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SEVENTEENTH DAY
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MORNING SESSION
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Senate Chamber, Olympia, Wednesday, January 24, 1996
The Senate was called to order at 10:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Haugen, Kohl and Pelz. On motion of Senator Thibaudeau, Senators Kohl and Pelz were excused.
The Sergeant at Arms Color Guard, consisting of Pages David Smith and Killy Nichelini, presented the Colors. Rev. Sandra Lee, pastor of the Olympia Unitarian Universalist Congregation, 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.
REPORTS OF STANDING COMMITTEES
January 23, 1996
SB 6093 Prime Sponsor, Senator Sheldon: Providing for sidewalk reconstruction. Reported by Committee on Government Operations
MAJORITY Recommendation: That Substitute Senate Bill No. 6093 be substituted therefor, and the substitute bill do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey and Winsley.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6094 Prime Sponsor, Senator Loveland: Changing property tax valuation, classification, listing, and rate calculation processes. Reported by Committee on Government Operations
MAJORITY Recommendation: Do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6097 Prime Sponsor, Senator Rasmussen: Promoting beekeeping operations. Reported by Committee on Agriculture and Agricultural Trade and Development
MAJORITY Recommendation: That Substitute Senate Bill No. 6097 be substituted therefor, and the substitute bill do pass. Signed by Senators Rasmussen, Chair; Loveland, Vice Chair; A. Anderson, Bauer, Morton, Newhouse and Snyder.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6104 Prime Sponsor, Senator Haugen: Requiring fiscal notes for initiatives. Reported by Committee on Government Operations
MAJORITY Recommendation: That Substitute Senate Bill No. 6104 be substituted therefor, and the substitute bill do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6108 Prime Sponsor, Senator Sheldon: Changing how valuation is determined for property taxation of senior citizens and persons retired because of physical disability. Reported by Committee on Government Operations
MAJORITY Recommendation: Do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6109 Prime Sponsor, Senator Loveland: Modifying county treasury management. Reported by Committee on Government Operations
MAJORITY Recommendation: That Substitute Senate Bill No. 6109 be substituted therefor, and the substitute bill do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6126 Prime Sponsor, Senator McCaslin: Revising county treasurer receipting practices. Reported by Committee on Government Operations
MAJORITY Recommendation: That Substitute Senate Bill No. 6126 be substituted therefor, and the substitute bill do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, McCaslin and Winsley.
Passed to Committee on Rules for second reading.
January 22, 1996
SB 6158 Prime Sponsor, Senator Hargrove: Authorizing the department of corrections to intercept, record, and divulge electronically monitored inmate conversations. Reported by Committee on Human Services and Corrections
MAJORITY Recommendation: That Substitute Senate Bill No. 6158 be substituted therefor, and the substitute bill do pass. Signed by Senators Hargrove, Chair; Franklin, Vice Chair; Kohl, Long, Moyer, Schow, Strannigan, Thibaudeau and Zarelli.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6160 Prime Sponsor, Senator Loveland: Requiring the preparation of maps by county assessors for listing of real estate. Reported by Committee on Government Operations
MAJORITY Recommendation: Do pass. Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Goings, Hale, Heavey, McCaslin and Winsley.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6176 Prime Sponsor, Senator Bauer: Studying service delivery alternatives for higher education. Reported by Committee on Higher Education
MAJORITY Recommendation: Do pass and be referred to Committee on Ways and Means. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Rasmussen, Sheldon and Wood.
Referred to Committee on Ways and Means.
January 19, 1996
SB 6217 Prime Sponsor, Senator Johnson: Changing requirements for admission to teacher preparation programs. Reported by Committee on Education
MAJORITY Recommendation: Do pass. Signed by Senators McAuliffe, Chair; Goings, Vice Chair; Finkbeiner, Hochstatter, Johnson, Pelz and Rasmussen.
Passed to Committee on Rules for second reading.
