((one hundred six percent)) limit under chapter 84.55 RCW.

      (e) How the composite tax rate is determined.

      (f) How the amount of tax is calculated.

      (g) How a taxpayer may appeal an assessment, and what issues are appropriate as a basis of appeal.

      (h) A summary of tax exemption and relief programs, along with the eligibility standards and application processes.

      (2) Each county assessor shall provide copies of the explanation to taxpayers on request, free of charge. Each revaluation notice shall include information regarding the availability of the explanation.

      NEW SECTION. Sec. 13. Sections 8 through 12 of this act apply to taxes levied in 1996 for collection in 1997 and thereafter."

      Renumber the sections consecutively and correct any internal references accordingly


POINT OF ORDER


      Senator Rinehart: "Madam President, I raise the question of scope and object. The amendment appears to add a second subject to the bill."

      Further debate ensued.

      There being no objection, the President Pro Tempore deferred further consideration of the amendment by Senator Cantu on page 11, after line 33 to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118.


MOTION


      Senator Swecker moved that the following amendment by Senators Swecker, McCaslin and Strannigan to the striking amendment by Senators Rinehart and West be adopted:

      Strike everything after the enacting clause and insert the following:


"PART I

STATE PROPERTY TAX ELIMINATION


      Sec. 1. RCW 84.52.065 and 1991 sp.s. c 31 s 16 are each amended to read as follows:

      (1) Subject to the limitations in RCW 84.55.010, in each year the state shall levy for collection in the following year for the support of common schools of the state a tax ((of three dollars and sixty cents per thousand dollars of assessed value)) at the rate specified in subsection (2) of this section upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue.

      (2) The rate of state tax in subsection (1) of this section shall be as follows:

      (a) Three dollars and sixty cents per thousand dollars of assessed value for taxes levied for collection in 1996, and before;

      (b) Three dollars per thousand dollars of assessed value for taxes levied for collection in 1997;

      (c) Two dollars and forty cents per thousand dollars of assessed value for taxes levied for collection in 1998;

      (d) One dollar and eighty cents per thousand dollars of assessed value for taxes levied for collection in 1999;

      (e) One dollar and twenty cents per thousand dollars of assessed value for taxes levied for collection in 2000; and

      (f) Sixty cents per thousand dollars of assessed value for taxes levied for collection in 2001.

      No tax may be levied under this section for taxes levied for collection in 2002 and thereafter.

      (3) As used in this section, "the support of common schools" includes the payment of the principal and interest on bonds issued for capital construction projects for the common schools.

      Sec. 2. RCW 84.52.043 and 1995 c 99 s 3 are each amended to read as follows:

      Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:

      (1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed ((three dollars and sixty cents)) the dollar rate per thousand dollars of assessed value specified in RCW 84.52.065 adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.

      (2) The aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and ninety cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection shall not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW 84.34.230; (d) levies for emergency medical care or emergency medical services imposed under RCW 84.52.069; (e) levies to finance affordable housing for very low-income housing imposed under RCW 84.52.105; and (f) the portions of levies by metropolitan park districts that are protected under RCW 84.52.120.

      Sec. 3. RCW 84.52.050 and 1973 1st ex.s. c 194 s 1 are each amended to read as follows:

      (1) Except as hereinafter provided, the aggregate of all tax levies upon real and personal property by the state and all taxing districts, now existing or hereafter created, shall not in any year exceed ((one percentum)) the following percentage of the true and fair value of such property in money: ((PROVIDED, HOWEVER, That))

      (a) For taxes levied for collection in 1996, and before, 1.0 percent;

      (b) For taxes levied for collection in 1997, 0.94 percent;

      (c) For taxes levied for collection in 1998, 0.88 percent;

      (d) For taxes levied for collection in 1999, 0.82 percent;

      (e) For taxes levied for collection in 2000, 0.76 percent;

      (f) For taxes levied for collection in 2001, 0.70 percent; and

      (g) For taxes levied for collection in 2002 and thereafter, 0.64 percent.

      (2) Nothing herein shall prevent levies at the rates now provided by law by or for any port or public utility district. The term "taxing district" for the purposes of this section shall mean any political subdivision, municipal corporation, district, or other governmental agency authorized by law to levy, or have levied for it, ad valorem taxes on property, other than a port or public utility district. Such aggregate limitation or any specific limitation imposed by law in conformity therewith may be exceeded only as authorized by law and in conformity with the provisions of Article VII, section 2(a), (b), or (c) of the Constitution of the state of Washington.

