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SEVENTY-FIFTH DAY

AFTERNOON SESSION

House Chamber, Olympia, Friday, March 28, 1997

The House was called to order at 1:30 p.m. by the Speaker (Representative Lisk presiding).

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

INTRODUCTIONS AND FIRST READING

SJM 8003 by Senators Zarelli and Rasmussen

Honoring law enforcement officers.

Referred to Committee on Government Administration.

There being no objection, the memorial listed on the day’s introduction sheet under the fourth order of business was referred to the committees so designated.

REPORTS OF STANDING COMMITTEES

March 24, 1997

HB 2258 Prime Sponsor, Representative Huff: Making appropriations for the fiscal biennium ending June 30, 1997. Reported by Committee on Appropriations

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Kenney; Kessler; Lambert; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Without recommendation. Signed by Representatives Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Keiser; Linville; Poulsen; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Kenney, Kessler, Lambert, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan, and Talcott.

Voting Nay: Representatives Gombosky, Chopp, Cody, Keiser, Linville, Poulsen, Regala and Tokuda.

Advanced to second reading calendar.

March 26, 1997

SSB 5060 Prime Sponsor, Committee on Law & Justice: Clarifying driving statutes. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass. Signed by Representatives Sheahan, Chairman; McDonald, Vice Chairman; Sterk, Vice Chairman; Costa, Ranking Minority Member; Constantine, Assistant Ranking Minority Member; Carrell; Cody; Kenney; Lambert; Lantz; Radcliff; Sherstad and Skinner.

Voting Yea: Representatives Sheahan, Sterk, McDonald, Costa, Constantine, Carrell, Cody, Lambert, Lantz, Radcliff, Sherstad and Skinner.

Excused: Representative Kenney.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5085 Prime Sponsor, Senator Roach: Removing a defense to the crime of criminal conspiracy. Reported by Committee on Law & Justice

Voting Yea: Representatives Sheahan, Sterk, McDonald, Costa, Constantine, Carrell, Cody, Lambert, Lantz, Radcliff, Sherstad and Skinner.

Excused: Representative Kenney.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5181 Prime Sponsor, Senator Roach: Making certain debtors liable for any deficiency after default. Reported by Committee on Law & Justice

Voting Yea: Representatives Sheahan, Sterk, McDonald, Costa, Constantine, Carrell, Cody, Lambert, Lantz, Radcliff, Sherstad and Skinner.

Excused: Representative Kenney.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5284 Prime Sponsor, Senator Long: Providing for additional judges for Snohomish county superior court. Reported by Committee on Law & Justice

Voting Yea: Representatives Sheahan, Sterk, McDonald, Costa, Constantine, Carrell, Cody, Lambert, Lantz, Radcliff, Sherstad and Skinner.

Excused: Representative Kenney.

Passed to Rules Committee for second reading.

March 26, 1997

SSB 5332 Prime Sponsor, Committee on Energy & Utilities (S): Prohibiting the department of information services from spending funds for multimedia kiosks for the Washington information network except for maintenance and operation of existing kiosks. Reported by Committee on Energy & Utilities

MAJORITY recommendation: Do pass as amended.

On page 2, beginning on line 3, strike all of subsection 1 and insert the following:

"(1) Except to increase the number of electronic kiosks in rural counties, the department shall not expend any funds to increase the number of electronic kiosks in the Washington information network.

This section does not prohibit the department from expending funds to maintain or operate the currently deployed electronic kiosks on an interim basis as it develops electronic information access services through technologies that the department deems more efficient and cost-effective.

For the purposes of this section, the following terms have the following meanings:

(a) "Rural counties" means counties with populations of fewer than one hundred thousand.

(b) "Electronic kiosks" means public electronic access terminals, similar to those deployed on the effective date of this section, that rely on dedicated circuits and that do not provide for internet connectivity or financial transactions."

Signed by Representatives Crouse, Chairman; DeBolt, Vice Chairman; Mastin, Vice Chairman; Poulsen, Ranking Minority Member; Morris, Assistant Ranking Minority Member; Bush; Cooper; Honeyford; Kastama; Kessler; Mielke and B. Thomas.

MINORITY recommendation: Without recommendation. Signed by Representative Mulliken.