January 22, 1996
SB 6243 Prime Sponsor, Senator Goings: Prohibiting state funding of organ transplants for offenders sentenced to death. Reported by Committee on Human Services and Corrections
MAJORITY Recommendation: Do pass. Signed by Senators Hargrove, Chair; Franklin, Vice Chair; Long, Moyer, Schow, Strannigan and Zarelli.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6282 Prime Sponsor, Senator Rasmussen: Providing for marketing contracts and revising elections of directors and amendments to articles for cooperative associations. Reported by Committee on Agriculture and Agricultural Trade and Development
MAJORITY Recommendation: That Substitute Senate Bill No. 6282 be substituted therefor, and the substitute bill do pass. Signed by Senators Rasmussen, Chair; Loveland, Vice Chair; A. Anderson, Bauer, Morton, Newhouse and Snyder.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6283 Prime Sponsor, Senator Rasmussen: Increasing tax deductions available to low-density light and power businesses. Reported by Committee on Energy, Telecommunications and Utilities
MAJORITY Recommendation: Do pass. Signed by Senators Sutherland, Chair; Loveland, Vice Chair; Finkbeiner, Hochstatter and Owen.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6314 Prime Sponsor, Senator Rinehart: Requiring higher education tuition rates to increase annually based on the average per capita income in the state. Reported by Committee on Higher Education
MAJORITY Recommendation: Do pass and be referred to Committee on Ways and Means. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Referred to Committee on Ways and Means.
January 22, 1996
SB 6315 Prime Sponsor, Senator Hargrove: Revising procedures for recoupment of assessments against offenders. Reported by Committee on Human Services and Corrections
MAJORITY Recommendation: That Substitute Senate Bill No. 6315 be substituted therefor, and the substitute bill do pass. Signed by Senators Hargrove, Chair; Franklin, Vice Chair; Kohl, Long, Moyer, Schow, Strannigan, Thibaudeau and Zarelli.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6394 Prime Sponsor, Senator Loveland: Regulating cooling services as thermal heating services. Reported by Committee on Energy, Telecommunications and Utilities
MAJORITY Recommendation: Do pass. Signed by Senators Sutherland, Chair; Loveland, Vice Chair; Finkbeiner, Hochstatter and Owen.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6631 Prime Sponsor, Senator Sutherland: Exempting thermal energy companies from utilities and transportation commission authority. Reported by Committee on Energy, Telecommunications and Utilities
MAJORITY Recommendation: Do pass. Signed by Senators Sutherland, Chair; Loveland, Vice Chair; Finkbeiner, Hochstatter and Owen.
Passed to Committee on Rules for second reading.
January 23, 1996
SB 6640 Prime Sponsor, Senator Snyder: Distributing moneys from the timber tax distribution account for watershed recovery plans. Reported by Committee on Natural Resources
MAJORITY Recommendation: That it be referred to Committee on Ways and Means without recommendation. Signed by Senators Drew, Chair; Spanel, Vice Chair; Hargrove, Haugen, Morton, Oke, Snyder, Strannigan and Swecker.
Referred to Committee on Ways and Means.
REPORTS OF STANDING COMMITTEE
GUBERNATORIAL APPOINTMENTS
January 23, 1996
GA 9157 SUSAN JOHNSON, appointed May 8, 1995, for a term ending April 3, 1999, as a member of the State Board for Community and Technical Colleges.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
January 23, 1996
GA 9169 DAVID P. ROBERTS, appointed June 29, 1995, for a term ending April 3, 1998, as a member of the State Board for Community and Technical Colleges.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
January 23, 1996
GA 9217 JAMES R. FAULSTICH, appointed November 21, 1995, for a term ending June 30, 1999, as a member of the Higher Education Coordinating Board.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
January 23, 1996
GA 9218 FREDERIC L. GLOVER, appointed November 21, 1995, for a term ending September 30, 1999, as a member of the Board of Trustees for Central Washington University.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
January 23, 1996
GA 9220 CHANG M. SOHN, appointed November 21, 1995, for a term ending June 30, 1996, as a member of the Higher Education Coordinating Board.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
January 23, 1996
GA 9221 WALTER WAISATH, JR., appointed November 21, 1995, for a term ending September 30, 2000, as a member of the Board of Trustees for Clover Park Technical College District No. 29.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
January 23, 1996
GA 9227 ELIZABETH CHEN, appointed November 27, 1995, for a term ending September 30, 1999, as a member of the Board of Trustees for Highline Community College District No. 9.
Reported by Committee on Higher Education
MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Bauer, Chair; Drew, Hale, McAuliffe, Prince, Rasmussen, Sheldon and Wood.
