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NINETY-SEVENTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Saturday, April 19, 1997

      The Senate was called to order at 10:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Swanson, West and Winsley. On motion of Senator Franklin, Senator Swanson was excused.

      The Sergeant at Arms Color Guard, consisting of Pages Emily Shelton and Charles Smith, presented the Colors. Reverend Jim Erlandson, pastor of the Reorganized Church of Jesus Christ of Latter Day Saints of Olympia, offered the prayer.

MOTION

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

REPORTS OF STANDING COMMITTEES

GUBERNATORIAL APPOINTMENTS

April 18, 1997

GA 9123            GARY MOORE, appointed January 15, 1997, for a term ending at the pleasure of the Governor, as Director of the Department of Labor and Industries.

                           Reported by Committee on Commerce and Labor

      MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Schow, Chair; Horn, Vice Chair; Franklin, Fraser, Heavey and Newhouse.

      Passed to Committee on Rules for second reading.

April 18, 1997

GA 9228            JUDY SCHURKE, reappointed January 28, 1997, for a term ending June 17, 1999, as a member of the Board of Industrial Insurance Appeals.

                           Reported by Committee on Commerce and Labor

      MAJORITY Recommendation: That said reappointment be confirmed. Signed by Senators Schow, Chair; Horn, Vice Chair; Franklin, Fraser, Heavey and Newhouse.

      Passed to Committee on Rules for second reading.

April 18, 1997

GA 9238            CARVER GAYTON, appointed March 1, 1997, for a term ending at the pleasure of the Governor, as Commissioner of the Employment Security Department.

                           Reported by Committee on Commerce and Labor

      MAJORITY Recommendation: That said appointment be confirmed. Signed by Senators Schow, Chair; Horn, Vice Chair; Franklin, Fraser, Heavey and Newhouse.

      Passed to Committee on Rules for second reading.

MESSAGES FROM THE HOUSE

April 18, 1997

MR. PRESIDENT:

      The House has failed to pass:

      SUBSTITUTE SENATE BILL NO. 5146,

      SENATE BILL NO 5651, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 18, 1997

MR. PRESIDENT:

      The House has failed to pass SUBSTITUTE SENATE BILL NO. 5526, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SECOND READING

GUBERNATORIAL APPOINTMENTS

MOTION

      On motion of Senator Wood, Gubernatorial Appointment No. 9216, Captain Robert N. Kromann, as a member of the Board of Pilotage Commissioners, was confirmed.

APPOINTMENT OF CAPTAIN ROBERT N. KROMANN

      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 45; Nays, 1; Absent, 2; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, Wojahn, Wood and Zarelli - 45. Voting nay: Senator Benton - 1.       Absent: Senators West and Winsley - 2.               Excused: Senator Swanson - 1.

MOTION

      On motion of Senator Wood, Gubernatorial Appointment No. 9171, Captain Benjamin L. Watson, as a member of the Board of Pilotage Commissioners, was confirmed.

APPOINTMENT OF CAPTAIN BENJAMIN L. WATSON

      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Wojahn, Wood and Zarelli - 48.     Absent: Senator Winsley - 1.

MOTION

      At 10:25 a.m., on motion of Senator Johnson, the Senate was declared to be at ease.

      The Senate was called to order at 1:49 p.m. by President Pro Tempore Newhouse.

MOTION

      On motion of Senator Johnson, the Senate returned to the fourth order of business.

MESSAGES FROM THE HOUSE

April 18, 1997

MR. PRESIDENT:

      The House has adopted SENATE CONCURRENT RESOLUTION NO. 8415, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 18, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5845, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 18, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5737, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 18, 1997

MR. PRESIDENT:

      The House has passed:

      SENATE BILL NO. 5559,

      SENATE BILL NO. 5811,

      SENATE BILL NO. 5938,

      SUBSTITUTE SENATE BILL NO. 6045,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6068, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 18, 1997

MR. PRESIDENT:

      The House has passed:

      SENATE BILL NO. 5402,

      ENGROSSED SENATE BILL NO. 6072, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 18, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2069, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 19, 1997

MR. PRESIDENT:

      The Speaker has signed:

      HOUSE BILL NO. 1102,

      HOUSE BILL NO. 1202,

      HOUSE BILL NO. 1269,

      HOUSE BILL NO. 1349,

      HOUSE BILL NO. 1588,

      SUBSTITUTE HOUSE BILL NO. 1726,

      ENGROSSED HOUSE BILL NO. 1832,

      SUBSTITUTE HOUSE BILL NO. 2090,

      SUBSTITUTE HOUSE BILL NO. 2149,

      HOUSE JOINT MEMORIAL NO. 4005,

      HOUSE JOINT RESOLUTION NO. 4209, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 19, 1997

MR. PRESIDENT:

      The Speaker has signed:

      SENATE BILL NO. 5353,

      SENATE BILL NO. 5688,

      SUBSTITUTE SENATE BILL NO. 5721,

      SUBSTITUTE SENATE BILL NO. 5868, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

      The President signed:

      SENATE BILL NO. 5402,

      SENATE BILL NO. 5559,

      SUBSTITUTE SENATE BILL NO. 5737,

      SENATE BILL NO. 5811,

      SUBSTITUTE SENATE BILL NO. 5845,

      SENATE BILL NO. 5938,

      SUBSTITUTE SENATE BILL NO. 6045,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6068,

      ENGROSSED SENATE BILL NO. 6072,

      SENATE CONCURRENT RESOLUTION NO. 8415.

SIGNED BY THE PRESIDENT

      The President signed:

      HOUSE BILL NO. 1102,

      HOUSE BILL NO. 1202,

      HOUSE BILL NO. 1269,

      HOUSE BILL NO. 1349,

      HOUSE BILL NO. 1588,

      SUBSTITUTE HOUSE BILL NO. 1726,

      ENGROSSED HOUSE BILL NO. 1832,

      SUBSTITUTE HOUSE BILL NO. 2090,

      SUBSTITUTE HOUSE BILL NO. 2149,

      HOUSE JOINT MEMORIAL NO. 4005,

      HOUSE JOINT RESOLUTION NO. 4209.

MOTION

      On motion of Senator Hale, Senator McDonald was excused.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5334 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 48.32.145 and 1993 sp.s. c 25 s 901 are each amended to read as follows:         Every member insurer that prior to April 1, 1993, or after the effective date of this section, shall have paid one or more assessments levied pursuant to RCW 48.32.060(1)(c) shall be entitled to take((, as)) a credit against any premium tax falling due under RCW 48.14.020((,)). The amount of the credit shall be one-fifth of the aggregate amount of such aggregate assessments paid during such calendar year for each of the five consecutive calendar years beginning with the calendar year following the calendar year in which such assessments are paid. Whenever ((an assessment or uncredited portion of an assessment)) the allowable credit is or becomes less than one thousand dollars, the entire amount ((may be credited)) of the credit may be offset against the premium tax at the next time the premium tax is paid.      ((This section shall expire January 1, 1999.))         Sec. 2. RCW 48.32A.090 and 1993 sp.s. c 25 s 902 are each amended to read as follows:      (1) The association shall issue to each insurer paying an assessment under this chapter certificates of contribution, in appropriate form and terms as prescribed or approved by the commissioner, for the amounts so paid into the respective funds. All outstanding certificates against a particular fund shall be of equal dignity and priority without reference to amounts or dates of issue.      (2) An outstanding certificate of contribution issued for an assessment paid prior to April 1, 1993, or issued for an assessment paid for an insolvent insurer for which the order of liquidation was entered after the effective date of this section, shall be shown by the insurer in its financial statements as an admitted asset for such amount and period of time as the commissioner may approve. Unless a longer period has been allowed by the commissioner the insurer shall in any event at its option have the right to so show a certificate of contribution as an admitted asset at percentages of original face amount for calendar years as follows:       100% for the calendar year of issuance;                 80% for the first calendar year after the year of issuance;      60% for the second calendar year after the year of issuance;                 40% for the third calendar year after the year of issuance;      20% for the fourth calendar year after the year of issuance; and            0% for the fifth and subsequent calendar years after the year of issuance.            Notwithstanding the foregoing, if the value of a certificate of contribution is or becomes less than one thousand dollars, the entire amount may be written off by the insurer in that year.       (3) The insurer shall offset the amount written off by it in a calendar year under subsection (2) of this section against its premium tax liability to this state accrued with respect to business transacted in such year.      (4) Any sums recovered by the association representing sums which have theretofore been written off by contributing insurers and offset against premium taxes as provided in subsection (3) of this section, shall be paid by the association to the commissioner and then deposited with the state treasurer for credit to the general fund of the state of Washington.        (5) No distribution to stockholders, if any, of a liquidating insurer shall be made unless and until the total amount of assessments levied by the association with respect to such insurer have been fully recovered by the association."      Correct the title accordingly.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Winsley moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5334.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Winsley to concur in the House amendment to Substitute Senate Bill No. 5334.

      The motion by Senator Winsley carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5334.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5334, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5334, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 9; Absent, 2; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Franklin, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Long, Loveland, McCaslin, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wood and Zarelli - 37.   Voting nay: Senators Brown, Fairley, Fraser, Kline, Kohl, McAuliffe, Patterson, Swanson and Wojahn - 9.          Absent: Senators Finkbeiner and Roach - 2.         Excused: Senator McDonald - 1.      SUBSTITUTE SENATE BILL NO. 5334, as amended by the House, 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.

STATEMENT FOR THE JOURNAL

      I inadvertently voted 'no' on final passage of Substitute Senate Bill No. 5668, as amended by the House, (Temporary Worker Housing). I intended to vote 'aye.'

SENATE IRV NEWHOUSE, Fifteenth District

MESSAGE FROM THE HOUSE

April 15, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5668 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that the shortage of temporary worker housing is due in part to inappropriate construction requirements for temporary worker shelter and related facilities. It is the intent of the legislature that temporary worker housing developers, including employers, be provided with a regulatory framework that allows shelter to be provided that meets the basic dignity, comfort, common decency, health, and safety needs of workers. It is the intent of chapter . . ., Laws of 1997 (this act) to provide a temporary worker housing building code that will encourage private development of temporary worker housing, and will accommodate a wide range of building materials and new and innovative construction formats that are not possible under previously applicable codes.               NEW SECTION. Sec. 2. A new section is added to chapter 19.27 RCW to read as follows:      Temporary worker housing shall be constructed, altered, or repaired as provided in chapter 70.114A RCW. The construction, alteration, or repair of temporary worker housing is not subject to the codes adopted under RCW 19.27.031, except as provided in any code adopted under chapter 70.114A RCW. For the purposes of this section "temporary worker housing" means a shelter, place, area, or piece of land where sleeping places or housing sites are provided by an employer for his or her employees for temporary seasonal occupancy, and includes labor camps under RCW 70.54.110. The rules adopted by the state board of health under RCW 70.54.110 apply to all temporary worker housing.      Sec. 3. RCW 70.114A.020 and 1995 c 220 s 2 are each amended to read as follows:          The definitions in this section apply throughout this chapter.       (1) "Department" means the department of health.            (2) "Dwelling unit" means a shelter, building, or portion of a building, that may include cooking and eating facilities, that is:                 (a) Provided and designated by the operator as either a sleeping area, living area, or both, for occupants; and   (b) Physically separated from other sleeping and common-use areas.   (3) "Facility" means a sleeping place, drinking water, toilet, sewage disposal, food handling installation, or other installations required for compliance with this chapter.      (4) "Occupant" means a temporary worker or a person who resides with a temporary worker at the housing site.               (5) "Operator" means a person holding legal title to the land on which temporary worker housing is located. However, if the legal title and the right to possession are in different persons, "operator" means a person having the lawful control or supervision over the temporary worker housing under a lease or other arrangement.    (6) "Temporary worker" means a person employed intermittently and not residing year-round at the same site.      (7) "Temporary worker housing" means a place, area, or piece of land where sleeping places or housing sites are provided by an employer for his or her employees or by another person, including a temporary worker housing operator, who is providing such accommodations for employees, for temporary, seasonal occupancy, and includes "labor camps" under RCW 70.54.110. The rules adopted by the state board of health under RCW 70.54.110 apply to all temporary worker housing.         Sec. 4. RCW 70.114A.080 and 1995 c 220 s 8 are each amended to read as follows:         ((By December 1, 1996,)) The ((state building code council)) department shall ((develop)) adopt by rule under chapter 34.05 RCW a temporary worker ((housing)) building code, in conformance with the temporary worker housing standards developed under the Washington industrial safety and health act, chapter 49.17 RCW, the rules adopted by the state board of health under RCW 70.54.110, and the following guidelines:    (1) The code shall provide construction standards for shelter and associated facilities that are safe, secure, and capable of withstanding the stresses and loads associated with their designated use, and to which they are likely to be subjected by the elements.      (2) The code shall permit and facilitate designs and formats that allow for maximum affordability, consistent with the provision of decent, safe, and sanitary housing.            (3) In developing the code the ((council)) department shall consider: (a) The need for dormitory type housing for groups of unrelated individuals; and (b) the need for housing to accommodate families.       (4) The code shall include construction standards for a variety of formats, including, but not limited to: (a) ((Tents and tent platforms)) Straw bale exterior wall structures; and (b) hard-shell, single exterior wall structures.      (5) The code shall include standards for temporary worker housing that is to be used only during periods when no auxiliary heat is required.         In ((developing)) adopting the temporary worker ((housing)) building code, it is the intent of the legislature that the ((building code council)) department make exceptions to the codes listed in RCW 19.27.031, and chapter 19.27A RCW, in keeping with the guidelines set forth in this section.  ((The building code council shall appoint a technical advisory committee to assist in the development of the temporary worker housing code, which shall include representatives of industries that most frequently supply temporary housing to their employees.)) It is also the intent of the legislature that the initial temporary worker building code adopted by the department be substantially equivalent to the temporary worker building code developed by the state building code council under section 8, chapter 220, Laws of 1995, and presented to the legislature on December 1, 1996.         A rule-making advisory and oversight committee is hereby established that shall participate fully throughout the rule-making process authorized by chapter . . ., Laws of 1997 (this act). The advisory and oversight committee is composed of seven members as follows: One member from each caucus in the house of representatives, appointed by the speaker of the house of representatives; one member from each caucus in the senate, appointed by the president of the senate; one member representing migrant and seasonal agricultural workers; one member representing agricultural employers; and one member from the department of labor and industries to serve ex officio, appointed by the governor.            The temporary worker building code authorized and required by this section shall be enforced by the department.            Sec. 5. RCW 43.70.340 and 1990 c 253 s 3 are each amended to read as follows:      (1) The farmworker housing inspection fund is established in the custody of the state treasury. The department of health shall deposit all funds received under subsection (2) of this section and from the legislature to administer a labor camp inspection program conducted by the department of health. Disbursement from the fund shall be on authorization of the secretary of health or the secretary's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.      (2) There is imposed a fee on each operating license issued by the department of health to every operator of a labor camp that is regulated by the state board of health. The fee paid under this subsection shall include all necessary inspection of the units to ensure compliance with applicable state board of health rules on labor camps.                  (a) Fifty dollars shall be charged for each labor camp containing six or less units.      (b) Seventy-five dollars shall be charged for each labor camp containing more than six units.             (3) The term of the operating license and the application procedures shall be established, by rule, by the department of health.          (4) The department of health shall establish a building permit fee schedule for temporary worker housing subject to chapter 70.114A RCW. The department of health shall develop rules to establish a fee schedule sufficient to cover the cost of all necessary plan reviews and on-site construction inspections of the temporary worker housing to ensure compliance with the codes developed under RCW 70.114A.080.",                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Winsley moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5668.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Winsley to concur in the House amendment to Substitute Senate Bill No. 5668.

      The motion by Senator Winsley carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5668.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5668, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5668, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 1; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.  Voting nay: Senator Newhouse - 1.       Absent: Senator Sellar - 1.     Excused: Senator McDonald - 1.      SUBSTITUTE SENATE BILL NO. 5668, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5002 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this title.            (1) "Committee" means the Washington education network governance committee.         (2) "Network" means the K-20 telecommunications network under chapter 28D.02 RCW.             (3) "Network users" means those institutions of higher education, school districts, educational service districts, public libraries, state agencies, and others that use the network for distance education, data transmission, and other uses permitted by the committee.                 NEW SECTION. Sec. 2. The Washington education network governance committee is created.               The purpose of the committee is to ensure that the K-20 telecommunications network is operated in a way that serves the broad public interest above the interest of any network user.      The committee shall consist of six voting members appointed by the governor with the consent of the senate as follows: Two citizen members and, serving as ex officio members, the superintendent of public instruction, the chair of the higher education coordinating board, the chair of the information services board, and the state librarian. The governor shall appoint the members of the committee by July 30, 1997. Each committee member may appoint a designee to function in his or her place with the right to vote. In selecting the citizen members of the committee, the governor shall strive to avoid any conflict of interest. The citizen members of the committee may not be employees of state or local governments, institutions of higher education, the common schools, or the telecommunications industry, nor may they be members of the governing boards of any educational service district, institution of higher education, or telecommunications company.            NEW SECTION. Sec. 3. The committee has the following powers and duties:      (1) In cooperation with network partners and users and other interested parties, to establish goals and measurable objectives for the network;      (2) To ensure that the goals and measurable objectives of the network are the basis for any decisions or recommendations regarding the technical development and operation of the network;      (3) To adopt, modify, and implement policies for network development, operation, and expansion. Such policies may include but need not be limited to the following issues: Quality of service; access to the network by recognized organizations and accredited institutions that deliver educational programming including public libraries; prioritization of programming within limited resources; prioritization of access to the system and the sharing of technological advances; network security; identification and evaluation of emerging technologies; future expansion or redirection of the system; network fee structures; and costs for the development and operation of the network;                  (4) To prepare and submit to the governor and the legislature a coordinated budget for network development, operation, and expansion. The budget shall include the recommendations of the committee on any state funding requested for distance education facilities and hardware or software by or for network users;      (5) To adopt and monitor the implementation of a methodology to evaluate the effectiveness of the network in achieving the goals and measurable objectives;  (6) To resolve disputes about network use submitted by either subcommittee of the cross-sector advisory committee, or any member of the committee; (7) To approve modifications of the network design and implementation plan under RCW 28D.02.020 and the phased technical plan under RCW 28D.02.070;     (8) To review, evaluate, and recommend modifications to the initial and updated location plans prepared by the higher education coordinating board under RCW 28D.02.030 and the superintendent of public instruction under RCW 28D.02.040;       (9) To authorize the release of funds from the K-20 technology account under RCW 28D.02.060 for network expenditures; and                     (10) To adopt rules as necessary to implement this chapter.             NEW SECTION. Sec. 4. (1) The cross-sector network advisory committee is created to advise the committee and network users on network technical and policy planning matters that require cross-sector and intra-sector coordination. Such matters shall include cross-sector network planning, including identification and resolution of cross-institution and cross-sector technical problems; cost issues; network growth; network usage, including policies on scheduling, identification, and resolution of scheduling conflicts, and conflict resolution; network technical quality; dissemination of information; coordination of assessment and accountability information among network participants; and technical network management.          (2) The cross-sector network advisory committee shall be comprised of a policy subcommittee and a technical subcommittee as follows:             (a) Initially, the policy subcommittee shall be comprised of two provosts of public baccalaureate institutions, appointed by the council of presidents; two members appointed by the state board for community and technical colleges, one of whom shall be a member of the teaching faculty, selected in consultation with organizations responsible for representing the faculty; four representatives of K-12 education, appointed by the superintendent of public instruction; the Washington state librarian or the librarian's designee; two representatives of independent institutions of higher education, appointed by the governor; and up to four public members, one of whom shall be appointed by each legislative caucus. The public members shall be citizens with an interest in the education of the public and in information technology. All members serve at the pleasure of the appointing authorities. The membership of the policy subcommittee may be revised by the unanimous agreement of the committee;      (b) Initially, the technical subcommittee shall be comprised of equal numbers of postsecondary and K-12 representatives, four public members with technical expertise, appointed by the chair of the information services board; and one or more representatives of the department of information services, appointed by the director of the department of information services. At least one member of the technical subcommittee shall be a representative of the independent institutions of higher education, appointed by the committee, and at least one member shall be a representative of public libraries, appointed by the state librarian. Members serve at the pleasure of the appointing authority. The specific duties of the technical subcommittee shall be determined by the committee, in cooperation with network users. The membership of the technical subcommittee may be revised by unanimous agreement of the committee.                 (3) The cross-sector network advisory committee shall be convened and coordinated by the committee, in cooperation with network users.       (4) Recommendations and requests from either subcommittee shall be reviewed by the cross-sector network advisory committee as a whole before submission to the committee.      NEW SECTION. Sec. 5. (1) The committee is not intended to duplicate the statutory responsibilities of the higher education coordinating board, the superintendent of public instruction, the information services board, the state librarian, or the governing boards of the institutions of higher education.      (2) The committee shall not interfere in any curriculum or legally offered programming offered over the network.      (3) The coordination of telecommunications planning for institutions of higher education as defined in RCW 28B.10.016 remains the responsibility of the higher education coordinating board under RCW 28B.80.600. The committee may recommend but not require revisions to the board's telecommunications plan.       (4) The responsibility to review and approve standards and common specifications for the network remains the responsibility of the information services board under RCW 43.105.041.                (5) The coordination of telecommunications planning for the common schools remains the responsibility of the superintendent of public instruction. The committee may recommend but not require revisions to the superintendent's telecommunications plans.      NEW SECTION. Sec. 6. The two citizen members of the committee shall be compensated in accordance with RCW 43.03.250. The committee may hire staff who shall be exempt from the provisions of chapter 41.06 RCW. The staff shall be housed by the office of financial management, which shall provide accounting and administrative support for the committee.   Sec. 7. RCW 28D.02.010 and 1996 c 137 s 2 are each amended to read as follows:       (1) The K-20 telecommunications oversight and policy committee is established to: Adopt policy goals and objectives for a K-20 telecommunications system, adopt a network design and implementation plan, and authorize release of funds for network purposes.              (2) The duties of the committee shall include, but need not be limited to:            (a) The adoption of system goals and objectives and timelines for submission of the proposed plans under RCW 28D.02.030 through 28D.02.050 and 28D.02.070 by June 1, 1996;   (b) The authorization of the construction and acquisition of a network backbone upon its approval of phase one of a technical plan for the network as specified in RCW 28D.02.070(1);                   (c) The preparation and subsequent updates of a network design and implementation plan that includes locations to be served by the network, service delivery specifications, a network governance structure, other appropriate components, and a phased technical plan in accordance with RCW 28D.02.070(2). The plan shall be adopted after considering the recommendations of the information services board, the higher education coordinating board, and the superintendent of public instruction;                (d) The preparation of an implementation plan that prioritizes access to the network backbone and other telecommunication components; and    (e) The authorization of the release of funds for expenditures to construct the network and distance education components.          (3) By April 15, 1996, the department of information services shall convene the committee. The committee shall include the following voting members or their designees: The governor; one member from each caucus of the senate, appointed by the president of the senate; one member from each caucus of the house of representatives, appointed by the speaker of the house of representatives; the superintendent of public instruction; the chair of the higher education coordinating board; and the chair of the information services board. On a nonvoting basis, the committee shall include the following members or their designees: One community college or technical college president, appointed by the state board for community and technical colleges; one president of a public baccalaureate institution, appointed by the council of presidents; the state librarian; one educational service district superintendent, one school district superintendent, and one representative of an approved private school, each appointed by the superintendent of public instruction; one representative of independent nonprofit baccalaureate institutions, appointed by the Washington friends of higher education; and one representative of the computer or telecommunications industry, appointed by the information services board. The voting members must reach a consensus in approving the network design and implementation plan. The department shall provide staff support to the committee.      (4) This section expires six months after the appointment of the committee created in section 2 of this act.        Sec. 8. RCW 28D.02.060 and 1996 c 137 s 7 are each amended to read as follows:             The K-20 technology account is hereby created in the state treasury. The department of information services shall deposit into the account all moneys received from legislative appropriations, gifts, grants, and endowments for the K-20 telecommunication system. The account shall be subject to appropriation and may be expended solely for the K-20 telecommunication system ((approved by the committee under RCW 28D.02.010)). Disbursements from the account shall be on authorization of the director of the department of information services with approval of the committee under ((RCW 28D.02.010)) sections 1 through 6 of this act.              NEW SECTION. Sec. 9. Sections 1 through 6 of this act are each added to chapter 28D.02 RCW.              NEW SECTION. Sec. 10. Sections 1 through 6 of this act expire June 30, 2002.   NEW SECTION. Sec. 11. Sections 1, 2, and 6 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 1997.

      NEW SECTION. Sec. 12. Sections 3 through 5, 8, and 10 of this act take effect six months after the appointment of the committee under section 2 of this act."     Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Wood moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5002 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Wood that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5002 and asks the House to recede therefrom.

      The motion by Senator Wood carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5002 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5082 with the following amendment(s):

      Beginning on page 10, line 33, strike all of section 7             Renumber the remaining sections consecutively and correct any internal references accordingly. On page 6, beginning on line 30, after "agency" strike "no sooner than seven days and no later than ((sixty)) fourteen days" and insert "who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the hospital providing treatment. The professional person shall conduct the review no later than ((sixty days)) seventy-two hours"            On page 6, line 32, after "appropriate to" strike "continue the ((child's)) minor's treatment" and insert "((continue the child's treatment)) treat the minor"      On page 7, line 24, after "agency" insert "who neither has an interest in continued inpatient treatment of the minor nor is affiliated with the hospital providing treatment"        On page 14, line 12, after "admitted." insert "Prior to a determination by the department, under RCW 71.34.025(1), that it is medically appropriate to treat the minor on an inpatient basis, the hospital shall limit treatment to that which the professional person determines is medically necessary to stabilize the child's condition."          On page 20, line 23, after "admitted." insert "Prior to a determination by the department, under RCW 70.96A.097(1), that it is medically appropriate to treat the minor on an inpatient basis, the hospital shall limit treatment to that which the professional person determines is medically necessary to stabilize the child's condition."      On page 21, beginning on line 9, after "agency" strike "no sooner than seven days and no later than ((sixty)) fourteen days" and insert "who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the hospital providing treatment. The professional person shall conduct the review no later than ((sixty days)) seventy-two hours"     On page 22, line 2, after "agency" insert "who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the hospital providing treatment"      On page 7, line 19, after "conduct" insert "three"   On page 8, line 5, after "(5)" insert "If after the third department review under subsection (2) of this section, the department determines that it is medically appropriate to continue the minor's inpatient treatment, the department shall file a petition for initial detention with the court within seven days. The petition shall meet the requirements of RCW 71.34.060(2). The department shall serve on the minor, the minor's parent, and the minor's attorney a copy of the petition, notice of initial detention, and statement of rights. The minor must be advised of his or her right to communicate with an attorney and have an attorney appointed to represent him or her before and at the hearing if the minor is indigent. The minor shall remain in treatment unless the court finds that the minor should be released under RCW 71.34.080.   (6)"         On page 8, line 8, strike "(6)" and insert "(7)"        On page 7, line 30, after "determination." insert "The department shall inform the parent and the child of their right to request that the department form a multidisciplinary team."      On page 8, line 8, after "(6)" insert "The department may convene a multidisciplinary team, as defined by RCW 13.32A.030, at the request of a child, or the parent of a child, who has been admitted to inpatient treatment under section 13 of this act, or who has been released from inpatient treatment under this section. If the department has reasonable cause to believe that the parents of a child who has been admitted for inpatient treatment under section 13 of this act are unavailable or unwilling to continue efforts to maintain the family structure, the department may convene a multidisciplinary team. The formation of a team under this subsection must meet the requirements of RCW 13.32A.042 (5) and (6) and 13.32A.044.      (7)"         On page 22, line 8, after "parent." insert "The department shall inform the child and the child's parents of their right to request that the department form a multidisciplinary team."            On page 22, line 22, after "(5)" insert "The department may convene a multidisciplinary team, as defined by RCW 13.32A.030, at the request of a child, or the parent of a child, who has been admitted to inpatient treatment under section 13 of this act, or who has been released from inpatient treatment under this section. If the department has reasonable cause to believe that the parents of a child who has been admitted for inpatient treatment under section 13 of this act are unavailable or unwilling to continue efforts to maintain the family structure, the department may convene a multidisciplinary team. The formation of a team under this subsection must meet the requirements of RCW 13.32A.042 (5) and (6) and 13.32A.044.         (6)"         On page 14, line 21, after "social worker is" insert "certified under RCW 18.19.110 and",          and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Long moved that the Senate refuse to concur in the House amendments to Engrossed Substitute Senate Bill No. 5082 and requests of the House a conference thereon.

MOTION

      Senator Kohl moved that the Senate do concur in the House amendments to Engrossed Substitute Senate Bill No. 5082.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the positive motion by Senator Kohl that the Senate concur in the House amendments to Engrossed Substitute Senate Bill No. 5082.

      The motion by Senator Kohl failed and the Senate does not concur in the House amendments to Engrossed Substitute Senate Bill No. 5082.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Long that the Senate refuses to concur in the House amendments to Engrossed Substitute Senate Bill No. 5082 and requests of the House a conference thereon.

      The motion by Senator Long carried and the Senate refuses to concur in the House amendments to Engrossed Substitute Senate Bill No. 5082 and request

s of the House a conference thereon.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5071 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     “NEW SECTION. Sec. 1. The legislature finds the following:      (1) The existing statutory provisions requiring an automatic transfer of territory from one school district to another when a city or town extends its boundaries through annexation of unincorporated territory is archaic, and that such school district transfers should not be automatic;      (2) Some current procedural requirements unduly restrict the ability of the state board of education to respond more flexibly to any given proposed transfer of territory;       (3) Consistent with the goal of growth management that public services and facilities necessary to support development be available without a decrease in service levels, citizens should have the opportunity to be heard on whether all land in a planned community which includes industrial, commercial, and residential sites should be in the same school district; and                   (4) The current laws and rules governing school district organization are outdated and in need of a comprehensive review.      Sec. 2. RCW 28A.315.250 and 1985 c 385 s 19 are each amended to read as follows:          Each incorporated city or town in the state shall be comprised in one school district: PROVIDED, That nothing in this section shall be construed: (1) To prevent the extension of the boundaries of a school district beyond the limits of the city or town contained therein, or (2) to prevent the inclusion of two or more incorporated cities or towns in a single school district, or (3) to change or disturb the boundaries of any school district organized prior to the incorporation of any city or town, except as hereafter in this section provided.                In case all or any part of a school district that operates a school or schools on one site only or operates elementary schools only on two or more sites is included in an incorporated city or town through the extension of the limits of such city or town in the manner provided by law, the ((educational service district superintendent shall: (1) Declare)) regional committee may, in its discretion, prepare a proposal for transfer of any part or all of the territory so included to ((be a part of)) the school district containing the city or town and (((2))), whenever a part of a district so included contains a school building of the district, ((present to the regional committee a proposal)) for the disposition of any part or all of the remaining territory of the district.   In case of the extension of the limits of a town to include territory lying in a school district that operates on more than one site one or more elementary schools and one or more junior high schools or high schools, the regional committee ((shall)) may, in its discretion, prepare a proposal or proposals for annexation to the school district in which the town is located any part or all of the territory aforesaid which has been included in the town and for annexation to the school district in which the town is located or to some other school district or districts any part or all of the remaining territory of the school district affected by extension of the limits of the town: PROVIDED, That where no school or school site is located within the territory annexed to the town and not less than seventy-five percent of the registered voters residing within the annexed territory present a petition in writing for annexation and transfer of said territory to the school district in which the town is located, the educational service district superintendent shall declare the territory so included to be a part of the school district containing said town: PROVIDED FURTHER, That territory approved for annexation to a city or town by vote of the electors residing therein prior to January 12, 1953, shall not be subject to the provisions herein respecting annexation to a school district or school districts: AND PROVIDED FURTHER, That the provisions and procedural requirements of this chapter as now or hereafter amended not in conflict with or inconsistent with the provisions hereinabove in this section stated shall apply in the case of any proposal or proposals (1) for the alteration of the boundaries of school districts through and by means of annexation of territory as aforesaid, and (2) for the adjustment of the assets and liabilities of the school districts involved or affected thereby.            In case of the incorporation of a city or town containing territory lying in two or more school districts or of the uniting of two or more cities or towns not located in the same school district, the educational service district superintendent, except where the incorporation or consolidation would affect a district or districts of the first class, shall: (1) Order and declare to be established in each such case a single school district comprising all of the school districts involved, and (2) designate each such district by name and by a number different from that of any other district in existence in the county.                 The educational service district superintendent shall fix as the effective date of any declaration or order required under this section a date no later than the first day of September next succeeding the date of the issuance of such declaration or order.      Sec. 3. RCW 28A.315.140 and 1990 c 33 s 300 are each amended to read as follows: The powers and duties of the state board with respect to this chapter shall be: (1) To aid regional committees in the performance of their duties by furnishing them with plans of procedure, standards, data, maps, forms, and other necessary materials and services essential to a study and understanding of the problems of school district organization in their respective educational service districts.       (2) To receive, file, and examine the proposals and the maps, reports, records, and other materials relating thereto submitted by regional committees and to approve such proposals and so notify the regional committees when said proposals are found to provide for satisfactory improvement in the school district system of the counties and the state and for an equitable adjustment of the assets and liabilities, including bonded indebtedness and excess tax levies as authorized under RCW 28A.315.110(2), of the school districts involved or affected: PROVIDED, That whenever ((the state board approves a recommendation from a regional committee for the transfer of territory from one school district to another school district, such state board approval must be made not later than March 1 of any given year for implementation the school year immediately following: PROVIDED FURTHER, That whenever ))such proposals are found by the state board to be unsatisfactory or inequitable, the board shall so notify the regional committee and, upon request, assist the committee in making revisions which revisions shall be resubmitted within sixty days after such notification for reconsideration and approval or disapproval. The regional committee may request, and the state board is authorized to grant, an extension of the sixty days. The duration of the extension shall be set by the state board. Implementation of state board-approved transfers of territory from one school district to another school district shall become effective at the commencement of the next school year unless an earlier or later implementation date is agreed upon in writing by the boards of directors of the affected school districts and approved by the state board.