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5370 Prime Sponsor, Senator Finkbeiner: Allowing a telecommunications company to reduce a rate or charge in a more streamlined manner. Reported by Committee on Energy & Utilities

MAJORITY recommendation: Do pass. Signed by Representatives Crouse, Chairman; DeBolt, Vice Chairman; Mastin, Vice Chairman; Poulsen, Ranking Minority Member; Morris, Assistant Ranking Minority Member; Bush; Cooper; Honeyford; Kastama; Kessler; Mielke; Mulliken and B. Thomas.

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5371 Prime Sponsor, Senator Rossi: Exempting regulated utilities from seeking commission preapproval of some short-term notes having a maturity of twelve or fewer months. Reported by Committee on Energy & Utilities

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5372 Prime Sponsor, Senator Finkbeiner: Limiting the number of times the maximum disposal fee at a radioactive waste disposal site may be adjusted. Reported by Committee on Energy & Utilities

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5520 Prime Sponsor, Senator McCaslin: Revising provisions relating to intimidation of witnesses. Reported by Committee on Law & Justice

Voting Yea: Representatives Sheahan, Sterk, McDonald, Costa, Constantine, Carrell, Cody, Lambert, Lantz, Radcliff, Sherstad and Skinner.

Excused: Representative Kenney.

Passed to Rules Committee for second reading.

March 26, 1997

ESB 5600 Prime Sponsor, Senator Hale: Making changes to the internal operations of counties. Reported by Committee on Government Administration

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 2.08.100 and 1939 c 189 s 1 are each amended to read as follows:

The county auditor of each county shall ((draw his warrant on the treasurer of such county on the first Monday of each month for the amount of salary due for the previous month from such county to the judge of the superior court thereof, and said warrant shall be paid by said treasurer out of the salary fund of said county: PROVIDED, That no such warrant shall be issued until the judge who is to receive the same shall have made an affidavit, in the manner provided by law, that no cause in his court remains pending and undecided contrary to the provisions of RCW 2.08.240 and of section 20, Article 4, Constitution of the state of Washington)) pay superior court judges in the same means and manner provided for all other elected officials.

Sec. 2. RCW 36.40.200 and 1963 c 4 s 36.40.200 are each amended to read as follows:

All appropriations shall lapse at the end of the fiscal year: PROVIDED, That the appropriation accounts ((shall)) may remain open for a period of thirty days, and may, at the auditor's discretion, remain open for a period not to exceed sixty days thereafter for the payment of claims incurred against such appropriations prior to the close of the fiscal year.

After such period has expired all appropriations shall become null and void and any claim presented thereafter against any such appropriation shall be provided for in the next ensuing budget: PROVIDED, That this shall not prevent payments upon uncompleted improvements in progress at the close of the fiscal year.

Sec. 3. RCW 36.40.250 and 1995 c 193 s 1 are each amended to read as follows:

In lieu of adopting an annual budget, the county legislative authority of any county may adopt an ordinance or a resolution providing for biennial budgets with a mid-biennium review and modification for the second year of the biennium. The county legislative authority may repeal such an ordinance or resolution and revert to adopting annual budgets for a period commencing after the end of a biennial budget cycle. The county legislative authority of a county with a biennial budget cycle may adopt supplemental and emergency budgets in the same manner and subject to the same conditions as the county legislative authority in a county with an annual budget cycle.

The procedure and steps for adopting a biennial budget shall conform with the procedure and steps for adopting an annual budget and with requirements established by the state auditor. The state auditor shall establish requirements for preparing and adopting the mid-biennium review and modification for the second year of the biennium.

Expenditures included in the biennial budget, mid-term modification budget, supplemental budget, or emergency budget shall constitute the appropriations for the county during the applicable period of the budget and every county official shall be limited in making expenditures or incurring liabilities to the amount of the detailed appropriation item or classes in the budget.

In lieu of adopting an annual budget or a biennial budget with a mid-biennium review for all funds, the legislative authority of any county may adopt an ordinance or a resolution providing for a biennial budget or budgets for any one or more funds of the county, with a mid-biennium review and modification for the second year of the biennium, with the other funds remaining on an annual budget. The county legislative authority may repeal such an ordinance or resolution and revert to adopting annual budgets for a period commencing after the end of the biennial budget or biennial budgets for the specific agency fund or funds. The county legislative authority of a county with a biennial budget cycle may adopt supplemental and emergency budgets in the same manner and subject to the same conditions as the county legislative authority in a county with an annual budget cycle.