      (3) Nothing herein contained shall prohibit the legislature from allocating or reallocating the authority to levy taxes between the taxing districts of the state and its political subdivisions in a manner which complies with the aggregate tax limitation set forth in this section.

      Sec. 4. RCW 36.58.150 and 1984 c 186 s 25 are each amended to read as follows:

      (1) A solid waste disposal district shall not have the power to levy an annual levy without voter approval, but it shall have the power to levy a tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one year period to be used for operating or capital purposes whenever authorized by the electors of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      A solid waste disposal district may issue general obligation bonds for capital purposes only, subject to the limitations prescribed in RCW 39.36.020(1), and may provide for the retirement of the bonds by voter-approved bond retirement tax levies pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056. Such general obligation bonds shall be issued and sold in accordance with chapter 39.46 RCW.

      A solid waste disposal district may issue revenue bonds to fund its activities. Such revenue bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.

      (2) Notwithstanding subsection (1) of this section, such revenue bonds may be issued and sold in accordance with chapter 39.46 RCW.

      Sec. 5. RCW 36.60.040 and 1983 c 303 s 11 are each amended to read as follows:

      A county rail district is not authorized to impose a regular ad valorem property tax levy but may:

      (1) Levy an ad valorem property tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one-year period to be used for operating or capital purposes whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) Provide for the retirement of voter approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 6. RCW 36.69.145 and 1994 c 156 s 3 are each amended to read as follows:

      (1) A park and recreation district may impose regular property tax levies in an amount equal to sixty cents or less per thousand dollars of assessed value of property in the district in each year for six consecutive years when specifically authorized so to do by a majority of at least three-fifths of the voters thereof approving a proposition authorizing the levies submitted at a special election or at the regular election of the district, at which election the number of voters voting "yes" on the proposition shall constitute three-fifths of a number equal to forty per centum of the number of voters voting in such district at the last preceding general election when the number of voters voting on the proposition does not exceed forty per centum of the number of voters voting in such taxing district in the last preceding general election; or by a majority of at least three-fifths of the voters thereof voting on the proposition if the number of voters voting on the proposition exceeds forty per centum of the number of voters voting in such taxing district in the last preceding general election. A proposition authorizing the tax levies shall not be submitted by a park and recreation district more than twice in any twelve-month period. Ballot propositions shall conform with RCW 29.30.111. In the event a park and recreation district is levying property taxes, which in combination with property taxes levied by other taxing districts subject to the ((one percent)) limitation provided for in ((Article 7, section 2, of our state Constitution)) RCW 84.52.050 result in taxes in excess of the limitation provided for in RCW 84.52.043, the park and recreation district property tax levy shall be reduced or eliminated before the property tax levies of other taxing districts are reduced.

      (2) The limitation in RCW 84.55.010 shall not apply to the first levy imposed under this section following the approval of the levies by the voters under subsection (1) of this section.

      Sec. 7. RCW 36.73.060 and 1987 c 327 s 6 are each amended to read as follows:

      (1) A transportation benefit district may levy an ad valorem property tax in excess of the ((one percent)) limitation in RCW 84.52.050 upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) A district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies in excess of the one percent limitation whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 8. RCW 36.83.030 and 1983 c 130 s 3 are each amended to read as follows:

      (1) A service district may levy an ad valorem property tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) A service district may provide for the retirement of voter approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 9. RCW 36.100.050 and 1988 ex.s. c 1 s 15 are each amended to read as follows:

      (1) A public facilities district may levy an ad valorem property tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon the property within the district for a one-year period to be used for operating or capital purposes whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

      (2) A public facilities district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

      Sec. 10. RCW 67.38.130 and 1984 c 131 s 4 are each amended to read as follows:

      The governing body of a cultural arts, stadium and convention district may levy or cause to levy the following ad valorem taxes:

      (1) Regular ad valorem property tax levies in an amount equal to twenty-five cents or less per thousand dollars of the assessed value of property in the district in each year for six consecutive years when specifically authorized so to do by a majority of at least three-fifths of the electors thereof approving a proposition authorizing the levies submitted at a general or special election, at which election the number of persons voting "yes" on the proposition shall constitute three-fifths of a number equal to forty percentum of the total votes cast in such taxing district at the last preceding general election; or by a majority of at least three-fifths of the electors thereof voting on the proposition when the number of electors voting yes on the proposition exceeds forty percentum of the total votes cast in such taxing district in the last preceding general election. Ballot propositions shall conform with RCW 29.30.111.