Passed to Committee on Rules.
MESSAGES FROM THE GOVERNOR
GUBERNATORIAL APPOINTMENTS
December 21, 1995
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.
SuAnn M. Bond, appointed December 21, 1995, for a term ending January 19, 2000, as a member of the Board of Pharmacy.
Sincerely,
MIKE LOWRY, Governor
Referred to Committee on Health and Long-Term Care.
January 19, 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.
Karen Kiessling, appointed January 19, 1996, for a term ending January 19, 2000, as a member of the Board of Pharmacy.
Sincerely,
MIKE LOWRY, Governor
Referred to Committee on Health and Long-Term Care.
MESSAGES FROM THE HOUSE
January 22, 1996
MR. PRESIDENT:
The House has passed:
HOUSE BILL NO. 2126,
SUBSTITUTE HOUSE BILL NO. 2130,
SUBSTITUTE HOUSE BILL NO. 2138,
HOUSE BILL NO. 2172,
SUBSTITUTE HOUSE BILL NO. 2178, and the same are herewith transmitted.
TIMOTHY A. MARTIN
January 22, 1996
MR. PRESIDENT:
The House has passed:
ENGROSSED SUBSTITUTE HOUSE BILL NO. 2175,
ENGROSSED HOUSE BILL NO. 2202, and the same are herewith transmitted.
TIMOTHY A. MARTIN
INTRODUCTION AND FIRST READING
SB 6686 by Senators A. Anderson, Oke, Zarelli and Swecker
AN ACT Relating to final orders of growth management hearings boards; and amending RCW 36.70A.300, 34.05.620, and 34.05.630.
Referred to Committee on Government Operations.
SB 6687 by Senators Schow, Hargrove, Long, Zarelli and Strannigan
AN ACT Relating to study of class II tax reduction industries; creating a new section; and providing an expiration date.
Referred to Committee on Ways and Means.
SB 6688 by Senators Sellar, Winsley and Long
AN ACT Relating to juvenile fishing licenses; amending RCW 77.32.101, 77.32.161, and 77.32.360; and creating a new section.
Referred to Committee on Natural Resources.
SB 6689 by Senators Wood, Bauer, Prince, Sheldon, Drew, Zarelli, Winsley and Rasmussen
AN ACT Relating to collegiate license plates; amending RCW 46.04.127, 46.16.301, 46.16.324, and 28B.10.890; and providing an effective date.
Referred to Committee on Transportation.
SB 6690 by Senators Rasmussen, Swecker, Morton, Snyder and Fraser
AN ACT Relating to water permit fees; amending RCW 90.03.470, 89.30.001, and 90.40.090; amending 1993 c 495 s 3 (uncodified); adding a new section to chapter 90.03 RCW; creating a new section; and providing an expiration date.
Referred to Committee on Ways and Means.
SB 6691 by Senators Rasmussen, Hargrove and Drew
AN ACT Relating to fire protection districts; and amending RCW 52.16.170.
Referred to Committee on Natural Resources.
SB 6692 by Senators Rasmussen, Morton and Hargrove
AN ACT Relating to the state weed board; and adding a new section to chapter 17.10 RCW.
Referred to Committee on Agriculture and Agricultural Trade and Development.
SB 6693 by Senators McCaslin and Haugen
AN ACT Relating to annexation for municipal purposes; and amending RCW 35.13.180 and 35A.14.300.
Referred to Committee on Government Operations.
SB 6694 by Senators Morton, A. Anderson and Rasmussen
AN ACT Relating to microchipping of equine; amending RCW 16.57.010; adding new sections to chapter 16.57 RCW; and prescribing penalties.
Referred to Committee on Agriculture and Agricultural Trade and Development.
SB 6695 by Senators Morton, Swecker, Rasmussen, A. Anderson, Schow and Roach
AN ACT Relating to long-term agreements with the department of natural resources; and adding a new section to chapter 43.30 RCW.
Referred to Committee on Natural Resources.
SB 6696 by Senators Fairley, Haugen, Winsley, Sheldon and McCaslin
AN ACT Relating to property owner notification regarding pending annexations of territory by direct petition method; and amending RCW 35.13.125, 35.13.130, and 35A.14.120.