      NEW SECTION. Sec. 4. (1) On its own motion, or in response to a petition by a school district, the state board of education may modify the boundaries of two school districts if one of the school districts includes territory located in a city or town with a population of less than three thousand and one of the school districts borders a United States military reservation or includes territory located in a United States military reservation. If a petition is filed by such a school district, the state board must make a decision on the potential modification of school district boundaries within ninety days of the filing of the petition. Prior to making any decision on the modification of such boundaries, the state board of education shall hold at least one local public hearing on the issue. The state board shall render a written decision on any petition within ninety calendar days of the date the petition is filed that includes its rationale for the decision.

      (2) The state board of education shall report its written decision regarding actions taken under this section to the house and senate education committees.        (3) This section shall expire June 30, 1999.      NEW SECTION. Sec. 5. (1) The joint legislative audit and review committee shall undertake a comprehensive study of the current laws and state board of education’s rules governing school district organization. In conducting the study the committee shall seek input from the state board of education, the superintendent of public instruction, the educational service districts, the regional committees on school district organization, the Washington state school directors’ association, representatives of cities, towns, and counties, and citizens.                 (2) The purpose of the study under subsection (1) is to determine if the existing procedures and requirements for school district organization are adequate and appropriate.          (3) The committee shall submit a report on the study to the legislature by January 12, 1998. The report shall include any recommendations for statutory changes and shall indicate whether the fundamental goal of the state’s school district organization policy should be to support community/neighborhood schools and parental involvement.       (4) Beginning the effective date of this act and through June 30, 1998, there shall be a moratorium on proposed changes to school district boundaries that would be new proposals as of the effective date of this act. Proposals already submitted to a regional committee and/or the state board of education shall not be affected by the moratorium.       (5) Section 4 of this act is not subject to the moratorium under subsection (4) of this section.”  On page 1, line 2 of the title, after "extensions;" strike the remainder of the title and insert "amending RCW 28A.315.250; amending RCW 28A.315.140; and creating new sections."         and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Hochstatter moved that the Senate refuse to concur in the House amendments to Substitute Senate Bill No. 5071 and asks the House to recede therefrom.

MOTION

      Senator McAuliffe moved that the Senate do concur in the House amendments to Substitute Senate Bill No. 5071.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the positive motion by Senator McAuliffe that the Senate concur in the House amendments to Substitute Senate Bill No. 5071.

      The motion by Senator McAuliffe failed and the Senate does not concur in the House amendments to Substitute Senate Bill No. 5071.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Hochstatter that the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5071 and asks the House to recede therefrom.

      The motion by Senator Hochstatter carried and the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5071 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5127 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 70.168 RCW to read as follows:               The department shall establish by rule a grant program for designated trauma care services. The grants shall be made from the emergency medical services and trauma care system trust account and shall require regional matching funds. The trust account funds and regional match will be in a seventy-five to twenty-five percent ratio.          Sec. 2. RCW 70.168.040 and 1990 c 269 s 17 are each amended to read as follows:          The emergency medical services and trauma care system trust account is hereby created in the state treasury. Moneys shall be transferred to the emergency medical services and trauma care system trust account from the public safety education account or other sources as appropriated, and as collected under RCW 46.63.110(6). Disbursements shall be made by the department subject to legislative appropriation. Expenditures may be made only for the purposes of the state trauma care system under this chapter, including emergency medical services, trauma care services, rehabilitative services, and the planning and development of related services under this chapter and for reimbursement by the department of social and health services for trauma care services provided by designated trauma centers.      Sec. 3. RCW 46.63.110 and 1993 c 501 s 11 are each amended to read as follows:             (1) A person found to have committed a traffic infraction shall be assessed a monetary penalty. No penalty may exceed two hundred and fifty dollars for each offense unless authorized by this chapter or title.       (2) The supreme court shall prescribe by rule a schedule of monetary penalties for designated traffic infractions. This rule shall also specify the conditions under which local courts may exercise discretion in assessing fines and penalties for traffic infractions. The legislature respectfully requests the supreme court to adjust this schedule every two years for inflation.            (3) There shall be a penalty of twenty-five dollars for failure to respond to a notice of traffic infraction except where the infraction relates to parking as defined by local law, ordinance, regulation, or resolution or failure to pay a monetary penalty imposed pursuant to this chapter. A local legislative body may set a monetary penalty not to exceed twenty-five dollars for failure to respond to a notice of traffic infraction relating to parking as defined by local law, ordinance, regulation, or resolution. The local court, whether a municipal, police, or district court, shall impose the monetary penalty set by the local legislative body.   (4) Monetary penalties provided for in chapter 46.70 RCW which are civil in nature and penalties which may be assessed for violations of chapter 46.44 RCW relating to size, weight, and load of motor vehicles are not subject to the limitation on the amount of monetary penalties which may be imposed pursuant to this chapter.          (5) Whenever a monetary penalty is imposed by a court under this chapter it is immediately payable. If the person is unable to pay at that time the court may, in its discretion, grant an extension of the period in which the penalty may be paid. If the penalty is not paid on or before the time established for payment the court shall notify the department of the failure to pay the penalty, and the department shall suspend the person's driver's license or driving privilege until the penalty has been paid and the penalty provided in subsection (3) of this section has been paid.              (6) In addition to any other penalties imposed under this section and not subject to the limitation of subsection (1) of this section, a person found to have committed a traffic infraction shall be assessed a fee of twenty dollars per infraction. Under no circumstances shall this fee be reduced or waived. Revenue from this fee shall be forwarded to the state treasurer for deposit in the emergency medical services and trauma care system trust account under RCW 70.168.040. The public safety and education assessment imposed under RCW 3.62.090 does not apply to the fee imposed under this subsection.      NEW SECTION. Sec. 4. The legislature finds as follows:  Emergency medical services and trauma care are provided to all residents of the state regardless of a person's ability to pay. Historically, hospitals and health care providers have been able to recover some of their financial losses incurred in caring for an uninsured or underinsured person by charging persons able to pay more. In recent years, the health care industry has undergone substantial changes. With the advent of managed health care programs and the adoption of new cost control measures, some hospitals and health care providers assert that it is difficult to shift costs for uninsured and underinsured patients onto insured patients.       In 1990 the legislature established a coordinated trauma care system. Part of the 1990 legislation included funding for a study to determine the extent to which trauma care is uncompensated and undercompensated. This study focused exclusively on trauma care. The legislature finds that, as a prerequisite to determining the amount of state aid that may be necessary to assist health care providers and facilities, it is necessary to examine trauma care losses within the context of a health care provider or facility's total financial operations.     NEW SECTION. Sec. 5. The committees on finance and health care of the house of representatives shall conduct a joint interim study on trauma care services funding.      (1) The study shall:                 (a) Review how health care providers and facilities determine which patients are classified as trauma care patients;             (b) Examine actual trauma care services information for fiscal year 1997 to determine how the four million six hundred thousand dollars appropriated from the state's general fund for trauma care was spent and whether the appropriation was sufficient to reimburse all eligible trauma care services for treating medically indigent persons who had a trauma index severity score of sixteen or higher;      (c) Determine if reimbursement at the medicaid rate covers, on average, the actual costs of trauma care services for treating a medically indigent person. If reimbursement at the medicaid rate does not cover actual costs, then the study shall determine by how much the reimbursement at the medicaid rate fails to cover actual costs;    (d) Review grants, contributions, and other income received by trauma center facilities that are not third-party reimbursements;        (e) Compare and contrast financial information for trauma care service providers to determine if the overall financial condition of such providers has worsened, improved, or held constant over the last five years; and      (f) Analyze any other information which assists the committees to better understand the amount of funding needed for trauma care services.      (2) The office of program research shall provide staff support for the study. The department of health, the department of social and health services, and the emergency medical services and trauma care steering committee shall provide information and technical support as needed.      (3) For the purposes of this section "trauma care services" means verified ambulance services, designated trauma services, and related services provided by a physician who is an active member of a trauma service team at a designated facility.            NEW SECTION. Sec. 6. Sections 1 through 3 of this act take effect January 1, 1998."      Correct the title accordingly.  and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Winsley moved that the Senate refuse to concur in the House amendment to Second Substitute Senate Bill No. 5127 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Winsley that the Senate refuse to concur in the House amendment to Second Substitute Senate Bill No. 5127 and asks the House to recede therefrom.

      The motion by Senator Winsley carried and the Senate refuses to concur in the House amendment to Second Substitute Senate Bill No. 5127 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5149 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 42.17.132 and 1995 c 397 s 5 are each amended to read as follows:  (1) During the twelve-month period ((preceding the last day for certification of the election results for a state legislator's election to office)) beginning on December 1st of the year before a general election for a state legislator's election to office and continuing through November 30th immediately after the general election, the legislator may not mail, either by regular mail or electronic mail, to a constituent at public expense a letter, newsletter, brochure, or other piece of literature, except as ((provided in this section.)) follows:      (a) The legislator may mail ((one)) two mailings of newsletters to constituents. All newsletters within each mailing of newsletters must be identical as to their content but not as to the constituent name or address. One such mailing may be mailed no later than thirty days after the start of a regular legislative session ((and one)), except that a legislator appointed after the start of the session to fill a vacant seat may have up to thirty days from the date of appointment to send out the first mailing. The other mailing may be mailed no later than sixty days after the end of a regular legislative session ((of identical newsletters to constituents)).  (b) The legislator may mail an individual letter to (i) an individual constituent who (((1))) has contacted the legislator regarding the subject matter of the letter during the legislator's current term of office; ((or (2))) (ii) an individual constituent who holds a governmental office with jurisdiction over the subject matter of the letter; or (iii) an individual constituent who has received an award or honor of extraordinary distinction of a type that is sufficiently infrequent to be noteworthy to a reasonable person, including, but not limited to: (A) An international or national award such as the Nobel prize and the Pulitzer prize; (B) a state award such as Washington scholar; (C) an Eagle Scout award; (D) a Medal of Honor; (E) a one-hundredth birthday; and (F) a seventy-fifth wedding anniversary.    (2) For purposes of subsection (1) of this section, "legislator" means a legislator who is a "candidate," as defined by RCW 42.17.020, for any public office.         (3) A violation of this section constitutes use of the facilities of a public office for the purpose of assisting a campaign under RCW 42.52.180.               (4) The house of representatives and senate shall specifically limit expenditures per member for the total cost of mailings((, including)). Those costs include, but are not limited to, production costs, printing costs, and postage costs. The limits imposed under this subsection apply only to the total expenditures on mailings per member and not to any categorical cost within the total.  (5) For purposes of this section, persons residing outside the legislative district represented by the legislator are not considered to be constituents, but students, military personnel, or others temporarily employed outside of the district who normally reside in the district are considered to be constituents.                 NEW SECTION. Sec. 2. RCW 42.17.132, as amended by this act, is recodified as a new section in chapter 42.52 RCW, to be placed between RCW 42.52.180 and 42.52.190.",         and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Long moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5149 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Long that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5149 and asks the House to recede therefrom.

      The motion by Senator Long carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5149 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5508 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that it is essential for children in the public schools to read well early in elementary school. The legislature further finds that clear and visible goals, assessments to determine the reading level at each building, measurements of annual building improvement, and creating accountability in the educational system will result in a significant increase in the reading ability of children.               NEW SECTION. Sec. 2. This act may be known and cited as the primary grades reading accountability act.         NEW SECTION. Sec. 3. (1) By November 1, 1997, the commission on student learning, in consultation with the superintendent of public instruction, shall make recommendations to the legislature, governor, and state board of education regarding a state-wide accountability system for reading in the elementary grades. The accountability system must assess each school individually against its own baseline, schools with similar characteristics, and schools state-wide. In preparing its recommendations, the commission shall consult with school district officials and school district board members who have established reading goals, incentives, and accountability programs. The commission also shall consult with legislators, parents, classroom teachers, principals, and other educators.      (2) In developing the recommendations, the commission shall consider:              (a) The establishment of a state-wide reading goal or goals;      (b) The establishment of a financial incentive program for schools that meet or exceed their reading goals;        (c) The establishment of a program for technical assistance, and when appropriate, intervention, for schools that persistently do not meet their goals;      (d) The development of a process to evaluate principals' effectiveness in providing leadership in reaching the fourth grade reading goal;                  (e) The reporting of annual state-wide progress that includes information on reading achievement by school building, school district, and state-wide; and      (f) Whether other accountability reports, actions, or programs should be developed.            (3) Recommendations pertaining to state-wide goals, financial incentives, and intervention shall be based on the reading test scores of students taking the state-wide elementary grade assessment in RCW 28A.630.885.                Sec. 4. RCW 28A.230.190 and 1990 c 101 s 6 are each amended to read as follows:      (1) Every school district is encouraged to test pupils in grade two by an assessment device designed or selected by the school district. This test shall be used to help teachers in identifying those pupils in need of assistance in the skills of reading, writing, mathematics, and language arts. The test results are not to be compiled by the superintendent of public instruction, but are only to be used by the local school district.      (2) The superintendent of public instruction shall prepare and conduct, with the assistance of school districts, a standardized norm-referenced achievement test to be given annually beginning in the 1997-98 school year to all pupils in grade ((four)) three. The test shall assess students' skill in reading((,)) and mathematics((, and language arts)) and shall focus upon appropriate input variables. Results of ((such)) the test((s)) shall be compiled by the superintendent of public instruction, who shall make those results available annually to the legislature((,)) and to all local school districts ((and subsequently)). School districts shall make results available to parents of those children tested. The results shall allow parents to ascertain the achievement levels and input variables of their children as compared with the other students within the district, the state and, if applicable, the nation.             (3) The superintendent of public instruction shall report annually to the legislature on the achievement levels of students in grade ((four)) three as measured by the norm-referenced standardized achievement test.      Sec. 5. RCW 28A.320.205 and 1993 c 336 s 1006 are each amended to read as follows:    (1) Beginning with the 1994-95 school year, to provide the local community and electorate with access to information on the educational programs in the schools in the district, each school shall publish annually a school performance report and deliver the report to each parent with children enrolled in the school and make the report available to the community served by the school. The annual performance report shall be in a form that can be easily understood and be used by parents, guardians, and other members of the community who are not professional educators to make informed educational decisions. As data from the assessments in RCW 28A.630.885 becomes available, the annual performance report should enable parents, educators, and school board members to determine whether students in the district's schools are attaining mastery of the student learning goals under RCW 28A.150.210, and other important facts about the schools' performance in assisting students to learn. The annual report shall make comparisons to a school's performance in preceding years and shall project goals in performance categories.                (2) The annual performance report shall include, but not be limited to: A brief statement of the mission of the school and the school district; enrollment statistics including student demographics; expenditures per pupil for the school year; a summary of student scores on all mandated tests; a concise annual budget report; student attendance, graduation, and dropout rates; information regarding the use and condition of the school building or buildings; a brief description of the restructuring plan for the school; and an invitation to all parents and citizens to participate in school activities. In addition to the annual performance report, each school shall annually present a summary of student scores on all state-mandated tests at an open meeting of the district's board of directors. The report shall include comparisons to the school's performance in preceding years.         (3) The superintendent of public instruction shall develop by June 30, 1994, a model report form, which shall also be adapted for computers, that schools may use to meet the requirements of subsections (1) and (2) of this section.  NEW SECTION. Sec. 6. 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. 7. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1997, in the omnibus appropriations act, this act is null and void.",                   Correct the title.      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Hochstatter moved that the Senate refuse to concur in the House amendment to Second Substitute Senate Bill No. 5508 and asks

the House to recede therefrom.

PARLIAMENTARY INQUIRY

      Senator McAuliffe: “A parliamentary inquiry, please. If we ask them to recede, does it go to conference automatically?”

REPLY BY THE PRESIDENT PRO TEMPORE

      President Pro Tempore Newhouse: “You are asking a point of parliamentary information. State your question again.”

      Senator McAuliffe: “If we do not concur and ask the House to recede, will it go into conference?”

      President Pro Tempore Newhouse: “No, to go into conference, it requires a separate motion.”

MOTION

      Senator McAuliffe moved that the Senate refuse to concur in the House amendment to Second Substitute Senate Bill No. 5508 and requests of the House a conference thereon.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator McAuliffe that the Senate refuse to concur in the House amendment to Second Substitute Senate Bill No. 5508 and requests of the House a conference thereon.