      In the event a cultural arts, stadium and convention district is levying property taxes, which in combination with property taxes levied by other taxing districts subject to the ((one percent)) limitation provided for in ((Article VII, section 2, of our state Constitution)) RCW 84.52.050 result in taxes in excess of the limitation provided for in RCW 84.52.043, the cultural arts, stadium and convention district property tax levy shall be reduced or eliminated before the property tax levies of other taxing districts are reduced: PROVIDED, That no cultural arts, stadium, and convention district may pledge anticipated revenues derived from the property tax herein authorized as security for payments of bonds issued pursuant to subsection (1) of this section: PROVIDED, FURTHER, That such limitation shall not apply to property taxes approved pursuant to subsections (2) and (3) of this section.

      The limitation in RCW 84.55.010 shall apply to levies after the first levy authorized under this section following the approval of such levy by voters pursuant to this section.

      (2) An annual excess ad valorem property tax for general district purposes when authorized by the district voters in the manner prescribed by ((section 2,)) Article VII, section 2 of the state Constitution and by RCW 84.52.052.

      (3) Multi-year excess ad valorem property tax levies used to retire general obligation bond issues when authorized by the district voters in the manner prescribed by ((section 2,)) Article VII, section 2 of the state Constitution and by RCW 84.52.056.

      The district shall include in its regular property tax levy for each year a sum sufficient to pay the interest and principal on all outstanding general obligation bonds issued without voter approval pursuant to RCW 67.38.110 and may include a sum sufficient to create a sinking fund for the redemption of all outstanding bonds.

      Sec. 11. RCW 84.52.010 and 1995 2nd sp.s. c 13 s 4 are each amended to read as follows:

      Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

      The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

      When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

      (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the ((one percent)) limitation under RCW 84.52.050 exceeds ((one percent of the true and fair value of any property)) the limitation under RCW 84.52.050, then these levies shall be reduced as follows: (a) The portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds ((one percent of the true and fair value of any property)) the limitation under RCW 84.52.050 or shall be eliminated; (b) if the combined rate of regular property tax levies that are subject to the ((one percent)) limitation under RCW 84.52.050 still exceeds ((one percent of the true and fair value of any property)) the limitation under RCW 84.52.050, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

      (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

      (a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

      (b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

      (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

      (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

      (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, library districts, metropolitan park districts under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

      In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 84.55.012.

      Sec. 12. RCW 84.69.020 and 1994 c 301 s 55 are each amended to read as follows:

      On the order of the county treasurer, ad valorem taxes paid before or after delinquency shall be refunded if they were:

      (1) Paid more than once; or

      (2) Paid as a result of manifest error in description; or

      (3) Paid as a result of a clerical error in extending the tax rolls; or

      (4) Paid as a result of other clerical errors in listing property; or

      (5) Paid with respect to improvements which did not exist on assessment date; or

      (6) Paid under levies or statutes adjudicated to be illegal or unconstitutional; or

      (7) Paid as a result of mistake, inadvertence, or lack of knowledge by any person exempted from paying real property taxes or a portion thereof pursuant to RCW 84.36.381 through 84.36.389, as now or hereafter amended; or

      (8) Paid as a result of mistake, inadvertence, or lack of knowledge by either a public official or employee or by any person with respect to real property in which the person paying the same has no legal interest; or

      (9) Paid on the basis of an assessed valuation which was appealed to the county board of equalization and ordered reduced by the board; or

      (10) Paid on the basis of an assessed valuation which was appealed to the state board of tax appeals and ordered reduced by the board: PROVIDED, That the amount refunded under subsections (9) and (10) of this section shall only be for the difference between the tax paid on the basis of the appealed valuation and the tax payable on the valuation adjusted in accordance with the board's order; or

      (11) Paid as a state property tax levied upon property, the assessed value of which has been established by the state board of tax appeals for the year of such levy: PROVIDED, HOWEVER, That the amount refunded shall only be for the difference between the state property tax paid and the amount of state property tax which would, when added to all other property taxes within the ((one percent)) limitation of Article VII, section 2 of the state Constitution equal ((one percent)) the percentage under RCW 84.52.050 of the assessed value established by the board;

      (12) Paid on the basis of an assessed valuation which was adjudicated to be unlawful or excessive: PROVIDED, That the amount refunded shall be for the difference between the amount of tax which was paid on the basis of the valuation adjudged unlawful or excessive and the amount of tax payable on the basis of the assessed valuation determined as a result of the proceeding; or

      (13) Paid on property acquired under RCW 84.60.050, and canceled under RCW 84.60.050(2).