Referred to Committee on Government Operations.
SB 6697 by Senators McAuliffe, Winsley, Fairley and Goings
AN ACT Relating to aid to families with dependent children; amending RCW 74.12.035; and adding a new section to chapter 74.12 RCW.
Referred to Committee on Health and Long-Term Care.
SB 6698 by Senators Swecker, Newhouse, Haugen and Rasmussen
AN ACT Relating to locally conducted basin assessments and planning for watersheds; adding a new chapter to Title 90 RCW; and creating new sections.
Referred to Committee on Ecology and Parks.
SB 6699 by Senator Prince
AN ACT Relating to transportation of persons with special transportation needs; and amending RCW 81.66.010, 81.66.070, 46.74.010, 82.08.0287, 82.36.285, 82.38.080, and 82.44.015.
Referred to Committee on Transportation.
SB 6700 by Senators Prentice, Quigley, Wojahn, Snyder, Thibaudeau and Fairley (by request of Insurance Commissioner Senn)
AN ACT Relating to treatment to restore physical function; and amending RCW 48.20.395, 48.21.230, 48.44.330, and 48.46.280.
Referred to Committee on Financial Institutions and Housing.
SB 6701 by Senators Fraser and Wood
AN ACT Relating to intercity transportation; amending RCW 35.58.250 and 36.57A.100; reenacting and amending RCW 82.44.110; adding a new section to chapter 47.26 RCW; adding a new section to chapter 47.08 RCW; creating new sections; and making an appropriation.
Referred to Committee on Transportation.
SB 6702 by Senators Fraser, McCaslin, Sheldon, West, Winsley and Hale
AN ACT Relating to clarifying and streamlining procedures of the joint administrative rules review committee; amending RCW 34.05.330, 34.05.620, 34.05.630, 34.05.640, and 34.05.655; and repealing RCW 34.05.645.
Referred to Committee on Government Operations.
SB 6703 by Senators Fraser, Swecker, Fairley and Winsley
AN ACT Relating to historic preservation; amending RCW 27.34.220; and reenacting and amending RCW 43.82.010.
Referred to Committee on Government Operations.
SB 6704 by Senator Sutherland
AN ACT Relating to the use of telecommunications in the medical industry; and creating new sections.
Referred to Committee on Energy, Telecommunications and Utilities.
SB 6705 by Senators Bauer, Wood, Kohl, Zarelli, Sutherland, Cantu, Prince, Sheldon, Loveland, Winsley, Hale and Rasmussen
AN ACT Relating to telecommunications, telecommunications planning, and higher education technology; amending 1995 2nd sp.s. c 18 s 903 (uncodified); adding a new section to chapter 28B.80 RCW; and adding a new chapter to Title 28B RCW.
Referred to Committee on Higher Education.
SB 6706 by Senators Goings, Winsley, Rasmussen, Sheldon, Hale, Haugen, McCaslin, Heavey, Johnson, McAuliffe and Oke
AN ACT Relating to property tax exemptions; amending RCW 84.36.381; and creating a new section.
Referred to Committee on Ways and Means.
SB 6707 by Senators Rasmussen, Hochstatter, Goings, Finkbeiner, Winsley and A. Anderson
AN ACT Relating to the recruitment, preparation, and continuing education of vocational agriculture teachers; adding a new section to chapter 28A.415 RCW; and creating a new section.
Referred to Committee on Education.
SB 6708 by Senators Goings, Rasmussen, Winsley, Sheldon, Haugen, Hale, McCaslin, Heavey, Finkbeiner, Hochstatter, McAuliffe and Oke
AN ACT Relating to sex offender registration violations; reenacting and amending RCW 9A.44.130; and prescribing penalties.
Referred to Committee on Human Services and Corrections.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
HB 2126 by Representatives Dyer, Cody, Sheldon, Smith, Van Luven, Thompson and Murray
Allowing a dentist to obtain an inactive license.
Referred to Committee on Health and Long-Term Care.
SHB 2130 by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives L. Thomas, Smith and Pelesky)
Clarifying submission of insurance antifraud plans.
Referred to Committee on Financial Institutions and Housing.