The county legislative authority shall hold a public hearing on the proposed county property taxes and proposed road district property taxes prior to imposing the property tax levies.

NEW SECTION. Sec. 4. A new section is added to chapter 36.40 RCW to read as follows:

In addition to the supplemental appropriations provided in RCW 36.40.100 and 36.40.140, the county legislative authority may provide by ordinance or resolution a policy for supplemental appropriations as a result of unanticipated funds from local, state, or federal revenue sources.

Sec. 5. RCW 35.42.010 and 1965 c 7 s 35.42.010 are each amended to read as follows:

It is the purpose of RCW 35.42.010 through 35.42.090 to supplement existing law for the leasing of space by counties, cities, and towns to provide for the leasing of such space through leases with an option to purchase and the acquisition of buildings erected upon land owned by a county, city, or town upon the expiration of a lease of such land.

Sec. 6. RCW 35.42.020 and 1965 c 7 s 35.42.020 are each amended to read as follows:

The term "building" as used in RCW 35.42.010 through 35.42.090 shall be construed to mean any building or buildings used as a part of, or in connection with, the operation of a county, city, or town, and shall include the site and appurtenances, including but not limited to, heating facilities, water supply, sewage disposal, landscaping, walks, and drives.

Sec. 7. RCW 35.42.030 and 1965 c 7 s 35.42.030 are each amended to read as follows:

Any county, city, or town may, as lessee, lease a building for its use for a term of not to exceed fifty years.

Sec. 8. RCW 35.42.040 and 1965 c 7 s 35.42.040 are each amended to read as follows:

A lease of a building executed pursuant to RCW 35.42.010 through 35.42.090 may grant the lessee county, city, or town an option to renew for a further term on like conditions, or an option to purchase the building covered by the lease at any time prior to the expiration of the term. A lease with an option to purchase shall provide that all sums paid as rent up to the time of exercising the option shall be credited toward the payment of the purchase price as of the date of payment. No lease shall provide, nor be construed to provide, that any county, city, or town shall be under any obligation to purchase the leased building.

Sec. 9. RCW 35.42.050 and 1965 c 7 s 35.42.050 are each amended to read as follows:

A lease of a building may provide that as a part of the rental, the lessee county, city, or town may pay taxes and assessments on the leased building, maintain insurance thereon for the benefit of the lessor, and assume responsibilities for repair, replacement, alterations, and improvements during the term of the lease.

Sec. 10. RCW 35.42.060 and 1965 c 7 s 35.42.060 are each amended to read as follows:

A county, city, or town may, in anticipation of the acquisition of a site and the construction of a building, execute a lease, as lessee, prior to the actual acquisition of a site and the construction of a building, but the lease shall not require payment of rental by the lessee until the building is ready for occupancy. The lessor shall furnish a bond satisfactory to the lessee conditioned on the delivery of possession of the completed building to the lessee county, city, or town at the time prescribed in the lease, unavoidable delay excepted. The lease shall provide that no part of the cost of construction of the building shall ever become an obligation of the lessee county, city, or town.

Sec. 11. RCW 35.42.070 and 1965 c 7 s 35.42.070 are each amended to read as follows:

Any county, city, or town desiring to have a building for its use erected on land owned, or to be acquired, by it, may, as lessor, lease the land for a reasonable rental for a term of not to exceed fifty years: PROVIDED, That the county, city, or town shall lease Backlund the building or a portion thereof for the same term. The leases shall contain terms as agreed upon between the parties, and shall include the following provisions:

(1) No part of the cost of construction of the building shall ever be or become an obligation of the county, city, or town.

(2) The county, city, or town shall have a prior right to occupy any or all of the building upon payment of rental as agreed upon by the parties, which rental shall not exceed prevailing rates for comparable space.

(3) During any time that all or any portion of the building is not required for occupancy by the county, city, or town, the lessee of the land may rent the unneeded portion to suitable tenants approved by the county, city, or town.

(4) Upon the expiration of the lease, all buildings and improvements on the land shall become the property of the county, city, or town.