      No refunds under the provisions of this section shall be made because of any error in determining the valuation of property, except as authorized in subsections (9), (10), (11), and (12) of this section nor may any refunds be made if a bona fide purchaser has acquired rights that would preclude the assessment and collection of the refunded tax from the property that should properly have been charged with the tax. Any refunds made on delinquent taxes shall include the proportionate amount of interest and penalties paid. The county treasurer may deduct from moneys collected for the benefit of the state's levy, refunds of the state levy including interest on the levy as provided by this section and chapter 84.68 RCW.

      The county treasurer of each county shall make all refunds determined to be authorized by this section, and by the first Monday in January of each year, report to the county legislative authority a list of all refunds made under this section during the previous year. The list is to include the name of the person receiving the refund, the amount of the refund, and the reason for the refund.


PART II

LIMIT ON PROPERTY TAX INCREASES


      Sec. 13. RCW 84.55.010 and 1979 ex.s. c 218 s 2 are each amended to read as follows:

      Except as provided in this chapter, the levy for a taxing district in any year shall be set so that the regular property taxes payable in the following year shall not exceed either one hundred six percent or one hundred percent plus inflation calculated as the percentage change in the implicit price deflator for the United States for the fiscal year as published by the federal bureau of labor and statistics, whichever is lower, of the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district plus an additional dollar amount calculated by multiplying the increase in assessed value in that district resulting from new construction, improvements to property, and any increase in the assessed value of state-assessed property by the regular property tax levy rate of that district for the preceding year.

      Sec. 14. RCW 84.55.020 and 1971 ex.s. c 288 s 21 are each amended to read as follows:

      Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts shall be set so that the regular property taxes payable in the following year shall not exceed either one hundred six percent or one hundred percent plus inflation calculated as the percentage change in the implicit price deflator for the United States for fiscal year as published by the federal bureau of labor and statistics, whichever is lower, of the sum of the amount of regular property taxes lawfully levied for each component taxing district in the highest of the three most recent years in which such taxes were levied for such district plus the additional dollar amount calculated by multiplying the increase in assessed value in each component district resulting from new construction and improvements to property by the regular property tax rate of each component district for the preceding year.

      Sec. 15. RCW 35.61.210 and 1990 c 234 s 3 are each amended to read as follows:

      The board of park commissioners may levy or cause to be levied a general tax on all the property located in said park district each year not to exceed fifty cents per thousand dollars of assessed value of the property in such park district. In addition, the board of park commissioners may levy or cause to be levied a general tax on all property located in said park district each year not to exceed twenty-five cents per thousand dollars of assessed valuation. Although park districts are authorized to impose two separate regular property tax levies, the levies shall be considered to be a single levy for purposes of the one hundred six percent or one hundred percent plus inflation limitation provided for in chapter 84.55 RCW.

      The board is hereby authorized to levy a general tax in excess of its regular property tax levy or levies when authorized so to do at a special election conducted in accordance with and subject to all the requirements of the Constitution and laws of the state now in force or hereafter enacted governing the limitation of tax levies. The board is hereby authorized to call a special election for the purpose of submitting to the qualified voters of the park district a proposition to levy a tax in excess of the seventy-five cents per thousand dollars of assessed value herein specifically authorized. The manner of submitting any such proposition, of certifying the same, and of giving or publishing notice thereof, shall be as provided by law for the submission of propositions by cities or towns.

      The board shall include in its general tax levy for each year a sufficient sum to pay the interest on all outstanding bonds and may include a sufficient amount to create a sinking fund for the redemption of all outstanding bonds. The levy shall be certified to the proper county officials for collection the same as other general taxes and when collected, the general tax shall be placed in a separate fund in the office of the county treasurer to be known as the "metropolitan park district fund" and paid out on warrants.

      Sec. 16. RCW 70.44.060 and 1990 c 234 s 2 are each amended to read as follows:

      All public hospital districts organized under the provisions of this chapter shall have power:

      (1) To make a survey of existing hospital and other health care facilities within and without such district.