      The motion by Senator McAuliffe carried and the Senate refuses to concur in the House amendment to Second Substitute Senate Bill No. 5508 and requests of the House a conference thereon.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5710 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 13.34.030 and 1995 c 311 s 23 are each amended to read as follows:  For purposes of this chapter:             (1) "Alternative response system" means voluntary family-centered services that are: (a) Provided by an entity with which the department contracts; and (b) intended to increase the strengths and cohesiveness of families that the department determines present a low risk of child abuse or neglect.            (2) "Child" and "juvenile" means any individual under the age of eighteen years.   (((2))) (3) "Current placement episode" means the period of time that begins with the most recent date that the child was removed from the home of the parent, guardian, or legal custodian for purposes of placement in out-of-home care and continues until the child returns home, an adoption decree or guardianship order is entered, or the dependency is dismissed, whichever occurs soonest. If the most recent date of removal occurred prior to the filing of a dependency petition under this chapter or after filing but prior to entry of a disposition order, such time periods shall be included when calculating the length of a child's current placement episode.    (((3))) (4) "Department" means the department of social and health services.      (5) "Dependency guardian" means the person, nonprofit corporation, or Indian tribe appointed by the court pursuant to RCW 13.34.232 for the limited purpose of assisting the court in the supervision of the dependency.        (((4))) (6) "Dependent child" means any child:             (a) Who has been abandoned; that is, where the child's parent, guardian, or other custodian has expressed either by statement or conduct, an intent to forego, for an extended period, parental rights or parental responsibilities despite an ability to do so. If the court finds that the petitioner has exercised due diligence in attempting to locate the parent, no contact between the child and the child's parent, guardian, or other custodian for a period of three months creates a rebuttable presumption of abandonment, even if there is no expressed intent to abandon;    (b) Who is abused or neglected as defined in chapter 26.44 RCW by a person legally responsible for the care of the child;        (c) Who has no parent, guardian, or custodian capable of adequately caring for the child, such that the child is in circumstances which constitute a danger of substantial damage to the child's psychological or physical development; or                 (d) Who has a developmental disability, as defined in RCW 71A.10.020 and whose parent, guardian, or legal custodian together with the department determines that services appropriate to the child's needs can not be provided in the home. However, (a), (b), and (c) of this subsection may still be applied if other reasons for removal of the child from the home exist.  (((5))) (7) "Guardian" means the person or agency that: (a) Has been appointed as the guardian of a child in a legal proceeding other than a proceeding under this chapter; and (b) has the legal right to custody of the child pursuant to such appointment. The term "guardian" shall not include a "dependency guardian" appointed pursuant to a proceeding under this chapter.      (((6))) (8) "Guardian ad litem" means a person, appointed by the court to represent the best interest of a child in a proceeding under this chapter, or in any matter which may be consolidated with a proceeding under this chapter. A "court-appointed special advocate" appointed by the court to be the guardian ad litem for the child, or to perform substantially the same duties and functions as a guardian ad litem, shall be deemed to be guardian ad litem for all purposes and uses of this chapter.    (((7))) (9) "Guardian ad litem program" means a court-authorized volunteer program, which is or may be established by the superior court of the county in which such proceeding is filed, to manage all aspects of volunteer guardian ad litem representation for children alleged or found to be dependent. Such management shall include but is not limited to: Recruitment, screening, training, supervision, assignment, and discharge of volunteers.      (((8))) (10) "Out-of-home care" means placement in a foster family home or group care facility licensed pursuant to chapter 74.15 RCW or placement in a home, other than that of the child's parent, guardian, or legal custodian, not required to be licensed pursuant to chapter 74.15 RCW.              (((9))) (11) "Preventive services" means preservation services, as defined in chapter 74.14C RCW, and other reasonably available services capable of preventing the need for out-of-home placement while protecting the child. NEW SECTION. Sec. 2. A new section is added to chapter 26.44 RCW to read as follows:      The department may create a community-based alternative response system for families referred to child protective services who are identified as low-risk cases. The system shall assess family needs and strengths, and arrange services for eligible families. Services provided through the system shall be contracted for with community-based organizations.       NEW SECTION. Sec. 3. If specific funding for the purposes of section 2 of this act, referencing this act by bill or chapter and section number, is not provided by June 30, 1997, in the omnibus appropriations act, this act is null and void.  NEW SECTION. Sec. 4. Section 2 of 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 July 1, 1997.      NEW SECTION. Sec. 5. The legislature intends to consolidate all services provided to children with developmental disabilities through the department of social and health services in the division of developmental disabilities. The legislature also intends to provide a discrete, separate process for children with developmental disabilities who require home-based or out-of-home care that complies with the federal requirements for receipt of federal funds for services under Title IV-B and Title IV-E of the social security act. The legislature intends by sections 6 through 9 of this act to minimize the embarrassment and inconvenience of children with developmental disabilities and their families caused by complying with these federal requirements.                 NEW SECTION. Sec. 6. A new section is added to chapter 71A.10 RCW to read as follows:  As used in this chapter, "developmentally disabled dependent child" is a child who has a developmental disability as defined in RCW 71A.10.020 and whose parent, guardian, or legal custodian and with the department mutually agree that services appropriate to the child's needs can not be provided in the home.             NEW SECTION. Sec. 7. A new section is added to chapter 71A.10 RCW to read as follows:              It is the intent of the legislature that parents are responsible for the care and support of children with developmental disabilities. The legislature recognizes that, because of the intense support required to care for a child with developmental disabilities, the help of an out-of-home placement may be needed. It is the intent of the legislature that, when the sole reason for the out-of-home placement is the child's developmental disability, such services be offered by the department to these children and their families through a voluntary placement agreement. In these cases, the parents shall retain legal custody of the child.             As used in this section, "voluntary placement agreement" means a written agreement between the department and a child's legal guardian authorizing the department to place the child in a licensed facility. Under the terms of this agreement, the parent or legal guardian shall retain legal custody and the department shall be responsible for the child's placement and care. The agreement shall at a minimum specify the legal status of the child and the rights and obligations of the parent or legal guardian, the child, and the department while the child is in placement. The agreement must be signed by the child's parent and the department to be in effect.       As used in this section, "out-of-home placement" means the placement of a child in a facility licensed to care for children with developmental disabilities on a twenty-four hour basis.    Whenever the department places a child in out-of-home care under a voluntary placement pursuant to this section, the department shall have the responsibility for the child's placement and care. When a child remains in out-of-home care under a voluntary agreement for more than one hundred eighty days, the juvenile court shall make a judicial determination, within the first one hundred eighty days of the placement, that the placement is in the best interests of the child. In addition, the juvenile court shall hold a permanency planning hearing as specified in RCW 13.34.145 and thereafter as specified in federal law during the continuation of the placement. The permanency planning hearings shall review whether the child's best interests are served by continued out-of-home placement and determine the future status of the child.           The department shall provide for foster care citizen reviews or administrative reviews as required by federal law. A review may be called at any time by either the department or the parent.      The court may appoint a guardian ad litem if the court finds an independent investigation is needed to examine the best interests of the child.      Nothing in this section shall prevent the department from filing a dependency petition if the child is abused or neglected or the parents discontinue contact with the child.                The department shall adopt rules providing for the implementation of sections 8 and 9 of this act and the transfer of responsibility for out-of-home placements from the dependency process under chapter 13.34 RCW to the process under chapter 71A.10 RCW.  NEW SECTION. Sec. 8. Section 7 of 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.         NEW SECTION. Sec. 9. A new section is added to chapter 71A.10 RCW to read as follows:            The department shall consolidate all services provided through the department to children with developmental disabilities in the division of developmental disabilities. The department shall provide for an orderly transfer of staff, equipment, and related responsibilities from the division of children and family services to the division of developmental disabilities. The division of developmental disabilities shall assume responsibilities for children with developmental disabilities under this section no later than March 1, 1998. Any disputes between the division of children and family services and the division of developmental disabilities regarding the transfer of responsibilities under this section shall be resolved by the secretary of the department of social and health services.             Sec. 10. RCW 13.34.030 and 1995 c 311 s 23 are each amended to read as follows:      For purposes of this chapter:      (1) "Child" and "juvenile" means any individual under the age of eighteen years.                (2) "Current placement episode" means the period of time that begins with the most recent date that the child was removed from the home of the parent, guardian, or legal custodian for purposes of placement in out-of-home care and continues until the child returns home, an adoption decree or guardianship order is entered, or the dependency is dismissed, whichever occurs soonest. If the most recent date of removal occurred prior to the filing of a dependency petition under this chapter or after filing but prior to entry of a disposition order, such time periods shall be included when calculating the length of a child's current placement episode.                (3) "Dependency guardian" means the person, nonprofit corporation, or Indian tribe appointed by the court pursuant to RCW 13.34.232 for the limited purpose of assisting the court in the supervision of the dependency.        (4) "Dependent child" means any child:                 (a) Who has been abandoned; that is, where the child's parent, guardian, or other custodian has expressed either by statement or conduct, an intent to forego, for an extended period, parental rights or parental responsibilities despite an ability to do so. If the court finds that the petitioner has exercised due diligence in attempting to locate the parent, no contact between the child and the child's parent, guardian, or other custodian for a period of three months creates a rebuttable presumption of abandonment, even if there is no expressed intent to abandon;         (b) Who is abused or neglected as defined in chapter 26.44 RCW by a person legally responsible for the care of the child; or   (c) Who has no parent, guardian, or custodian capable of adequately caring for the child, such that the child is in circumstances which constitute a danger of substantial damage to the child's psychological or physical development((; or              (d) Who has a developmental disability, as defined in RCW 71A.10.020 and whose parent, guardian, or legal custodian together with the department determines that services appropriate to the child's needs can not be provided in the home. However, (a), (b), and (c) of this subsection may still be applied if other reasons for removal of the child from the home exist)).               (5) "Guardian" means the person or agency that: (a) Has been appointed as the guardian of a child in a legal proceeding other than a proceeding under this chapter; and (b) has the legal right to custody of the child pursuant to such appointment. The term "guardian" shall not include a "dependency guardian" appointed pursuant to a proceeding under this chapter.              (6) "Guardian ad litem" means a person, appointed by the court to represent the best interest of a child in a proceeding under this chapter, or in any matter which may be consolidated with a proceeding under this chapter. A "court-appointed special advocate" appointed by the court to be the guardian ad litem for the child, or to perform substantially the same duties and functions as a guardian ad litem, shall be deemed to be guardian ad litem for all purposes and uses of this chapter.    (7) "Guardian ad litem program" means a court-authorized volunteer program, which is or may be established by the superior court of the county in which such proceeding is filed, to manage all aspects of volunteer guardian ad litem representation for children alleged or found to be dependent. Such management shall include but is not limited to: Recruitment, screening, training, supervision, assignment, and discharge of volunteers.            (8) "Out-of-home care" means placement in a foster family home or group care facility licensed pursuant to chapter 74.15 RCW or placement in a home, other than that of the child's parent, guardian, or legal custodian, not required to be licensed pursuant to chapter 74.15 RCW.          (9) "Preventive services" means preservation services, as defined in chapter 74.14C RCW, and other reasonably available services capable of preventing the need for out-of-home placement while protecting the child.            NEW SECTION. Sec. 11. Sections 5, 6, 9, and 10 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 1997.      Sec. 12. RCW 13.50.010 and 1996 c 232 s 6 are each amended to read as follows:             (1) For purposes of this chapter:      (a) "Juvenile justice or care agency" means any of the following: Police, diversion units, court, prosecuting attorney, defense attorney, detention center, attorney general, the legislative children's oversight committee, the office of family and children's ombudsman, the department of social and health services and its contracting agencies, schools; and, in addition, persons or public or private agencies having children committed to their custody;          (b) "Official juvenile court file" means the legal file of the juvenile court containing the petition or information, motions, memorandums, briefs, findings of the court, and court orders;                 (c) "Social file" means the juvenile court file containing the records and reports of the probation counselor;     (d) "Records" means the official juvenile court file, the social file, and records of any other juvenile justice or care agency in the case.               (2) Each petition or information filed with the court may include only one juvenile and each petition or information shall be filed under a separate docket number. The social file shall be filed separately from the official juvenile court file.         (3) It is the duty of any juvenile justice or care agency to maintain accurate records. To this end:       (a) The agency may never knowingly record inaccurate information. Any information in records maintained by the department of social and health services relating to a petition filed pursuant to chapter 13.34 RCW that is found by the court, upon proof presented, to be false or inaccurate shall be corrected or expunged from such records by the agency;             (b) An agency shall take reasonable steps to assure the security of its records and prevent tampering with them; and             (c) An agency shall make reasonable efforts to insure the completeness of its records, including action taken by other agencies with respect to matters in its files.    (4) Each juvenile justice or care agency shall implement procedures consistent with the provisions of this chapter to facilitate inquiries concerning records.            (5) Any person who has reasonable cause to believe information concerning that person is included in the records of a juvenile justice or care agency and who has been denied access to those records by the agency may make a motion to the court for an order authorizing that person to inspect the juvenile justice or care agency record concerning that person. The court shall grant the motion to examine records unless it finds that in the interests of justice or in the best interests of the juvenile the records or parts of them should remain confidential.                (6) A juvenile, or his or her parents, or any person who has reasonable cause to believe information concerning that person is included in the records of a juvenile justice or care agency may make a motion to the court challenging the accuracy of any information concerning the moving party in the record or challenging the continued possession of the record by the agency. If the court grants the motion, it shall order the record or information to be corrected or destroyed.       (7) The person making a motion under subsection (5) or (6) of this section shall give reasonable notice of the motion to all parties to the original action and to any agency whose records will be affected by the motion.       (8) The court may permit inspection of records by, or release of information to, any clinic, hospital, or agency which has the subject person under care or treatment. The court may also permit inspection by or release to individuals or agencies, including juvenile justice advisory committees of county law and justice councils, engaged in legitimate research for educational, scientific, or public purposes. The court may also permit inspection of, or release of information from, records which have been sealed pursuant to RCW 13.50.050(11). The court shall release to the sentencing guidelines commission records needed for its research and data-gathering functions under RCW 9.94A.040 and other statutes. Access to records or information for research purposes shall be permitted only if the anonymity of all persons mentioned in the records or information will be preserved. Each person granted permission to inspect juvenile justice or care agency records for research purposes shall present a notarized statement to the court stating that the names of juveniles and parents will remain confidential.            (9) Juvenile detention facilities shall release records to the sentencing guidelines commission under RCW 13.40.025 and 9.94A.040 upon request. The commission shall not disclose the names of any juveniles or parents mentioned in the records without the named individual's written permission.      (10) Requirements in this chapter relating to the court's authority to compel disclosure shall not apply to the legislative children's oversight committee or the office of the family and children's ombudsman.            Sec. 13. RCW 13.50.100 and 1995 c 311 s 16 are each amended to read as follows:          (1) This section governs records not covered by RCW 13.50.050.      (2) Records covered by this section shall be confidential and shall be released only pursuant to this section and RCW 13.50.010.      (3) Records retained or produced by any juvenile justice or care agency may be released to other participants in the juvenile justice or care system only when an investigation or case involving the juvenile in question is being pursued by the other participant or when that other participant is assigned the responsibility of supervising the juvenile. Records covered under this section and maintained by the juvenile courts which relate to the official actions of the agency may be entered in the state-wide juvenile court information system.              (4) A juvenile, his or her parents, the juvenile's attorney and the juvenile's parent's attorney, shall, upon request, be given access to all records and information collected or retained by a juvenile justice or care agency which pertain to the juvenile except:                  (a) If it is determined by the agency that release of this information is likely to cause severe psychological or physical harm to the juvenile or his or her parents the agency may withhold the information subject to other order of the court: PROVIDED, That if the court determines that limited release of the information is appropriate, the court may specify terms and conditions for the release of the information; or                (b) If the information or record has been obtained by a juvenile justice or care agency in connection with the provision of counseling, psychological, psychiatric, or medical services to the juvenile, when the services have been sought voluntarily by the juvenile, and the juvenile has a legal right to receive those services without the consent of any person or agency, then the information or record may not be disclosed to the juvenile's parents without the informed consent of the juvenile unless otherwise authorized by law; or    (c) That the department of social and health services may delete the name and identifying information regarding persons or organizations who have reported ((suspected)) alleged child abuse or neglect.    (5) A juvenile or his or her parent denied access to any records following an agency determination under subsection (4) of this section may file a motion in juvenile court requesting access to the records. The court shall grant the motion unless it finds access may not be permitted according to the standards found in subsections (4) (a) and (b) of this section.      (6) The person making a motion under subsection (5) of this section shall give reasonable notice of the motion to all parties to the original action and to any agency whose records will be affected by the motion.      (7) Subject to the rules of discovery in civil cases, any party to a proceeding seeking a declaration of dependency or a termination of the parent-child relationship and any party's counsel and the guardian ad litem of any party, shall have access to the records of any natural or adoptive child of the parent, subject to the limitations in subsection (4) of this section.              Sec. 14. RCW 26.44.015 and 1993 c 412 s 11 are each amended to read as follows:           (1) This chapter shall not be construed to authorize interference with child-raising practices, including reasonable parental discipline, which are not injurious to the child's health, welfare, and safety.                (2) Nothing in this chapter may be used to prohibit the reasonable use of corporal punishment as a means of discipline.     (3) No parent or guardian may be deemed abusive or neglectful solely by reason of the parent's or child's blindness, deafness, developmental disability, or other handicap.          (4) A person reporting alleged injury, abuse, or neglect to an adult dependent person shall not suffer negative consequences if the person reporting believes in good faith that the adult dependent person has been found legally incompetent or disabled.                   Sec. 15. RCW 26.44.020 and 1996 c 178 s 10 are each amended to read as follows:          For the purpose of and as used in this chapter:       (1) "Court" means the superior court of the state of Washington, juvenile department.          (2) "Law enforcement agency" means the police department, the prosecuting attorney, the state patrol, the director of public safety, or the office of the sheriff.     (3) "Practitioner of the healing arts" or "practitioner" means a person licensed by this state to practice podiatric medicine and surgery, optometry, chiropractic, nursing, dentistry, osteopathic medicine and surgery, or medicine and surgery or to provide other health services. The term "practitioner" shall include a duly accredited Christian Science practitioner: PROVIDED, HOWEVER, That a person who is being furnished Christian Science treatment by a duly accredited Christian Science practitioner shall not be considered, for that reason alone, a neglected person for the purposes of this chapter.            (4) "Institution" means a private or public hospital or any other facility providing medical diagnosis, treatment or care.     (5) "Department" means the state department of social and health services.      (6) "Child" or "children" means any person under the age of eighteen years of age.      (7) "Professional school personnel" shall include, but not be limited to, teachers, counselors, administrators, child care facility personnel, and school nurses.         (8) "Social service counselor" shall mean anyone engaged in a professional capacity during the regular course of employment in encouraging or promoting the health, welfare, support or education of children, or providing social services to adults or families, including mental health, drug and alcohol treatment, and domestic violence programs, whether in an individual capacity, or as an employee or agent of any public or private organization or institution.        (9) "Psychologist" shall mean any person licensed to practice psychology under chapter 18.83 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.      (10) "Pharmacist" shall mean any registered pharmacist under the provisions of chapter 18.64 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.          (11) "Clergy" shall mean any regularly licensed or ordained minister, priest or rabbi of any church or religious denomination, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.                 (12) "Abuse or neglect" shall mean the injury, sexual abuse, sexual exploitation, negligent treatment, or maltreatment of a child, adult dependent, or developmentally disabled person by any person under circumstances which indicate that the child's or adult's health, welfare, and safety is harmed, excluding conduct permitted under RCW 9A.16.100. An abused child is a child who has been subjected to child abuse or neglect as defined herein.            (13) "Child protective services section" shall mean the child protective services section of the department.               (14) "Adult dependent persons" shall be defined as those persons over the age of eighteen years who have been found to be legally incompetent or disabled pursuant to chapter 11.88 RCW.    (15) "Sexual exploitation" includes: (a) Allowing, permitting, or encouraging a child to engage in prostitution by any person; or (b) allowing, permitting, encouraging, or engaging in the obscene or pornographic photographing, filming, or depicting of a child by any person.          (16) "Negligent treatment or maltreatment" means an act or omission which evidences a serious disregard of consequences of such magnitude as to constitute a clear and present danger to the child's health, welfare, and safety.           (17) "Developmentally disabled person" means a person who has a disability defined in RCW 71A.10.020.      (18) "Child protective services" means those services provided by the department designed to protect children from child abuse and neglect and safeguard the general welfare of such children and shall include investigations of child abuse and neglect reports, including reports regarding child care centers and family child care homes, and the development, management, and provision of or referral to services to ameliorate conditions which endanger the welfare of children, the coordination of necessary programs and services relevant to the prevention, intervention, and treatment of child abuse and neglect, and services to children to ensure that each child has a permanent home. In determining whether protective services should be provided, the department shall not decline to provide such services solely because of the child's unwillingness or developmental inability to describe the nature and severity of the abuse or neglect.        (19) "Malice" or "maliciously" means an evil intent, wish, or design to vex, annoy, or injure another person. Such malice may be inferred from an act done in wilful disregard of the rights of another, or an act wrongfully done without just cause or excuse, or an act or omission of duty betraying a wilful disregard of social duty.                   (20) "Sexually aggressive youth" means a child who is defined in RCW 74.13.075(1)(b) as being a "sexually aggressive youth."      Sec. 16. RCW 26.44.030 and 1996 c 278 s 2 are each amended to read as follows:             (1)(a) When any practitioner, county coroner or medical examiner, law enforcement officer, professional school personnel, registered or licensed nurse, social service counselor, psychologist, pharmacist, licensed or certified child care providers or their employees, employee of the department, ((or)) juvenile probation officer, or state family and children's ombudsman or any volunteer in the ombudsman's office has reasonable cause to believe that a child or adult dependent or developmentally disabled person, has suffered abuse or neglect, he or she shall report such incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.                (b) The reporting requirement shall also apply to department of corrections personnel who, in the course of their employment, observe offenders or the children with whom the offenders are in contact. If, as a result of observations or information received in the course of his or her employment, any department of corrections personnel has reasonable cause to believe that a child or adult dependent or developmentally disabled person has suffered abuse or neglect, he or she shall report the incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.          (c) The reporting requirement shall also apply to any adult who has reasonable cause to believe that a child or adult dependent or developmentally disabled person, who resides with them, has suffered severe abuse, and is able or capable of making a report. For the purposes of this subsection, "severe abuse" means any of the following: Any single act of abuse that causes physical trauma of sufficient severity that, if left untreated, could cause death; any single act of sexual abuse that causes significant bleeding, deep bruising, or significant external or internal swelling; or more than one act of physical abuse, each of which causes bleeding, deep bruising, significant external or internal swelling, bone fracture, or unconsciousness.   (d) The report shall be made at the first opportunity, but in no case longer than forty-eight hours after there is reasonable cause to believe that the child or adult has suffered abuse or neglect. The report shall include the identity of the accused if known.         (2) The reporting requirement of subsection (1) of this section does not apply to the discovery of abuse or neglect that occurred during childhood if it is discovered after the child has become an adult. However, if there is reasonable cause to believe other children, dependent adults, or developmentally disabled persons are or may be at risk of abuse or neglect by the accused, the reporting requirement of subsection (1) of this section shall apply.     (3) Any other person who has reasonable cause to believe that a child or adult dependent or developmentally disabled person has suffered abuse or neglect may report such incident to the proper law enforcement agency or to the department of social and health services as provided in RCW 26.44.040.   (4) The department, upon receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child or adult dependent or developmentally disabled person who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means or who has been subjected to alleged sexual abuse, shall report such incident to the proper law enforcement agency. In emergency cases, where the child, adult dependent, or developmentally disabled person's welfare is endangered, the department shall notify the proper law enforcement agency within twenty-four hours after a report is received by the department. In all other cases, the department shall notify the law enforcement agency within seventy-two hours after a report is received by the department. If the department makes an oral report, a written report shall also be made to the proper law enforcement agency within five days thereafter.      (5) Any law enforcement agency receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child or adult dependent or developmentally disabled person who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means, or who has been subjected to alleged sexual abuse, shall report such incident in writing as provided in RCW 26.44.040 to the proper county prosecutor or city attorney for appropriate action whenever the law enforcement agency's investigation reveals that a crime may have been committed. The law enforcement agency shall also notify the department of all reports received and the law enforcement agency's disposition of them. In emergency cases, where the child, adult dependent, or developmentally disabled person's welfare is endangered, the law enforcement agency shall notify the department within twenty-four hours. In all other cases, the law enforcement agency shall notify the department within seventy-two hours after a report is received by the law enforcement agency.           (6) Any county prosecutor or city attorney receiving a report under subsection (5) of this section shall notify the victim, any persons the victim requests, and the local office of the department, of the decision to charge or decline to charge a crime, within five days of making the decision.      (7) The department may conduct ongoing case planning and consultation with those persons or agencies required to report under this section, with consultants designated by the department, and with designated representatives of Washington Indian tribes if the client information exchanged is pertinent to cases currently receiving child protective services or department case services for the developmentally disabled. Upon request, the department shall conduct such planning and consultation with those persons required to report under this section if the department determines it is in the best interests of the child or developmentally disabled person. Information considered privileged by statute and not directly related to reports required by this section shall not be divulged without a valid written waiver of the privilege.           (8) Any case referred to the department by a physician licensed under chapter 18.57 or 18.71 RCW on the basis of an expert medical opinion that child abuse, neglect, or sexual assault has occurred and that the child's safety will be seriously endangered if returned home, the department shall file a dependency petition unless a second licensed physician of the parents' choice believes that such expert medical opinion is incorrect. If the parents fail to designate a second physician, the department may make the selection. If a physician finds that a child has suffered abuse or neglect but that such abuse or neglect does not constitute imminent danger to the child's health or safety, and the department agrees with the physician's assessment, the child may be left in the parents' home while the department proceeds with reasonable efforts to remedy parenting deficiencies.      (9) Persons or agencies exchanging information under subsection (7) of this section shall not further disseminate or release the information except as authorized by state or federal statute. Violation of this subsection is a misdemeanor.                 (10) Upon receiving reports of alleged abuse or neglect, the department or law enforcement agency may interview children. The interviews may be conducted on school premises, at day-care facilities, at the child's home, or at other suitable locations outside of the presence of parents. Parental notification of the interview shall occur at the earliest possible point in the investigation that will not jeopardize the safety or protection of the child or the course of the investigation. Prior to commencing the interview the department or law enforcement agency shall determine whether the child wishes a third party to be present for the interview and, if so, shall make reasonable efforts to accommodate the child's wishes. Unless the child objects, the department or law enforcement agency shall make reasonable efforts to include a third party in any interview so long as the presence of the third party will not jeopardize the course of the investigation.              (11) Upon receiving a report of alleged child abuse and neglect, the department or investigating law enforcement agency shall have access to all relevant records of the child in the possession of mandated reporters and their employees.         (12) The department shall maintain investigation records and conduct timely and periodic reviews of all cases constituting abuse and neglect. The department shall maintain a log of screened-out nonabusive cases.       (13) The department shall use a risk assessment process when investigating alleged child abuse and neglect referrals. The department shall present the risk factors at all hearings in which the placement of a dependent child is an issue. The department shall, within funds appropriated for this purpose, offer enhanced community-based services to persons who are determined not to require further state intervention.        The department shall provide annual reports to the legislature on the effectiveness of the risk assessment process.    (14) Upon receipt of a report of alleged abuse or neglect the law enforcement agency may arrange to interview the person making the report and any collateral sources to determine if any malice is involved in the reporting.      (15) The department shall make reasonable efforts to learn the name, address, and telephone number of each person making a report of abuse or neglect under this section. The department shall provide assurances of appropriate confidentiality of the identification of persons reporting under this section. If the department is unable to learn the information required under this subsection, the department shall only investigate cases in which: (a) The department believes there is a serious threat of substantial harm to the child; (b) the report indicates conduct involving a criminal offense that has, or is about to occur, in which the child is the victim; or (c) the department has a report of abuse or neglect that has been founded with regard to a member of the household within three years of receipt of the referral.        Sec. 17. RCW 26.44.035 and 1985 c 259 s 3 are each amended to read as follows:            If the department or a law enforcement agency responds to a complaint of alleged child abuse or neglect and discovers that another agency has also responded to the complaint, the agency shall notify the other agency of their presence, and the agencies shall coordinate the investigation and keep each other apprised of progress.    The department, each law enforcement agency, each county prosecuting attorney, each city attorney, and each court shall make as soon as practicable a written record and shall maintain records of all incidents of suspected child abuse reported to that person or agency. Records kept under this section shall be identifiable by means of an agency code for child abuse.     Sec. 18. RCW 26.44.040 and 1993 c 412 s 14 are each amended to read as follows:      An immediate oral report shall be made by telephone or otherwise to the proper law enforcement agency or the department of social and health services and, upon request, shall be followed by a report in writing. Such reports shall contain the following information, if known:      (1) The name, address, and age of the child or adult dependent or developmentally disabled person;                  (2) The name and address of the child's parents, stepparents, guardians, or other persons having custody of the child or the residence of the adult dependent or developmentally disabled person;                 (3) The nature and extent of the alleged injury or injuries;     (4) The nature and extent of the alleged neglect;              (5) The nature and extent of the alleged sexual abuse;      (6) Any evidence of previous injuries, including their nature and extent; and         (7) Any other information which may be helpful in establishing the cause of the child's or adult dependent or developmentally disabled person's death, injury, or injuries and the identity of the alleged perpetrator or perpetrators.         Sec. 19. RCW 26.44.053 and 1996 c 249 s 16 are each amended to read as follows:          (1) In any judicial proceeding under this chapter or chapter 13.34 RCW in which it is alleged that a child has been subjected to child abuse or neglect, the court shall appoint a guardian ad litem for the child as provided in chapter 13.34 RCW. The requirement of a guardian ad litem may be deemed satisfied if the child is represented by counsel in the proceedings.      (2) At any time prior to or during a hearing in such a case, the court may, on its own motion, or the motion of the guardian ad litem, or other parties, order the examination by a physician, psychologist, or psychiatrist, of any parent or child or other person having custody of the child at the time of the alleged child abuse or neglect, if the court finds such an examination is necessary to the proper determination of the case. The hearing may be continued pending the completion of such examination. The physician, psychologist, or psychiatrist conducting such an examination may be required to testify concerning the results of such examination and may be asked to give his or her opinion as to whether the protection of the child requires that he or she not be returned to the custody of his or her parents or other persons having custody of him or her at the time of the alleged child abuse or neglect. Persons so testifying shall be subject to cross-examination as are other witnesses. No information given at any such examination of the parent or any other person having custody of the child may be used against such person in any subsequent criminal proceedings against such person or custodian concerning the alleged abuse or neglect of the child.    (3) A parent or other person having legal custody of a child alleged to be abused or neglected shall be a party to any proceeding that may impair or impede such person's interest in and custody or control of the child.                Sec. 20. RCW 26.44.060 and 1988 c 142 s 3 are each amended to read as follows:              (1)(a) Except as provided in (b) of this subsection, any person participating in good faith in the making of a report pursuant to this chapter or testifying as to alleged child abuse or neglect in a judicial proceeding shall in so doing be immune from any liability arising out of such reporting or testifying under any law of this state or its political subdivisions.          (b) A person convicted of a violation of subsection (4) of this section shall not be immune from liability under (a) of this subsection.      (2) An administrator of a hospital or similar institution or any physician licensed pursuant to chapters 18.71 or 18.57 RCW taking a child into custody pursuant to RCW 26.44.056 shall not be subject to criminal or civil liability for such taking into custody.             (3) Conduct conforming with the reporting requirements of this chapter shall not be deemed a violation of the confidential communication privilege of RCW 5.60.060 (3) and (4), 18.53.200 and 18.83.110. Nothing in this chapter shall be construed as to supersede or abridge remedies provided in chapter 4.92 RCW.          (4) A person who, intentionally and in bad faith or maliciously, knowingly makes a false report of alleged abuse or neglect shall be guilty of a misdemeanor punishable in accordance with RCW 9A.20.021.               Sec. 21. RCW 70.124.040 and 1981 c 174 s 4 are each amended to read as follows:      (1) Where a report is deemed warranted under RCW 70.124.030, an immediate oral report shall be made by telephone or otherwise to either a law enforcement agency or to the department and, upon request, shall be followed by a report in writing. The reports shall contain the following information, if known:  (a) The name and address of the person making the report;   (b) The name and address of the nursing home or state hospital patient;                (c) The name and address of the patient's relatives having responsibility for the patient;      (d) The nature and extent of the alleged injury or injuries;         (e) The nature and extent of the alleged neglect;    (f) The nature and extent of the alleged sexual abuse;                 (g) Any evidence of previous injuries, including their nature and extent; and  (h) Any other information which may be helpful in establishing the cause of the patient's death, injury, or injuries, and the identity of the perpetrator or perpetrators.                (2) Each law enforcement agency receiving such a report shall, in addition to taking the action required by RCW 70.124.050, immediately relay the report to the department and to other law enforcement agencies, as appropriate. For any report it receives, the department shall likewise take the required action and in addition relay the report to the appropriate law enforcement agency or agencies. The appropriate law enforcement agency or agencies shall receive immediate notification when the department, upon receipt of such report, has reasonable cause to believe that a criminal act has been committed.                Sec. 22. RCW 70.129.030 and 1994 c 214 s 4 are each amended to read as follows:           (1) The facility must inform the resident both orally and in writing in a language that the resident understands of his or her rights and all rules and regulations governing resident conduct and responsibilities during the stay in the facility. The notification must be made prior to or upon admission. Receipt of the information must be acknowledged in writing.     (2) The resident or his or her legal representative has the right:      (a) Upon an oral or written request, to access all records pertaining to himself or herself including clinical records within twenty-four hours; and                     (b) After receipt of his or her records for inspection, to purchase at a cost not to exceed the community standard photocopies of the records or portions of them upon request and two working days' advance notice to the facility.       (3) The facility must inform each resident in writing before, or at the time of admission, and at least once every twenty-four months thereafter of: (a) Services available in the facility; (b) charges for those services including charges for services not covered by the facility's per diem rate or applicable public benefit programs; and (c) the rules of operations required under RCW 70.129.140(2).           (4) The facility must furnish a written description of residents rights that includes:        (a) A description of the manner of protecting personal funds, under RCW 70.129.040;        (b) A posting of names, addresses, and telephone numbers of the state survey and certification agency, the state licensure office, the state ombudsmen program, and the protection and advocacy systems; and             (c) A statement that the resident may file a complaint with the appropriate state licensing agency concerning alleged resident abuse, neglect, and misappropriation of resident property in the facility.            (5) Notification of changes.      (a) A facility must immediately consult with the resident's physician, and if known, make reasonable efforts to notify the resident's legal representative or an interested family member when there is:      (i) An accident involving the resident which requires or has the potential for requiring physician intervention;  (ii) A significant change in the resident's physical, mental, or psychosocial status (i.e., a deterioration in health, mental, or psychosocial status in either life-threatening conditions or clinical complications).   (b) The facility must promptly notify the resident or the resident's representative shall make reasonable efforts to notify an interested family member, if known, when there is:      (i) A change in room or roommate assignment; or                 (ii) A decision to transfer or discharge the resident from the facility.      (c) The facility must record and update the address and phone number of the resident's representative or interested family member, upon receipt of notice from them.          Sec. 23. RCW 74.13.031 and 1995 c 191 s 1 are each amended to read as follows:             The department shall have the duty to provide child welfare services as defined in RCW 74.13.020, and shall:                  (1) Develop, administer, supervise, and monitor a coordinated and comprehensive plan that establishes, aids, and strengthens services for the protection and care of homeless, runaway, dependent, or neglected children.                 (2) Develop a recruiting plan for recruiting an adequate number of prospective adoptive and foster homes, both regular and specialized, i.e. homes for children of ethnic minority, including Indian homes for Indian children, sibling groups, handicapped and emotionally disturbed, and annually submit the plan for review to the house and senate committees on social and health services. The plan shall include a section entitled "Foster Home Turn-Over, Causes and Recommendations."         (3) Investigate complaints of alleged neglect, abuse, or abandonment of children, and on the basis of the findings of such investigation, offer child welfare services in relation to the problem to such parents, legal custodians, or persons serving in loco parentis, and/or bring the situation to the attention of an appropriate court, or another community agency: PROVIDED, That an investigation is not required of nonaccidental injuries which are clearly not the result of a lack of care or supervision by the child's parents, legal custodians, or persons serving in loco parentis. If the investigation reveals that a crime may have been committed, the department shall notify the appropriate law enforcement agency.               (4) Offer, on a voluntary basis, family reconciliation services to families who are in conflict.            (5) Monitor out-of-home placements, on a timely and routine basis, to assure the safety, well-being, and quality of care being provided is within the scope of the intent of the legislature as defined in RCW 74.13.010 and 74.15.010, and annually submit a report delineating the results to the house and senate committees on social and health services.      (6) Have authority to accept custody of children from parents and to accept custody of children from juvenile courts, where authorized to do so under law, to provide child welfare services including placement for adoption, and to provide for the physical care of such children and make payment of maintenance costs if needed. Except where required by Public Law 95-608 (25 U.S.C. Sec. 1915), no private adoption agency which receives children for adoption from the department shall discriminate on the basis of race, creed, or color when considering applications in their placement for adoption.    (7) Have authority to provide temporary shelter to children who have run away from home and who are admitted to crisis residential centers.            (8) Have authority to purchase care for children; and shall follow in general the policy of using properly approved private agency services for the actual care and supervision of such children insofar as they are available, paying for care of such children as are accepted by the department as eligible for support at reasonable rates established by the department.        (9) Establish a children's services advisory committee which shall assist the secretary in the development of a partnership plan for utilizing resources of the public and private sectors, and advise on all matters pertaining to child welfare, licensing of child care agencies, adoption, and services related thereto. At least one member shall represent the adoption community.       (10) Have authority to provide continued foster care or group care for individuals from eighteen through twenty years of age to enable them to complete their high school or vocational school program.      (11) Have authority within funds appropriated for foster care services to purchase care for Indian children who are in the custody of a federally recognized Indian tribe or tribally licensed child-placing agency pursuant to parental consent, tribal court order, or state juvenile court order; and the purchase of such care shall be subject to the same eligibility standards and rates of support applicable to other children for whom the department purchases care.     Notwithstanding any other provision of RCW 13.32A.170 through 13.32A.200 and 74.13.032 through 74.13.036, or of this section all services to be provided by the department of social and health services under subsections (4), (6), and (7) of this section, subject to the limitations of these subsections, may be provided by any program offering such services funded pursuant to Titles II and III of the federal juvenile justice and delinquency prevention act of 1974.        Sec. 24. RCW 74.15.030 and 1995 c 302 s 4 are each amended to read as follows:          The secretary shall have the power and it shall be the secretary's duty:                 (1) In consultation with the children's services advisory committee, and with the advice and assistance of persons representative of the various type agencies to be licensed, to designate categories of facilities for which separate or different requirements shall be developed as may be appropriate whether because of variations in the ages, sex and other characteristics of persons served, variations in the purposes and services offered or size or structure of the agencies to be licensed hereunder, or because of any other factor relevant thereto;     (2) In consultation with the children's services advisory committee, and with the advice and assistance of persons representative of the various type agencies to be licensed, to adopt and publish minimum requirements for licensing applicable to each of the various categories of agencies to be licensed.            The minimum requirements shall be limited to:        (a) The size and suitability of a facility and the plan of operation for carrying out the purpose for which an applicant seeks a license;  (b) The character, suitability and competence of an agency and other persons associated with an agency directly responsible for the care and treatment of children, expectant mothers or developmentally disabled persons. In consultation with law enforcement personnel, the secretary shall investigate the conviction record or pending charges and dependency record information under chapter 43.43 RCW of each agency and its staff seeking licensure or relicensure. In order to determine the suitability of applicants for an agency license, licensees, their employees, and other persons who have unsupervised access to children in care, and who have not resided in the state of Washington during the three-year period before being authorized to care for children shall be fingerprinted. The fingerprints shall be forwarded to the Washington state patrol and federal bureau of investigation for a criminal history records check. The fingerprint criminal history records checks will be at the expense of the licensee except that in the case of a foster family home, if this expense would work a hardship on the licensee, the department shall pay the expense. The licensee may not pass this cost on to the employee or prospective employee, unless the employee is determined to be unsuitable due to his or her criminal history record. The secretary shall use the information solely for the purpose of determining eligibility for a license and for determining the character, suitability, and competence of those persons or agencies, excluding parents, not required to be licensed who are authorized to care for children, expectant mothers, and developmentally disabled persons. Criminal justice agencies shall provide the secretary such information as they may have and that the secretary may require for such purpose;          (c) The number of qualified persons required to render the type of care and treatment for which an agency seeks a license;                  (d) The safety, cleanliness, and general adequacy of the premises to provide for the comfort, care and well-being of children, expectant mothers or developmentally disabled persons;      (e) The provision of necessary care, including food, clothing, supervision and discipline; physical, mental and social well-being; and educational, recreational and spiritual opportunities for those served;         (f) The financial ability of an agency to comply with minimum requirements established pursuant to chapter 74.15 RCW and RCW 74.13.031; and                  (g) The maintenance of records pertaining to the admission, progress, health and discharge of persons served;      (3) To investigate any person, including relatives by blood or marriage except for parents, for character, suitability, and competence in the care and treatment of children, expectant mothers, and developmentally disabled persons prior to authorizing that person to care for children, expectant mothers, and developmentally disabled persons. However, if a child is placed with a relative under RCW 13.34.060 or 13.34.130, and if such relative appears otherwise suitable and competent to provide care and treatment the criminal history background check required by this section need not be completed before placement, but shall be completed as soon as possible after placement;  (4) On reports of alleged child abuse and neglect, to investigate agencies in accordance with chapter 26.44 RCW, including child day-care centers and family day-care homes, to determine whether the alleged abuse or neglect has occurred, and whether child protective services or referral to a law enforcement agency is appropriate;         (5) To issue, revoke, or deny licenses to agencies pursuant to chapter 74.15 RCW and RCW 74.13.031. Licenses shall specify the category of care which an agency is authorized to render and the ages, sex and number of persons to be served;      (6) To prescribe the procedures and the form and contents of reports necessary for the administration of chapter 74.15 RCW and RCW 74.13.031 and to require regular reports from each licensee;                  (7) To inspect agencies periodically to determine whether or not there is compliance with chapter 74.15 RCW and RCW 74.13.031 and the requirements adopted hereunder;      (8) To review requirements adopted hereunder at least every two years and to adopt appropriate changes after consultation with the child care coordinating committee and other affected groups for child day-care requirements and with the children's services advisory committee for requirements for other agencies; and            (9) To consult with public and private agencies in order to help them improve their methods and facilities for the care of children, expectant mothers and developmentally disabled persons.      Sec. 25. RCW 74.34.050 and 1986 c 187 s 3 are each amended to read as follows: (1) A person participating in good faith in making a report under this chapter or testifying about ((the)) alleged abuse, neglect, abandonment, or exploitation of a vulnerable adult in a judicial proceeding under this chapter is immune from liability resulting from the report or testimony. The making of permissive reports as allowed in RCW 74.34.030 does not create any duty to report and no civil liability shall attach for any failure to make a permissive report under RCW 74.34.030.            (2) Conduct conforming with the reporting and testifying provisions of this chapter shall not be deemed a violation of any confidential communication privilege. Nothing in this chapter shall be construed as superseding or abridging remedies provided in chapter 4.92 RCW.   Sec. 26. RCW 74.34.070 and 1995 1st sp.s. c 18 s 87 are each amended to read as follows: In responding to reports of alleged abuse, exploitation, neglect, or abandonment under this chapter, the department shall provide information to the frail elder or vulnerable adult on protective services available to the person and inform the person of the right to refuse such services. The department shall develop cooperative agreements with community-based agencies servicing the abused elderly and vulnerable adults. The agreements shall cover such subjects as the appropriate roles and responsibilities of the department and community-based agencies in identifying and responding to reports of alleged abuse, the provision of case-management services, standardized data collection procedures, and related coordination activities.    Sec. 27. RCW 13.34.090 and 1990 c 246 s 4 are each amended to read as follows:              (1) Any party has a right to be represented by an attorney in all proceedings under this chapter, to introduce evidence, to be heard in his or her own behalf, to examine witnesses, to receive a decision based solely on the evidence adduced at the hearing, and to an unbiased fact-finder.     (2) At all stages of a proceeding in which a child is alleged to be dependent pursuant to RCW 13.34.030(((2))) (6), the child's parent, guardian, or legal custodian has the right to be represented by counsel, and if indigent, to have counsel appointed for him or her by the court. Unless waived in court, counsel shall be provided to the child's parent, guardian, or legal custodian, if such person (a) has appeared in the proceeding or requested the court to appoint counsel and (b) is financially unable to obtain counsel because of indigency as defined in chapter 10.101 RCW.  (3) If a party to an action under this chapter is represented by counsel, no order shall be provided to that party for his or her signature without prior notice and provision of the order to counsel.      (4) Copies of department of social and health services or supervising agency records to which parents have legal access pursuant to chapter 13.50 RCW shall be given to the child's parent, guardian, legal custodian, or his or her legal counsel, within twenty days after the department or supervising agency receives a written request for such records from the parent, guardian, legal custodian, or his or her legal counsel. These records shall be provided to the child's parents, guardian, legal custodian, or legal counsel prior to the shelter care hearing in order to allow an opportunity to review the records prior to the hearing. These records shall be legible and shall be provided at no expense to the parents, guardian, legal custodian, or his or her counsel.      Sec. 28. RCW 13.34.120 and 1996 c 249 s 14 are each amended to read as follows:           (1) To aid the court in its decision on disposition, a social study, consisting of a written evaluation of matters relevant to the disposition of the case, shall be made by the person or agency filing the petition. The study shall include all social records and may also include facts relating to the child's cultural heritage, and shall be made available to the court. The court shall consider the social file, social study, guardian ad litem report, the court-appointed special advocate's report, if any, and any reports filed by a party at the disposition hearing in addition to evidence produced at the fact-finding hearing. At least ten working days before the disposition hearing, the department shall mail to the parent and his or her attorney a copy of the agency's social study and proposed service plan, which shall be in writing or in a form understandable to the parents or custodians. In addition, the department shall provide an opportunity for parents to review and comment on the plan at the community service office. If the parents disagree with the agency's plan or any part thereof, the parents shall submit to the court at least twenty-four hours before the hearing, in writing, or signed oral statement, an alternative plan to correct the problems which led to the finding of dependency. This section shall not interfere with the right of the parents or custodians to submit oral arguments regarding the disposition plan at the hearing.           (2) In addition to the requirements set forth in subsection (1) of this section, a predisposition study to the court in cases of dependency alleged pursuant to RCW 13.34.030(((4))) (6) (b) or (c) shall contain the following information:        (a) A statement of the specific harm or harms to the child that intervention is designed to alleviate;        (b) A description of the specific programs, for both the parents and child, that are needed in order to prevent serious harm to the child; the reasons why such programs are likely to be useful; the availability of any proposed services; and the agency's overall plan for ensuring that the services will be delivered;                 (c) If removal is recommended, a full description of the reasons why the child cannot be protected adequately in the home, including a description of any previous efforts to work with the parents and the child in the home; the in-home treatment programs which have been considered and rejected; the preventive services that have been offered or provided and have failed to prevent the need for out-of-home placement, unless the health, safety, and welfare of the child cannot be protected adequately in the home; and the parents' attitude toward placement of the child;      (d) A statement of the likely harms the child will suffer as a result of removal. This section should include an exploration of the nature of the parent-child attachment and the meaning of separation and loss to both the parents and the child;                  (e) A description of the steps that will be taken to minimize harm to the child that may result if separation occurs; and      (f) Behavior that will be expected before determination that supervision of the family or placement is no longer necessary.      Sec. 29. RCW 13.34.180 and 1993 c 412 s 2 and 1993 c 358 s 3 are each reenacted and amended to read as follows:       A petition seeking termination of a parent and child relationship may be filed in juvenile court by any party to the dependency proceedings concerning that child. Such petition shall conform to the requirements of RCW 13.34.040, shall be served upon the parties as provided in RCW 13.34.070(8), and shall allege:        (1) That the child has been found to be a dependent child under RCW 13.34.030(((2))) (6); and     (2) That the court has entered a dispositional order pursuant to RCW 13.34.130; and                (3) That the child has been removed or will, at the time of the hearing, have been removed from the custody of the parent for a period of at least six months pursuant to a finding of dependency under RCW 13.34.030(((2))) (6); and               (4) That the services ordered under RCW 13.34.130 have been offered or provided and all necessary services, reasonably available, capable of correcting the parental deficiencies within the foreseeable future have been offered or provided; and      (5) That there is little likelihood that conditions will be remedied so that the child can be returned to the parent in the near future. In determining whether the conditions will be remedied the court may consider, but is not limited to, the following factors:        (a) Use of intoxicating or controlled substances so as to render the parent incapable of providing proper care for the child for extended periods of time and documented unwillingness of the parent to receive and complete treatment or documented multiple failed treatment attempts; or      (b) Psychological incapacity or mental deficiency of the parent that is so severe and chronic as to render the parent incapable of providing proper care for the child for extended periods of time, and documented unwillingness of the parent to receive and complete treatment or documentation that there is no treatment that can render the parent capable of providing proper care for the child in the near future; and      (6) That continuation of the parent and child relationship clearly diminishes the child's prospects for early integration into a stable and permanent home; or      (7) In lieu of the allegations in subsections (1) through (6) of this section, the petition may allege that the child was found under such circumstances that the whereabouts of the child's parent are unknown and no person has acknowledged paternity or maternity and requested custody of the child within two months after the child was found.        A parent's failure to substantially improve parental deficiencies within twelve months following entry of the dispositional order shall give rise to a rebuttable presumption that there is little likelihood that conditions will be remedied so that the child can be returned to the parent in the near future. The presumption shall not arise unless the petitioner makes a showing that all necessary services reasonably capable of correcting the parental deficiencies within the foreseeable future have been offered or provided.           Notice of rights shall be served upon the parent, guardian, or legal custodian with the petition and shall be in substantially the following form:

"NOTICE

      A petition for termination of parental rights has been filed against you. You have important legal rights and you must take steps to protect your interests. This petition could result in permanent loss of your parental rights.1. You have the right to a fact-finding hearing before a judge.2. You have the right to have a lawyer represent you at the hearing. A lawyer can look at the files in your case, talk to the department of social and health services and other agencies, tell you about the law, help you understand your rights, and help you at hearings. If you cannot afford a lawyer, the court will appoint one to represent you. To get a court-appointed lawyer you must contact:    (explain local procedure)   .3. At the hearing, you have the right to speak on your own behalf, to introduce evidence, to examine witnesses, and to receive a decision based solely on the evidence presented to the judge.You should be present at this hearing.You may call    (insert agency)    for more information about your child. The agency's name and telephone number are    (insert name and telephone number)   ."            Sec. 30. RCW 43.43.700 and 1989 c 334 s 6 are each amended to read as follows:     There is hereby established within the Washington state patrol a section on identification, child abuse, vulnerable adult abuse, and criminal history hereafter referred to as the section.  In order to aid the administration of justice the section shall install systems for the identification of individuals, including the fingerprint system and such other systems as the chief deems necessary. The section shall keep a complete record and index of all information received in convenient form for consultation and comparison.                 The section shall obtain from whatever source available and file for record the fingerprints, palmprints, photographs, or such other identification data as it deems necessary, of persons who have been or shall hereafter be lawfully arrested and charged with, or convicted of any criminal offense. The section may obtain like information concerning persons arrested for or convicted of crimes under the laws of another state or government.              The section shall also contain like information concerning persons, over the age of eighteen years, who have been found, pursuant to a dependency proceeding under RCW 13.34.030(((2))) (6)(b) to have physically abused or sexually abused or exploited a child or, pursuant to a protection proceeding under chapter 74.34 RCW, to have abused or financially exploited a vulnerable adult.               Sec. 31. RCW 43.43.840 and 1989 c 334 s 5 and 1989 c 90 s 5 are each reenacted and amended to read as follows:   (1) The supreme court shall by rule require the courts of the state to notify the state patrol of any dependency action under RCW ((13.34.030(2)(b))) 13.34.040, domestic relations action under Title 26 RCW, or protection action under chapter 74.34 RCW, in which the court makes specific findings of physical abuse or sexual abuse or exploitation of a child or abuse or financial exploitation of a vulnerable adult.       (2) The department of licensing shall notify the state patrol of any disciplinary board final decision that includes specific findings of physical abuse or sexual abuse or exploitation of a child or abuse or financial exploitation of a vulnerable adult.  (3) When a business or an organization terminates, fires, dismisses, fails to renew the contract, or permits the resignation of an employee because of crimes against children or other persons or because of crimes relating to the financial exploitation of a vulnerable adult, and if that employee is employed in a position requiring a certificate or license issued by a licensing agency such as the state board of education, the business or organization shall notify the licensing agency of such termination of employment.              Sec. 32. RCW 43.20A.050 and 1979 c 141 s 63 are each amended to read as follows:                It is the intent of the legislature wherever possible to place the internal affairs of the department under the control of the secretary ((in order that he may)) to institute ((therein)) the flexible, alert and intelligent management of its business that changing contemporary circumstances require. Therefore, whenever ((his)) the secretary's authority is not specifically limited by law, he or she shall have complete charge and supervisory powers over the department. ((He)) The secretary is authorized to create such administrative structures as ((he may deem)) deemed appropriate, except as otherwise specified by law. The secretary shall have the power to employ such assistants and personnel as may be necessary for the general administration of the department((: PROVIDED, That,)). Except as elsewhere specified, such employment ((is)) shall be in accordance with the rules of the state civil service law, chapter 41.06 RCW.      NEW SECTION. Sec. 33. It is the intent of the legislature, in enacting the chapter . . ., Laws of 1997 changes to RCW 41.64.100 (section 34 of this act), to provide a prompt and efficient method of expediting employee appeals regarding alleged misconduct that may have placed children at serious risk of harm. The legislature recognizes that children are at risk of harm in cases of abuse or neglect and intends to provide a method of reducing such risk as well as mitigating the potential liability to the state associated with employee misconduct involving children. The legislature does not intend to impair any existing rights of appeals held by employees, nor does it intend to restrict consideration of any appropriate evidence or facts by the personnel appeals board.   Sec. 34. RCW 41.64.100 and 1981 c 311 s 11 are each amended to read as follows:  (1) In all appeals over which the board has jurisdiction involving reduction, dismissal, suspension, or demotion, the board shall set the case for hearing, and the final decision, including an appeal to the board from the hearing examiner, if any, shall be rendered within ninety days from the date the appeal was first received((: PROVIDED, That)). An extension may be permitted if agreed to by the employee and the employing agency. The board shall furnish the agency with a copy of the appeal in advance of the hearing.             (2) Notwithstanding subsection (1) of this section, in a case involving misconduct that has placed a child at serious risk of harm as a result of actions taken or not taken under chapter 13.32A, 13.34, 13.40, 26.44, 74.13, 74.14A, 74.14B, 74.14C, or 74.15 RCW, the board shall hear the case before all other unresolved or unscheduled cases. The board shall issue its order within forty-five days of hearing the case unless there are extraordinary circumstances, in which case, an additional thirty days may elapse until the case is decided.               (3) In all appeals made pursuant to RCW 41.06.170(((3))) (4), as now or hereafter amended, the decision of the board is final and not appealable to court.        NEW SECTION. Sec. 35. Section 34 of this act shall not be construed to alter an existing collective bargaining unit or the provisions of any existing bargaining agreement in place on the effective date of this section before the expiration of such agreement.              Sec. 36. RCW 26.44.020 and 1996 c 178 s 10 are each amended to read as follows:              For the purpose of and as used in this chapter:       (1) "Court" means the superior court of the state of Washington, juvenile department.            (2) "Law enforcement agency" means the police department, the prosecuting attorney, the state patrol, the director of public safety, or the office of the sheriff.           (3) "Practitioner of the healing arts" or "practitioner" means a person licensed by this state to practice podiatric medicine and surgery, optometry, chiropractic, nursing, dentistry, osteopathic medicine and surgery, or medicine and surgery or to provide other health services. The term "practitioner" shall include a duly accredited Christian Science practitioner: PROVIDED, HOWEVER, That a person who is being furnished Christian Science treatment by a duly accredited Christian Science practitioner shall not be considered, for that reason alone, a neglected person for the purposes of this chapter.   (4) "Institution" means a private or public hospital or any other facility providing medical diagnosis, treatment or care.     (5) "Department" means the state department of social and health services.                (6) "Child" or "children" means any person under the age of eighteen years of age.             (7) "Professional school personnel" shall include, but not be limited to, teachers, counselors, administrators, child care facility personnel, and school nurses.                (8) "Social service counselor" shall mean anyone engaged in a professional capacity during the regular course of employment in encouraging or promoting the health, welfare, support or education of children, or providing social services to adults or families, including mental health, drug and alcohol treatment, and domestic violence programs, whether in an individual capacity, or as an employee or agent of any public or private organization or institution.               (9) "Psychologist" shall mean any person licensed to practice psychology under chapter 18.83 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.                (10) "Pharmacist" shall mean any registered pharmacist under the provisions of chapter 18.64 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.               (11) "Clergy" shall mean any regularly licensed or ordained minister, priest or rabbi of any church or religious denomination, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.        (12) "Abuse or neglect" shall mean the injury, sexual abuse, sexual exploitation, negligent treatment, or maltreatment of a child, adult dependent, or developmentally disabled person by any person under circumstances which indicate that the child's or adult's health, welfare, and safety is harmed. An abused child is a child who has been subjected to child abuse or neglect as defined herein.        (13) "Child protective services section" shall mean the child protective services section of the department.         (14) "Adult dependent persons" shall be defined as those persons over the age of eighteen years who have been found to be legally incompetent or disabled pursuant to chapter 11.88 RCW.          (15) "Sexual exploitation" includes: (a) Allowing, permitting, or encouraging a child to engage in prostitution by any person; or (b) allowing, permitting, encouraging, or engaging in the obscene or pornographic photographing, filming, or depicting of a child by any person.       (16) "Negligent treatment or maltreatment" means an act or omission which evidences a serious disregard of consequences of such magnitude as to constitute a clear and present danger to the child's health, welfare, and safety.                (17) "Developmentally disabled person" means a person who has a disability defined in RCW 71A.10.020.              (18) "Child protective services" means those services provided by the department designed to protect children from child abuse and neglect and safeguard ((the general welfare of)) such children ((and shall include)) from future abuse and neglect, and conduct investigations of child abuse and neglect reports((, including reports regarding child care centers and family child care homes, and the development, management, and provision of or)). Investigations may be conducted regardless of the location of the alleged abuse or neglect. Child protective services includes referral to services to ameliorate conditions which endanger the welfare of children, the coordination of necessary programs and services relevant to the prevention, intervention, and treatment of child abuse and neglect, and services to children to ensure that each child has a permanent home. In determining whether protective services should be provided, the department shall not decline to provide such services solely because of the child's unwillingness or developmental inability to describe the nature and severity of the abuse or neglect.             (19) "Malice" or "maliciously" means an evil intent, wish, or design to vex, annoy, or injure another person. Such malice may be inferred from an act done in wilful disregard of the rights of another, or an act wrongfully done without just cause or excuse, or an act or omission of duty betraying a wilful disregard of social duty.   (20) "Sexually aggressive youth" means a child who is defined in RCW 74.13.075(1)(b) as being a "sexually aggressive youth."                NEW SECTION. Sec. 37. A new section is added to chapter 43.20A RCW to read as follows:               (1) Notwithstanding the provisions of RCW 26.44.020 and chapter 74.13 RCW, the secretary may exercise his or her discretion to permit employees of the department to provide child protective services and child welfare services under the following circumstances:        (a) The number of employees in an office or the location of an office makes it administratively impractical to require a strict segregation between the delivery of both types of services; or  (b) There are exceptional circumstances, including such things as a disproportionately large number of vacant positions in an office; or                (2) The changes required to implement RCW 26.44.020 and this section shall not be made until the expiration of any collective bargaining agreement in effect on the effective date of this section, unless the parties to the agreement determine such changes can be made before that time.      NEW SECTION. Sec. 38. The Washington institute for public policy shall review the department's programs and policies for the implementation of permanency plans to determine which programs and policies are the most successful in developing plans for children fourteen years of age or older. The institute shall provide a report, including recommendations, to the governor and legislature by June 1, 1998.      NEW SECTION. Sec. 39. The Washington institute for public policy shall review the criteria and policies of the department relating to establishment of guardianships for children involved with permanency planning. The review shall include an examination of whether: (1) There are methods of improving the department's role in the lives of children for whom a guardianship has been established, without impairing the duties of a guardian and the guardian's ability to provide the services for which he or she is responsible; (2) criteria for establishing, reviewing, and terminating a guardianship accurately reflects the needs of children of all ages; (3) existing laws and policies facilitate or impair the movement of children from guardianship status to permanent placement; and (4) existing data collection is accurate and adequate.                  NEW SECTION. Sec. 40. A new section is added to chapter 43.20A RCW to read as follows:                The department shall prepare an annual quality assurance report that shall include but is not limited to: (1) Performance outcomes regarding health and safety of children in the children's services system; (2) children's length of stay in out-of-home placement from each date of referral; (3) adherence to permanency planning timelines; and (4) the response time on child protective services investigations differentiated by risk level determined at intake. The report shall be provided to the governor and legislature not later than July 1.       NEW SECTION. Sec. 41. A new section is added to chapter 26.44 RCW to read as follows:      (1) When, as a result of a report of alleged child abuse or neglect, an investigation is made that includes an in-person contact with the person who is alleged to have committed the abuse or neglect, there shall be a determination of whether it is probable that the use of alcohol or controlled substances is a contributing factor to the alleged abuse or neglect.       (2) The department shall provide appropriate training for persons who conduct the investigations under subsection (1) of this section. The training shall include methods of identifying indicators of abuse of alcohol or controlled substances.             (3) If a determination is made under subsection (1) of this section that there is probable cause to believe abuse of alcohol or controlled substances has contributed to the child abuse or neglect, the department shall, within available funds, cause a comprehensive chemical dependency evaluation to be made of the person or persons so identified. The evaluation shall be conducted by a physician or persons certified under rules adopted by the department to make such evaluation.               NEW SECTION. Sec. 42. The following acts or parts of acts are each repealed:                (1) RCW 43.06A.040 and 1996 c 131 s 5."                 Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Long moved that the Senate refuse to concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5710 and requests of the House a conference thereon.

      Debate ensued.

MOTION

      On motion of Senator Franklin, Senator Heavey was excused.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Long that the Senate refuse to concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5710 and requests of the House a conference thereon.

      The motion by Senator Long carried and the Senate refuses to concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5710 and requests of the House a conference thereon.

MESSAGE FROM THE HOUSE

April 16, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5927 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. (1) The legislature finds that:      (a) Each of the state's public baccalaureate institutions plays different but complementary roles in the state's system of higher education;      (b) Although each community college has different strengths and special programs, the community colleges as a whole have a common role and mission;       (c) College and university governing boards are in a unique position to assess the special needs of their institutions' students, faculty, staff, programs, and facilities;          (d) State and institutional financial aid programs should help needy low and middle-income students pay the costs of tuition increases; (e) The primary purpose of the state's public system of higher education is the education and training of resident undergraduate students; and            (f) The ability to manage institutional resources in order to meet demand is critical to meeting present and future needs for access to higher education.              (2) Therefore, the legislature intends to:                 (a) Provide some new financial tools to the governing boards of the baccalaureate institutions by allowing the boards to adjust tuition rates, within specified limits, for different categories of students and for graduate programs;        (b) Permit the state board for community and technical colleges to adjust tuition rates, within specified limits, for the community colleges as a whole;  (c) Revise the statutory funding mechanism for the state's financial aid programs in order to substantially increase the amount of state funding for programs that assist needy low and middle-income students;      (d) Ensure that any tuition increases for resident undergraduate students are limited, and, in conjunction with state financial aid programs, do not obstruct access to higher education for low and middle-income students; and                  (e) Direct the colleges and universities to use part of the revenue from tuition increases over a specified level to help needy low and middle-income resident students pay the costs associated with the tuition increase.       NEW SECTION. Sec. 2. A new section is added to chapter 28B.15 RCW to read as follows:           (1) As used in this section, "excess credit" means any credit taken by either a resident undergraduate student or a resident student who is not enrolled in a first professional, graduate, or law program if the student has accumulated more than one hundred twenty-five percent of the number of credits required to complete the student's baccalaureate degree program.               (2)(a) Except as provided in (b) of this subsection, state universities, regional universities, and The Evergreen State College may collect a surcharge from any resident student who is enrolled for excess credit. The amount of the surcharge may vary by credit or percentage thresholds, or may be based on special circumstances, each as established by the institution.          (b) Students who are required to take continuing education credits as a condition of licensure or state law are exempt from the excess credit surcharge for any credits taken as a result of the requirements.         (3) A surcharge for excess credits shall not exceed twenty-five percent of the tuition fees rates for full-time resident undergraduate students at the college or university.           Sec. 3. RCW 28B.15.031 and 1996 c 142 s 2 are each amended to read as follows:             The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include surcharges for excess credit under section 2 of this act, or fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, technology and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time. All moneys received as operating fees at any institution of higher education shall be deposited in a local account containing only operating fees revenue and related interest: PROVIDED, That a minimum of three and one-half percent of operating fees shall be retained by the institutions, except the technical colleges, for the purposes of RCW 28B.15.820. Local operating fee accounts shall not be subject to appropriation by the legislature or allotment procedures under chapter 43.88 RCW.       Sec. 4. RCW 28B.15.065 and 1977 ex.s. c 322 s 6 are each amended to read as follows:               It is the intent of the legislature that needy students not be deprived of access to higher education due to increases in educational costs or consequent increases in tuition and fees. It is the sense of the legislature that state appropriations for student financial aid be adjusted in an amount which together with funds estimated to be available in the form of basic educational opportunity grants as authorized under Section 411 of the federal Higher Education Act of 1965 as now or hereafter amended will equal twenty-four percent of any change in revenue estimated to occur as a result of revisions in tuition and fee levels under the provisions of ((this 1977 amendatory act)) chapter 322, Laws of 1977 ex. sess..                   Sec. 5. RCW 28B.15.066 and 1995 1st sp.s. c 9 s 3 are each amended to read as follows:                It is the intent of the legislature that:      In making appropriations from the state's general fund to institutions of higher education, each appropriation shall conform to the following:      (1) The appropriation shall not be reduced by the amount of operating fees revenue estimated to be collected from students enrolled at the state-funded enrollment level specified in the omnibus biennial operating appropriations act;    (2) The appropriation shall not be reduced by the amount of operating fees revenue collected from students enrolled above the state-funded level, but within the over-enrollment limitations, specified in the omnibus biennial operating appropriations act; ((and))       (3) The general fund state appropriation shall not be reduced by the amount of operating fees revenue collected as a result of waiving less operating fees revenue than the amounts authorized under RCW 28B.15.910; and            (4) The appropriation shall not be reduced or increased as a result of adjustments during the 1997-98 and 1998-99 academic years of tuition fees rates above or below the five-year rolling average of the per capita personal income growth rate contained in the even-year September Washington economic and revenue forecast by the office of the forecast council, or by four percent, whichever is the lower amount.              Sec. 6. RCW 28B.15.067 and 1996 c 212 s 1 are each amended to read as follows:       (1) Tuition fees shall be established under the provisions of this chapter.             (2) ((Academic year tuition for full-time students at the state's institutions of higher education for the 1995-96 academic year, other than the summer term, shall be as provided in this subsection.               (a) At the University of Washington and Washington State University:                (i) For resident undergraduate students and other resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, two thousand seven hundred sixty-four dollars;  (ii) For nonresident undergraduate students and other nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, eight thousand two hundred sixty-eight dollars;   (iii) For resident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, four thousand four hundred ninety dollars;                   (iv) For nonresident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, eleven thousand six hundred thirty-four dollars;         (v) For resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, seven thousand four hundred ninety-seven dollars; and      (vi) For nonresident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, nineteen thousand four hundred thirty-one dollars.     (b) At the regional universities and The Evergreen State College:      (i) For resident undergraduate and all other resident students not in graduate study programs, two thousand forty-five dollars;      (ii) For nonresident undergraduate and all other nonresident students not in graduate study programs, seven thousand nine hundred ninety-two dollars;        (iii) For resident graduate students, three thousand four hundred forty-three dollars; and                (iv) For nonresident graduate students, eleven thousand seventy-one dollars.             (c) At the community colleges:              (i) For resident students, one thousand two hundred twelve dollars; and          (ii) For nonresident students, five thousand one hundred sixty-two dollars and fifty cents.      (3))) Academic year tuition for full-time students at the state's institutions of higher education beginning with the 1996-97 academic year, other than the summer term, shall be as provided in this subsection.           (a) At the University of Washington and Washington State University:      (i) For resident undergraduate students and other resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, two thousand eight hundred seventy-five dollars;      (ii) For nonresident undergraduate students and other nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, nine thousand four hundred ninety-one dollars;      (iii) For resident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, four thousand six hundred sixty-nine dollars;       (iv) For nonresident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, twelve thousand one hundred dollars;            (v) For resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, seven thousand seven hundred ninety-seven dollars; and      (vi) For nonresident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, twenty thousand two hundred nine dollars.               (b) At the regional universities and The Evergreen State College:    (i) For resident undergraduate and all other resident students not in graduate study programs, two thousand one hundred twenty-seven dollars;      (ii) For nonresident undergraduate and all other nonresident students not in graduate study programs, eight thousand three hundred twelve dollars;               (iii) For resident graduate students, three thousand five hundred eighty-one dollars; and            (iv) For nonresident graduate students, eleven thousand five hundred fourteen dollars.      (c) At the community colleges:              (i) For resident students, one thousand two hundred sixty-one dollars; and           (ii) For nonresident students, five thousand three hundred sixty-nine dollars and fifty cents.      (((4))) (3) For each of the 1997-98 and 1998-99 academic years, except as provided under subsections (4) and (5) of this section, the tuition fees rates in subsection (2) of this section shall increase annually based on the five-year rolling average of the per capita personal income growth rate contained in the even-year September Washington economic and revenue forecast by the office of the forecast council, or by four percent, whichever is the lower amount. Increases in tuition fees under this subsection shall be incorporated in the base tuition fees rates for the next academic year.    (4) During each of the 1997-98 and 1998-99 academic years, the governing boards of the state universities, the regional universities, The Evergreen State College, and, for the community colleges as a whole, the state board for community and technical colleges, may increase tuition fees rates for nonresident students and for resident students enrolled in programs leading to the degree of juris doctor, up to six percent each year in addition to the tuition fees rates computed under subsection (3) of this section. Any increase in tuition fees adopted under this subsection shall be incorporated in the base tuition fees rates for the next academic year.           (5) As a pilot program during the 1997-99 biennium, only for programs and classes at the Cheney campus, the governing board of Eastern Washington University, for each of the 1997-98 and 1998-99 academic years, may increase tuition fees rates for resident students by up to the five-year rolling average of the per capita personal income growth rate contained in the even-year September Washington economic and revenue forecast by the office of the forecast council, or by four percent, whichever is the lower amount, and may increase tuition fees rates for nonresident students by up to six percent in addition to the tuition fees rates for resident students.      (6) For tuition increases of more than four percent in any year, the institution shall use at least ten percent of the revenue received from the difference between a four percent increase and the actual percentage increase to assist needy low and middle-income resident students enrolled in the same tuition category or graduate or law program. This requirement is in addition to the deposit requirements of the institutional financial aid fund under RCW 28B.15.820.                (7) The tuition fees established under this chapter shall not apply to summer term or to high school students enrolling in community colleges under RCW 28A.600.300 through 28A.600.395.       Sec. 7. RCW 28B.15.069 and 1995 1st sp.s. c 9 s 5 are each amended to read as follows:   (1) As used in this section, each of the following subsections is a separate tuition category:      (a) Resident undergraduate students and all other resident students not in first professional, graduate, or law programs;    (b) Nonresident undergraduate students and all other nonresident students not in graduate or law programs;       (c) Resident graduate and law students;      (d) Nonresident graduate and law students;            (e) Resident first professional students; and           (f) Nonresident students in first professional programs.  (2) Unless the context clearly requires otherwise, as used in this section "first professional programs" means programs leading to one of the following degrees: Doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine.        (3) ((For the 1995-96 and 1996-97 academic years,)) The building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition for each tuition category in the 1994-95 academic year, rounded up to the nearest half percent.          (4) The governing boards of each institution of higher education, except for the technical colleges, shall charge to and collect from each student a services and activities fee. A governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in student tuition fees for the applicable tuition category: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.            (5) Tuition and services and activities fees consistent with subsection (4) of this section shall be set by the state board for community and technical colleges for community college summer school students unless the community college charges fees in accordance with RCW 28B.15.515.              (6) Subject to the limitations of RCW 28B.15.910, each governing board of a community college may charge such fees for ungraded courses, noncredit courses, community services courses, and self-supporting courses as it, in its discretion, may determine, consistent with the rules of the state board for community and technical colleges."                Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Wood moved that the Senate refuse to concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5927 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Wood that the Senate refuse to concur in the House amendment to Engrossed Substitute Senate Bill No. 5927 and asks the House to recede therefrom.

      The motion by Senator Wood carried and the Senate refuses to concur in the House amendment to Engrossed Second Substitute Senate Bill No. 5927 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5270 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 43.33A RCW to read as follows:               (1) The board is authorized to create corporations under Title 23B RCW, limited liability companies under chapter 25.15 RCW, and limited partnerships under chapter 25.10 RCW, of which it may or may not be the general partner, for the purposes of transferring, acquiring, holding, overseeing, operating, or disposing of real estate or other not readily marketable assets. The liability of each entity created by the board is limited to the assets or properties of that entity. No creditor or other person has any right of action against the board, its members or employees, or the state of Washington on account of any debts, obligations, or liabilities of the entity. Entities created under this section may be authorized by the board to make any investment in real estate or other not readily marketable assets that the board may make.         (2) Directors, officers, and other principals of entities created under this section must be board members, board staff, or principals or employees of an advisor or manager engaged by contract by the board or the entity to manage real estate or other investment assets of the entity. Directors of entities created under this section must be appointed by the board. Officers and other principals of entities created under this section are appointed by the directors.         (3) A public corporation, limited liability company, or limited partnership created under this section has the same immunity or exemption from taxation as that of the state. The entity shall pay an amount equal to the amounts that would be paid for taxes otherwise levied upon real property and personal property to the public official charged with the collection of such real property and personal property taxes as if the property were in private ownership. The proceeds of such payments must be allocated as though the property were in private ownership.        NEW SECTION. Sec. 2. A new section is added to chapter 43.33A RCW to read as follows:      Rent and other income from real estate or other not readily marketable assets acquired and being held for investment by the board or by an entity created under section 1 of this act by the board, and being managed by an external advisor or other property manager under contract, shall not be deemed income or state funds for the purposes of chapter 39.58 RCW and this title, until distributions are made to the board of such income from the advisor or manager. Bank and other accounts established by the advisor or property manager for the purpose of the management of such investment assets shall not be deemed accounts established by the state for the purpose of chapter 39.58 RCW and this title.                    NEW SECTION. Sec. 3. A new section is added to chapter 43.33A RCW to read as follows:      For the purposes of sections 1 and 2 of this act, an asset is "not readily marketable" when it is not publicly traded on a daily basis or on an organized exchange. Such assets may include, but are not limited to, real estate or other physical assets, and equity interests in, or the indebtedness of, operating companies, whether the asset is held directly or through an interest in an investing entity."           Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Winsley moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5270 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Winsley that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5270 and asks the House to recede therefrom.

      The motion by Senator Winsley carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5270 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5763 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. 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. 2. 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. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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.,      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Finkbeiner moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5763.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Finkbeiner to concur in the House amendment to Substitute Senate Bill No. 5763.

      The motion by Senator Finkbeiner carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5763.

MOTION

      On motion of Senator Franklin, Senator Prentice was excused.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5763, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5763, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 3; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44.      Absent: Senators Benton, Loveland and Snyder - 3.             Excused: Senators Heavey and Prentice - 2.         SUBSTITUTE SENATE BILL NO. 5763, as amended by the House, 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.

MOTION

      On motion of Senator Franklin, Senators Loveland and Snyder were excused.

MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5011 with the following amendment(s):

      On page 2, line 3, after “of” strike “five” and insert “three”,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Winsley, the Senate concurred in the House amendment to Substitute Senate Bill No. 5011.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5011, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5011, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Excused: Senators Heavey, Loveland and Snyder - 3.          SUBSTITUTE SENATE BILL NO. 5011, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5018 with the following amendment(s):

      Beginning on page 1, after line 5, strike all material through page 2, line 26, and insert the following:                "Sec. 1. RCW 18.71.210 and 1995 c 65 s 4 and 1995 c 103 s 1 are each reenacted and amended to read as follows:         No act or omission of any physician's trained emergency medical service intermediate life support technician and paramedic, as defined in RCW 18.71.200, or any emergency medical technician or first responder, as defined in RCW 18.73.030, done or omitted in good faith while rendering emergency medical service under the responsible supervision and control of a licensed physician or an approved medical program director or delegate(s) to a person who has suffered illness or bodily injury shall impose any liability upon:                 (1) The physician's trained emergency medical service intermediate life support technician and paramedic, emergency medical technician, or first responder;          (2) The medical program director;      (3) The supervising physician(s);           (4) Any hospital, the officers, members of the staff, nurses, or other employees of a hospital;      (5) Any training agency or training physician(s);   (6) Any licensed ambulance service; or (7) Any federal, state, county, city or other local governmental unit or employees of such a governmental unit.     This section shall apply to an act or omission committed or omitted in the performance of the actual emergency medical procedures and not in the commission or omission of an act which is not within the field of medical expertise of the physician's trained emergency medical service intermediate life support technician and paramedic, emergency medical technician, or first responder, as the case may be.        This section shall apply also, as to the entities and personnel described in subsections (1) through (7) of this section, to any act or omission committed or omitted in good faith by such entities or personnel in rendering services at the request of an approved medical program director in the training of emergency medical service ((medical)) personnel for certification or recertification pursuant to this chapter.         This section shall not apply to any act or omission which constitutes either gross negligence or willful or wanton misconduct.

EXPLANATORY NOTE

      RCW 18.71.210 was amended twice by the 1995 legislature. Chapter 65 s 4 revised the classifications for emergency medical service personnel and chapter 103 s 1 revised the liability immunity for emergency medical service personnel and their supervisors. The purpose of this bill is to give effect to both amendments by reenacting the section including both amendments and making technical corrections."      On page 1, line 2 of the title, after "reenacting and amending RCW" insert "18.71.210,"     On page 1, line 3 of the title, after "57.08.050" insert "," and after "RCW" strike "18.71.210,",            and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Roach moved that the Senate do concur in the House amendments to Senate Bill No. 5018.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Roach to concur in the House amendments to Senate Bill No. 5018.

      The motion by Senator Roach carried and the Senate concurred in the House amendments to Senate Bill No. 5018.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5018, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5018, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Excused: Senators Heavey, Loveland and Snyder - 3.          SENATE BILL NO. 5018, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5103 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 75.28 RCW to read as follows:               The fish and wildlife commission may, by rule, increase the number of alternate operators beyond the level authorized by RCW 75.28.030 and 75.28.046 for a commercial fishery license, delivery license, or charter license.",              and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Oke moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5103.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Oke to concur in the House amendment to Substitute Senate Bill No. 5103.