Sec. 12. RCW 35.42.080 and 1985 c 469 s 28 are each amended to read as follows:

A lease and lease Backlund agreement requiring a lessee to build on county, city, or town property shall be made pursuant to a call for bids upon terms most advantageous to the county, city, or town. The call for bids shall be given by posting notice thereof in a public place in the county, city, or town and by publication in the official newspaper of the county, city, or town once each week for two consecutive weeks before the date fixed for opening the bids. The city council or commission of the city or town, or county legislative authority, may by resolution reject all bids and make further calls for bids in the same manner as the original call. If no bid is received on the first call, the city council or commission or county legislative authority may readvertise and make a second call, or may execute a lease without any further call for bids.

Sec. 13. RCW 35.42.200 and 1990 c 205 s 1 are each amended to read as follows:

Any county, city, or town may execute leases for a period of years with or without an option to purchase with the state or any of its political subdivisions, with the government of the United States, or with any private party for the lease of any real or personal property, or property rights: PROVIDED, That with respect only to leases that finance the acquisition of property by the lessee, the aggregated portions of lease payments over the term of the lease which are allocable to principal shall constitute debt, which shall not result in a total indebtedness in excess of one and one-half percent of the taxable property of such county, city, or town computed in accordance with RCW 39.36.030, unless a proposition in regard to whether or not such a lease may be executed is submitted to the voters for their approval or rejection in the same manner that bond issues for capital purposes are submitted, and the voters approve the same.

Sec. 14. RCW 35.42.210 and 1965 c 7 s 35.42.210 are each amended to read as follows:

If at the time an option to purchase is exercised the remaining amount to be paid in order to purchase the real or personal property leased after crediting the rental payments toward the total purchase price therefor does not result in a total indebtedness in excess of one and one-half percent of the taxable property of such county, city, or town computed in accordance with RCW 39.36.030, such a county, city, or town may exercise its option to purchase such property. If such remaining amount to be paid to purchase such leased property will result in a total indebtedness in excess of one and one-half percent of the taxable property of such county, city, or town, a proposition in regard to whether or not to purchase the property shall be submitted to the voters for approval or rejection in the same manner that bond issues for capital purposes are submitted to the voters.

Sec. 15. RCW 35.42.220 and 1965 c 7 s 35.42.220 are each amended to read as follows:

The annual budget of a county, city, or town shall provide for the payment of rental that falls due in the year for which the budget is applicable: PROVIDED, That if the cost of the real or personal property to be leased exceeds the amounts specified in RCW 36.32.235, 35.22.620, or 35.23.352 prior to the execution of a lease with option to purchase therefor, the county, city, or town shall call for bids in accordance with RCW 36.32.235, 35.22.620, or 35.23.352: PROVIDED, That if at the expiration of a lease with option to purchase a county, city, or town exercises such an option, the fact that the rental payments theretofore made equal the amount of the purchase price of the real or personal property involved in such lease shall not preclude the agreement from being a lease with option to purchase up to the date of the exercising of the option.

NEW SECTION. Sec. 16. RCW 36.40.110 and 1963 c 4 s 36.40.110 are each repealed."

Correct the title.

Signed by Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunn; Dunshee; Murray; Reams; Smith; L. Thomas; Wensman and Wolfe.

Voting Yea: Representatives D. Schmidt, D. Sommers, Scott, Gardner, Doumit, Dunn, Dunshee, Murray, Reams, Smith, L. Thomas, Wensman and Wolfe.

Passed to Rules Committee for second reading.

March 26, 1997

SSB 5628 Prime Sponsor, Committee on Energy & Utilities (S): Authorizing the utilities and transportation commission to exempt electrical and natural gas companies from securities regulation. Reported by Committee on Energy & Utilities

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

March 26, 1997

SB 5650 Prime Sponsor, Senator McDonald: Allowing cities to assume jurisdiction over water or sewer districts. Reported by Committee on Government Administration

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 35.13A RCW to read as follows:

The board of commissioners of a water-sewer district may by resolution declare that it is in the best interests of the district for a city to assume jurisdiction of the district. None of the territory or assessed valuation of the district need be included within the corporate boundaries of the city. If the city legislative body agrees to assume jurisdiction of the district, the district and the city shall enter into a contract under RCW 35.13A.070, acceptable to both the district and the city, to carry out the assumption. The contract must provide for the transfer to the city of all real and personal property, franchises, rights, assets, taxes levied but not collected for the district for other than indebtedness, water and sewer lines, and all other facilities and equipment of the district. The transfers are subject to all financial, statutory, or contractual obligations of the district for the security or performance of which the property may have been pledged. The city may manage, control, maintain, and operate the property, facilities, and equipment and fix and collect service and other charges from owners and occupants of properties so served by the city. However, the actions of the city are subject to any outstanding indebtedness, bonded or otherwise, of the district payable from taxes, assessments, or revenues of any kind or nature and to any other contractual obligations of the district, including but not limited to the contract entered into by the city and the district under RCW 35.13A.070.

Under the contract, the city may assume the obligation of paying the district indebtedness and of levying and collecting or causing to be collected the district taxes, assessments, and utility rates and charges of any kind or nature to pay and secure the payment of the indebtedness, according to all terms, conditions, and covenants incident to the indebtedness. The city shall assume and perform all other outstanding contractual obligations of the district in accordance with all of their terms, conditions, and covenants. The assumption does not impair the obligation of any indebtedness or other contractual obligation entered into after the effective date of this act. Until the outstanding indebtedness of the district has been discharged, the territory of the district and the owners and occupants of property in it, continue to be liable for its and their proportionate share of the indebtedness, including outstanding assessments levied by a local improvement district or utility local improvement district within the water-sewer district. The city shall assume the obligation of paying the indebtedness, collecting the assessments and charges, and observing and performing the other district contractual obligations. The legislative body of the city shall act as the officers of the district for the purpose of certifying the amount of any property tax to be levied and collected in the district, and causing service and other charges and assessments to be collected from the property or owners or occupants of it, enforcing the collection, and performing all other acts necessary to insure performance of the district's contractual obligations.

When the city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service or other charges have accrued for that purpose but have not been collected by the district before the assumption, the taxes, assessments, and charges collected belong and must be paid to the city and used by the city so far as necessary for payment of indebtedness of the district that existed and was unpaid on the date the city elected to assume the indebtedness. Funds received by the city that have been collected for the purpose of paying bonded or other indebtedness of the district must be used for the purpose for which they were collected and for no other purpose. Outstanding indebtedness must be paid as provided in the bond covenants. The city shall use funds of the district on deposit with the county treasurer at the time of title transfer solely for the benefit of the utility, and shall not transfer them to or use them for the benefit of the city's general fund.

Sec. 2. RCW 35.13A.070 and 1971 ex.s. c 95 s 7 are each amended to read as follows:

Notwithstanding any provision of this chapter to the contrary, one or more cities and one or more ((water districts or sewer)) water-sewer districts may, through their legislative authorities, authorize a contract with respect to the rights, powers, duties, and obligation of such cities, or districts with regard to the use and ownership of property, the providing of services, the maintenance and operation of facilities, allocation of cost, financing and construction of new facilities, application and use of assets, disposition of liabilities and debts, the performance of contractual obligations, and any other matters arising out of the inclusion, in whole or in part, of the district or districts within any city or cities, or the assumption by the city of jurisdiction of a district under section 1 of this act. The contract may provide for the furnishing of services by any party thereto and the use of city or district facilities or real estate for such purpose, and may also provide for the time during which such district or districts may continue to exercise any rights, privileges, powers, and functions provided by law for such district or districts as if the district or districts or portions thereof were not included within a city or were not subject to an assumption of jurisdiction under section 1 of this act, including but not by way of limitation, the right to promulgate rules and regulations, to levy and collect special assessments, rates, charges, service charges, and connection fees, ((and)) to adopt and carry out the provisions of a comprehensive plan, and amendments thereto, for a system of improvements, and to issue general obligation bonds or revenue bonds in the manner provided by law. The contract may provide for the transfer to a city of district facilities, property, rights, and powers as provided in RCW 35.13A.030 ((and)) 35.13A.050, and section 1 of this act, whether or not sixty percent or any of the area or assessed valuation of real estate lying within the district or districts is included within such city. The contract may provide that any party thereto may authorize, issue, and sell revenue bonds to provide funds for new water or sewer improvements or to refund any water revenue, sewer revenue, or combined water and sewer revenue bonds outstanding of any city, or district which is a party to such contract if such refunding is deemed necessary, providing such refunding will not increase interest costs. The contract may provide that any party thereto may authorize and issue, in the manner provided by law, general obligation or revenue bonds of like amounts, terms, conditions, and covenants as the outstanding bonds of any other party to the contract, and such new bonds may be substituted or exchanged for such outstanding bonds((: PROVIDED, That)). However, no such exchange or substitution shall be effected in such a manner as to impair the obligation or security of any such outstanding bonds.