      (2) To construct, condemn and purchase, purchase, acquire, lease, add to, maintain, operate, develop and regulate, sell and convey all lands, property, property rights, equipment, hospital and other health care facilities and systems for the maintenance of hospitals, buildings, structures, and any and all other facilities, and to exercise the right of eminent domain to effectuate the foregoing purposes or for the acquisition and damaging of the same or property of any kind appurtenant thereto, and such right of eminent domain shall be exercised and instituted pursuant to a resolution of the commission and conducted in the same manner and by the same procedure as in or may be provided by law for the exercise of the power of eminent domain by incorporated cities and towns of the state of Washington in the acquisition of property rights: PROVIDED, That no public hospital district shall have the right of eminent domain and the power of condemnation against any health care facility.

      (3) To lease existing hospital and other health care facilities and equipment and/or other property used in connection therewith, including ambulances, and to pay such rental therefor as the commissioners shall deem proper; to provide hospital and other health care services for residents of said district by facilities located outside the boundaries of said district, by contract or in any other manner said commissioners may deem expedient or necessary under the existing conditions; and said hospital district shall have the power to contract with other communities, corporations, or individuals for the services provided by said hospital district; and they may further receive in said hospitals and other health care facilities and furnish proper and adequate services to all persons not residents of said district at such reasonable and fair compensation as may be considered proper: PROVIDED, That it must at all times make adequate provision for the needs of the district and residents of said district shall have prior rights to the available hospital and other health care facilities of said district, at rates set by the district commissioners.

      (4) For the purpose aforesaid, it shall be lawful for any district so organized to take, condemn and purchase, lease, or acquire, any and all property, and property rights, including state and county lands, for any of the purposes aforesaid, and any and all other facilities necessary or convenient, and in connection with the construction, maintenance, and operation of any such hospitals and other health care facilities, subject, however, to the applicable limitations provided in subsection (2) of this section.

      (5) To contract indebtedness or borrow money for corporate purposes on the credit of the corporation or the revenues of the hospitals thereof, and the revenues of any other facilities or services that the district is or hereafter may be authorized by law to provide, and to issue and sell: (a) Revenue bonds, revenue warrants, or other revenue obligations therefor payable solely out of a special fund or funds into which the district may pledge such amount of the revenues of the hospitals thereof, and the revenues of any other facilities or services that the district is or hereafter may be authorized by law to provide, to pay the same as the commissioners of the district may determine, such revenue bonds, warrants, or other obligations to be issued and sold in the same manner and subject to the same provisions as provided for the issuance of revenue bonds, warrants, or other obligations by cities or towns under the Municipal Revenue Bond Act, chapter 35.41 RCW, as may hereafter be amended; (b) general obligation bonds therefor in the manner and form as provided in RCW 70.44.110 and 70.44.130, as may hereafter be amended; or (c) interest-bearing warrants to be drawn on a fund pending deposit in such fund of money sufficient to redeem such warrants and to be issued and paid in such manner and upon such terms and conditions as the board of commissioners may deem to be in the best interest of the district; and to assign or sell hospital accounts receivable, and accounts receivable for the use of other facilities or services that the district is or hereafter may be authorized by law to provide, for collection with or without recourse. General obligation bonds shall be issued and sold in accordance with chapter 39.46 RCW. Revenue bonds, revenue warrants, or other revenue obligations may be issued and sold in accordance with chapter 39.46 RCW.