      The motion by Senator Oke carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5103.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5103, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5103, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Excused: Senators Heavey, Loveland and Snyder - 3.          SUBSTITUTE SENATE BILL NO. 5103, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5110 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 11.02.005 and 1994 c 221 s 1 are each amended to read as follows:  When used in this title, unless otherwise required from the context:                (1) "Personal representative" includes executor, administrator, special administrator, and guardian or limited guardian and special representative.             (2) "Net estate" refers to the real and personal property of a decedent exclusive of homestead rights, exempt property, the family allowance and enforceable claims against, and debts of, the deceased or the estate.       (3) "Representation" refers to a method of determining distribution in which the takers are in unequal degrees of kinship with respect to the intestate, and is accomplished as follows: After first determining who, of those entitled to share in the estate, are in the nearest degree of kinship, the estate is divided into equal shares, the number of shares being the sum of the number of persons who survive the intestate who are in the nearest degree of kinship and the number of persons in the same degree of kinship who died before the intestate but who left issue surviving the intestate; each share of a deceased person in the nearest degree shall be divided among those of the deceased person's issue who survive the intestate and have no ancestor then living who is in the line of relationship between them and the intestate, those more remote in degree taking together the share which their ancestor would have taken had he or she survived the intestate. Posthumous children are considered as living at the death of their parent.       (4) "Issue" includes all the lawful lineal descendants of the ancestor and all lawfully adopted children.            (5) "Degree of kinship" means the degree of kinship as computed according to the rules of the civil law; that is, by counting upward from the intestate to the nearest common ancestor and then downward to the relative, the degree of kinship being the sum of these two counts.               (6) "Heirs" denotes those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the real and personal property of a decedent on the decedent's death intestate.        (7) "Real estate" includes, except as otherwise specifically provided herein, all lands, tenements, and hereditaments, and all rights thereto, and all interest therein possessed and claimed in fee simple, or for the life of a third person.                 (8) "Will" means an instrument validly executed as required by RCW 11.12.020.      (9) "Codicil" means a will that modifies or partially revokes an existing earlier will. A codicil need not refer to or be attached to the earlier will.                    (10) "Guardian" or "limited guardian" means a personal representative of the person or estate of an incompetent or disabled person as defined in RCW 11.88.010 and the term may be used in lieu of "personal representative" wherever required by context.      (11) "Administrator" means a personal representative of the estate of a decedent and the term may be used in lieu of "personal representative" wherever required by context.              (12) "Executor" means a personal representative of the estate of a decedent appointed by will and the term may be used in lieu of "personal representative" wherever required by context.         (13) "Special administrator" means a personal representative of the estate of a decedent appointed for limited purposes and the term may be used in lieu of "personal representative" wherever required by context.       (14) "Trustee" means an original, added, or successor trustee and includes the state, or any agency thereof, when it is acting as the trustee of a trust to which chapter 11.98 RCW applies.           (15) "Nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under a written instrument or arrangement other than the person's will. "Nonprobate asset" includes, but is not limited to, a right or interest passing under a joint tenancy with right of survivorship, joint bank account with right of survivorship, payable on death or trust bank account, transfer on death security or security account, deed or conveyance if possession has been postponed until the death of the person, trust of which the person is grantor and that becomes effective or irrevocable only upon the person's death, community property agreement, individual retirement account or bond, or note or other contract the payment or performance of which is affected by the death of the person. "Nonprobate asset" does not include: A payable-on-death provision of a life insurance policy, annuity, or other similar contract, or of an employee benefit plan; a right or interest passing by descent and distribution under chapter 11.04 RCW; a right or interest if, before death, the person has irrevocably transferred the right or interest, the person has waived the power to transfer it or, in the case of contractual arrangement, the person has waived the unilateral right to rescind or modify the arrangement; or a right or interest held by the person solely in a fiduciary capacity. For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, RCW 11.07.010(5) applies.      (16) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended or renumbered on January 1, ((1995)) 1997.                   Words that import the singular number may also be applied to the plural of persons and things.     Words importing the masculine gender only may be extended to females also.             Sec. 2. RCW 11.07.010 and 1994 c 221 s 2 are each amended to read as follows:              (1) This section applies to all nonprobate assets, wherever situated, held at the time of entry by a superior court of this state of a decree of dissolution of marriage or a declaration of invalidity.            (2)(a) If a marriage is dissolved or invalidated, a provision made prior to that event that relates to the payment or transfer at death of the decedent's interest in a nonprobate asset in favor of or granting an interest or power to the decedent's former spouse is revoked. A provision affected by this section must be interpreted, and the nonprobate asset affected passes, as if the former spouse failed to survive the decedent, having died at the time of entry of the decree of dissolution or declaration of invalidity.           (b) This subsection does not apply if and to the extent that:              (i) The instrument governing disposition of the nonprobate asset expressly provides otherwise;              (ii) The decree of dissolution or declaration of invalidity requires that the decedent maintain a nonprobate asset for the benefit of a former spouse or children of the marriage, payable on the decedent's death either outright or in trust, and other nonprobate assets of the decedent fulfilling such a requirement for the benefit of the former spouse or children of the marriage do not exist at the decedent's death; or             (iii) If not for this subsection, the decedent could not have effected the revocation by unilateral action because of the terms of the decree or declaration, or for any other reason, immediately after the entry of the decree of dissolution or declaration of invalidity.           (3)(a) A payor or other third party in possession or control of a nonprobate asset at the time of the decedent's death is not liable for making a payment or transferring an interest in a nonprobate asset to a decedent's former spouse whose interest in the nonprobate asset is revoked under this section, or for taking another action in reliance on the validity of the instrument governing disposition of the nonprobate asset, before the payor or other third party has actual knowledge of the dissolution or other invalidation of marriage. A payor or other third party is liable for a payment or transfer made or other action taken after the payor or other third party has actual knowledge of a revocation under this section.        (b) This section does not require a payor or other third party to pay or transfer a nonprobate asset to a beneficiary designated in a governing instrument affected by the dissolution or other invalidation of marriage, or to another person claiming an interest in the nonprobate asset, if the payor or third party has actual knowledge of the existence of a dispute between the former spouse and the beneficiaries or other persons concerning rights of ownership of the nonprobate asset as a result of the application of this section among the former spouse and the beneficiaries or among other persons, or if the payor or third party is otherwise uncertain as to who is entitled to the nonprobate asset under this section. In such a case, the payor or third party may, without liability, notify in writing all beneficiaries or other persons claiming an interest in the nonprobate asset of either the existence of the dispute or its uncertainty as to who is entitled to payment or transfer of the nonprobate asset. The payor or third party may also, without liability, refuse to pay or transfer a nonprobate asset in such a circumstance to a beneficiary or other person claiming an interest until the time that either:                (i) All beneficiaries and other interested persons claiming an interest have consented in writing to the payment or transfer; or             (ii) The payment or transfer is authorized or directed by a court of proper jurisdiction.        (c) Notwithstanding subsections (1) and (2) of this section and (a) and (b) of this subsection, a payor or other third party having actual knowledge of the existence of a dispute between beneficiaries or other persons concerning rights to a nonprobate asset as a result of the application of this section may condition the payment or transfer of the nonprobate asset on execution, in a form and with security acceptable to the payor or other third party, of a bond in an amount that is double the fair market value of the nonprobate asset at the time of the decedent's death or the amount of an adverse claim, whichever is the lesser, or of a similar instrument to provide security to the payor or other third party, indemnifying the payor or other third party for any liability, loss, damage, costs, and expenses for and on account of payment or transfer of the nonprobate asset.               (d) As used in this subsection, "actual knowledge" means, for a payor or other third party in possession or control of the nonprobate asset at or following the decedent's death, written notice to the payor or other third party, or to an officer of a payor or third party in the course of his or her employment, received after the decedent's death and within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge. The notice must identify the nonprobate asset with reasonable specificity. The notice also must be sufficient to inform the payor or other third party of the revocation of the provisions in favor of the decedent's spouse by reason of the dissolution or invalidation of marriage, or to inform the payor or third party of a dispute concerning rights to a nonprobate asset as a result of the application of this section. Receipt of the notice for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.             (4)(a) A person who purchases a nonprobate asset from a former spouse or other person, for value and without actual knowledge, or who receives from a former spouse or other person payment or transfer of a nonprobate asset without actual knowledge and in partial or full satisfaction of a legally enforceable obligation, is neither obligated under this section to return the payment, property, or benefit nor is liable under this section for the amount of the payment or the value of the nonprobate asset. However, a former spouse or other person who, with actual knowledge, not for value, or not in satisfaction of a legally enforceable obligation, receives payment or transfer of a nonprobate asset to which that person is not entitled under this section is obligated to return the payment or nonprobate asset, or is personally liable for the amount of the payment or value of the nonprobate asset, to the person who is entitled to it under this section.          (b) As used in this subsection, "actual knowledge" means, for a person described in (a) of this subsection who purchases or receives a nonprobate asset from a former spouse or other person, personal knowledge or possession of documents relating to the revocation upon dissolution or invalidation of marriage of provisions relating to the payment or transfer at the decedent's death of the nonprobate asset, received within a time after the decedent's death and before the purchase or receipt that is sufficient to afford the person purchasing or receiving the nonprobate asset reasonable opportunity to act upon the knowledge. Receipt of the personal knowledge or possession of the documents for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.             (5) As used in this section, "nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under only the following written instruments or arrangements other than the decedent's will:      (a) A payable-on-death provision of a life insurance policy, employee benefit plan, annuity or similar contract, or individual retirement account;             (b) A payable-on-death, trust, or joint with right of survivorship bank account;               (c) A trust of which the person is a grantor and that becomes effective or irrevocable only upon the person's death; or     (d) Transfer on death beneficiary designations of a transfer on death or pay on death security, if such designations are authorized under Washington law.   However, for the general definition of "nonprobate asset" in this title, RCW 11.02.005 applies.  (6) This section is remedial in nature and applies as of July 25, 1993, to decrees of dissolution and declarations of invalidity entered after July 24, 1993, and this section applies as of January 1, 1995, to decrees of dissolution and declarations of invalidity entered before July 25, 1993.   Sec. 3. RCW 11.18.200 and 1994 c 221 s 19 are each amended to read as follows:      (1) Unless expressly exempted by statute, a beneficiary of a nonprobate asset that was subject to satisfaction of the decedent's general liabilities immediately before the decedent's death takes the asset subject to liabilities, claims, estate taxes, and the fair share of expenses of administration reasonably incurred by the personal representative in the transfer of or administration upon the asset. The beneficiary of such an asset is liable to account to the personal representative to the extent necessary to satisfy liabilities, claims, the asset's fair share of expenses of administration, and the asset's share of estate taxes under chapter 83.110 RCW. Before making demand that a beneficiary of a nonprobate asset account to the personal representative, the personal representative shall give notice to the beneficiary, in the manner provided in chapter 11.96 RCW, that the beneficiary is liable to account under this section.      (2) The following rules govern in applying subsection (1) of this section:              (a) A beneficiary of property passing at death under a community property agreement takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section. However, assets existing as community or separate property immediately before the decedent's death under the community property agreement are subject to the decedent's liabilities and claims to the same extent that they would have been had they been assets of the probate estate.         (b) A beneficiary of property held in joint tenancy form with right of survivorship, including without limitation United States savings bonds or similar obligations, takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section to the extent of the decedent's beneficial ownership interest in the property immediately before death.          (c) A beneficiary of payable-on-death or trust bank accounts, bonds, securities, or similar obligations, including without limitation United States bonds or similar obligations, takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section, to the extent of the decedent's beneficial ownership interest in the property immediately before death.         (d) A beneficiary of deeds or conveyances made by the decedent if possession has been postponed until the death of the decedent takes the property subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section, to the extent of the decedent's beneficial ownership interest in the property immediately before death.    (e) A trust for the decedent's use of which the decedent is the grantor is subject to the decedent's liabilities, claims, estate taxes, and administration expenses as described in subsection (1) of this section, to the same extent as the trust was subject to claims of the decedent's creditors immediately before death under RCW 19.36.020.      (f) A trust not for the use of the grantor but of which the decedent is the grantor and that becomes effective or irrevocable only upon the decedent's death is subject to the decedent's claims, liabilities, estate taxes, and expenses of administration as described in subsection (1) of this section.               (g) Anything in this section to the contrary notwithstanding, nonprobate assets that existed as community property immediately before the decedent's death are subject to the decedent's liabilities and claims to the same extent that they would have been had they been assets of the probate estate.     (h) The liability of a beneficiary of life insurance is governed by chapter 48.18 RCW.        (i) The liability of a beneficiary of pension or retirement employee benefits is governed by chapter 6.15 RCW.       (j) An inference may not be drawn from (a) through (i) of this subsection that a beneficiary of nonprobate assets other than those assets specifically described in (a) through (i) of this subsection does or does not take the assets subject to claims, liabilities, estate taxes, and administration expenses as described in subsection (1) of this section.         (3) Nothing in this section derogates from the rights of a person interested in the estate to recover tax under chapter 83.110 RCW or from the liability of any beneficiary for estate tax under chapter 83.110 RCW.                (4) Nonprobate assets that may be responsible for the satisfaction of the decedent's general liabilities and claims abate together with the probate assets of the estate in accord with chapter 11.10 RCW.     Sec. 4. RCW 11.28.240 and 1985 c 30 s 5 are each amended to read as follows:                 (1) At any time after the issuance of letters testamentary or of administration or certificate of qualification upon the estate of any decedent, any person interested in the estate as an heir, devisee, distributee, legatee or creditor whose claim has been duly served and filed, or the lawyer for the heir, devisee, distributee, legatee, or creditor may serve upon the personal representative or upon the lawyer for the personal representative, and file with the clerk of the court wherein the administration of the estate is pending, a written request stating that the person desires special notice of any or all of the following named matters, steps or proceedings in the administration of the estate, to wit:           (((1))) (a) Filing of petitions for sales, leases, exchanges or mortgages of any property of the estate.      (((2))) (b) Petitions for any order of solvency or for nonintervention powers.      (((3))) (c) Filing of accounts.  (((4))) (d) Filing of petitions for distribution.         (((5))) (e) Petitions by the personal representative for family allowances and homesteads.         (((6))) (f) The filing of a declaration of completion.               (((7))) (g) The filing of the inventory.      (((8))) (h) Notice of presentation of personal representative's claim against the estate.         (((9))) (i) Petition to continue a going business.      (((10))) (j) Petition to borrow upon the general credit of the estate.       (((11))) (k) Petition for judicial proceedings under chapter 11.96 RCW.                 (((12))) (l) Petition to reopen an estate.             (((13))) (m) Intent to distribute estate assets, other than distributions in satisfaction of specific bequests or legacies of specific dollar amounts.       (((14))) (n) Intent to pay attorney's or personal representative's fees.       The requests shall state the post office address of the heir, devisee, distributee, legatee or creditor, or his or her lawyer, and thereafter a brief notice of the filing of any of the petitions, accounts, declaration, inventory or claim, except petitions for sale of perishable property, or other tangible personal property which will incur expense or loss by keeping, shall be addressed to the heir, devisee, distributee, legatee or creditor, or his or her lawyer, at the post office address stated in the request, and deposited in the United States post office, with prepaid postage, at least ten days before the hearing of the petition, account or claim or of the proposed distribution or payment of fees; or personal service of the notices may be made on the heir, devisee, distributee, legatee, creditor, or lawyer, not less than five days before the hearing, and the personal service shall have the same effect as deposit in the post office, and proof of mailing or of personal service must be filed with the clerk before the hearing of the petition, account or claim or of the proposed distribution or payment of fees. If the notice has been regularly given, any distribution or payment of fees and any order or judgment, made in accord therewith is final and conclusive.           (2) Notwithstanding subsection (1) of this section, a request for special notice may not be made by a person, and any request for special notice previously made by a person becomes null and void, when:        (a) That person qualifies to request special notice solely by reason of being a specific legatee, all of the property that person is entitled to receive from the decedent's estate has been distributed to that person, and that person's bequest is not subject to any subsequent abatement for the payment of the decedent's debts, expenses, or taxes;              (b) That person qualifies to request special notice solely by reason of being an heir of the decedent, none of the decedent's property is subject to the laws of descent and distribution, the decedent's will has been probated, and the time for contesting the probate of that will has expired; or                 (c) That person qualifies to request special notice solely by reason of being a creditor of the decedent and that person has received all of the property that the person is entitled to receive from the decedent's estate.               Sec. 5. RCW 11.28.270 and 1965 c 145 s 11.28.270 are each amended to read as follows:      If ((there be)) more than one personal representative of an estate((, and)) is serving when the letters to ((part)) any of them ((be)) are revoked or surrendered((,)) or ((a part)) when any part of them dies or in any way becomes disqualified, those who remain shall perform all the duties required by law unless the decedent provided otherwise in a duly probated will or unless the court orders otherwise.               Sec. 6. RCW 11.28.280 and 1974 ex.s. c 117 s 26 are each amended to read as follows:                  Except as otherwise provided in RCW 11.28.270, if ((the)) a personal representative of an estate dies((,)) or resigns((,)) or the letters are revoked before the settlement of the estate, letters testamentary or letters of administration of the estate remaining unadministered shall be granted to those to whom ((administration)) the letters would have been granted if the original letters had not been obtained, or the person obtaining them had renounced administration, and the ((administrator de bonis non)) successor personal representative shall perform like duties and incur like liabilities as the ((former personal representative, and shall serve as administrator with will annexed de bonis non in the event a will has been admitted to probate. Said administrator de bonis non may, upon satisfying the requirements and complying with the procedures provided in chapter 11.68 RCW, administer the estate of the decedent without the intervention of court)) preceding personal representative, unless the decedent provided otherwise in a duly probated will or unless the court orders otherwise. A succeeding personal representative may petition for nonintervention powers under chapter 11.68 RCW.      Sec. 7. RCW 11.40.010 and 1995 1st sp.s. c 18 s 58 are each amended to read as follows:                 ((Every personal representative shall, after appointment and qualification, give a notice to the creditors of the deceased, stating such appointment and qualification as personal representative and requiring all persons having claims against the deceased to serve the same on the personal representative or the estate's attorney of record, and file an executed copy thereof with the clerk of the court, within four months after the date of the first publication of such notice described in this section or within four months after the date of the filing of the copy of such notice with the clerk of the court, whichever is the later, or within the time otherwise provided in RCW 11.40.013. The four-month time period after the later of the date of the first publication of the notice to creditors or the date of the filing of such notice with the clerk of the court is referred to in this chapter as the "four-month time limitation." Such notice shall be given as follows:   (1) The personal representative shall give actual notice, as provided in RCW 11.40.013, to such creditors who become known to the personal representative within such four-month time limitation;          (2) The personal representative shall cause such notice to be published once in each week for three successive weeks in the county in which the estate is being administered;     (3) The personal representative shall file a copy of such notice with the clerk of the court; and      (4) The personal representative shall mail a copy of the notice, including the decedent's social security number, to the state of Washington, department of social and health services, office of financial recovery.           Except as otherwise provided in RCW 11.40.011 or 11.40.013, any claim not filed within the four-month time limitation shall be forever barred, if not already barred by any otherwise applicable statute of limitations. This bar is effective as to claims against both the decedent's probate assets and nonprobate assets as described in RCW 11.18.200. Proof by affidavit of the giving and publication of such notice shall be filed with the court by the personal representative.         Acts of a notice agent in complying with chapter 221, Laws of 1994 may be adopted and ratified by the personal representative as if done by the personal representative in complying with this chapter, except that if at the time of the appointment and qualification of the personal representative a notice agent had commenced nonprobate notice to creditors under chapter 11.42 RCW, the personal representative shall give published notice as provided in RCW 11.42.180.)) A person having a claim against the decedent may not maintain an action on the claim unless a personal representative has been appointed and the claimant has presented the claim as set forth in this chapter. However, this chapter does not affect the notice under RCW 82.32.240 or the ability to maintain an action against a notice agent under chapter 11.42 RCW.           Sec. 8. RCW 11.40.020 and 1974 ex.s. c 117 s 34 are each amended to read as follows:          ((Every claim shall be signed by the claimant, or his attorney, or any person who is authorized to sign claims on his, her, or its behalf, and shall contain the following information:         (1) The name and address of the claimant;             (2) The name, business address (if different from that of the claimant), and nature of authority of any person signing the claim on behalf of the claimant;      (3) A written statement of the facts or circumstances constituting the basis upon which the claim is submitted;                  (4) The amount of the claim;       (5) If the claim is secured, unliquidated or contingent, or not yet due, the nature of the security, the nature of the uncertainty, and due date of the claim: PROVIDED HOWEVER, That failure to describe correctly the security, nature of any uncertainty, or the due date of a claim not yet due, if such failure is not substantially misleading, does not invalidate the presentation made.      Claims need not be supported by affidavit.)) A personal representative may give notice to the creditors of the decedent, as directed in RCW 11.40.030, announcing the personal representative's appointment and requiring that persons having claims against the decedent present their claims within the time specified in section 11 of this act or be forever barred as to claims against the decedent's probate and nonprobate assets. If notice is given:      (1) The personal representative shall first file the original of the notice with the court;        (2) The personal representative shall then cause the notice to be published once each week for three successive weeks in a legal newspaper in the county in which the estate is being administered;     (3) The personal representative may, at any time during the probate proceeding, give actual notice to creditors who become known to the personal representative by serving the notice on the creditor or mailing the notice to the creditor at the creditor's last known address, by regular first class mail, postage prepaid; and             (4) The personal representative shall also mail a copy of the notice, including the decedent's social security number, to the state of Washington department of social and health services office of financial recovery.      The personal representative shall file with the court proof by affidavit of the giving and publication of the notice.             Sec. 9. RCW 11.40.030 and 1989 c 333 s 7 are each amended to read as follows:            (((1) Unless the personal representative shall, within two months after the expiration of the four-month time limitation, or within two months after receipt of an otherwise timely claim filed after expiration of the four-month time limitation, whichever is later, have obtained an order extending the time for his allowance or rejection of claims timely and properly served and filed, all claims not exceeding one thousand dollars presented within the time and in the manner provided in RCW 11.40.010, 11.40.013, or 11.40.020 as now or hereafter amended, shall be deemed allowed and may not thereafter be rejected, unless the personal representative shall, within two months after the expiration of the four-month time limitation, or as to an otherwise timely claim filed after expiration of the four-month time limitation, within two months after receipt of such claim, or within any extended time, notify the claimant of its rejection, in whole or in part.               (2) When a claim exceeding one thousand dollars is presented within the time and in the manner provided in RCW 11.40.010 and 11.40.020 as now or hereafter amended, it shall be the duty of the personal representative to indorse thereon his allowance or rejection. A claimant after a claim has been on file for at least thirty days may notify the personal representative that he will petition the court to have the claim allowed. If the personal representative fails to file an allowance or rejection of such claim twenty days after the receipt of such notice, the claimant may note the matter up for hearing and the court shall hear the matter and determine whether the claim should be allowed or rejected, in whole or in part. If at the hearing the claim is substantially allowed the court may allow petitioner reasonable attorney's fees of not less than one hundred dollars chargeable against the estate.       (3) If the personal representative shall reject the claim, in whole or in part, he shall notify the claimant of said rejection and file in the office of the clerk, an affidavit showing such notification and the date thereof. Said notification shall be by personal service or certified mail addressed to the claimant at his address as stated in the claim; if a person other than the claimant shall have signed said claim for or on behalf of the claimant, and said person's business address as stated in said claim is different from that of the claimant, notification of rejection shall also be made by personal service or certified mail upon said person; the date of the postmark shall be the date of notification. The notification of rejection shall advise the claimant, and the person making claim on his, her, or its behalf, if any, that the claimant must bring suit in the proper court against the personal representative within thirty days after notification of rejection or before expiration of the time for serving and filing claims against the estate, whichever period is longer, and that otherwise the claim will be forever barred.            (4) The personal representative may, either before or after rejection of any claim compromise said claim, whether due or not, absolute or contingent, liquidated or unliquidated, if it appears to the personal representative that such compromise is in the best interests of the estate.)) Notice under RCW 11.40.020 must contain the following elements in substantially the following form:            CAPTION                              )                No.                         OF CASE                              )                PROBATE NOTICE TO                                                               )                CREDITORS. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . )                RCW 11.40.030      The personal representative named below has been appointed as personal representative of this estate. Any person having a claim against the decedent must, before the time the claim would be barred by any otherwise applicable statute of limitations, present the claim in the manner as provided in RCW 11.40.070 by serving on or mailing to the personal representative or the personal representative's attorney at the address stated below a copy of the claim and filing the original of the claim with the court. The claim must be presented within the later of: (1) Thirty days after the personal representative served or mailed the notice to the creditor as provided under RCW 11.40.020(3); or (2) four months after the date of first publication of the notice. If the claim is not presented within this time frame, the claim is forever barred, except as otherwise provided in section 11 of this act and RCW 11.40.060. This bar is effective as to claims against both the decedent's probate and nonprobate assets.                 Date of First       Publication:                         Personal Representative:            Attorney for the Personal Representative:      Address for Mailing or Service:             Sec. 10. RCW 11.40.040 and 1994 c 221 s 28 are each amended to read as follows:      ((Every claim which has been allowed by the personal representative shall be ranked among the acknowledged debts of the estate to be paid expeditiously in the course of administration.)) (1) For purposes of section 11 of this act, a "reasonably ascertainable" creditor of the decedent is one that the personal representative would discover upon exercise of reasonable diligence. The personal representative is deemed to have exercised reasonable diligence upon conducting a reasonable review of the decedent's correspondence, including correspondence received after the date of death, and financial records, including personal financial statements, loan documents, checkbooks, bank statements, and income tax returns, that are in the possession of or reasonably available to the personal representative.                 (2) If the personal representative conducts the review, the personal representative is presumed to have exercised reasonable diligence to ascertain creditors of the decedent and any creditor not ascertained in the review is presumed not reasonably ascertainable within the meaning of section 11 of this act. These presumptions may be rebutted only by clear, cogent, and convincing evidence.          (3) The personal representative may evidence the review and resulting presumption by filing with the court an affidavit regarding the facts referred to in this section. The personal representative may petition the court for an order declaring that the personal representative has made a review and that any creditors not known to the personal representative are not reasonably ascertainable. The petition must be filed under RCW 11.96.070 and the notice specified under RCW 11.96.100 must also be given by publication.               NEW SECTION. Sec. 11. A new section is added to chapter 11.40 RCW to read as follows:              (1) Whether or not notice is provided under RCW 11.40.020, a person having a claim against the decedent is forever barred from making a claim or commencing an action against the decedent, if the claim or action is not already barred by an otherwise applicable statute of limitations, unless the creditor presents the claim in the manner provided in RCW 11.40.070 within the following time limitations:      (a) If the personal representative provided notice under RCW 11.40.020 (1) and (2) and the creditor was given actual notice as provided in RCW 11.40.020(3), the creditor must present the claim within the later of: (i) Thirty days after the personal representative's service or mailing of notice to the creditor; and (ii) four months after the date of first publication of the notice;     (b) If the personal representative provided notice under RCW 11.40.020 (1) and (2) and the creditor was not given actual notice as provided in RCW 11.40.020(3):                   (i) If the creditor was not reasonably ascertainable, as defined in RCW 11.40.040, the creditor must present the claim within four months after the date of first publication of notice;    (ii) If the creditor was reasonably ascertainable, as defined in RCW 11.40.040, the creditor must present the claim within twenty-four months after the decedent's date of death; and          (c) If notice was not provided under this chapter or chapter 11.42 RCW, the creditor must present the claim within twenty-four months after the decedent's date of death.    (2) An otherwise applicable statute of limitations applies without regard to the tolling provisions of RCW 4.16.190.              (3) This bar is effective as to claims against both the decedent's probate and nonprobate assets.  Sec. 12. RCW 11.40.060 and 1974 ex.s. c 117 s 37 are each amended to read as follows:   ((When a claim is rejected by the personal representative, the holder must bring suit in the proper court against the personal representative within thirty days after notification of the rejection or before expiration of the time for serving and filing claims against the estate, whichever period is longer, otherwise the claim shall be forever barred.)) The time limitations for presenting claims under this chapter do not accrue to the benefit of any liability or casualty insurer. Claims against the decedent or the decedent's marital community that can be fully satisfied by applicable insurance coverage or proceeds need not be presented within the time limitation of section 11 of this act, but the amount of recovery cannot exceed the amount of the insurance. The claims may at any time be presented as provided in RCW 11.40.070, subject to the otherwise relevant statutes of limitations, and do not constitute a cloud, lien, or encumbrance upon the title to the decedent's probate or nonprobate assets nor delay or prevent the conclusion of probate proceedings or the transfer or distribution of assets of the estate. This section does not serve to extend any otherwise relevant statutes of limitations.     Sec. 13. RCW 11.40.070 and 1965 c 145 s 11.40.070 are each amended to read as follows:      ((No claim shall be allowed by the personal representative or court which is barred by the statute of limitations.)) (1) The claimant, the claimant's attorney, or the claimant's agent shall sign the claim and include in the claim the following information:                 (a) The name and address of the claimant;                (b) The name, address, if different from that of the claimant, and nature of authority of an agent signing the claim on behalf of the claimant;    (c) A statement of the facts or circumstances constituting the basis of the claim;                  (d) The amount of the claim; and           (e) If the claim is secured, unliquidated, contingent, or not yet due, the nature of the security, the nature of the uncertainty, or the date when it will become due.         Failure to describe correctly the information in (c), (d), or (e) of this subsection, if the failure is not substantially misleading, does not invalidate the claim.          (2) A claim does not need to be supported by affidavit.      (3) A claim must be presented within the time limits set forth in section 11 of this act by: (a) Serving on or mailing to, by regular first class mail, the personal representative or the personal representative's attorney a copy of the signed claim; and (b) filing the original of the signed claim with the court. A claim is deemed presented upon the later of the date of postmark or service on the personal representative, or the personal representative's attorney, and filing with the court.        (4) Notwithstanding any other provision of this chapter, if a claimant makes a written demand for payment within the time limits set forth in section 11 of this act, the personal representative may waive formal defects and elect to treat the demand as a claim properly filed under this chapter if: (a) The claim was due; (b) the amount paid is the amount of indebtedness over and above all payments and offsets; (c) the estate is solvent; and (d) the payment is made in good faith. Nothing in this chapter limits application of the doctrines of waiver, estoppel, or detrimental claims or any other equitable principle.              Sec. 14. RCW 11.40.080 and 1994 c 221 s 29 are each amended to read as follows:          ((No holder of any claim against a decedent shall maintain an action thereon, unless the claim shall have been first presented as provided in this chapter. Nothing in this chapter affects RCW 82.32.240.)) (1) The personal representative shall allow or reject all claims presented in the manner provided in RCW 11.40.070. The personal representative may allow or reject a claim in whole or in part.   (2) If the personal representative has not allowed or rejected a claim within the later of four months from the date of first publication of the notice to creditors or thirty days from presentation of the claim, the claimant may serve written notice on the personal representative that the claimant will petition the court to have the claim allowed. If the personal representative fails to notify the claimant of the allowance or rejection of the claim within twenty days after the personal representative's receipt of the claimant's notice, the claimant may petition the court for a hearing to determine whether the claim should be allowed or rejected, in whole or in part. If the court substantially allows the claim, the court may allow the petitioner reasonable attorneys' fees chargeable against the estate.       Sec. 15. RCW 11.40.090 and 1965 c 145 s 11.40.090 are each amended to read as follows:              ((The time during which there shall be a vacancy in the administration shall not be included in any limitations herein prescribed.)) (1) If the personal representative allows a claim, the personal representative shall notify the claimant of the allowance by personal service or regular first class mail to the address stated on the claim.      (2) A claim that on its face does not exceed one thousand dollars presented in the manner provided in RCW 11.40.070 must be deemed allowed and may not thereafter be rejected unless the personal representative has notified the claimant of rejection of the claim within the later of six months from the date of first publication of the notice to creditors and two months from the personal representative's receipt of the claim. The personal representative may petition for an order extending the period for automatic allowance of the claims.                   (3) Allowed claims must be ranked among the acknowledged debts of the estate to be paid expeditiously in the course of administration.              (4) A claim may not be allowed if it is barred by a statute of limitations.               Sec. 16. RCW 11.40.100 and 1974 ex.s. c 117 s 47 are each amended to read as follows:          ((If any action be pending against the testator or intestate at the time of his death, the plaintiff shall within four months after first publication of notice to creditors, or the filing of a copy of such notice, whichever is later, serve on the personal representative a motion to have such personal representative, as such, substituted as defendant in such action, and, upon the hearing of such motion, such personal representative shall be so substituted, unless, at or prior to such hearing, the claim of plaintiff, together with costs, be allowed by the personal representative and court. After the substitution of such personal representative, the court shall proceed to hear and determine the action as in other civil cases.)) (1) If the personal representative rejects a claim, in whole or in part, the claimant must bring suit against the personal representative within thirty days after notification of rejection or the claim is forever barred. The personal representative shall notify the claimant of the rejection and file an affidavit with the court showing the notification and the date of the notification. The personal representative shall notify the claimant of the rejection by personal service or certified mail addressed to the claimant or the claimant's agent, if applicable, at the address stated in the claim. The date of service or of the postmark is the date of notification. The notification must advise the claimant that the claimant must bring suit in the proper court against the personal representative within thirty days after notification of rejection or the claim will be forever barred.         (2) The personal representative may, before or after rejection of any claim, compromise the claim, whether due or not, absolute or contingent, liquidated, or unliquidated, if it appears to the personal representative that the compromise is in the best interests of the estate.    Sec. 17. RCW 11.40.110 and 1974 ex.s. c 117 s 38 are each amended to read as follows:   ((Whenever any claim shall have been filed and presented to a personal representative, and a part thereof shall be allowed, the amount of such allowance shall be stated in the indorsement. If the creditor shall refuse to accept the amount so allowed in satisfaction of his claim, he shall recover no costs in any action he may bring against the personal representative unless he shall recover a greater amount than that offered to be allowed, exclusive of interest and costs.)) If an action is pending against the decedent at the time of the decedent's death, the plaintiff shall, within four months after appointment of the personal representative, serve on the personal representative a petition to have the personal representative substituted as defendant in the action. Upon hearing on the petition, the personal representative shall be substituted, unless, at or before the hearing, the claim of the plaintiff, together with costs, is allowed.            Sec. 18. RCW 11.40.120 and 1965 c 145 s 11.40.120 are each amended to read as follows:              The effect of any judgment rendered against ((any)) a personal representative shall be only to establish the amount of the judgment as an allowed claim.      Sec. 19. RCW 11.40.130 and 1965 c 145 s 11.40.130 are each amended to read as follows:      ((When any judgment has been rendered against the testator or intestate in his lifetime, no execution shall issue thereon after his death, but it shall be presented to the personal representative, as any other claim, but need not be supported by the affidavit of the claimant, and if justly due and unsatisfied, shall be paid in due course of administration: PROVIDED, HOWEVER, That if it be a lien on any property of the deceased, the same may be sold for the satisfaction thereof, and the officer making the sale shall account to the personal representative for any surplus in his hands.)) If a judgment was entered against the decedent during the decedent's lifetime, an execution may not issue on the judgment after the death of the decedent. The judgment must be presented in the manner provided in RCW 11.40.070, but if the judgment is a lien on any property of the decedent, the property may be sold for the satisfaction of the judgment and the officer making the sale shall account to the personal representative for any surplus.        NEW SECTION. Sec. 20. A new section is added to chapter 11.40 RCW to read as follows:      If a creditor's claim is secured by any property of the decedent, this chapter does not affect the right of a creditor to realize on the creditor's security, whether or not the creditor presented the claim in the manner provided in RCW 11.40.070.        Sec. 21. RCW 11.40.140 and 1965 c 145 s 11.40.140 are each amended to read as follows:               ((If the personal representative is himself a creditor of the testator or intestate, his claim, duly authenticated by affidavit, shall be filed and presented for allowance or rejection to the judge of the court, and its allowance by the judge shall be sufficient evidence of its correctness. This section shall apply to nonintervention and all other wills.)) If the personal representative has a claim against the decedent, the personal representative must present the claim in the manner provided in RCW 11.40.070 and petition the court for allowance or rejection. The petition must be filed under RCW 11.96.070. This section applies whether or not the personal representative is acting under nonintervention powers.                  Sec. 22. RCW 11.40.150 and 1965 c 145 s 11.40.150 are each amended to read as follows:          ((In case of resignation, death or removal for any cause of any personal representative, and the appointment of another or others, after notice has been given by publication as required by RCW 11.40.010, by such personal representative first appointed, to persons to file their claims against the decedent, it shall be the duty of the successor or personal representative to cause notice of such resignation, death or removal and such new appointment to be published two successive weeks in a legal newspaper published in the county in which the estate is being administered, but the time between the resignation, death or removal and such publication shall be added to the time within which claims shall be filed as fixed by the published notice to creditors unless such time shall have expired before such resignation or removal or death: PROVIDED, HOWEVER, That no such notice shall be required if the period for filing claims was fully expired during the time that the former personal representative was qualified.)) (1) If a personal representative has given notice under RCW 11.40.020 and then resigns, dies, or is removed, the successor personal representative shall:     (a) Publish notice of the vacancy and succession for two successive weeks in the legal newspaper in which notice was published under RCW 11.40.020 if the vacancy occurred within twenty-four months after the decedent's date of death; and   (b) Provide actual notice of the vacancy and succession to a creditor if: (i) The creditor filed a claim and the claim had not been accepted or rejected by the prior personal representative; or (ii) the creditor's claim was rejected and the vacancy occurred within thirty days after rejection of the claim.              (2) The time between the resignation, death, or removal and first publication of the vacancy and succession or, in the case of actual notice, the mailing of the notice of vacancy and succession must be added to the time within which a claim must be presented or a suit on a rejected claim must be filed. This section does not extend the twenty-four month self-executing bar under section 11 of this act.    NEW SECTION. Sec. 23. A new section is added to chapter 11.40 RCW to read as follows:      If a notice agent had commenced nonprobate notice to creditors under chapter 11.42 RCW, the appointment of the personal representative does not affect the filing and publication of notice to creditors and does not affect actual notice to creditors given by the notice agent. The personal representative is presumed to have adopted or ratified all acts of the notice agent unless, within thirty days of appointment, the personal representative provides notice of rejection or nullification to the affected claimant or claimants by personal service or certified mail addressed to the claimant or claimant's agent, if applicable, at the address stated on the claim. The personal representative shall also provide notice under RCW 11.42.150.           Sec. 24. RCW 11.42.010 and 1994 c 221 s 31 are each amended to read as follows:           (1) Subject to the conditions stated in this ((section)) chapter, and if no personal representative has been appointed ((and qualified in the decedent's estate)) in ((Washington, the following members of a group, defined as the "qualified group," are qualified to give "nonprobate notice to creditors" of the decedent:      (a) Decedent's surviving spouse;            (b) The person appointed in an agreement made under chapter 11.96 RCW to give nonprobate notice to creditors of the decedent;          (c) The trustee, except a testamentary trustee under the will of the decedent not probated in another state, having authority over any of the property of the decedent; and    (d) A person who has received any property of the decedent by reason of the decedent's death.           (2) The "included property" means the property of the decedent that was subject to satisfaction of the decedent's general liabilities immediately before the decedent's death and that either:              (a) Constitutes a nonprobate asset; or     (b) Has been received, or is entitled to be received, either under chapter 11.62 RCW or by the personal representative of the decedent's probate estate administered outside the state of Washington, or both.  (3) The qualified person shall give the nonprobate notice to creditors. The "qualified person" must be:      (a) The person in the qualified group who has received, or is entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property; or           (b) If there is no person in (a) of this subsection, then the person who has been appointed by those persons, including any successors of those persons, in the qualified group who have received, or are entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property.          (4) The requirement in subsection (3) of this section of the receipt of all, or substantially all, of the included property is satisfied if:    (a) The person described in subsection (3)(a) of this section at the time of the filing of the declaration and oath referred to in subsection (5) of this section in reasonable good faith believed that the person had received, or was entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property; or               (b) The persons described in subsection (3)(b) of this section at the time of their entry into the agreement under chapter 11.96 RCW in which they appoint the person to give the nonprobate notice to creditors in reasonable good faith believed that they had received, or were entitled to receive, by reason of the decedent's death, all, or substantially all, of the included property.                (5) The "notice agent" means the qualified person who:        (a) Files a declaration and oath with the clerk of the superior court in a county in which probate may be commenced regarding the decedent as provided in RCW 11.96.050(2);     (b) Pays a filing fee to the clerk equal in amount to the filing fee charged by the clerk for the probate of estates; and      (c) Receives from the clerk a cause number.          The county in which the notice agent files the declaration is the "notice county." The declaration and oath must be made in affidavit form or under penalty of perjury under the laws of the state in the form provided in RCW 9A.72.085 and must state that the person making the declaration believes in reasonable good faith that the person is qualified under this chapter to act as the notice agent and that the person faithfully will execute the duties of the notice agent as provided in this chapter.      (6) The following persons may not act as notice agent:         (a) Corporations, trust companies, and national banks, except:      (i) Professional service corporations that are regularly organized under the laws of this state whose shareholder or shareholders are exclusively attorneys; and             (ii) Other corporations, trust companies, and national banks that are authorized to do trust business in this state;                  (b) Minors;         (c) Persons of unsound mind; or             (d) Persons who have been convicted of a felony or of a misdemeanor involving moral turpitude.            (7) A person who has given notice under this chapter and who thereafter becomes of unsound mind or is convicted of a crime or misdemeanor involving moral turpitude is no longer qualified to act as notice agent under this chapter. The disqualification does not bar another person, otherwise qualified, from acting as notice agent under this chapter.     (8) A nonresident may act as notice agent if the nonresident appoints an agent who is a resident of the notice county or who is attorney of record for the notice agent upon whom service of all papers may be made. The appointment must be made in writing and filed by the clerk of the notice county with the other papers relating to the notice given under this chapter.  (9) The powers and authority of a notice agent cease, and the office of notice agent becomes vacant, upon the appointment and qualification of a personal representative for the estate of the decedent. Except as provided in RCW 11.42.180, the cessation of the powers and authority does not affect a published notice under this chapter if the publication commenced before the cessation and does not affect actual notice to creditors given by the notice agent before the cessation.)) this state, a beneficiary or trustee who has received or is entitled to receive by reason of the decedent's death substantially all of the decedent's probate and nonprobate assets, is qualified to give nonprobate notice to creditors under this chapter.          If no one beneficiary or trustee has received or is entitled to receive substantially all of the assets, then those persons, who in the aggregate have received or are entitled to receive substantially all of the assets, may, under an agreement under RCW 11.96.170, appoint a person who is then qualified to give nonprobate notice to creditors under this chapter.              (2) A person or group of persons is deemed to have received substantially all of the decedent's probate and nonprobate assets if the person or the group, at the time of the filing of the declaration and oath referred to in subsection (3) of this section, in reasonable good faith believed that the person or the group had received, or was entitled to receive by reason of the decedent's death, substantially all of the decedent's probate and nonprobate assets.    (3)(a) The "notice agent" means the qualified person who:    (i) Pays a filing fee to the clerk of the superior court in a county in which probate may be commenced regarding the decedent, the "notice county", and receives a cause number; and      (ii) Files a declaration and oath with the clerk.       (b) The declaration and oath must be made in affidavit form or under penalty of perjury and must state that the person making the declaration believes in reasonable good faith that the person is qualified under this chapter to act as the notice agent and that the person will faithfully execute the duties of the notice agent as provided in this chapter.                (4) The following persons are not qualified to act as notice agent:            (a) Corporations, trust companies, and national banks, except: (i) Such entities as are authorized to do trust business in this state; and (ii) professional service corporations that are regularly organized under the laws of this state whose shareholder or shareholders are exclusively attorneys;      (b) Minors;             (c) Persons of unsound mind;                 (d) Persons who have been convicted of a felony or of a misdemeanor involving moral turpitude; and                 (e) Persons who have given notice under this chapter and who thereafter become of unsound mind or are convicted of a felony or misdemeanor involving moral turpitude. This disqualification does not bar another person, otherwise qualified, from acting as successor notice agent.                  (5) A nonresident may act as notice agent if the nonresident appoints an agent who is a resident of the notice county or who is attorney of record for the notice agent upon whom service of all papers may be made. The appointment must be made in writing and filed with the court.         Sec. 25. RCW 11.42.020 and 1995 1st sp.s. c 18 s 59 are each amended to read as follows:               (1) The notice agent may give nonprobate notice to the creditors of the decedent if:  (a) As of the date of the filing ((of a copy)) of the notice to creditors with the ((clerk of the superior)) court ((for the notice county)), the notice agent has no knowledge of another person acting as notice agent or of the appointment ((and qualification)) of a personal representative in the decedent's estate in the state of Washington ((or of another person becoming a notice agent)); and           (b) According to the records of the ((clerk of the superior)) court ((for the notice county as of 8:00 a.m.)) as are available on the date of the filing of the notice to creditors, no cause number regarding the decedent has been issued to any other notice agent and no personal representative of the decedent's estate had been appointed ((and qualified and no cause number regarding the decedent had been issued to any other notice agent by the clerk under RCW 11.42.010)).              (2) ((The notice must state that all persons having claims against the decedent shall: (a) Serve the same on the notice agent if the notice agent is a resident of the state of Washington upon whom service of all papers may be made, or on the nonprobate resident agent for the notice agent, if any, or on the attorneys of record of the notice agent at their respective address in the state of Washington; and (b) file an executed copy of the notice with the clerk of the superior court for the notice county, within: (i)(A) Four months after the date of the first publication of the notice described in this section; or (B) four months after the date of the filing of the copy of the notice with the clerk of the superior court for the notice county, whichever is later; or (ii) the time otherwise provided in RCW 11.42.050. The four-month time period after the later of the date of the first publication of the notice to creditors or the date of the filing of the notice with the clerk of the court is referred to in this chapter as the "four-month time limitation."        (3) The notice agent shall declare in the notice in affidavit form or under the penalty of perjury under the laws of the state of Washington as provided in RCW 9A.72.085 that: (a) The notice agent is entitled to give the nonprobate notice under subsection (1) of this section; and (b) the notice is being given by the notice agent as permitted by this section.               (4) The notice agent shall sign the notice and file it with the clerk of the superior court for the notice county. The notice must be given as follows:      (a) The notice agent shall give actual notice as to creditors of the decedent who become known to the notice agent within the four-month time limitation as required in RCW 11.42.050;   (b) The notice agent shall cause the notice to be published once in each week for three successive weeks in the notice county;          (c) The notice agent shall file a copy of the notice with the clerk of the superior court for the notice county; and   (d) The notice agent shall mail a copy of the notice, including the decedent's social security number, to the state of Washington, department of social and health services, office of financial recovery.   (5) A claim not filed within the four-month time limitation is forever barred, if not already barred by an otherwise applicable statute of limitations, except as provided in RCW 11.42.030 or 11.42.050. The bar is effective to bar claims against both the probate estate of the decedent and nonprobate assets that were subject to satisfaction of the decedent's general liabilities immediately before the decedent's death. If a notice to the creditors of a decedent is published by more than one notice agent and the notice agents are not acting jointly, the four-month time limitation means the four-month time limitation that applies to the notice agent who first publishes the notice. Proof by affidavit or perjury declaration made under RCW 9A.72.085 of the giving and publication of the notice must be filed with the clerk of the superior court for the notice county by the notice agent.)) The notice agent must give notice to the creditors of the decedent, as directed in RCW 11.42.030, announcing that the notice agent has elected to give nonprobate notice to creditors and requiring that persons having claims against the decedent present their claims within the time specified in RCW 11.42.050 or be forever barred as to claims against the decedent's probate and nonprobate assets.             (a) The notice agent shall first file the original of the notice with the court.             (b) The notice agent shall then cause the notice to be published once each week for three successive weeks in a legal newspaper in the notice county.         (c) The notice agent may at any time give actual notice to creditors who become known to the notice agent by serving the notice on the creditor or mailing the notice to the creditor at the creditor's last known address, by regular first class mail, postage prepaid.          (d) The notice agent shall also mail a copy of the notice, including the decedent's social security number, to the state of Washington department of social and health services' office of financial recovery.  The notice agent shall file with the court proof by affidavit of the giving and publication of the notice.               Sec. 26. RCW 11.42.030 and 1994 c 221 s 33 are each amended to read as follows:              ((The time limitations under this chapter for serving and filing claims do not accrue to the benefit of a liability or casualty insurer as to claims against either the decedent or the marital community of which the decedent was a member, or both, and:      (1) The claims, subject to applicable statutes of limitation, may at any time be: (a) Served on the duly acting notice agent, the duly acting resident agent for the notice agent, or on the attorney for either of them; and (b) filed with the clerk of the superior court for the notice county; or   (2) If there is no duly acting notice agent or resident agent for the notice agent, the claimant as a creditor shall proceed as provided in chapter 11.40 RCW. However, if no personal representative ever has been appointed for the decedent, a personal representative must be appointed as provided in chapter 11.28 RCW and the estate opened, in which case the claimant then shall proceed as provided in chapter 11.40 RCW.      A claim may be served and filed as provided in this section, notwithstanding that there is no duly acting notice agent and that no personal representative previously has been appointed. However, the amount of recovery under the claim may not exceed the amount of applicable insurance coverages and proceeds, and the claim so served and filed may not constitute a cloud or lien upon the title to the assets of the decedent or delay or prevent the transfer or distribution of assets of the decedent. This section does not serve to extend the applicable statute of limitations regardless of whether a declaration and oath has been filed by a notice agent as provided in RCW 11.42.010.)) Notice under RCW 11.42.020 must contain the following elements in substantially the following form:                                                                 )                     CAPTION                              )                No.                         OF CASE                              )                NONPROBATE                                                                     )                NOTICE TO CREDITORS                                                                  )      RCW 11.42.030. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . )                The notice agent named below has elected to give notice to creditors of the above-named decedent. As of the date of the filing of a copy of this notice with the court, the notice agent has no knowledge of any other person acting as notice agent or of the appointment of a personal representative of the decedent's estate in the state of Washington. According to the records of the court as are available on the date of the filing of this notice with the court, a cause number regarding the decedent has not been issued to any other notice agent and a personal representative of the decedent's estate has not been appointed.                 Any person having a claim against the decedent must, before the time the claim would be barred by any otherwise applicable statute of limitations, present the claim in the manner as provided in RCW 11.42.070 by serving on or mailing to the notice agent or the notice agent's attorney at the address stated below a copy of the claim and filing the original of the claim with the court. The claim must be presented within the later of: (1) Thirty days after the notice agent served or mailed the notice to the creditor as provided under RCW 11.42.020(2)(c); or (2) four months after the date of first publication of the notice. If the claim is not presented within this time frame, the claim is forever barred, except as otherwise provided in RCW 11.42.050 and 11.42.060. This bar is effective as to claims against both the decedent's probate and nonprobate assets.      Date of First            Publication:            The notice agent declares under penalty of perjury under the laws of the state of Washington on          ,  [year], at      [city]      ,       [state]      that the foregoing is true and correct._________________________Signature of Notice AgentNotice Agent:Attorney for the Notice Agent:Address for Mailing or Service:Sec. 27. RCW 11.42.040 and 1994 c 221 s 34 are each amended to read as follows:         ((The notice agent shall exercise reasonable diligence to discover, within the four-month time limitation, reasonably ascertainable creditors of the decedent. The notice agent is deemed to have exercised reasonable diligence to ascertain the creditors upon:    (1) Conducting, within the four-month time limitation, a reasonable review of the decedent's correspondence including correspondence received after the date of death and financial records including checkbooks, bank statements, income tax returns, and similar materials, that are in the possession of, or reasonably available to, the notice agent; and      (2) Having made, with regard to claimants, inquiry of the nonprobate takers of the decedent's property and of the presumptive heirs, devisees, and legatees of the decedent, all of whose names and addresses are known, or in the exercise of reasonable diligence should have been known, to the notice agent.           If the notice agent conducts the review and makes an inquiry, the notice agent is presumed to have exercised reasonable diligence to ascertain creditors of the decedent, and creditors not ascertained in the review or in an inquiry are presumed not reasonably ascertainable. These presumptions may be rebutted only by clear, cogent, and convincing evidence. The notice agent may evidence the review and inquiry by filing an affidavit or declaration under penalty of perjury form as provided in RCW 9A.72.085 to the effect in the nonprobate proceeding in the notice county. The notice agent also may petition the superior court of the notice county for an order declaring that the notice agent has made a review and inquiry and that only creditors known to the notice agent after the review and inquiry are reasonably ascertainable. The petition and hearing must be under the procedures provided in chapter 11.96 RCW, and the notice specified under RCW 11.96.100 must also be given by publication.)) (1) For purposes of RCW 11.42.050, a "reasonably ascertainable" creditor of the decedent is one that the notice agent would discover upon exercise of reasonable diligence. The notice agent is deemed to have exercised reasonable diligence upon conducting a reasonable review of the decedent's correspondence, including correspondence received after the date of death, and financial records, including personal financial statements, loan documents, checkbooks, bank statements, and income tax returns, that are in the possession of or reasonably available to the notice agent.  (2) If the notice agent conducts the review, the notice agent is presumed to have exercised reasonable diligence to ascertain creditors of the decedent and any creditor not ascertained in the review is presumed not reasonably ascertainable within the meaning of RCW 11.42.050. These presumptions may be rebutted only by clear, cogent, and convincing evidence.      (3) The notice agent may evidence the review and resulting presumption by filing with the court an affidavit regarding the facts referred to in this section. The notice agent may petition the court for an order declaring that the notice agent has made a review and that any creditors not known to the notice agent are not reasonably ascertainable. The petition must be filed under RCW 11.96.070, and the notice specified under RCW 11.96.100 must also be given by publication.     Sec. 28. RCW 11.42.050 and 1994 c 221 s 35 are each amended to read as follows:      ((The actual notice described in RCW 11.42.020(4)(a), as to a creditor becoming known to the notice agent within the four-month time limitation, must be given the creditor by personal service or regular first class mail, addressed to the creditor's last known address, postage prepaid. The actual notice must be given before the later of the expiration of the four-month time limitation or thirty days after a creditor became known to the notice agent within the four-month time limitation. A known creditor is barred unless the creditor has filed a claim, as provided in this chapter, within the four-month time limitation or within thirty days following the date of actual notice to that creditor, whichever is later. If notice is given by mail, the date of mailing is the date of notice. This bar is effective as to claims against the included property as defined in RCW 11.42.010.)) (1) If a notice agent provides notice under RCW 11.42.020, any person having a claim against the decedent is forever barred from making a claim or commencing an action against the decedent if the claim or action is not already barred by an otherwise applicable statute of limitations, unless the creditor presents the claim in the manner provided in RCW 11.42.070 within the following time limitations:            (a) If the notice agent provided notice under RCW 11.42.020(2) (a) and (b) and the creditor was given actual notice as provided in RCW 11.42.020(2)(c), the creditor must present the claim within the later of: (i) Thirty days after the notice agent's service or mailing of notice to the creditor; and (ii) four months after the date of first publication of the notice;    (b) If the notice agent provided notice under RCW 11.42.020(2) (a) and (b) and the creditor was not given actual notice as provided in RCW 11.42.020(2)(c):          (i) If the creditor was not reasonably ascertainable, as defined in RCW 11.42.040, the creditor must present the claim within four months after the date of first publication of the notice;              (ii) If the creditor was reasonably ascertainable, as defined in RCW 11.42.040, the creditor must present the claim within twenty-four months after the decedent's date of death.            (2) Any otherwise applicable statute of limitations applies without regard to the tolling provisions of RCW 4.16.190.       (3) This bar is effective as to claims against both the decedent's probate and nonprobate assets.                 Sec. 29. RCW 11.42.060 and 1994 c 221 s 36 are each amended to read as follows:      (((1) Whether or not notice under RCW 11.42.020 has been given or should have been given, if no personal representative has been appointed and qualified, a person having a claim against the decedent who has not filed the claim within eighteen months from the date of the decedent's death is forever barred from making a claim against the decedent, or commencing an action against the decedent, if the claim or action is not already barred by any otherwise applicable statute of limitations. However, this eighteen-month limitation does not apply to:    (a) Claims described in RCW 11.42.030;      (b) A claim if, during the eighteen-month period following the date of death, partial performance has been made on the obligation underlying the claim, and the notice agent has not given the actual notice described in RCW 11.42.020(4)(a); or     (c) Claims if, within twelve months after the date of death:      (i) No notice agent has given the published notice described in RCW 11.42.020(4)(b); and      (ii) No personal representative has given the published notice described in RCW 11.40.010(2).          Any otherwise applicable statute of limitations applies without regard to the tolling provisions of RCW 4.16.190.            (2) Claims referred to in this section must be filed if there is no duly appointed, qualified, and acting personal representative and there is a duly declared and acting notice agent or resident agent for the notice agent. The claims, subject to applicable statutes of limitation, may at any time be served on the duly declared and acting notice agent or resident agent for the notice agent, or on the attorney for either of them.                (3) A claim to be filed under this chapter if there is no duly appointed, qualified, and acting personal representative but there is a duly declared and acting notice agent or resident agent for the notice agent and which claim is not otherwise barred under this chapter must be made in the form and manner provided under RCW 11.42.020, as if the notice under that section had been given.)) The time limitations for presenting claims under this chapter do not accrue to the benefit of any liability or casualty insurer. Claims against the decedent or the decedent's marital community that can be fully satisfied by applicable insurance coverage or proceeds need not be presented within the time limitation of RCW 11.42.050, but the amount of recovery cannot exceed the amount of the insurance. If a notice agent provides notice under RCW 11.42.020, the claims may at any time be presented as provided in RCW 11.42.070, subject to the otherwise relevant statutes of limitations, and does not constitute a cloud, lien, or encumbrance upon the title to the decedent's probate or nonprobate assets nor delay or prevent the transfer or distribution of the decedent's assets. This section does not serve to extend any otherwise relevant statutes of limitations.               Sec. 30. RCW 11.42.070 and 1994 c 221 s 37 are each amended to read as follows:              ((Notice under RCW 11.42.020 must be in substantially the following form:In the Matter of                         )                                                                      ) No.                                                                  )                                                                         ) NONPROBATE NOTICE TO CREDITORS                                                Deceased.               ). . . . . . . . . . . . .      )