Sec. 3. RCW 35.13A.080 and 1971 ex.s. c 95 s 8 are each amended to read as follows:

In any of the cases provided for in RCW 35.13A.020, 35.13A.030, ((and)) 35.13A.050, and section 1 of this act, and notwithstanding any other method of dissolution provided by law, dissolution proceedings may be initiated by either the city or the district, or both, when the legislative body of the city and the governing body of the district agree to, and petition for, dissolution of the district.

The petition for dissolution shall be signed by the chief administrative officer of the city and the district, upon authorization of the legislative body of the city and the governing body of the district, respectively and such petition shall be presented to the superior court of the county in which the city is situated.

If the petition is thus authorized by both the city and district, and title to the property, facilities, and equipment of the district has passed to the city pursuant to action taken under this chapter, all indebtedness and local improvement district or utility local improvement district assessments of the district have been discharged or assumed by and transferred to the city, and the petition contains a statement of the distribution of assets and liabilities mutually agreed upon by the city and the district and a copy of the agreement between such city and the district is attached thereto, a hearing shall not be required and the court shall, if the interests of all interested parties have been protected, enter an order dissolving the district.

In any of the cases provided for in RCW 35.13A.020 ((and)) 35.13A.030, and section 1 of this act, if the petition for an order of dissolution is signed on behalf of the city alone or the district alone, or there is no mutual agreement on the distribution of assets and liabilities, the superior court shall enter an order fixing a hearing date not less than sixty days from the day the petition is filed, and the clerk of the court of the county shall give notice of such hearing by publication in a newspaper of general circulation in the district once a week for three successive weeks and by posting in three public places in the district at least twenty-one days before the hearing. The notice shall set forth the filing of the petition, its purposes, and the date and place of hearing thereon.

After the hearing the court shall enter its order with respect to the dissolution of the district. If the court finds that such district should be dissolved and the functions performed by the city, the court shall provide for the transfer of assets and liabilities to the city. The court may provide for the dissolution of the district upon such conditions as the court may deem appropriate. A certified copy of the court order dissolving the district shall be filed with the county auditor. If the court does not dissolve the district, it shall state the reasons for declining to do so."

Voting Yea: Representatives D. Schmidt, D. Sommers, Scott, Gardner, Doumit, Dunn, Dunshee, Murray, Reams, Smith, L. Thomas, Wensman and Wolfe.

Passed to Rules Committee for second reading.

March 26, 1997

SSB 5684 Prime Sponsor, Committee on Government Operations: Prescribing procedures for decreasing fire protection district commissioners. Reported by Committee on Government Administration

MAJORITY recommendation: Do pass. Signed by Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunn; Dunshee; Murray; Reams; Smith; L. Thomas; Wensman and Wolfe.

Voting Yea: Representatives D. Schmidt, D. Sommers, Scott, Gardner, Doumit, Dunn, Dunshee, Murray, Reams, Smith, L. Thomas, Wensman and Wolfe.

Passed to Rules Committee for second reading.

March 26, 1997

SSB 5763 Prime Sponsor, Committee on Energy & Utilities (S): Prohibiting the taxation of internet service providers as network telephone service providers. Reported by Committee on Energy & Utilities

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 2. The legislature finds that the newly emerging business of providing internet service is providing widespread benefits to all levels of society. The legislature further finds that this business is important to our state's continued growth in the high-technology sector of the economy and that, as this industry emerges, it should not be burdened by new taxes that might not be appropriate for the type of service being provided. The legislature further finds that there is no clear statutory guidance as to how internet services should be classified for tax purposes and intends to ratify the state's current treatment of such services.