      (6) To raise revenue by the levy of an annual tax on all taxable property within such public hospital district not to exceed fifty cents per thousand dollars of assessed value, and an additional annual tax on all taxable property within such public hospital district not to exceed twenty-five cents per thousand dollars of assessed value, or such further amount as has been or shall be authorized by a vote of the people. Although public hospital districts are authorized to impose two separate regular property tax levies, the levies shall be considered to be a single levy for purposes of the one hundred six percent or one hundred percent plus inflation limitation provided for in chapter 84.55 RCW. Public hospital districts are authorized to levy such a general tax in excess of their regular property taxes when authorized so to do at a special election conducted in accordance with and subject to all of the requirements of the Constitution and the laws of the state of Washington now in force or hereafter enacted governing the limitation of tax levies. The said board of district commissioners is authorized and empowered to call a special election for the purpose of submitting to the qualified voters of the hospital district a proposition or propositions to levy taxes in excess of its regular property taxes. The superintendent shall prepare a proposed budget of the contemplated financial transactions for the ensuing year and file the same in the records of the commission on or before the first Monday in September. Notice of the filing of said proposed budget and the date and place of hearing on the same shall be published for at least two consecutive weeks in a newspaper printed and of general circulation in said county. On the first Monday in October the commission shall hold a public hearing on said proposed budget at which any taxpayer may appear and be heard against the whole or any part of the proposed budget. Upon the conclusion of said hearing, the commission shall, by resolution, adopt the budget as finally determined and fix the final amount of expenditures for the ensuing year. Taxes levied by the commission shall be certified to and collected by the proper county officer of the county in which such public hospital district is located in the same manner as is or may be provided by law for the certification and collection of port district taxes. The commission is authorized, prior to the receipt of taxes raised by levy, to borrow money or issue warrants of the district in anticipation of the revenue to be derived by such district from the levy of taxes for the purpose of such district, and such warrants shall be redeemed from the first money available from such taxes when collected, and such warrants shall not exceed the anticipated revenues of one year, and shall bear interest at a rate or rates as authorized by the commission.

      (7) To enter into any contract with the United States government or any state, municipality, or other hospital district, or any department of those governing bodies, for carrying out any of the powers authorized by this chapter.

      (8) To sue and be sued in any court of competent jurisdiction: PROVIDED, That all suits against the public hospital district shall be brought in the county in which the public hospital district is located.

      (9) To pay actual necessary travel expenses and living expenses incurred while in travel status for (a) qualified physicians who are candidates for medical staff positions, and (b) other qualified persons who are candidates for superintendent or other managerial and technical positions, when the district finds that hospitals or other health care facilities owned and operated by it are not adequately staffed and determines that personal interviews with said candidates to be held in the district are necessary or desirable for the adequate staffing of said facilities.

      (10) To make contracts, employ superintendents, attorneys, and other technical or professional assistants and all other employees; to make contracts with private or public institutions for employee retirement programs; to print and publish information or literature; and to do all other things necessary to carry out the provisions of this chapter.

      Sec. 17. RCW 84.08.115 and 1991 c 218 s 2 are each amended to read as follows:

      (1) The department shall prepare a clear and succinct explanation of the property tax system, including but not limited to:

      (a) The standard of true and fair value as the basis of the property tax.

      (b) How the assessed value for particular parcels is determined.

      (c) The procedures and timing of the assessment process.

      (d) How district levy rates are determined, including the one hundred six percent or one hundred percent plus inflation limit under chapter 84.55 RCW.

      (e) How the composite tax rate is determined.

      (f) How the amount of tax is calculated.

      (g) How a taxpayer may appeal an assessment, and what issues are appropriate as a basis of appeal.

      (h) A summary of tax exemption and relief programs, along with the eligibility standards and application processes.

      (2) Each county assessor shall provide copies of the explanation to taxpayers on request, free of charge. Each revaluation notice shall include information regarding the availability of the explanation.

      NEW SECTION. Sec. 18. Section 18 through 22 of this act apply to taxes levied in 1996 for collection in 1997 and thereafter.

      

PART III

MISCELLANEOUS


      NEW SECTION. Sec. 19. Part headings as used in this act do not constitute any part of the law.

      NEW SECTION. Sec. 20. This act applies to taxes levied in 1996 for collection in 1997 and thereafter."

      Debate ensued.

      There being no objection, and because the amendment by Senators Swecker, McCaslin and Strannigan is a striking amendment, the President Pro Tempore deferred further consideration of the striking amendment until the decisions have been made on the scope and object rulings to the amendments to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118.


      At 6:12 p.m., there being no objection, the President Pro Tempore declared the Senate to be at ease.

 

      The Senate was called to order at 6:31 p.m. by President Pritchard.

      There being no objection, the Senate resumed consideration of the amendment by Senator Heavey on page 11, after line 33 to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118, deferred earlier today.


RULING BY THE PRESIDENT


      President Pritchard: "In ruling upon the point of order raised by Senator Haugen, the President finds that Senate Bill No. 6118 is a measure which reduces the state property tax and creates a mechanism to accomplish the reduction.

      "The amendment by Senator Heavey on page 11, after line 33 to the striking amendment by Senators Rinehart and West would add requirements for districts other than the state in setting their levies.