SHB 2138 by House Committee on Law and Justice (originally sponsored by Representatives Sheahan, Appelwick, Scott, Hatfield, Dickerson, Thompson and Costa)
Concerning the payment and recovery of fees.
Referred to Committee on Law and Justice.
HB 2172 by Representatives Dyer, Cody, Dellwo, Dickerson, Horn and Carlson (by request of Department of Social and Health Services)
Authorizing actions and penalties against adult residential care providers by the department of social and health services.
Referred to Committee on Human Services and Corrections.
ESHB 2175 by House Committee on Law and Justice (originally sponsored by Representatives Campbell, Smith, Buck, McMahan, Pennington, Schoesler, Elliot and Thompson)
Regulating liability of sport shooting ranges.
Referred to Committee on Law and Justice.
SHB 2178 by House Committee on Law and Justice (originally sponsored by Representatives Campbell, Smith, Robertson, Sterk, Sheahan, Hickel, McMahan, Pennington, Schoesler, Sheldon, Chappell, Carrell, Delvin, Huff, Quall, Morris, Mitchell, Thompson, Stevens and Costa)
Penalizing disarming a law enforcement officer.
Referred to Committee on Law and Justice.
EHB 2202 by Representatives Chandler, Mastin, Honeyford, Koster, Carrell, Horn, Elliot, Van Luven, Boldt, Goldsmith, Hargrove and McMahan
Establishing procedures by which owners of single-family residences may use lake water for noncommercial landscape irrigation.
Referred to Committee on Ecology and Parks.
SECOND READING
CONFIRMATION OF GUBERNATORIAL APPOINTMENTS
MOTION
On motion of Senator Bauer, Gubernatorial Appointment No. 9195, Sally G. Schaefer, as a member of the Board of Trustees for Clark Community College District No. 14, was confirmed.
APPOINTMENT OF SALLY G. SCHAEFER
The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.
Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Heavey, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.
Absent: Senator Haugen - 1.
Excused: Senators Kohl and Pelz - 2.
MOTION
On motion of Senator Moyer, Gubernatorial Appointment No. 9194, Michael Ormsby, as a member of the Board of Trustees for Eastern Washington University, was confirmed.
APPOINTMENT OF MICHAEL ORMSBY
The Secretary called the roll. The appointment was confirmed by the following vote: 46; Nays, 0; Absent, 1; Excused, 2.
Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.
Absent: Senator Goings - 1.
Excused: Senators Kohl and Pelz - 2.
MOTION
On motion of Senator Spanel, the Senate returned to the third order of business.
MESSAGE FROM THE GOVERNOR
VETO MESSAGE ON SENATE BILL NO. 6117
January 22, 1996
To the Honorable President and Members,
The Senate of the State of Washington
Ladies and Gentlemen:
I am returning herewith, without my approval as to Senate Bill No. 6117 entitled:
"AN ACT Relating to reducing business and occupation taxes by reducing the 1993 service rate increases by fifty percent and increasing tax credits in distressed areas;"
At a time of strong demands on our state’s financial resources and expectations of significant reductions in federal support for state programs in future years, Senate Bill No. 6117 would reduce state revenues more than any other tax measure currently under consideration by the state legislature — by $132.4 million in the 1995-97 Biennium and $216.6 million in the 1997-99 Biennium. Moreover, as apportioned by this bill, these reductions are not targeted to create family-wage jobs, correct inequities in the state’s tax code, or improve our state’s overall economy.
It is important to remember that although the state currently anticipates a reserve of $677 million under the biennial budget approved last June, only $118 million of this amount is from surplus revenues projected in the 1995-97 Biennium. The remainder is a one-time surplus carried forward from the previous biennium and does not represent an ongoing flow of excess revenues. We must maintain a prudent reserve for the future.
Sections 1 and 2 of Senate Bill No. 6117 reduce the Business & Occupation (B&O) tax rate for the three classifications of service firms in the state. The B&O tax rate for “selected business services” is reduced from 2.5 percent to 2.0 percent. The B&O tax rate for “financial services” is reduced from 1.7 percent to 1.6 percent, and the rate for “other services” and real estate brokers is reduced from 2.0 percent to 1.75 percent. The reductions represent a 50 percent roll-back of the increase for these categories enacted in 1993. The estimated revenue loss on a cash basis associated with sections 1 and 2 of this bill is $129.2 million in the 1995-97 Biennium and $211.2 million in the next biennium.