NEW SECTION. Sec. 3. A new section is added to chapter 35.21 RCW to read as follows:

Until July 1, 1999, a city or town may not impose any new taxes or fees specific to internet service providers. A city or town may tax internet service providers under generally applicable business taxes or fees, at a rate not to exceed the rate applied to a general service classification. For the purposes of this section, "internet service" has the same meaning as in section 4 of this act.

Sec. 4. RCW 82.04.055 and 1993 sp.s. c 25 s 201 are each amended to read as follows:

(1) "Selected business services" means:

(a) Stenographic, secretarial, and clerical services.

(b) Computer services, including but not limited to computer programming, custom software modification, custom software installation, custom software maintenance, custom software repair, training in the use of custom software, computer systems design, and custom software update services.

(c) Data processing services, including but not limited to word processing, data entry, data retrieval, data search, information compilation, payroll processing, business accounts processing, data production, and other computerized data and information storage or manipulation. Data processing services also includes the use of a computer or computer time for data processing whether the processing is performed by the provider of the computer or by the purchaser or other beneficiary of the service.

(d) Information services, including but not limited to electronic data retrieval or research that entails furnishing financial or legal information, data or research, internet service as defined in section 4 of this act, general or specialized news, or current information unless such news or current information is furnished to a newspaper publisher or to a radio or television station licensed by the federal communications commission.

(e) Legal, arbitration, and mediation services, including but not limited to paralegal services, legal research services, and court reporting services.

(f) Accounting, auditing, actuarial, bookkeeping, tax preparation, and similar services.

(g) Design services whether or not performed by persons licensed or certified, including but not limited to the following:

(i) Engineering services, including civil, electrical, mechanical, petroleum, marine, nuclear, and design engineering, machine designing, machine tool designing, and sewage disposal system designing;

(ii) Architectural services, including but not limited to: Structural or landscape design or architecture, interior design, building design, building program management, and space planning.

(h) Business consulting services. Business consulting services are those primarily providing operating counsel, advice, or assistance to the management or owner of any business, private, nonprofit, or public organization, including but not limited to those in the following areas: Administrative management consulting, general management consulting, human resource consulting or training, management engineering consulting, management information systems consulting, manufacturing management consulting, marketing consulting, operations research consulting, personnel management consulting, physical distribution consulting, site location consulting, economic consulting, motel, hotel, and resort consulting, restaurant consulting, government affairs consulting, and lobbying.

(i) Business management services, including but not limited to administrative management, business management, and office management, but not including property management or property leasing, motel, hotel, and resort management, or automobile parking management.

(j) Protective services, including but not limited to detective agency services and private investigating services, armored car services, guard or protective services, lie detection or polygraph services, and security system, burglar, or fire alarm monitoring and maintenance services.

(k) Public relations or advertising services, including but not limited to layout, art direction, graphic design, copy writing, mechanical preparation, opinion research, marketing research, marketing, or production supervision, but excluding services provided as part of broadcast or print advertising.

(l) Aerial and land surveying, geological consulting, and real estate appraising.

(2) Subsection (1) of this section notwithstanding, the term "selected business services" does not include:

(a) The provision of either permanent or temporary employees.

(b) Services provided by a public benefit nonprofit organization, as defined in RCW 82.04.366, to the state of Washington, its political subdivisions, municipal corporations, or quasi-municipal corporations.

(c) Services related to the identification, investigation, or cleanup arising out of the release or threatened release of hazardous substances when the services are remedial or response actions performed under federal or state law, or when the services are performed to determine if a release of hazardous substances has occurred or is likely to occur.

(d) Services provided to or performed for, on behalf of, or for the benefit of a collective investment fund such as: (i) A mutual fund or other regulated investment company as defined in section 851(a) of the Internal Revenue Code of 1986, as amended; (ii) an "investment company" as that term is used in section 3(a) of the Investment Company Act of 1940 as well as an entity that would be an investment company under section 3(a) of the Investment Company Act of 1940 except for the section 3(c)(1) or (11) exemptions, or except that it is a foreign investment company organized under laws of a foreign country; (iii) an "employee benefit plan," which includes any plan, trust, commingled employee benefit trusts, or custodial arrangement that is subject to the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq., or that is described in sections 125, 401, 403, 408, 457, and 501(c)(9) and (17) through (23) of the Internal Revenue Code of 1986, as amended, or similar plan maintained by state or local governments, or plans, trusts, or custodial arrangements established to self-insure benefits required by federal, state, or local law; (iv) a fund maintained by a tax exempt organization as defined in section 501(c)(3) or 509(a) of the Internal Revenue Code of 1986, as amended, for operating, quasi-endowment, or endowment purposes; or (v) funds that are established for the benefit of such tax exempt organization such as charitable remainder trusts, charitable lead trusts, charitable annuity trusts, or other similar trusts.