      "The President, therefore, finds that the amendment to the striking amendment does change the scope and object of the bill and the point of order is well taken."


      The amendment by Senator Heavey on page 11, after line 33 to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118 was ruled out of order.


      President Pro Tempore Wojahn assumed the Chair.



      There being no objection, the Senate resumed consideration of the amendment by Senator Cantu on page 11, after line 33 to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118, deferred earlier today.


RULING BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Wojahn: "In ruling upon the point of order raised by Senator Rinehart, the President finds that Senate Bill No. 6118 is a measure which reduces the state property tax and creates a mechanism to accomplish the reduction.

      "The amendment by Senator Cantu on page 11, after line 33 to the striking amendment by Senators Rinehart and West would change the 106 percent levy limitation on various local taxing districts.

      "The President, therefore, finds that the amendment to the striking amendment does change the scope and object of the bill and the point of order is well taken."


      The amendment by Senator Cantu on page 11, after line 33 to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118 was ruled out of order.


      President Pritchard assumed the Chair.


      There being no objection, the Senate resumed consideration of the striking amendment by Senators Swecker, McCaslin and Strannigan to the striking amendment by Senators Rinehart and West, deferred earlier today.

      Senator Swecker demanded a roll call and the demand was sustained.


MOTION


      On motion of Senator Anderson, Senators Roach and Wood were excused.

      The President declared the question before the Senate to be the roll call on the adoption of the striking amendment by Senators Swecker, McCaslin and Strannigan to the striking amendment by Senators Rinehart and West to Senate Bill No. 6118.


ROLL CALL


      The Secretary called the roll and the striking amendment to the striking amendment was not adopted by the following vote: Yeas, 23; Nays, 24; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Cantu, Deccio, Finkbeiner, Hale, Heavey, Hochstatter, Johnson, Long, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Prince, Schow, Sellar, Strannigan, Swecker, West, Winsley and Zarelli - 23.

      Voting nay: Senators Bauer, Drew, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Kohl, Loveland, McAuliffe, Owen, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Sheldon, Smith, Snyder, Spanel, Sutherland, Thibaudeau and Wojahn - 24.

      Excused: Senators Roach and Wood - 2.


      The President declared the question before the Senate to be the adoption of the striking amendment, as amended, by Senators Rinehart and West to Senate Bill No. 6118.

      Debate ensued.

      The striking amendment by Senators Rinehart and West, as amended, to Senate Bill No. 6118 was adopted.


MOTIONS


      On motion of Senator Rinehart, the following title amendments were considered simultaneously and were adopted:

      On page 1, line 3 of the title, after "limit;" strike the remainder of the title and insert "amending RCW 43.135.045, 84.48.080, 84.52.010, 84.56.010, and 84.56.070; reenacting and amending RCW 43.84.092; adding a new section to chapter 84.55 RCW; and declaring an emergency."

      On page 12, line 5 of the title amendment, strike "84.52.010, 84.56.010, and 84.56.070" and insert "and 84.52.010"

      On motion of Senator Rinehart, the rules were suspended, Engrossed Senate Bill No. 6118 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6118.

 

ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6118 and the bill passed the Senate by the following vote: Yeas, 38; Nays, 9; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Prentice, Quigley, Rasmussen, Rinehart, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Thibaudeau, West, Winsley and Wojahn - 38.

      Voting nay: Senators Fraser, Kohl, Moyer, Pelz, Prince, Schow, Sutherland, Swecker and Zarelli - 9.

      Excused: Senators Roach and Wood - 2.

      ENGROSSED SENATE BILL NO. 6118, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


PERSONAL PRIVILEGE


      Senator Pelz: "Mr. President, a point of personal privilege. I have to inform you that that high pitched lament that we recently suffered through was, in fact, the maiden speech of one of our newest members, Senator Zarelli. As you know, under Senate Rule Q, I'm the designated hitter in the Senate and I just want to say that I think that the headache that we all are suffering from will probably not subside until we receive a present from the Senator from the Eighteenth District. Senate Rule Q is vague on this subject. Senator West feels it should be edible, but if nothing from your district is edible, you may substitute it with another gift to the members."

      Further debate ensued.


MOTION


      At 6:53 p.m., on motion of Senator Spanel, the Senate adjourned until 10:00 a.m., Wednesday, January 10, 1996.


JOEL PRITCHARD, President of the Senate


MARTY BROWN, Secretary of the Senate