While I support extending additional tax incentives to business this year, I believe these measures must be carefully targeted to produce the greatest possible economic return for our state. Targeted tax initiatives, such as tax exemptions on the purchase or repair of machinery and equipment, will do much more to spur further investment in our state’s important manufacturing sector and draw new employers to our state than will a simple tax cut for certain service industries. Historically, each new job created in manufacturing generates two additional jobs elsewhere in our economy. Service industries, by contrast, generate less than one additional job for every new job added to that sector — and Senate Bill No. 6117 provides no inducement for those businesses to create the additional family-wage jobs essential to our state’s economic development.
I also believe that any tax initiatives that reduce state revenues should be targeted to help those businesses and individuals who need it most. If this bill was meant to help new or small businesses such as barber shops or janitorial services, it misses the mark. More than three-quarters of the tax cut proposed by this measure would go to large companies involved in banking, law, medicine, and engineering.
Sections 3 and 4 of Senate Bill No. 6117 would provide or expand B&O tax credits for certain business activities, with an estimated reduction of $3.2 million in revenues during the 1995-97 Biennium and $5.4 million in the next biennium. Although I support the general intent of these provisions, I have not approved these sections for the reasons stated below.
Section 3 of Senate Bill No. 6117 increases the distressed area B&O tax credit in chapter 82.62 RCW from $1,000 to $2,000 for each qualified employment position created in an eligible business project approved after January 1, 1996. Eligible businesses are those engaged in manufacturing, research and development activities, or computer services. Current law caps the program for all participants at $15 million in tax credits per biennium, and any single employer is limited to a total of $300,000 dollars of credit during the life of the program.
The legislature’s goal through increasing the tax credit allowed for each new employment position created under chapter 82.62 RCW appears to be to expand participation in the program. However, the state’s experience has shown that the primary constraint on business participation is not the size of the tax credit for each new position created, but rather the requirement that an employer increase its existing work force by 15 percent or create a new work force to qualify for the tax credit.
The Department of Revenue estimates that increasing the tax credit from $1,000 to $2,000 for each new position created would result in an additional $900,000 in credits claimed during the current biennium. However, the department also believes that most of those additional credits would be claimed by companies already participating in the program. As a result, those firms would reach the $300,000 cap more quickly, after which there would be no incentive to hire additional employees. Rather than inducing more businesses to participate in the program, the primary effect of section 3 of Senate Bill No. 6117 would be to curtail the incentive for participating businesses to hire additional employees — in direct opposition to the goal of this measure.
Section 4 of Senate Bill No. 6117 establishes a new B&O tax credit for job training provided or sponsored by employers to enhance the performance of their employees. This tax credit would be limited to businesses engaged in manufacturing, research and development activities, or computer services in distressed areas of the state. To qualify for the tax credit, training must be offered to employees without charge and must be approved by the state Employment Security Department. The credit, effective after January 1, 1996, would be limited to 20 percent of the value of the training services, and total credits for a business could not exceed $5,000 per calendar year.
Although this section stipulates that job-training activities must be approved by the Employment Security Department to qualify for the proposed tax credit, it offers no assurance that the training will produce a long-term enhancement of the employee’s skills or abilities. The language is sufficiently broad as to allow on-the-job training which employees currently receive to qualify for the credit. While I strongly support the idea of providing job-training incentives for businesses, I also believe that the state must endeavor to gain the greatest benefit possible out of each dollar of credit.
For these reasons, I have vetoed Senate Bill No. 6117 in its entirety.
Respectfully submitted,
MIKE LOWRY, Governor
MOTION
On motion of Senator Snyder, the Veto Message on Senate Bill No. 6117 was held on the desk.
MOTION
On motion of Senator Snyder, the Senate advanced to the sixth order of business.
SECOND READING
CONFIRMATION OF GUBERNATORIAL APPOINTMENT
MOTION
On motion of Senator Finkbeiner, Gubernatorial Appointment No. 9189, Deloris I. Brown, as a member of the Board of Trustees for Lake Washington Technical College District No. 26, was confirmed.
APPOINTMENT OF DELORIS I. BROWN
The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.
Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.