      . . . . . . . . . . . . . . . . ., the undersigned Notice Agent, has elected to give notice to creditors of the decedent above named under RCW 11.42.020. As of the date of the filing of a copy of this notice with the Clerk of this Court, the Notice Agent has no knowledge of the appointment and qualification of a personal representative in the decedent's estate in the state of Washington or of any other person becoming a Notice Agent. According to the records of the Clerk of this Court as of 8:00 a.m. on the date of the filing of this notice with the Clerk, no personal representative of the decedent's estate had been appointed and qualified and no cause number regarding the decedent had been issued to any other Notice Agent by the Clerk of this Court under RCW 11.42.010.Persons having claims against the decedent named above must, before the time the claims would be barred by any otherwise applicable statute of limitations, serve their claims on: The Notice Agent if the Notice Agent is a resident of the state of Washington upon whom service of all papers may be made; the Nonprobate Resident Agent for the Notice Agent, if any; or the attorneys of record for the Notice Agent at the respective address in the state of Washington listed below, and file an executed copy of the claim with the Clerk of this Court within four months after the date of first publication of this notice, or within four months after the date of the filing of the copy of this notice with the Clerk of the Court, whichever is later, or, except under those provisions included in RCW 11.42.030 or 11.42.050, the claim will be forever barred. This bar is effective as to all assets of the decedent that were subject to satisfaction of the decedent's general liabilities immediately before the decedent's death regardless of whether those assets are or would be assets of the decedent's probate estate or nonprobate assets of the decedent.Date of filing of this notice with theClerk of the Court: . . . . . .Date of first publication of this notice: . . . . . . . . . . .The Notice Agent declares under penalty of perjury under the laws of the State of Washington on . . . . . . . . ., 19. . . at    [City]   ,    [State]    that the foregoing is true and correct.Notice Agent [signature]Nonprobate Resident Agent[if appointed][address in Washington, if any][address in Washington]

. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . Attorney for Notice Agent[address in Washington][telephone])) (1) The claimant, the claimant's attorney, or the claimant's agent shall sign the claim and include in the claim the following information:                  (a) The name and address of the claimant;  (b) The name, address, if different from that of the claimant, and nature of authority of an agent signing the claim on behalf of the claimant;  (c) A statement of the facts or circumstances constituting the basis of the claim;             (d) The amount of the claim; and      (e) If the claim is secured, unliquidated, contingent, or not yet due, the nature of the security, the nature of the uncertainty, or the date when it will become due.        Failure to describe correctly the information in (c), (d), or (e) of this subsection, if the failure is not substantially misleading, does not invalidate the claim.    (2) A claim does not need to be supported by affidavit.         (3) A claim must be presented within the time limits set forth in RCW 11.42.050 by: (a) Serving on or mailing to, by regular first class mail, the notice agent or the notice agent's attorney a copy of the signed claim; and (b) filing the original of the signed claim with the court. A claim is deemed presented upon the later of the date of postmark or service on the notice agent, or the notice agent's attorney, and filing with the court.         (4) Notwithstanding any other provision of this chapter, if a claimant makes a written demand for payment within the time limits set forth in RCW 11.42.050, the notice agent may waive formal defects and elect to treat the demand as a claim properly filed under this chapter if: (a) The claim was due; (b) the amount paid was the amount of indebtedness over and above all payments and offsets; (c) the estate is solvent; and (d) the payment is made in good faith. Nothing in this chapter limits application of the doctrines of waiver, estoppel, or detrimental claims or any other equitable principle.      Sec. 31. RCW 11.42.080 and 1994 c 221 s 38 are each amended to read as follows:           ((RCW 11.40.020 applies to claims subject to this chapter.)) (1) The notice agent shall allow or reject all claims presented in the manner provided in RCW 11.42.070. The notice agent may allow or reject a claim, in whole or in part.  (2) If the notice agent has not allowed or rejected a claim within the later of four months from the date of first publication of the notice to creditors and thirty days from presentation of the claim, the claimant may serve written notice on the notice agent that the claimant will petition the court to have the claim allowed. If the notice agent fails to notify the claimant of the allowance or rejection of the claim within twenty days after the notice agent's receipt of the claimant's notice, the claimant may petition the court for a hearing to determine whether the claim should be allowed or rejected, in whole or in part. If the court substantially allows the claim, the court may allow the petitioner reasonable attorneys' fees chargeable against the decedent's assets received by the notice agent or by those appointing the notice agent.            NEW SECTION. Sec. 32. A new section is added to chapter 11.42 RCW to read as follows:            (1) The decedent's nonprobate and probate assets that were subject to the satisfaction of the decedent's general liabilities immediately before the decedent's death are liable for claims. The decedent's probate assets may be liable, whether or not there is a probate administration of the decedent's estate.      (2) The notice agent may pay a claim allowed by the notice agent or a judgment on a claim first prosecuted against a notice agent only out of assets received as a result of the death of the decedent by the notice agent or by those appointing the notice agent, except as may be provided by agreement under RCW 11.96.170 or by court order under RCW 11.96.070.          Sec. 33. RCW 11.42.090 and 1994 c 221 s 39 are each amended to read as follows:          (((1) Property of the decedent that was subject to the satisfaction of the decedent's general liabilities immediately before the decedent's death is liable for claims. The property includes, but is not limited to, property of the decedent that is includable in the decedent's probate estate, whether or not there is a probate administration of the decedent's estate.                (2) A claim approved by the notice agent, and a judgment on a claim first prosecuted against a notice agent, may be paid only out of assets received as a result of the death of the decedent by the notice agent or by those appointing the notice agent under chapter 11.96 RCW, except as may be provided by agreement under RCW 11.96.170 or by court order under RCW 11.96.070.)) (1) If the notice agent allows a claim, the notice agent shall notify the claimant of the allowance by personal service or regular first class mail to the address stated on the claim. A claim may not be allowed if it is barred by a statute of limitations.           (2) The notice agent shall pay claims allowed in the following order from the assets of the decedent that are subject to the payment of claims as provided in section 32 of this act:            (a) Costs of administering the assets subject to the payment of claims, including a reasonable fee to the notice agent, any resident agent for the notice agent, reasonable attorneys' fees for the attorney for each of them, filing fees, publication costs, mailing costs, and similar costs and fees;                (b) Funeral expenses in a reasonable amount;      (c) Expenses of the last sickness in a reasonable amount;      (d) Wages due for labor performed within sixty days immediately preceding the death of the decedent;             (e) Debts having preference by the laws of the United States;               (f) Taxes, debts, or dues owing to the state;                  (g) Judgments rendered against the decedent in the decedent's lifetime that are liens upon real estate on which executions might have been issued at the time of the death of the decedent and debts secured by mortgages in the order of their priority; and     (h) All other demands against the assets subject to the payment of claims.      (3) The notice agent may not pay a claim of the notice agent or other person who has received property by reason of the decedent's death unless all other claims that have been filed under this chapter, and all debts having priority to the claim, are paid in full or otherwise settled by agreement, regardless of whether the other claims are allowed or rejected.      Sec. 34. RCW 11.42.100 and 1994 c 221 s 40 are each amended to read as follows:           (((1) The notice agent shall approve or reject claims no later than by the end of a period that is two months after the end of the four-month time limitation defined as the "review period."      (2) The notice agent may approve a claim, in whole or in part.             (3) If the notice agent rejects a claim, in whole or in part, the notice agent shall notify the claimant of the rejection and file in the office of the clerk of the court in the notice county an affidavit or declaration under penalty of perjury under RCW 9A.72.085 showing the notification and the date of the notification. The notification must be by personal service or certified mail addressed to the claimant at the claimant's address as stated in the claim. If a person other than the claimant signed the claim for or on behalf of the claimant, and the person's business address as stated in the claim is different from that of the claimant, notification of the rejection also must be made by personal service or certified mail upon that person. The date of the postmark is the date of the notification. The notification of the rejection must advise the claimant, and the person making claim on his, her, or its behalf, if any, that the claimant must bring suit in the proper court in the notice county against the notice agent: (a) Within thirty days after notification of rejection if the notification is made during or after the review period; or (b) before expiration of thirty days after the end of the four-month time limitation, if the notification is made during the four-month time limitation, and that otherwise the claim is forever barred.   (4) A claimant whose claim either has been rejected by the notice agent or has not been acted upon within twenty days of written demand for the action having been given to the notice agent by the claimant during or after the review period must commence an action against the notice agent in the proper court in the notice county to enforce the claim of the claimant within the earlier of:            (a) If the notice of the rejection of the claim has been sent as provided in subsection (3) of this section: The time for filing an action on a rejected claim is as provided in subsection (3) of this section; or      (b) If written demand for approval or rejection is made on the notice agent before the claim is rejected: Within thirty days following the end of the twenty-day written demand period where the demand period ends during or after the review period;otherwise the claim is forever barred.                (5) The notice agent may, either before or after rejection of a claim, compromise the claim, whether due or not, absolute or contingent, liquidated or unliquidated.          (6) A personal representative of the decedent's estate may revoke either or both of: (a) The rejection of a claim that has been rejected by the notice agent; or (b) the approval of a claim that has been either approved or compromised by the notice agent, or both.    (7) If a notice agent pays a claim that subsequently is revoked by a personal representative of the decedent, the notice agent may file a claim in the decedent's estate for the notice agent's payment, and the claim may be allowed or rejected as other claims, at the election of the personal representative.      (8) If the notice agent has not received substantially all assets of the decedent that are liable for claims, then although an action may be commenced on a rejected claim by a creditor against the notice agent, the notice agent, notwithstanding any provision in this chapter, may only make an appearance in the litigation. The notice agent may not answer the action, but must, instead, cause a petition to be filed for the appointment of a personal representative of the decedent within thirty days of the service of the creditor's summons and complaint on the notice agent. A judgment may not be entered in an action brought by a creditor against the notice agent earlier than twenty days after the duly appointed, qualified, and acting personal representative of the decedent has been substituted in that action for the notice agent.)) (1) If the notice agent rejects a claim, in whole or in part, the claimant must bring suit against the notice agent within thirty days after notification of rejection or the claim is forever barred. The notice agent shall notify the claimant of the rejection and file an affidavit with the court showing the notification and the date of the notification. The notice agent shall notify the claimant of the rejection by personal service or certified mail addressed to the claimant or claimant's agent, if applicable, at the address stated in the claim. The date of service or of the postmark is the date of notification. The notification must advise the claimant that the claimant must bring suit in the proper court against the notice agent within thirty days after notification of rejection or the claim will be forever barred.               (2) If a claimant brings suit against the notice agent on a rejected claim and the notice agent has not received substantially all assets of the decedent that are liable for claims, the notice agent may only make an appearance in the action and may not answer the action but must cause a petition to be filed for the appointment of a personal representative within thirty days after service of the creditor's action on the notice agent. Under these circumstances, a judgment may not be entered in an action brought by a creditor against the notice agent earlier than twenty days after the personal representative has been substituted in that action for the notice agent.               (3) The notice agent may, before or after rejection of any claim, compromise the claim, whether due or not, absolute or contingent, liquidated, or unliquidated.      Sec. 35. RCW 11.42.110 and 1994 c 221 s 41 are each amended to read as follows:  ((If a claim has been filed and presented to a notice agent, and a part of the claim is allowed, the amount of the allowance must be stated in the indorsement. If the creditor refuses to accept the amount so allowed in satisfaction of the claim, the creditor may not recover costs in an action the creditor may bring against the notice agent and against any substituted personal representative unless the creditor recovers a greater amount than that offered to be allowed, exclusive of interest and costs.)) The effect of a judgment rendered against the notice agent shall be only to establish the amount of the judgment as an allowed claim.                 Sec. 36. RCW 11.42.120 and 1994 c 221 s 42 are each amended to read as follows:          ((A debt of a decedent for whose estate no personal representative has been appointed must be paid in the following order by the notice agent from the assets of the decedent that are subject to the payment of claims as provided in RCW 11.42.090:      (1) Costs of administering the assets subject to the payment of claims, including a reasonable fee to the notice agent, the resident agent for the notice agent, if any, reasonable attorneys' fees for the attorney for each of them, filing fees, publication costs, mailing costs, and similar costs and fees.             (2) Funeral expenses in a reasonable amount.   (3) Expenses of the last sickness in a reasonable amount.      (4) Wages due for labor performed within sixty days immediately preceding the death of the decedent.                  (5) Debts having preference by the laws of the United States.     (6) Taxes or any debts or dues owing to the state.             (7) Judgments rendered against the decedent in the decedent's lifetime that are liens upon real estate on which executions might have been issued at the time of the death of the decedent and debts secured by mortgages in the order of their priority. However, the real estate is subject to the payment of claims as provided in RCW 11.42.100.      (8) All other demands against the assets subject to the payment of claims as provided in RCW 11.42.100.         A claim of the notice agent or other person who has received property by reason of the decedent's death may not be paid by the notice agent unless all other claims that have been filed under this chapter, and all debts having priority to the claim, are paid in full or otherwise settled by agreement, regardless of whether the other claims are allowed or rejected, or partly allowed or partly rejected. In the event of the probate of the decedent's estate, the personal representative's payment from estate assets of the claim of the notice agent or other person who has received property by reason of the decedent's death is not affected by the priority payment provisions of this section.)) If a judgment was entered against the decedent during the decedent's lifetime, an execution may not issue on the judgment after the death of the decedent. If a notice agent is acting, the judgment must be presented in the manner provided in RCW 11.42.070, but if the judgment is a lien on any property of the decedent, the property may be sold for the satisfaction of the judgment and the officer making the sale shall account to the notice agent for any surplus.      NEW SECTION. Sec. 37. A new section is added to chapter 11.42 RCW to read as follows:            If a creditor's claim is secured by any property of the decedent, this chapter does not affect the right of the creditor to realize on the creditor's security, whether or not the creditor presented the claim in the manner provided in RCW 11.42.070.                  Sec. 38. RCW 11.42.130 and 1994 c 221 s 43 are each amended to read as follows:  ((The notice agent may not allow a claim that is barred by the statute of limitations.)) A claim of the notice agent or other person who has received property by reason of the decedent's death must be paid as set forth in RCW 11.42.090(3).               Sec. 39. RCW 11.42.140 and 1994 c 221 s 45 are each amended to read as follows:          ((The time during which there is a vacancy in the office of notice agent is not included in a limitation prescribed in this chapter.)) (1) If a notice agent has given notice under RCW 11.42.020 and the notice agent resigns, dies, or is removed or a personal representative is appointed, the successor notice agent or the personal representative shall:      (a) Publish notice of the vacancy and succession for two successive weeks in the legal newspaper in which notice was published under RCW 11.42.020, if the vacancy occurred within twenty-four months after the decedent's date of death; and       (b) Provide actual notice of the vacancy and succession to a creditor if: (i) The creditor filed a claim and the claim had not been allowed or rejected by the prior notice agent; or (ii) the creditor's claim was rejected and the vacancy occurred within thirty days after rejection of the claim.                 (2) The time between the resignation, death, or removal of the notice agent or appointment of a personal representative and the first publication of the vacancy and succession or, in the case of actual notice, the mailing of the notice of vacancy and succession must be added to the time within which a claim must be presented or a suit on a rejected claim must be filed. This section does not extend the twenty-four-month self-executing bar under RCW 11.42.050.          Sec. 40. RCW 11.42.150 and 1994 c 221 s 44 are each amended to read as follows:      ((A holder of a claim against a decedent may not maintain an action on the claim against a notice agent, unless the claim has been first presented as provided in this chapter. This chapter does not affect RCW 82.32.240.)) (1) The powers and authority of a notice agent immediately cease, and the office of notice agent becomes vacant, upon appointment of a personal representative for the estate of the decedent. Except as provided in RCW 11.42.140(2), the cessation of the powers and authority does not affect the filing and publication of notice to creditors and does not affect actual notice to creditors given by the notice agent.       (2) As set forth in section 23 of this act, a personal representative may adopt, ratify, nullify, or reject any actions of the notice agent.       (3) If a personal representative is appointed and the personal representative does not nullify the allowance of a claim that the notice agent allowed and paid, the person or persons whose assets were used to pay the claim may petition for reimbursement from the estate to the extent the payment was not in accordance with chapter 11.10 RCW.                Sec. 41. RCW 11.44.015 and 1967 c 168 s 9 are each amended to read as follows:          (1) Within three months after ((his)) appointment, unless a longer time shall be granted by the court, every personal representative shall make and ((return upon oath into the court)) verify by affidavit a true inventory and appraisement of all of the property of the estate passing under the will or by laws of intestacy and which shall have come to ((his)) the personal representative's possession or knowledge, including a statement of all encumbrances, liens, or other secured charges against any item. The personal representative shall determine the fair net value, as of the date of the decedent's death, of each item contained in the inventory after deducting the encumbrances, liens, and other secured charges on the item. Such property shall be classified as follows:        (((1))) (a) Real property, by legal description ((and assessed valuation of land and improvements thereon));              (((2))) (b) Stocks and bonds;  (((3))) (c) Mortgages, notes, and other written evidences of debt;         (((4))) (d) Bank accounts and money;    (((5))) (e) Furniture and household goods;             (((6))) (f) All other personal property accurately identified, including the decedent's proportionate share in any partnership, but no inventory of the partnership property shall be required of the personal representative.   (2) The inventory and appraisement may, but need not be, filed in the probate cause, but upon receipt of a written request for a copy of the inventory and appraisement from any heir, legatee, devisee, unpaid creditor who has filed a claim, or beneficiary of a nonprobate asset from whom contribution is sought under RCW 11.18.200, or from the department of revenue, the personal representative shall furnish to the person, within ten days of receipt of a request, a true and correct copy of the inventory and appraisement.      Sec. 42. RCW 11.44.025 and 1974 ex.s. c 117 s 48 are each amended to read as follows:   Whenever any property of the estate not mentioned in the inventory and appraisement comes to the knowledge of a personal representative, ((he)) the personal representative shall cause the ((same)) property to be inventoried and appraised and shall make and ((return upon oath into the court)) verify by affidavit a true inventory and appraisement of ((said)) the property within thirty days after the discovery thereof, unless a longer time shall be granted by the court, and shall provide a copy of the inventory and appraisement to every person who has properly requested a copy of the inventory and appraisement under RCW 11.44.015(2).      Sec. 43. RCW 11.44.035 and 1965 c 145 s 11.44.035 are each amended to read as follows:               In an action against the personal representative where ((his)) the administration of the estate, or any part thereof, is put in issue and the inventory and appraisement of the estate ((returned)) by ((him, or the appraisal thereof)) the personal representative is given in evidence, the same may be contradicted or avoided by evidence. Any party in interest in the estate may challenge the inventory ((or)) and appraisement at any stage of the probate proceedings.       Sec. 44. RCW 11.44.050 and 1965 c 145 s 11.44.050 are each amended to read as follows:          If any personal representative shall neglect or refuse to ((return)) make the inventory and appraisement within the period prescribed, or within such further time as the court may allow, or to provide a copy as provided under RCW 11.44.015, 11.44.025, or 11.44.035, the court may revoke the letters testamentary or of administration; and the personal representative shall be liable on his or her bond to any party interested for the injury sustained by the estate through his or her neglect.            Sec. 45. RCW 11.44.070 and 1974 ex.s. c 117 s 50 are each amended to read as follows:   The personal representative may employ a qualified and disinterested person to assist in ascertaining the fair market value as of the date of the decedent's death of any asset the value of which may be subject to reasonable doubt. Different persons may be employed to appraise different kinds of assets included in the estate. The amount of the fee to be paid to any persons assisting the personal representative in any appraisement shall be determined by the personal representative: PROVIDED HOWEVER, That the reasonableness of any such compensation shall, at the time of hearing on any final account as provided in chapter 11.76 RCW or on a request or petition under RCW 11.68.100 or 11.68.110, be reviewed by the court in accordance with the provisions of RCW 11.68.100, and if the court determines the compensation to be unreasonable, a personal representative may be ordered to make appropriate refund.         Sec. 46. RCW 11.44.085 and 1965 c 145 s 11.44.085 are each amended to read as follows:          The naming or the appointment of any person as personal representative shall not operate as a discharge from any just claim which the testator or intestate had against the personal representative, but the claim shall be included in the inventory and appraisement and the personal representative shall be liable to the same extent as ((he)) the personal representative would have been had he or she not been appointed personal representative.                Sec. 47. RCW 11.44.090 and 1965 c 145 s 11.44.090 are each amended to read as follows:      The discharge or bequest in a will of any debt or demand of the testator against any executor named in ((his)) the testator's will or against any person shall not be valid against the creditors of the deceased, but shall be construed as a specific bequest of such debt or demand, and the amount thereof shall be included in the inventory and appraisement, and shall, if necessary, be applied in payment of ((his)) the testator's debts; if not necessary for that purpose, it shall be paid in the same manner and proportions as other specific legacies.       NEW SECTION. Sec. 48. (1) Subject to section 50 of this act, the surviving spouse of a decedent may petition the court for an award from the property of the decedent. If the decedent is survived by children of the decedent who are not also the children of the surviving spouse, on petition of such a child the court may divide the award between the surviving spouse and all or any of such children as it deems appropriate. If there is not a surviving spouse, the minor children of the decedent may petition for an award.     (2) The award may be made from either the community property or separate property of the decedent. Unless otherwise ordered by the court, the probate and nonprobate assets of the decedent abate in accordance with chapter 11.10 RCW in satisfaction of the award.          (3) The award may be made whether or not probate proceedings have been commenced in the state of Washington. The court may not make this award unless the petition for the award is filed before the earliest of:      (a) Eighteen months from the date of the decedent's death if within twelve months of the decedent's death either:              (i) A personal representative has been appointed; or           (ii) A notice agent has filed a declaration and oath as required in RCW 11.42.010(3)(a)(ii); or      (b) The termination of any probate proceeding for the decedent's estate that has been commenced in the state of Washington; or      (c) Six years from the date of the death of the decedent.        NEW SECTION. Sec. 49. The amount of the basic award shall be the amount specified in RCW 6.13.030(2) with regard to lands. If an award is divided between a surviving spouse and the decedent's children who are not the children of the surviving spouse, the aggregate amount awarded to all the claimants under this section shall be the amount specified in RCW 6.13.030(2) with respect to lands. The amount of the basic award may be increased or decreased in accordance with sections 51 and 52 of this act.                     NEW SECTION. Sec. 50. (1) The court may not make an award unless the court finds that the funeral expenses, expenses of last sickness, and expenses of administration have been paid or provided for.        (2) The court may not make an award to a surviving spouse or child who has participated, either as a principal or as an accessory before the fact, in the willful and unlawful killing of the decedent.      NEW SECTION. Sec. 51. (1) If it is demonstrated to the satisfaction of the court with clear, cogent, and convincing evidence that a claimant's present and reasonably anticipated future needs during the pendency of any probate proceedings in the state of Washington with respect to basic maintenance and support will not otherwise be provided for from other resources, and that the award would not be inconsistent with the decedent's intentions, the amount of the award may be increased in an amount the court determines to be appropriate.      (2) In determining the needs of the claimant, the court shall consider, without limitation, the resources available to the claimant and the claimant's dependents, and the resources reasonably expected to be available to the claimant and the claimant's dependents during the pendency of the probate, including income related to present or future employment and benefits flowing from the decedent's probate and nonprobate estate.                 (3) In determining the intentions of the decedent, the court shall consider, without limitation:        (a) Provisions made for the claimant by the decedent under the terms of the decedent's will or otherwise;             (b) Provisions made for third parties or other entities under the decedent's will or otherwise that would be affected by an increased award;          (c) If the claimant is the surviving spouse, the duration and status of the marriage of the decedent to the claimant at the time of the decedent's death;          (d) The effect of any award on the availability of any other resources or benefits to the claimant;        (e) The size and nature of the decedent's estate; and              (f) Oral or written statements made by the decedent that are otherwise admissible as evidence.                The fact that the decedent has named beneficiaries other than the claimant as recipients of the decedent's estate is not of itself adequate to evidence such an intent as would prevent the award of an amount in excess of that provided for in RCW 6.13.030(2) with respect to lands.        (4)(a) A petition for an increased award may only be made if a petition for an award has been granted under section 48 of this act. The request for an increased award may be made in conjunction with the petition for an award under section 48 of this act.     (b) Subject to (a) of this subsection, a request for an increased award may be made at any time during the pendency of the probate proceedings. A request to modify an increased award may also be made at any time during the pendency of the probate proceedings by a person having an interest in the decedent's estate that will be directly affected by the requested modification.      NEW SECTION. Sec. 52. (1) The court may decrease the amount of the award below the amount provided in section 49 of this act in the exercise of its discretion if the recipient is entitled to receive probate or nonprobate property, including insurance, by reason of the death of the decedent. In such a case the award must be decreased by no more than the value of such other property as is received by reason of the death of the decedent. The court shall consider the factors presented in section 51(2) of this act in determining the propriety of the award and the proper amount of the award, if any.              (2) An award to a surviving spouse is also discretionary and the amount otherwise allowable may be reduced if: (a) The decedent is survived by children who are not the children of the surviving spouse and the award would decrease amounts otherwise distributable to such children; or (b) the award would have the effect of reducing amounts otherwise distributable to any of the decedent's minor children. In either case the court shall consider the factors presented in section 51 (2) and (3) of this act and whether the needs of the minor children with respect to basic maintenance and support are and will be adequately provided for, both during and after the pendency of any probate proceedings if such proceedings are pending, considering support from any source, including support from the surviving spouse.      NEW SECTION. Sec. 53. (1) The award has priority over all other claims made in the estate. In determining which assets must be made available to satisfy the award, the claimant is to be treated as a general creditor of the estate, and unless otherwise ordered by the court the assets shall abate in satisfaction of the award in accordance with chapter 11.10 RCW.         (2) If the property awarded is being purchased on contract or is subject to any encumbrance, for purposes of the award the property must be valued net of the balance due on the contract and the amount of the encumbrance. The property awarded will continue to be subject to any such contract or encumbrance, and any award in excess of the basic award under section 48 of this act, whether of community property or the decedent's separate property, is not immune from any lien for costs of medical expenses recoverable under RCW 43.20B.080.                 NEW SECTION. Sec. 54. (1) Except as provided in subsection (2) of this section, property awarded and cash paid under this chapter is immune from all debts, including judgments and judgment liens, of the decedent and of the surviving spouse existing at the time of death.             (2) Both the decedent's and the surviving spouse's interests in any community property awarded to the spouse under this chapter are immune from the claims of creditors.   NEW SECTION. Sec. 55. (1) This section applies if the party entitled to petition for an award holds exempt property that is in an aggregate amount less than that specified in RCW 6.13.030(2) with respect to lands.                 (2) For purposes of this section, the party entitled to petition for an award is referred to as the "claimant." If multiple parties are entitled to petition for an award, all of them are deemed a "claimant" and may petition for an exemption of additional assets as provided in this section, if the aggregate amount of exempt property to be held by all the claimants after the making of the award does not exceed the amount specified in RCW 6.13.030(2) with respect to lands.            (3) A claimant may petition the court for an order exempting other assets from the claims of creditors so that the aggregate amount of exempt property held by the claimants equals the amount specified in RCW 6.13.030(2) with respect to lands. The petition must:     (a) Set forth facts to establish that the petitioner is entitled to petition for an award under section 48 of this act;     (b) State the nature and value of those assets then held by all claimants that are exempt from the claims of creditors; and                 (c) Describe the nonexempt assets then held by the claimants, including any interest the claimants may have in any probate or nonprobate property of the decedent.                (4) Notice of a petition for an order exempting assets from the claims of creditors must be given in accordance with RCW 11.96.100.     (5) At the hearing on the petition, the court shall order that certain assets of the claimants are exempt from the claims of creditors so that the aggregate amount of exempt property held by the claimants after the entry of the order is in the amount specified in RCW 6.13.030(2) with respect to lands. In the order the court shall designate those assets of the claimants that are so exempt.          NEW SECTION. Sec. 56. The petition for an award, for an increased or modified award, or for the exemption of assets from the claims of creditors as authorized by this chapter must be made to the court of the county in which the probate is being administered. If probate proceedings have not been commenced in the state of Washington, the petition must be made to the court of a county in which the decedent's estate could be administered under RCW 11.96.050 if the decedent held personal property subject to probate in the county of the decedent's domicile. The petition and the hearing must conform to RCW 11.96.070. Notice of the hearing on the petition must be given in accordance with RCW 11.96.100.                NEW SECTION. Sec. 57. If an award provided by this chapter will exhaust the estate, and probate proceedings have been commenced in the state of Washington, the court in the order of award or allowance shall order the estate closed, discharge the personal representative, and exonerate the personal representative's bond, if any.                 Sec. 58. RCW 11.48.130 and 1965 c 145 s 11.48.130 are each amended to read as follows:               The court ((shall have power to)) may authorize the personal representative, without the necessary nonintervention powers, to compromise and compound any claim owing the estate. Unless the court has restricted the power to compromise or compound claims owing to the estate, a personal representative with nonintervention powers may compromise and compound a claim owing the estate without the intervention of the court.   NEW SECTION. Sec. 59. A new section is added to chapter 11.68 RCW to read as follows:               (1) A personal representative may petition the court for nonintervention powers, whether the decedent died testate or intestate.        (2) Unless the decedent has specified in the decedent's will, if any, that the court not grant nonintervention powers to the personal representative, the court shall grant nonintervention powers to a personal representative who petitions for the powers if the court determines that the decedent's estate is solvent, taking into account probate and nonprobate assets, and that:            (a) The petitioning personal representative was named in the decedent's probated will as the personal representative;           (b) The decedent died intestate, the petitioning personal representative is the decedent's surviving spouse, the decedent's estate is composed of community property only, and the decedent had no issue: (i) Who is living or in gestation on the date of the petition; (ii) whose identity is reasonably ascertainable on the date of the petition; and (iii) who is not also the issue of the petitioning spouse; or    (c) The personal representative was not a creditor of the decedent at the time of the decedent's death and the administration and settlement of the decedent's will or estate with nonintervention powers would be in the best interests of the decedent's beneficiaries and creditors. However, the administration and settlement of the decedent's will or estate with nonintervention powers will be presumed to be in the beneficiaries' and creditors' best interest until a person entitled to notice under section 61 of this act rebuts that presumption by coming forward with evidence that the grant of nonintervention powers would not be in the beneficiaries' or creditors' best interests.       (3) The court may base its findings of facts necessary for the grant of nonintervention powers on: (a) Statements of witnesses appearing before the court; (b) representations contained in a verified petition for nonintervention powers, in an inventory made and returned upon oath into the court, or in an affidavit filed with the court; or (c) other proof submitted to the court.      NEW SECTION. Sec. 60. A new section is added to chapter 11.68 RCW to read as follows:            A hearing on a petition for nonintervention powers may be held at the time of the appointment of the personal representative or at any later time.            NEW SECTION. Sec. 61. A new section is added to chapter 11.68 RCW to read as follows:                (1) Advance notice of the hearing on a petition for nonintervention powers referred to in section 59 of this act is not required in those circumstances in which the court is required to grant nonintervention powers under section 59(2) (a) and (b) of this act.              (2) In all other cases, if the petitioner wishes to obtain nonintervention powers, the personal representative shall give notice of the petitioner's intention to apply to the court for nonintervention powers to all heirs, all beneficiaries of a gift under the decedent's will, and all persons who have requested, and who are entitled to, notice under RCW 11.28.240, except that:        (a) A person is not entitled to notice if the person has, in writing, either waived notice of the hearing or consented to the grant of nonintervention powers; and    (b) An heir who is not also a beneficiary of a gift under a will is not entitled to notice if the will has been probated and the time for contesting the validity of the will has expired.     (3) The notice required by this section must be either personally served or sent by regular mail at least ten days before the date of the hearing, and proof of mailing of the notice must be by affidavit filed in the cause. The notice must contain the decedent's name, the probate cause number, the name and address of the personal representative, and must state in substance as follows:                (a) The personal representative has petitioned the superior court of the state of Washington for . . . . . county, for the entry of an order granting nonintervention powers and a hearing on that petition will be held on . . . . ., the . . . . . day of . . . . ., . . . ., at . . . . . o'clock, . . M.; (b) The petition for an order granting nonintervention powers has been filed with the court;                (c) Following the entry by the court of an order granting nonintervention powers, the personal representative is entitled to administer and close the decedent's estate without further court intervention or supervision; and        (d) A person entitled to notice has the right to appear at the time of the hearing on the petition for an order granting nonintervention powers and to object to the granting of nonintervention powers to the personal representative.    (4) If notice is not required, or all persons entitled to notice have either waived notice of the hearing or consented to the entry of an order granting nonintervention powers as provided in this section, the court may hear the petition for an order granting nonintervention powers at any time.       Sec. 62. RCW 11.68.050 and 1977 ex.s. c 234 s 21 are each amended to read as follows:   (1) If at the time set for the hearing upon ((the)) a petition for ((the entry of an order of solvency)) nonintervention powers, any person entitled to notice of the hearing on the petition under ((the provisions of RCW 11.68.040 as now or hereafter amended,)) section 61 of this act shall appear and object to the granting of nonintervention powers to the personal representative of the estate, the court shall consider ((said objections, if any, and the entry of an order of solvency shall be discretionary with the court upon being satisfied by proof as required in RCW 11.68.010 as now or hereafter amended. If an order of solvency is entered)) the objections, if any, in connection with its determination under section 59(2)(c) of this act of whether a grant of nonintervention powers would be in the best interests of the decedent's beneficiaries.                  (2) The nonintervention powers of a personal representative may not be restricted at a hearing on a petition for nonintervention powers in which the court is required to grant nonintervention powers under section 59(2) (a) and (b) of this act, unless a will specifies that the nonintervention powers of a personal representative may be restricted when the powers are initially granted. In all other cases, including without limitation any hearing on a petition that alleges that the personal representative has breached its duties to the beneficiaries of the estate, the court may restrict the powers of the personal representative in such manner as the court determines((. If no objection is made at the time of the hearing by any person entitled to notice thereof, the court shall enter an order of solvency upon being satisfied by proof as required in RCW 11.68.010 as now or hereafter amended)) to be in the best interests of the decedent's beneficiaries.           Sec. 63. RCW 11.68.060 and 1977 ex.s. c 234 s 22 are each amended to read as follows:         If((, after the entry of an order of solvency,)) any personal representative of the estate of the decedent ((shall)) dies, resigns, or otherwise becomes disabled from any cause from acting as the nonintervention personal representative, ((the successor personal representative, other than a creditor of a decedent not designated as a personal representative in the decedent's will, shall administer the estate of the decedent without the intervention of court after notice and hearing as required by RCW 11.68.040 and 11.68.050 as now or hereafter amended, unless at the time of said hearing objections to the granting of nonintervention powers to such successor personal representative shall be made by an heir, legatee, devisee, or other person entitled to notice pursuant to RCW 11.28.240 as now existing or hereafter amended, and unless the court, after hearing said objections shall refuse to grant nonintervention powers to such successor personal representative. If no heir, legatee, devisee, or other person entitled to notice shall appear at the time of the hearing to object to the granting of nonintervention powers to such successor personal representative, the court shall enter an order granting nonintervention powers to)) the successor personal representative, or a person who has petitioned to be appointed as a successor personal representative, may petition the court for nonintervention powers, and the court shall act, in accordance with sections 59 through 61 of this act and RCW 11.68.050.              NEW SECTION. Sec. 64. A new section is added to chapter 11.68 RCW to read as follows:              A beneficiary whose interest in an estate has not been fully paid or distributed may petition the court for an order directing the personal representative to deliver a report of the affairs of the estate signed and verified by the personal representative. The petition may be filed at any time after one year from the day on which the report was last delivered, or, if none, then one year after the order appointing the personal representative. Upon hearing of the petition after due notice as required in chapter 11.96 RCW, the court may, for good cause shown, order the personal representative to deliver to the petitioner the report for any period not covered by a previous report. The report for the period shall include such of the following as the court may order: A description of the amount and nature of all property, real and personal, that has come into the hands of the personal representative; a statement of all property collected and paid out or distributed by the personal representative; a statement of claims filed and allowed against the estate and those rejected; any estate, inheritance, or fiduciary income tax returns filed by the personal representative; and such other information as the order may require. This subsection does not limit any power the court might otherwise have at any time during the administration of the estate to require the personal representative to account or furnish other information to any person interested in the estate.       Sec. 65. RCW 11.68.080 and 1977 ex.s. c 234 s 24 are each amended to read as follows:  ((After such notice as the court may require, the order of solvency shall be vacated or restricted upon the petition of any personal representative, heir, legatee, devisee, or creditor, if supported by proof satisfactory to the court that said estate has become insolvent.  If, after hearing, the court shall vacate or restrict the prior order of solvency, the court shall endorse the term "Vacated" or "Powers restricted" upon the original order of solvency)) (1) Within ten days after the personal representative has received from alleged creditors under chapter 11.40 RCW claims that have an aggregate face value that, when added to the other debts and to the taxes and expenses of greater priority under applicable law, would appear to cause the estate to be insolvent, the personal representative shall notify in writing all beneficiaries under the decedent's will and, if any of the decedent's property will pass according to the laws of intestate succession, all heirs, together with any unpaid creditors, other than a creditor whose claim is then barred under chapter 11.40 RCW or the otherwise applicable statute of limitations, that the estate might be insolvent. The personal representative shall file a copy of the written notice with the court.                  (2) Within ten days after an estate becomes insolvent, the personal representative shall petition under chapter 11.96 RCW for a determination of whether the court should reaffirm, rescind, or restrict in whole or in part any prior grant of nonintervention powers. Notice of the hearing must be given in accordance with RCW 11.96.100 and 11.96.110.       (3) If, upon a petition under chapter 11.96 RCW of any personal representative, beneficiary under the decedent's will, heir if any of the decedent's property passes according to the laws of intestate succession, or any unpaid creditor with a claim that has been accepted or judicially determined to be enforceable, the court determines that the decedent's estate is insolvent, the court shall reaffirm, rescind, or restrict in whole or in part any prior grant of nonintervention powers to the extent necessary to protect the best interests of the beneficiaries and creditors of the estate.       (4) If the court rescinds or restricts a prior grant of nonintervention powers, the court shall endorse the term "powers rescinded" or "powers restricted" upon the prior order together with the date of ((said)) the endorsement.  Sec. 66. RCW 11.68.090 and 1988 c 29 s 3 are each amended to read as follows:               (1) Any personal representative acting under nonintervention powers may borrow money on the general credit of the estate and may mortgage, encumber, lease, sell, exchange, convey, and otherwise ((do anything a trustee may do)) have the same powers, and be subject to the same limitations of liability, that a trustee has under RCW 11.98.070 and chapters 11.100 and 11.102 RCW with regard to the assets of the estate, both real and personal, all without an order of court and without notice, approval, or confirmation, and in all other respects administer and settle the estate of the decedent without intervention of court. ((Any party to any such transaction and his or her successors in interest shall be entitled to have it conclusively presumed that the transaction is necessary for the administration of the decedent's estate.)) Except as otherwise specifically provided in this ((chapter)) title or by order of court, ((chapter 11.76 RCW shall not apply to the administration of an estate by)) a personal representative acting under nonintervention powers may exercise the powers granted to a personal representative under chapter 11.76 RCW but is not obligated to comply with the duties imposed on personal representatives by that chapter. A party to such a transaction and the party's successors in interest are entitled to have it conclusively presumed that the transaction is necessary for the administration of the decedent's estate.      (2) Except as otherwise provided in chapter 11.108 RCW or elsewhere in order to preserve a marital deduction from estate taxes, a testator may by a will relieve the personal representative from any or all of the duties, restrictions, and liabilities imposed: Under common law; by chapters 11.-- (sections 48 through 57 of this act), 11.56, 11.100, 11.102, and 11.104 RCW; or by RCW 11.28.270 and 11.28.280, section 67 of this act, and RCW 11.98.070. In addition, a testator may likewise alter or deny any or all of the privileges and powers conferred by this title, and may add duties, restrictions, liabilities, privileges, or powers to those imposed or granted by this title. If any common law or any statute referenced earlier in this subsection is in conflict with a will, the will controls whether or not specific reference is made in the will to this section. However, notwithstanding the rest of this subsection, a personal representative may not be relieved of the duty to act in good faith and with honest judgment.           NEW SECTION. Sec. 67. A new section is added to chapter 11.68 RCW to read as follows:            All of the provisions of RCW 11.98.016 regarding the exercise of powers by co-trustees of a trust shall apply to the co-personal representatives of an estate in which the co-personal representatives have been granted nonintervention powers, as if, for purposes of the interpretation of that law, co-personal representatives were co-trustees and an estate were a trust.          Sec. 68. RCW 11.68.110 and 1990 c 180 s 5 are each amended to read as follows:              (1) If a personal representative who has acquired nonintervention powers does not apply to the court for either of the final decrees provided for in RCW 11.68.100 as now or hereafter amended, the personal representative shall, when the administration of the estate has been completed, file a declaration ((to that effect, which declaration shall)) that must state as follows:               (((1))) (a) The date of the decedent's death((,)) and the decedent's residence at the time of death((,));                 (b) Whether or not the decedent died testate or intestate((, and if));              (c) If the decedent died testate, the date of the decedent's last will and testament and the date of the order ((admitting the will to probate)) probating the will;     (((2))) (d) That each creditor's claim which was justly due and properly presented as required by law has been paid or otherwise disposed of by agreement with the creditor, and that the amount of estate taxes due as the result of the decedent's death has been determined, settled, and paid;               (((3))) (e) That the personal representative has completed the administration of the decedent's estate without court intervention, and the estate is ready to be closed;   (((4))) (f) If the decedent died intestate, the names, addresses (if known), and relationship of each heir of the decedent, together with the distributive share of each heir; and                  (((5))) (g) The amount of fees paid or to be paid to each of the following: (((a))) (i) Personal representative or representatives((, (b))); (ii) lawyer or lawyers((, (c))); (iii) appraiser or appraisers((,)); and (((d))) (iv) accountant or accountants; and that the personal representative believes the fees to be reasonable and does not intend to obtain court approval of the amount of the fees or to submit an estate accounting to the court for approval.         (2) Subject to the requirement of notice as provided in this section, unless an heir, devisee, or legatee of a decedent petitions the court either for an order requiring the personal representative to obtain court approval of the amount of fees paid or to be paid to the personal representative, lawyers, appraisers, or accountants, or for an order requiring an accounting, or both, within thirty days from the date of filing a declaration of completion of probate, the personal representative will be automatically discharged without further order of the court and the representative's powers will cease thirty days after the filing of the declaration of completion of probate, and the declaration of completion of probate shall, at that time, be the equivalent of the entry of a decree of distribution in accordance with chapter 11.76 RCW for all legal intents and purposes.     (3) Within five days of the date of the filing of the declaration of completion, the personal representative or the personal representative's lawyer shall mail a copy of the declaration of completion to each heir, legatee, or devisee of the decedent ((()), who has not waived notice of ((said)) the filing, in writing, filed in the cause(())), or who, not having waived notice, either has not received the full amount of the distribution to which the heir, legatee, or devisee is entitled or has a property right that might be affected adversely by the discharge of the personal representative under this section, together with a notice which shall be substantially as follows:

                     CAPTION                                                           NOTICE OF FILING OF                         OF                                                   DECLARATION OF COMPLETION            CASE                                                                              OF PROBATE

      NOTICE IS GIVEN that the attached Declaration of Completion of Probate was filed by the undersigned in the above-entitled court on the . . . . day of . . . . . ., 19. . .; unless you shall file a petition in the above-entitled court requesting the court to approve the reasonableness of the fees, or for an accounting, or both, and serve a copy thereof upon the personal representative or the personal representative's lawyer, within thirty days after the date of the filing, the amount of fees paid or to be paid will be deemed reasonable, the acts of the personal representative will be deemed approved, the personal representative will be automatically discharged without further order of the court, and the Declaration of Completion of Probate will be final and deemed the equivalent of a Decree of Distribution entered under chapter 11.76 RCW.      If you file and serve a petition within the period specified, the undersigned will request the court to fix a time and place for the hearing of your petition, and you will be notified of the time and place thereof, by mail, or personal service, not less than ten days before the hearing on the petition.

      Dated this . . . . day of . . . . . ., 19. . .

                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Personal Representative

      (4) If all heirs, devisees, and legatees of the decedent entitled to notice under this section waive, in writing, the notice required by this section, the personal representative will be automatically discharged without further order of the court and the declaration of completion of probate will become effective as a decree of distribution upon the date of filing thereof. In those instances where the personal representative has been required to furnish bond, and a declaration of completion is filed pursuant to this section, any bond furnished by the personal representative shall be automatically discharged upon the discharge of the personal representative.           NEW SECTION. Sec. 69. A new section is added to chapter 11.68 RCW to read as follows:          If the declaration of completion of probate and the notice of filing of declaration of completion of probate state that the personal representative intends to make final distribution within five business days after the final date on which a beneficiary could petition for an order to approve fees or to require an accounting, which date is referred to in this section as the "effective date of the declaration of completion," and if the notice of filing of declaration of completion of probate sent to each beneficiary who has not received everything to which that beneficiary is entitled from the decedent's estate specifies the amount of the minimum distribution to be made to that beneficiary, the personal representative retains, for five business days following the effective date of the declaration of completion, the power to make the stated minimum distributions. In this case, the personal representative is discharged from all claims other than those relating to the actual distribution of the reserve, at the effective date of the declaration of completion. The personal representative is only discharged from liability for the distribution of the reserve when the whole reserve has been distributed and each beneficiary has received at least the distribution which that beneficiary's notice stated that the beneficiary would receive.               NEW SECTION. Sec. 70. A new section is added to chapter 11.68 RCW to read as follows:          (1) The personal representative retains the powers to: Deal with the taxing authority of any federal, state, or local government; hold a reserve in an amount not to exceed three thousand dollars, for the determination and payment of any additional taxes, interest, and penalties, and of all reasonable expenses related directly or indirectly to such determination or payment; pay from the reserve the reasonable expenses, including compensation for services rendered or goods provided by the personal representative or by the personal representative's employees, independent contractors, and other agents, in addition to any taxes, interest, or penalties assessed by a taxing authority; receive and hold any credit, including interest, from any taxing authority; and distribute the residue of the reserve to the intended beneficiaries of the reserve; if:       (a) In lieu of the statement set forth in RCW 11.68.110(1)(e), the declaration of completion of probate states that:

The personal representative has completed the administration of the decedent's estate without court intervention, and the estate is ready to be closed, except for the determination of taxes and of interest and penalties thereon as permitted under this section;

and                     (b) The notice of the filing of declaration of completion of probate must be in substantially the following form:

                           CAPTION                                         NOTICE OF FILING OF                        OF                                         DECLARATION OF COMPLETION                       CASE                                                    OF PROBATE

                           NOTICE IS GIVEN that the attached Declaration of Completion of Probate was filed by the undersigned in the above-entitled court on the . . . day of . . . . , . . . .; unless you file a petition in the above-entitled court requesting the court to approve the reasonableness of the fees, or for an accounting, or both, and serve a copy thereof upon the personal representative or the personal representative's lawyer, within thirty days after the date of the filing:(i) The schedule of fees set forth in the Declaration of Completion of Probate will be deemed reasonable;(ii) The Declaration of Completion of Probate will be final and deemed the equivalent of a Decree of Distribution entered under chapter 11.76 RCW;(iii) The acts that the personal representative performed before the Declaration of Completion of Probate was filed will be deemed approved, and the personal representative will be automatically discharged without further order of the court with respect to all such acts; and                (iv) The personal representative will retain the power to deal with the taxing authorities, together with $. . . . for the determination and payment of all remaining tax obligations. Only that portion of the reserve that remains after the settlement of any tax liability, and the payment of any expenses associated with such settlement, will be distributed to the persons legally entitled to the reserve.