(e) Research or experimental services eligible for expense treatment under section 174 of the Internal Revenue Code of 1986, as amended.

(f) Financial services provided by a financial institution. The term "financial institution" means a corporation, partnership, or other business organization chartered under Title 30, 31, 32, or 33 RCW, or under the National Bank Act, as amended, the Homeowners Loan Act, as amended, or the Federal Credit Union Act, as amended, or a holding company of any such business organization that is subject to the Bank Holding Company Act, as amended, or the Homeowners Loan Act, as amended, or a subsidiary or affiliate wholly owned or controlled by one or more financial institutions, as well as a lender approved by the United States secretary of housing and urban development for participation in any mortgage insurance program under the National Housing Act, as amended. The term "financial services" means those activities authorized by the laws cited in this subsection (2)(f) and includes services such as mortgage servicing, contract collection servicing, finance leasing, and services provided in a fiduciary capacity to a trust or estate.

NEW SECTION. Sec. 5. A new section is added to chapter 82.04 RCW to read as follows:

(1) The provision of internet services is a selected business service activity and subject to tax under RCW 82.04.290(1), but if RCW 82.04.055 is repealed then the provision of internet services is taxable under the general service business and occupation tax classification of RCW 82.04.290.

(2) "Internet" means the international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork called the world wide web.

(3) "Internet service" means a service that includes computer processing applications, provides the user with additional or restructured information, or permits the user to interact with stored information through the internet or a proprietary subscriber network. "Internet service" includes provision of internet electronic mail, access to the internet for information retrieval, and hosting of information for retrieval over the internet or the graphical subnetwork called the world wide web.

Sec. 6. RCW 82.04.065 and 1983 2nd ex.s. c 3 s 24 are each amended to read as follows:

(1) "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made.

(2) "Network telephone service" means the providing by any person of access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. "Network telephone service" includes the provision of transmission to and from the site of an internet provider via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" does not include the providing of competitive telephone service, the providing of cable television service, ((nor)) the providing of broadcast services by radio or television stations, nor the provision of internet service as defined in section 4 of this act, including the reception of dial-in connection, provided at the site of the internet service provider.

(3) "Telephone service" means competitive telephone service or network telephone service, or both, as defined in subsections (1) and (2) of this section.

(4) "Telephone business" means the business of providing network telephone service, as defined in subsection (2) of this section. It includes cooperative or farmer line telephone companies or associations operating an exchange.

NEW SECTION. Sec. 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 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 takes effect immediately."

Correct the title.

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

March 26, 1997

SSB 6046 Prime Sponsor, Committee on Energy & Utilities (S): Creating a study by the utilities and transportation commission on universal telecommunications service. Reported by Committee on Energy & Utilities

MAJORITY recommendation: Do pass as amended.

On page 2, line 1, after "1998," insert "or within six months of the date the federal communications commission adopts universal service rules as required by the federal telecommunications act of 1996 (110 Stat. 56; PL 104-104), whichever is later,"

On page 2, line 1, after "the" insert "utilities and transportation"

Voting Yea: Representatives Crouse, Mastin, DeBolt, Poulsen, Morris, Bush, Cooper, Honeyford, Kastama, Kessler, Mielke, Mulliken and B. Thomas.

Passed to Rules Committee for second reading.

There being no objection, the bills listed on the day’s committee reports under the fifth order of business were referred to the committees so designated except for House Bill No. 2258 which was advanced to second reading.

There being no objection, the House advanced to the eleventh order of business.

There being no objection, the House adjourned until 1:30 p.m., Monday, March 31, 1997.

CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk

2258

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

5060 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

5085

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5181

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5284

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5332 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

5370

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

5371

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

5372

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5520

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5600

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5628 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5650

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5684 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5763 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

6046 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

8003

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1