Absent: Senator Prince - 1.
Excused: Senator Kohl - 1.
There being no objection, the President returned the Senate to the third order of business.
There being no objection, the Senate resumed consideration of the Governor's Veto Message on Senate Bill No. 6117, which was read in earlier today.
MOTION
Senator Quigley moved that the Senate pass Senate Bill No. 6117, notwithstanding the Governor's Veto.
Debate ensued.
The President declared the question before the Senate to be the motion by Senator Quigley that Senate Bill No. 6117 pass the Senate notwithstanding the Governor's veto. The President declared a vote 'yea' will override the Governor's veto and a vote 'nay' will sustain the veto. The President declared that a two-thirds majority of those present is required to override the veto.
ROLL CALL
The Secretary called the roll on the final passage of Senate Bill No. 6117 notwithstanding the Governor's veto and the Governor's veto was overridden by the following vote: Yeas, 41; Nays, 7; Absent, 0; Excused, 1.
Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Goings, Hale, Hargrove, Haugen, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 41.
Voting nay: Senators Fairley, Fraser, Heavey, Pelz, Sutherland, Thibaudeau and Wojahn - 7.
Excused: Senator Kohl - 1.
SENATE BILL NO. 6117, having received the constitutional two-thirds majority, notwithstanding the Governor's veto, was declared passed. There being no objection, the title of the bill will stand as the title of the act.
SECOND READING
SUBSTITUTE SENATE BILL NO. 5993, by Senate Committee on Government Operations (originally sponsored by Senators Winsley, Finkbeiner, Swecker and Wood)
Providing for paid leaves of absence for state employees to provide disaster relief services.
The bill was read the second time.
MOTION
On motion of Senator Winsley, the rules were suspended, Substitute Senate Bill No. 5993 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.
MOTION
On motion of Senator Thibaudeau, Senator Quigley was excused.
The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5993.
ROLL CALL
The Secretary called the roll on the final passage of Substitute Senate Bill No. 5993 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 4; Absent, 0; Excused, 2.
Voting yea: Senators Anderson, A., Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Johnson, Long, Loveland, McAuliffe, McCaslin, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, Rinehart, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43.
Voting nay: Senators Cantu, Hochstatter, McDonald and Roach - 4.
Excused: Senators Kohl and Quigley - 2.
SUBSTITUTE SENATE BILL NO. 5993, 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. 6089, by Senators Rasmussen, Drew, Sheldon, Roach, Oke, A. Anderson and Goings
Changing criteria for eligibility for firearms range account funding.
The bill was read the second time.
MOTION
On motion of Senator Drew, the rules were suspended, Senate Bill No. 6089 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. 6089.
ROLL CALL
The Secretary called the roll on the final passage of Senate Bill No. 6089 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 2; Absent, 2; Excused, 2.
Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Spanel, Sutherland, Swecker, Thibaudeau, West, Winsley, Wood and Zarelli - 43.
Voting nay: Senators Fairley and Wojahn - 2.
Absent: Senators Snyder and Strannigan - 2.
Excused: Senators Kohl and Quigley - 2.
SENATE BILL NO. 6089, 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 CONCURRENT RESOLUTION NO. 8400, by Senators Haugen, Winsley, Owen, C. Anderson and Oke
Creating the Joint Select Committee on Veterans and Military Personnel Affairs.
MOTIONS
On motion of Senator Haugen, Substitute Senate Concurrent Resolution No. 8400 was substituted for Senate Concurrent Resolution No. 8400 and the substitute concurrent resolution was placed on second reading and read the second time.
On motion of Senator Drew, the rules were suspended, Substitute Senate Concurrent Resolution No. 8400 was advanced to third reading, the second reading considered the third and the substitute concurrent resolution was placed on final passage.
The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Concurrent Resolution No. 8400.
ROLL CALL
The Secretary called the roll on the final passage of Substitute Senate Concurrent Resolution No. 8400 and the substitute concurrent resolution passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.
Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.
Absent: Senator Franklin - 1.
Excused: Senators Kohl and Quigley - 2.
SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8400, having received the constitutional majority, was declared passed.
There being no objection, the President advanced the Senate to the eighth order of business.
MOTION
On motion of Senator Cantu, the following resolution was adopted:
SENATE RESOLUTION 1996-8677
By Senators Cantu, Sheldon and Rasmussen
WHEREAS Washington State has a long history of developing quality products and services; and
WHEREAS, The quality of these products and services is essential to the future success and well-being of the citizens of our state; and
WHEREAS, It is in the best interest of the state to encourage superior quality and performance in government, education, and private business; and
WHEREAS, The Washington State Quality Award Council and The Quality for Washington State Foundation are organizations that strive to foster this positive characteristic; and
WHEREAS, These organizations have dedicated themselves to honoring others who have implemented superior quality systems and achieved exceptional performance;
NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize and honor The Washington State Quality Award Council and The Quality for Washington State Foundation for their contributions to quality products and services in Washington.
MOTION
On motion of Senator McAuliffe, the following resolution was adopted:
SENATE RESOLUTION 1996-8678
By Senators McAuliffe, Franklin, Rasmussen, Bauer, Pelz, Fairley, Haugen, Goings, Thibaudeau, Prentice, Sheldon, Spanel and Fraser
WHEREAS, The health and safety of our school children is of the utmost importance; and
WHEREAS, School nurses serve a vital link in keeping our children healthy; and
WHEREAS, School nurses are frequently the first line of defense in detecting children's health problems; and
WHEREAS, Healthy children make better learners and children need supportive health services to remain in school; and
WHEREAS, School nurses provide for the safe administration of medicine, skilled emergency care, help in crisis situations such as substance abuse and child abuse, and teaching for healthier children;
NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state Washington, that the school nurses in the state of Washington be recognized for their dedication and public service in helping the children of the state of Washington; and
BE IT FURTHER RESOLVED, That the school nurses of the state of Washington be honored today, which is School Nurses Day; and
BE IT FURTHER RESOLVED, That copies of this resolution be transmitted to by the Secretary of the Senate to the School Nurses Organization of Washington.
MOTION
On motion of Senator Franklin, the following resolution was adopted:
SENATE RESOLUTION 1996-8676
By Senators Franklin, Snyder, Sheldon, Wood, Spanel, Long, Fraser and Sutherland
WHEREAS, The Honorable Barbara Charline Jordan served for seven years in the United States Congress as a Representative from the state of Texas; and
WHEREAS, She was the first black State Senator in the history of the state of Texas; and
WHEREAS, She became, in 1972, the first southern black citizen elected to Congress since Reconstruction; and
WHEREAS, She was an honored and outstanding member of the Democratic Party; and
WHEREAS, As a junior member of the House Judiciary Committee, she became nationally known as a deliberate and forceful speaker and people's advocate; and
WHEREAS, She was held in the highest esteem by the Democratic Party and addressed national conventions on three occasions; and
WHEREAS, In both her private and professional life, Barbara Jordan set a standard of independence, eloquence, and integrity that we all would do well to strive to meet; and
WHEREAS, Although her medical condition of multiple sclerosis confined her to a wheelchair, she remained active as a professor at the University of Texas and in community affairs; and
WHEREAS, She most recently served as chairperson of President Clinton's Task Force on National Immigration Policies; and
WHEREAS, She became a model for African Americans and women who sought to make their voices heard in the political arena; and
WHEREAS, At age fifty-nine, her life was cut far too short; she accomplished more than most others who live much longer; and
WHEREAS, Many Americans will always remember her, appreciate her many contributions to her country as a public servant and stateswoman, and hold her memory in the highest esteem;
NOW, THEREFORE, BE IT RESOLVED, That the members of the Senate of the state of Washington do pay their humblest respects to the memory of Barbara Charline Jordan on the occasion of her death, and urge all citizens of Washington to join them in mourning the passing of a great American leader; and
BE IT FURTHER RESOLVED, That copies of this resolution be transmitted immediately to the family of Barbara Jordan, the University of Texas, the Congress of the United States, the Texas Democratic Party, and the Democratic National Committee.
Senators Franklin, President Pritchard and Senator Fraser spoke to Senate Resolution 1996-8676.
MOTION
At 11:19 a.m., on motion of Senator Spanel, the Senate adjourned until 12:00 noon, Thursday, January 25, 1996.
JOEL PRITCHARD, President of the Senate
MARTY BROWN, Secretary of the Senate