      (2) If the requirements in subsection (1) of this section are met, the personal representative is discharged from all claims other than those relating to the settlement of any tax obligations and the actual distribution of the reserve, at the effective date of the declaration of completion. The personal representative is discharged from liability from the settlement of any tax obligations and the distribution of the reserve, and the personal representative's powers cease, thirty days after the personal representative:                  (a) Has mailed to those persons who would have shared in the distribution of the reserve had the reserve remained intact; and              (b) Has filed with the court copies of checks or receipts showing how the reserve was in fact distributed, unless a person with an interest in the reserve petitions the court earlier within the thirty-day period for an order requiring an accounting of the reserve or an order determining the reasonableness, or lack of reasonableness, of distributions made from the reserve. If the personal representative has been required to furnish a bond, any bond furnished by the personal representative is automatically discharged upon the final discharge of the personal representative.   Sec. 71. RCW 11.76.080 and 1977 ex.s. c 80 s 15 are each amended to read as follows:          If there be any alleged ((incompetent or disabled)) incapacitated person as defined in RCW 11.88.010 interested in the estate who has no legally appointed guardian or limited guardian, the court:    (1) At any stage of the proceeding in its discretion and for such purpose or purposes as it shall indicate, may((,)) appoint; and                 (2) For hearings held ((pursuant to RCW 11.52.010, 11.52.020, 11.68.040)) under sections 48 and 61 of this act, RCW 11.68.100, and 11.76.050((, each as now or hereafter amended,)) or for entry of an order adjudicating testacy or intestacy and heirship when no personal representative is appointed to administer the estate of the decedent, shall appoint some disinterested person as guardian ad litem to represent ((such)) the allegedly ((incompetent or disabled)) incapacitated person with reference to any petition, proceeding report, or adjudication of testacy or intestacy without the appointment of a personal representative to administer the estate of decedent in which the alleged ((incompetent or disabled)) incapacitated person may have an interest, who, on behalf of the alleged ((incompetent or disabled)) incapacitated person, may contest the same as any other person interested might contest it, and who shall be allowed by the court reasonable compensation for his or her services: PROVIDED, HOWEVER, That where a surviving spouse is the sole beneficiary under the terms of a will, the court may grant a motion by the personal representative to waive the appointment of a guardian ad litem for a person who is the minor child of ((such)) the surviving spouse and the decedent and who is ((incompetent)) incapacitated solely for the reason of his or her being under eighteen years of age.     Sec. 72. RCW 11.76.095 and 1991 c 193 s 28 are each amended to read as follows:              When a decree of distribution is made by the court in administration upon a decedent's estate or when distribution is made by a personal representative under a nonintervention will and distribution is ordered under such decree or authorized under such nonintervention will to a person under the age of eighteen years, it shall be required that:    (1) The money be deposited in a bank or trust company or be invested in an account in an insured financial institution for the benefit of the minor subject to withdrawal only upon the order of the court in the original probate proceeding, or upon said minor's attaining the age of eighteen years and furnishing proof thereof satisfactory to the depositary;      (2) A general guardian shall be appointed and qualify and the money or property be paid or delivered to such guardian prior to the discharge of the personal representative in the original probate proceeding; or           (3) ((The provisions of RCW 11.76.090 are complied with; or      (4))) A custodian be selected and the money or property be transferred to the custodian subject to chapter ((11.93)) 11.114 RCW.      Sec. 73. RCW 11.86.041 and 1991 c 7 s 1 are each amended to read as follows:                 (1) Unless the instrument creating an interest directs to the contrary, the interest disclaimed shall pass as if the beneficiary had died immediately prior to the date of the transfer of the interest. The disclaimer shall relate back to this date for all purposes.       (2) Unless the ((disclaimer directs to the contrary, the beneficiary may receive another interest in the property subject to the disclaimer)) beneficiary is the surviving spouse of a deceased creator of the interest, the beneficiary shall also be deemed to have disclaimed all interests in the property, including all beneficial interests in any trust into which the disclaimed property may pass. This subsection applies unless the disclaimer specifically refers to this subsection and states to the contrary.      (3) Any future interest taking effect in possession or enjoyment after termination of the interest disclaimed takes effect as if the beneficiary had died prior to the date of the beneficiary's final ascertainment as a beneficiary and the indefeasible vesting of the interest.      (4) The disclaimer is binding upon the beneficiary and all persons claiming through or under the beneficiary.    (5) Unless the instrument creating the interest directs to the contrary, a beneficiary whose interest in a devise or bequest under a will has been disclaimed shall be deemed to have died for purposes of RCW 11.12.110.              (6) In the case of a disclaimer that results in property passing to a trust over which the disclaimant has any power to direct the beneficial enjoyment of the disclaimed property, the disclaimant shall also be deemed to have disclaimed any power to direct the beneficial enjoyment of the disclaimed property, unless the power is limited by an ascertainable standard for the health, education, support, or maintenance of any person as described in section 2041 or 2514 of the Internal Revenue Code and the applicable regulations adopted under those sections. This subsection applies unless the disclaimer specifically refers to this subsection and states to the contrary. This subsection shall not be deemed to otherwise prevent such a disclaimant from acting as trustee or executor over disclaimed property.            Sec. 74. RCW 11.95.140 and 1993 c 339 s 11 are each amended to read as follows:      (1)(a) RCW 11.95.100 and 11.95.110 respectively apply to a power of appointment created:                 (i) Under a will, codicil, trust agreement, or declaration of trust, deed, power of attorney, or other instrument executed after July 25, 1993, unless the terms of the instrument refer specifically to RCW 11.95.100 or 11.95.110 respectively and provide expressly to the contrary; or                 (ii) Under a testamentary trust, trust agreement, or declaration of trust executed before July 25, 1993, unless:         (A) The trust is revoked, or amended to provide otherwise, and the terms of any amendment specifically refer to RCW 11.95.100 or 11.95.110, respectively, and provide expressly to the contrary;     (B) All parties in interest, as defined in RCW 11.98.240(3), elect affirmatively, in the manner prescribed in RCW 11.98.240(4), not to be subject to the application of this subsection. The election must be made by the later of September 1, 2000, or three years after the date on which the trust becomes irrevocable; or      (C) A person entitled to judicial proceedings for a declaration of rights or legal relations under RCW 11.96.070 obtains a judicial determination, under chapter 11.96 RCW, that the application of this subsection (1)(a)(ii) to the trust is inconsistent with the provisions or purposes of the will or trust.         (b) Notwithstanding (a) of this subsection, for the purposes of this section a codicil to a will, an amendment to a trust, or an amendment to another instrument that created the power of appointment in question shall not be deemed to cause that instrument to be executed after July 25, 1993, unless the codicil((,)) or amendment((, or other instrument)) clearly shows an intent to have RCW 11.95.100 or 11.95.110 apply.       (2) Notwithstanding subsection (1) of this section, RCW 11.95.100 through 11.95.150 shall apply to a power of appointment created under a will, codicil, trust agreement, or declaration of trust, deed, power of attorney, or other instrument executed prior to July 25, 1993, if the person who created the power of appointment had on July 25, 1993, the power to revoke, amend, or modify the instrument creating the power of appointment, unless:                 (a) The terms of the instrument specifically refer to RCW 11.95.100 or 11.95.110 respectively and provide expressly to the contrary; or                 (b) The person creating the power of appointment was not competent, on July 25, 1993, to revoke, amend, or modify the instrument creating the power of appointment and did not regain his or her competence to revoke, amend, or modify the instrument creating the power of appointment on or before his or her death or before the time at which the instrument could no longer be revoked, amended, or modified by the person.             Sec. 75. RCW 11.98.070 and 1989 c 40 s 7 are each amended to read as follows:          A trustee, or the trustees jointly, of a trust, in addition to the authority otherwise given by law, have discretionary power to acquire, invest, reinvest, exchange, sell, convey, control, divide, partition, and manage the trust property in accordance with the standards provided by law, and in so doing may:           (1) Receive property from any source as additions to the trust or any fund of the trust to be held and administered under the provisions of the trust;        (2) Sell on credit;    (3) Grant, purchase or exercise options;      (4) Sell or exercise subscriptions to stock or other corporate securities and to exercise conversion rights;           (5) Deposit stock or other corporate securities with any protective or other similar committee;           (6) Assent to corporate sales, leases, and encumbrances;      (7) Vote trust securities in person or by proxy with power of substitution; and enter into voting trusts;               (8) Register and hold any stocks, securities, or other property in the name of a nominee or nominees without mention of the trust relationship, provided the trustee or trustees are liable for any loss occasioned by the acts of any nominee, except that this subsection shall not apply to situations covered by RCW 11.98.070(31);   (9) Grant leases of trust property, with or without options to purchase or renew, to begin within a reasonable period and for terms within or extending beyond the duration of the trust, for any purpose including exploration for and removal of oil, gas and other minerals; enter into community oil leases, pooling and unitization agreements;          (10) Subdivide, develop, dedicate to public use, make or obtain the vacation of public plats, adjust boundaries, partition real property, and on exchange or partition to adjust differences in valuation by giving or receiving money or money's worth;              (11) Compromise or submit claims to arbitration;  (12) Borrow money, secured or unsecured, from any source, including a corporate trustee's banking department, or from the individual trustee's own funds;              (13) Make loans, either secured or unsecured, at such interest as the trustee may determine to any person, including any beneficiary of a trust, except that no trustee who is a beneficiary of a trust may participate in decisions regarding loans to such beneficiary from the trust, unless the loan is as described in RCW 83.110.020(2), and then only to the extent of the loan, and also except that if a beneficiary or the grantor of a trust has the power to change a trustee of the trust, the power to loan shall be limited to loans at a reasonable rate of interest and for adequate security;      (14) Determine the hazards to be insured against and maintain insurance for them;              (15) Select any part of the trust estate in satisfaction of any partition or distribution, in kind, in money or both; make nonpro rata distributions of property in kind; allocate particular assets or portions of them or undivided interests in them to any one or more of the beneficiaries without regard to the income tax basis of specific property allocated to any beneficiary and without any obligation to make an equitable adjustment;              (16) Pay any income or principal distributable to or for the use of any beneficiary, whether that beneficiary is under legal disability, to the beneficiary or for the beneficiary's use to the beneficiary's parent, guardian, custodian under the uniform gifts to minors act of any state, person with whom he resides, or third person;  (17) Change the character of or abandon a trust asset or any interest in it;       (18) Mortgage, pledge the assets or the credit of the trust estate, or otherwise encumber trust property, including future income, whether an initial encumbrance or a renewal or extension of it, for a term within or extending beyond the term of the trust, in connection with the exercise of any power vested in the trustee;      (19) Make ordinary or extraordinary repairs or alterations in buildings or other trust property, demolish any improvements, raze existing structures, and make any improvements to trust property;           (20) Create restrictions, easements, including easements to public use without consideration, and other servitudes;              (21) Manage any business interest, including any farm or ranch interest, regardless of form, received by the trustee from the trustor of the trust, as a result of the death of a person, or by gratuitous transfer from any other transferor, and with respect to the business interest, have the following powers:         (a) To hold, retain, and continue to operate that business interest solely at the risk of the trust, without need to diversify and without liability on the part of the trustee for any resulting losses;     (b) To enlarge or diminish the scope or nature or the activities of any business;    (c) To authorize the participation and contribution by the business to any employee benefit plan, whether or not qualified as being tax deductible, as may be desirable from time to time;   (d) To use the general assets of the trust for the purpose of the business and to invest additional capital in or make loans to such business;        (e) To endorse or guarantee on behalf of the trust any loan made to the business and to secure the loan by the trust's interest in the business or any other property of the trust;    (f) To leave to the discretion of the trustee the manner and degree of the trustee's active participation in the management of the business, and the trustee is authorized to delegate all or any part of the trustee's power to supervise, manage, or operate to such persons as the trustee may select, including any partner, associate, director, officer, or employee of the business; and also including electing or employing directors, officers, or employees of the trustee to take part in the management of the business as directors or officers or otherwise, and to pay that person reasonable compensation for services without regard to the fees payable to the trustee;                (g) To engage, compensate, and discharge or to vote for the engaging, compensating, and discharging of managers, employees, agents, lawyers, accountants, consultants, or other representatives, including anyone who may be a beneficiary of the trust or any trustee;       (h) To cause or agree that surplus be accumulated or that dividends be paid;              (i) To accept as correct financial or other statements rendered by any accountant for any sole proprietorship or by any partnership or corporation as to matters pertaining to the business except upon actual notice to the contrary;            (j) To treat the business as an entity separate from the trust, and in any accounting by the trustee it is sufficient if the trustee reports the earning and condition of the business in a manner conforming to standard business accounting practice;                (k) To exercise with respect to the retention, continuance, or disposition of any such business all the rights and powers that the trustor of the trust would have if alive at the time of the exercise, including all powers as are conferred on the trustee by law or as are necessary to enable the trustee to administer the trust in accordance with the instrument governing the trust, subject to any limitations provided for in the instrument; and    (l) To satisfy contractual and tort liabilities arising out of an unincorporated business, including any partnership, first out of the business and second out of the estate or trust, but in no event may there be a liability of the trustee, except as provided in RCW 11.98.110 (2) and (4), and if the trustee is liable, the trustee is entitled to indemnification from the business and the trust, respectively;     (22) Participate in the establishment of, and thereafter in the operation of, any business or other enterprise according to subsection (21) of this section except that the trustee shall not be relieved of the duty to diversify;      (23) Cause or participate in, directly or indirectly, the formation, reorganization, merger, consolidation, dissolution, or other change in the form of any corporate or other business undertaking where trust property may be affected and retain any property received pursuant to the change;              (24) Limit participation in the management of any partnership and act as a limited or general partner;           (25) Charge profits and losses of any business operation, including farm or ranch operation, to the trust estate as a whole and not to the trustee; make available to or invest in any business or farm operation additional moneys from the trust estate or other sources;         (26) Pay reasonable compensation to the trustee or co-trustees considering all circumstances including the time, effort, skill, and responsibility involved in the performance of services by the trustee;    (27) Employ persons, including lawyers, accountants, investment advisors, or agents, even if they are associated with the trustee, to advise or assist the trustee in the performance of the trustee's duties or to perform any act, regardless of whether the act is discretionary, and to act without independent investigation upon their recommendations, except that:       (a) A trustee may not delegate all of the trustee's duties and responsibilities((, and except that this employment does not relieve the trustee of liability for the discretionary acts of a person, which if done by the trustee, would result in liability to the trustee, or of the duty to select and retain a person with reasonable care));      (b) This power to employ and to delegate duties does not relieve the trustee of liability for such person's discretionary acts, that, if done by the trustee, would result in liability to the trustee;   (c) This power to employ and to delegate duties does not relieve the trustee of the duty to select and retain a person with reasonable care;       (d) The trustee, or a successor trustee, may sue the person to collect any damages suffered by the trust estate even though the trustee might not be personally liable for those damages, subject to the statutes of limitation that would have applied had the claim been one against the trustee who was serving when the act or failure to act occurred;              (28) Appoint an ancillary trustee or agent to facilitate management of assets located in another state or foreign country;   (29) Retain and store such items of tangible personal property as the trustee selects and pay reasonable storage charges thereon from the trust estate;                  (30) Issue proxies to any adult beneficiary of a trust for the purpose of voting stock of a corporation acting as the trustee of the trust;      (31) Place all or any part of the securities at any time held by the trustee in the care and custody of any bank, trust company, or member firm of the New York Stock Exchange with no obligation while the securities are so deposited to inspect or verify the same and with no responsibility for any loss or misapplication by the bank, trust company, or firm, so long as the bank, trust company, or firm was selected and retained with reasonable care, and have all stocks and registered securities placed in the name of the bank, trust company, or firm, or in the name of its nominee, and to appoint such bank, trust company, or firm agent as attorney to collect, receive, receipt for, and disburse any income, and generally may perform, but is under no requirement to perform, the duties and services incident to a so-called "custodian" account;      (32) Determine at any time that the corpus of any trust is insufficient to implement the intent of the trust, and upon this determination by the trustee, terminate the trust by distribution of the trust to the current income beneficiary or beneficiaries of the trust or their legal representatives, except that this determination may only be made by the trustee if the trustee is neither the grantor nor the beneficiary of the trust, and if the trust has no charitable beneficiary; and      (33) ((Rely with acquittance on advice of counsel on questions of law; and          (34))) Continue to be a party to any existing voting trust agreement or enter into any new voting trust agreement or renew an existing voting trust agreement with respect to any assets contained in trust.      Sec. 76. RCW 11.98.240 and 1994 c 221 s 66 are each amended to read as follows:           (1)(a)(((i))) RCW 11.98.200 and 11.98.210 respectively apply to:    (i) A trust established under a will, codicil, trust agreement, declaration of trust, deed, or other instrument executed after July 25, 1993, unless the instrument's terms refer specifically to RCW 11.98.200 or 11.98.210 respectively and provide expressly to the contrary. However, except for RCW 11.98.200(3), the 1994 c 221 amendments to RCW 11.98.200 apply to a trust established under a will, codicil, trust agreement, declaration of trust, deed, or other instrument executed after January 1, 1995, unless the instrument's terms refer specifically to RCW 11.98.200 and provide expressly to the contrary.         (ii) ((Notwithstanding (a)(i) of this subsection, for the purposes of this subsection a codicil to a will or an amendment to a trust does not cause that instrument to be executed after July 25, 1993, unless the codicil or amendment clearly shows an intent to have RCW 11.98.200 or 11.98.210 apply.)) A trust created under a will, codicil, trust agreement, declaration of trust, deed, or other instrument executed before July 25, 1993, unless:          (A) The trust is revoked or amended and the terms of the amendment refer specifically to RCW 11.98.200 and provide expressly to the contrary;        (B) All parties in interest, as defined in subsection (3) of this section elect affirmatively, in the manner prescribed in subsection (4) of this section, not to be subject to the application of this subsection. The election must be made by the later of September 1, 2000, or three years after the date on which the trust becomes irrevocable; or         (C) A person entitled to judicial proceedings for a declaration of rights or legal relations under RCW 11.96.070 obtains a judicial determination, under chapter 11.96 RCW, that the application of this subsection (1)(a)(ii) to the trust is inconsistent with the provisions or purposes of the will or trust.      (b) Notwithstanding (a) of this subsection, RCW 11.98.200 and 11.98.210 respectively apply to a trust established under a will or codicil of a decedent dying on or after July 25, 1993, and to an inter vivos trust to which the trustor had on or after July 25, 1993, the power to terminate, revoke, amend, or modify, unless:               (i) The terms of the instrument specifically refer to RCW 11.98.200 or 11.98.210 respectively and provide expressly to the contrary; or  (ii) The decedent or the trustor was not competent, on July 25, 1993, to change the disposition of his or her property, or to terminate, revoke, amend, or modify the trust, and did not regain his or her competence to dispose, terminate, revoke, amend, or modify before the date of the decedent's death or before the trust could not otherwise be revoked, terminated, amended, or modified by the decedent or trustor.         (2) RCW 11.98.200 neither creates a new cause of action nor impairs an existing cause of action that, in either case, relates to a power proscribed under RCW 11.98.200 that was exercised before July 25, 1993. RCW 11.98.210 neither creates a new cause of action nor impairs an existing cause of action that, in either case, relates to a power proscribed, limited, or qualified under RCW 11.98.210.  (3) For the purpose of subsection (1)(a)(ii) of this section, "parties in interest" means those persons identified as "required parties to the dispute" under RCW 11.96.170(6)(b).                (4) The affirmative election required under subsection (1)(a)(ii)(B) of this section must be made in the following manner;                 (a) If the trust is revoked or amended, through a revocation of or an amendment to the trust; or     (b) Through a nonjudicial dispute resolution agreement described in RCW 11.96.170.   Sec. 77. RCW 11.96.070 and 1994 c 221 s 55 are each amended to read as follows:          (1) A person with an interest in or right respecting the administration, settlement, or disposition of an interest in a trust or in the estate of an incapacitated, missing, or deceased person may have a judicial proceeding for the declaration of rights or legal relations under this title including but not limited to the following:               (a) The ascertaining of any class of creditors, devisees, legatees, heirs, next of kin, or others;            (b) The ordering of the personal representatives or trustees to do or abstain from doing any particular act in their fiduciary capacity;      (c) The determination of any question arising in the administration of the estate or trust, including without limitation questions of construction of wills and other writings;     (d) The grant to the personal representatives or trustees of any necessary or desirable powers not otherwise granted in the instrument or given by law that the court determines are not inconsistent with the provisions or purposes of the will or trust;              (e) The modification of the will or the trust instrument in the manner required to qualify the gift thereunder for the charitable estate tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust as required by final regulations and rulings of the United States internal revenue service, in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;      (f) The modification of the will or the trust instrument in the manner required to qualify any gift thereunder for the benefit of a surviving spouse who is not a citizen of the United States for the estate tax marital deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the internal revenue code as required by final regulations and rulings of the United States treasury department or internal revenue service, in any case in which all parties interested in the trust have submitted written agreements to the proposed changes or written disclaimer of interest;            (g) The determination of the persons entitled to notice under RCW 11.96.100 and 11.96.110 for the purposes of any judicial proceeding under this subsection (1) and for the purposes of an agreement under RCW 11.96.170; or   (h) The resolution of any other matter that arises under this title and references this section.      (2) Any person with an interest in or right respecting the administration of a nonprobate asset under this title may have a judicial proceeding for the declaration of rights or legal relations under this title with respect to the nonprobate asset, including without limitation the following:      (a) The ascertaining of any class of creditors or others for purposes of chapter 11.18 or 11.42 RCW;                  (b) The ordering of a qualified person, the notice agent, or resident agent, as those terms are defined in chapter 11.42 RCW, or any combination of them, to do or abstain from doing any particular act with respect to a nonprobate asset;         (c) The ordering of a custodian of any of the decedent's records relating to a nonprobate asset to do or abstain from doing any particular act with respect to those records;    (d) The determination of any question arising in the administration under chapter 11.18 or 11.42 RCW of a nonprobate asset;         (e) The determination of the persons entitled to notice under RCW 11.96.100 and 11.96.110 for the purposes of any judicial proceeding under this subsection (2) and for the purposes of an agreement under RCW 11.96.170; and    (f) The determination of any questions relating to the abatement, rights of creditors, or other matter relating to the administration, settlement, or final disposition of a nonprobate asset under this title.                  (3) The provisions of this chapter apply to disputes arising in connection with estates of incapacitated persons unless otherwise covered by chapters 11.88 and 11.92 RCW. The provisions of this chapter shall not supersede the otherwise applicable provisions and procedures of chapter 11.24, 11.28, 11.40, ((11.52,)) 11.42, 11.56, or 11.60 RCW with respect to any rights or legal obligations that are subject to those chapters.               (4) For the purposes of this section, "a person with an interest in or right respecting the administration, settlement, or disposition of an interest in a trust or in the estate of an incapacitated, missing, or deceased person" includes but is not limited to:         (a) The trustor if living, trustee, beneficiary, or creditor of a trust and, for a charitable trust, the attorney general if acting within the powers granted under RCW 11.110.120;             (b) The personal representative, heir, devisee, legatee, and creditor of an estate;    (c) The guardian, guardian ad litem, and ward of a guardianship, and a creditor of an estate subject to a guardianship; and   (d) Any other person with standing to sue with respect to any of the matters for which judicial proceedings are authorized in subsection (1) of this section.  (5) For the purposes of this section, "any person with an interest in or right respecting the administration of a nonprobate asset under this title" includes but is not limited to:    (a) The notice agent, the resident agent, or a qualified person, as those terms are defined in chapter 11.42 RCW;           (b) The recipient of the nonprobate asset with respect to any matter arising under this title;             (c) Any other person with standing to sue with respect to any matter for which judicial proceedings are authorized in subsection (2) of this section; and  (d) The legal representatives of any of the persons named in this subsection.       Sec. 78. RCW 11.104.010 and 1985 c 30 s 84 are each amended to read as follows:            As used in this chapter:          (1) "Income beneficiary" means the person to whom income is presently payable or for whom it is accumulated for distribution as income;           (2) Except as provided in RCW 11.104.110, "inventory value" means the cost of property purchased by the trustee and the cost or adjusted basis for federal income tax purposes of other property at the time it became subject to the trust, but in the case of a trust asset that is included on any death tax return the trustee may, but need not, use the value finally determined for the purposes of the federal estate tax if applicable, otherwise for another estate or inheritance tax;      (3) "Remainderman" means the person entitled to principal, including income which has been accumulated and added to principal.      NEW SECTION. Sec. 79. A new section is added to chapter 11.104 RCW to read as follows:          (1) Notwithstanding any contrary provision of this chapter, if the trust instrument adopts this section by specific reference, an increase in the value of the following investments, over the value of the investments at the time of acquisition by the trust, is distributable as income when it becomes available for distribution:      (a) A zero coupon bond;         (b) An annuity contract before annuitization;         (c) A life insurance contract before the death of the insured;      (d) An interest in a common trust fund as defined in section 584 of the Internal Revenue Code;          (e) An interest in a partnership as defined in section 7701 of the Internal Revenue Code; or            (f) Any other obligation for the payment of money that is payable at a future time in accordance with a fixed, variable, or discretionary schedule of appreciation in excess of the price at which it was issued.      (2) The increase in value of the investments described in subsection (1) of this section is allocable to the beneficiary who is the beneficiary to whom income may be distributed at the time when the trustee receives cash on account of the investment, notwithstanding RCW 11.104.070.      (3) For purposes of this section, the increase in value of an investment described in subsection (1) of this section is available for distribution only when the trustee receives cash on account of the investment.              Sec. 80. RCW 11.104.110 and 1971 c 74 s 11 are each amended to read as follows:  ((Except as provided in RCW 11.104.090 and 11.104.100, if the principal consists of property subject to depletion, including leaseholds, patents, copyrights, royalty rights, and rights to receive payments on a contract for deferred compensation, receipts from the property, not in excess of five percent per year of its inventory value, are income, and the balance is principal.)) (1) Subject to subsection (3) of this section, if the principal of a trust includes a deferred payment right including the right to receive deferred compensation, the proceeds of the right or the amount of deferred compensation, on receipt, are income to the extent determinable without reference to this section, or if not so determinable, are income up to five percent of the inventory value of the right or amount, determined separately for each year in which the right or amount is subject to the trust. The remainder of the proceeds or amount is principal. If not otherwise determinable, the allocation to income is computed in the same manner in which interest under a loan of the initial inventory amount would be computed, at five percent interest compounded annually, as if annual payments were made by the borrower to the lender.            (2) If income is determined under this section, for the first year, inventory value is determined as provided by this chapter or by this section for deferred compensation. For each year after the first year, the inventory value is:             (a) Reduced to the extent that the proceeds of the right or amount received during the preceding year were allocated to principal; and            (b) Increased to the extent that the proceeds received during the preceding year were less than five percent of the inventory value of that year.   (3) While the deferred payment right is under administration in a decedent's estate, income and principal are determined by using the fiscal year of the estate and ending on the date the trust is funded with the right. After the administration of the estate, the fiscal year of the trust is used. The five percent allocation to income is prorated for any year that is less than twelve months.      (4) The proceeds of a deferred payment right include all receipts relating to the right, whether or not the receipts are periodic. After the proceeds are received by the trustee and allocated in accordance with this section, this section does not apply to the proceeds except to the extent the proceeds include a continuing deferred payment right or right to receive deferred compensation.        (5) In this section:   (a) "Deferred compensation" means an amount receivable under an arrangement for the payment of compensation in a year after the year in which the compensation was earned, whether the obligation to pay is funded or unfunded and includes the right to payment:                  (i) Of benefits under a nonqualified plan of deferred compensation or similar arrangement or agreement; or              (ii) Of benefits under an employee benefit plan as defined in this section;              (b) "Deferred payment right" means a depletable asset, other than natural resources governed by RCW 11.104.090 or timber governed by RCW 11.104.100, consisting of the right to property under a contract, account, or other arrangement that is payable not earlier than twelve months after the date the right becomes subject to the trust. A deferred payment right includes the right to receive a periodic, annuity, installment, or single-sum future payment:       (i) Under a leasehold, patent, copyright, or royalty;      (ii) Of income in respect of a decedent under section 691 of the Internal Revenue Code of 1986; or   (iii) Of death benefits;      (c) "Employee benefit plan" means any of the following, whether funded by a trust, custodian account, annuity, or retirement bond:      (i) A plan, individual retirement account, or deferred compensation plan or arrangement that is described in RCW 49.64.020, section 401(a), 403(a), 403(b), 408, or 457 of the Internal Revenue Code of 1986, as amended, or in section 409 of the Internal Revenue Code in effect before January 1, 1984; or       (ii) An employee benefit plan established or maintained by:                 (A) The government of the United States;      (B) The state of Washington; (C) A state or territory of the United States;           (D) The District of Columbia; or            (E) A political subdivision, agency, or instrumentality of the entities in (c)(ii)(A) through (D) of this subsection; and      (d) "Year" means the fiscal year of the estate or trust for federal income tax purposes.             (6) The deferred compensation payable consisting of the account balance or accrued benefit as of the date of death of the owner of such amount receivable or, if elected, the alternate valuation date for federal estate tax purposes, shall be the inventory value of the deferred compensation as used in this chapter as of that date.               Sec. 81. RCW 11.108.010 and 1993 c 73 s 2 are each amended to read as follows:              Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.                (1) The term "pecuniary bequest" means a gift in a governing instrument which either is expressly stated as a fixed dollar amount or is a gift of a dollar amount determinable by the governing instrument, and a gift expressed in terms of a "sum" or an "amount," unless the context dictates otherwise, is a gift of a dollar amount.              (2) As the context might require, the term "marital deduction" means either the federal estate tax deduction or the federal gift tax deduction allowed for transfers to spouses under the Internal Revenue Code.   (3) The term "maximum marital deduction" means the maximum amount qualifying for the marital deduction.      (4) The term "marital deduction gift" means a gift intended to qualify for the marital deduction as indicated by a preponderance of the evidence including the governing instrument and extrinsic evidence whether or not the governing instrument is found to be ambiguous.      (5) The term "governing instrument" includes ((a)), but is not limited to: Will and codicils((,)); ((irrevocable, and)) revocable trusts and amendments or addenda to revocable trusts; irrevocable trusts; beneficiary designations under life insurance policies, annuities, employee benefit plans, and individual retirement accounts; payable-on-death, trust, or joint with right of survivorship bank or brokerage accounts; transfer on death designations or transfer on death or pay on death securities; and documents exercising powers of appointment.              (6) The term "fiduciary" means trustee or personal representative. Reference to a fiduciary in the singular includes the plural where the context requires.      (7) The term "gift" refers to all legacies, devises, and bequests made in a governing instrument.         (8) The term "transferor" means the testator, grantor, or other person making a gift.            (9) The term "spouse" includes the transferor's surviving spouse in the case of a deceased transferor.          Sec. 82. RCW 11.108.020 and 1993 c 73 s 3 are each amended to read as follows:        (1) If a governing instrument contains a marital deduction gift, the governing instrument shall be construed to comply with the marital deduction provisions of the Internal Revenue Code in every respect.   (2) If a governing instrument contains a marital deduction gift, ((the governing instrument, including any power, duty, or discretionary authority given to the fiduciary, shall be construed to comply with the marital deduction provisions of the Internal Revenue Code in order to conform to that intent. Whether the governing instrument contains a marital deduction gift depends upon the intent of the testator, grantor, or other transferor at the time the governing instrument is executed. If the testator, grantor, or other transferor has adequately evidenced an intention to make a marital deduction gift, the fiduciary shall not take any action or have any power that may impair that deduction, but this does not require the fiduciary to make the election under section 2056(b)(7) of the Internal Revenue Code that is referred to in RCW 11.108.025)) any fiduciary operating under the governing instrument has all the powers, duties, and discretionary authority necessary to comply with the marital deduction provisions of the Internal Revenue Code. The fiduciary shall not take any action or have any power that may impair that deduction, but this does not require the fiduciary to make the elections under either section 2056(b)(7) or 2523(f) of the Internal Revenue Code that is referred to in RCW 11.108.025.                Sec. 83. RCW 11.108.025 and 1993 c 73 s 4 are each amended to read as follows:      Unless a governing instrument directs to the contrary:          (1) The fiduciary shall have the power to make elections, in whole or in part, to qualify property for the marital deduction as qualified terminable interest property under section 2056(b)(7) or 2523(f) of the Internal Revenue Code or, if the surviving spouse is not a citizen of the United States, under section 2056A of the Internal Revenue Code. Further, the fiduciary shall have the power to make generation-skipping transfer tax allocations under section 2632 of the Internal Revenue Code.      (2) The fiduciary making an election under section 2056(b)(7), 2523(f), or 2056A of the Internal Revenue Code or making an allocation under section 2632 of the Internal Revenue Code may benefit personally from the election or allocation, with no duty to reimburse any other person interested in the election or allocation. The fiduciary shall have no duty to make any equitable adjustment and shall have no duty to treat interested persons impartially in respect of the election or allocation.                  (3) The fiduciary of a trust, if an election is made under section 2056(b)(7), 2523(f), or 2056A of the Internal Revenue Code, if an allocation is made under section 2632 of the Internal Revenue Code, or if division of a trust is of benefit to the persons interested in the trust, may divide the trust into two or more separate trusts, of equal or unequal value, ((provided that)) if:               (a) The terms of the separate trusts which result are substantially identical to the terms of the trust before division((, and provided further,));    (b) In the case of a trust otherwise qualifying for the marital deduction under the Internal Revenue Code, ((that)) the division shall not prevent a separate trust for which the election is made from qualifying for the marital deduction; and      (c) The allocation of assets shall be based upon the fair market value of the assets at the time of the division.    Sec. 84. RCW 11.108.050 and 1993 c 73 s 5 are each amended to read as follows:               (((1))) If a governing instrument ((indicates the testator's intention to make)) contains a marital deduction gift in trust, then in addition to the other provisions of this ((section)) chapter, each of the following ((also)) applies to the trust((; provided, however, that such provisions shall not apply to any trust which provides for the entire then remaining trust estate to be paid on the termination of the income interest to the estate of the spouse of the trust's creator, or to a charitable beneficiary, contributions to which are tax deductible for federal income tax purposes:       (a) The only income beneficiary of a marital deduction trust is the testator's surviving spouse;          (b) The income beneficiary is entitled to all of the trust income until the trust terminates;    (c) The trust income is payable to the income beneficiary not less frequently than annually; and                 (d) Except in the case of a marital deduction gift in trust, described in subsection (2) of this section, or property that has or would otherwise have qualified for the marital deduction only as the result of an election under section 2056(b)(7) of the Internal Revenue Code, upon termination of the trust, all of the remaining trust assets, including accrued or undistributed income, pass either to the income beneficiary or under the exercise of a general power of appointment granted to the income beneficiary in favor of the income beneficiary's estate or to any other person or entity in trust or outright. The general power of appointment is exercisable by the income beneficiary alone and in all events.                 (2) If a governing instrument indicates the testator's intention to make a marital deduction gift in trust and the surviving spouse is not a citizen of the United States, subsection (1)(a), (b), and (c) of this section and each of the following shall apply to the trust:               (a) At least one trustee of the trust shall be an individual citizen of the United States or a domestic corporation, and no distribution, other than a distribution of income, may be made from the trust unless a trustee who is an individual citizen of the United States or a domestic corporation has the right to withhold from the distribution the tax imposed under section 2056A of the Internal Revenue Code on the distribution;             (b) The trust shall meet such requirements as the secretary of the treasury of the United States may by regulations prescribe to ensure collection of estate tax, under section 2056A(b) of the Internal Revenue Code; and      (c) (a) and (b) of this subsection shall no longer apply to the trust if the surviving spouse becomes a citizen of the United States and (i) the surviving spouse is a resident of the United States at all times after the testator's death and before becoming a citizen, or (ii) no tax has been imposed on the trust under section 2056A(b)(1)(A) of the Internal Revenue Code before the surviving spouse becomes a citizen, or (iii) the surviving spouse makes an election under section 2056A(b)(12)(C) of the Internal Revenue Code regarding tax imposed on distributions from the trust before becoming a citizen.              (3) The exercise of the general power of appointment provided in this section shall be done only by the income beneficiary in the manner provided by RCW 11.95.060)) to the extent necessary to qualify the gift for the marital deduction:      (1) If the transferor's spouse is a citizen of the United States at the time of the transfer:       (a) The transferor's spouse is entitled to all of the income from the trust, payable annually or at more frequent intervals, during the spouse's life;                  (b) During the life of the transferor's spouse, a person may not appoint or distribute any part of the trust property to a person other than the transferor's spouse;      (c) The transferor's spouse may compel the trustee of the trust to make any unproductive property of the trust productive, or to convert the unproductive property into productive property, within a reasonable time; and               (d) The transferor's spouse may, alone and in all events, dispose of all of the trust property, including accrued or undistributed income, remaining after the spouse's death under a testamentary general power of appointment, as defined in section 2041 of the Internal Revenue Code. However, this subsection (1)(d) does not apply to: (i) A marital deduction gift in trust which is described in subsection (2) of this section; (ii) that portion of a marital deduction gift in trust that has qualified for the marital deduction as a result of an election under section 2056(b)(7) or 2523(f) of the Internal Revenue Code; and (iii) that portion of marital deduction gift in trust that would have qualified for the marital deduction but for the fiduciary's decision not to make the election under section 2056(b)(7) or 2523(f) of the Internal Revenue Code;     (2) If the transferor's spouse is not a citizen of the United States at the time of the transfer, then to the extent necessary to qualify the gift for the marital deduction, subsection (1)(a), (b), and (c) of this section and each of the following applies to the trust:         (a) At least one trustee of the trust must be an individual citizen of the United States or a domestic corporation, and a distribution, other than a distribution of income, may not be made from the trust unless a trustee who is an individual citizen of the United States or a domestic corporation has the right to withhold from the distribution the tax imposed under section 2056A of the Internal Revenue Code on the distribution;        (b) The trust must meet such requirements as the secretary of the treasury of the United States by regulations prescribes to ensure collection of estate tax, under section 2056A(b) of the Internal Revenue Code; and    (c) Subsection (2)(a) and (b) of this section no longer apply to the trust if the transferor's spouse becomes a citizen of the United States and: (i) The transferor's spouse was a resident of the United States at all times after the transferor's death and before becoming a citizen; (ii) tax has not been imposed on the trust under section 2056A(b)(1)(A) of the Internal Revenue Code before the transferor's spouse becomes a citizen; or (iii) the transferor's spouse makes an election under section 2056A(b)(12)(C) of the Internal Revenue Code regarding tax imposed on distributions from the trust before becoming a citizen; and                     (3) Subsection (1) of this section does not apply to:          (a) A trust: (i) That provides for a life estate or term of years for the exclusive benefit of the transferor's spouse, with the remainder payable to the such spouse's estate; or (ii) created exclusively for the benefit of the estate of the transferor's spouse; and   (b) An interest of the transferor's spouse in a charitable remainder annuity trust or charitable remainder unitrust described in section 664 of the Internal Revenue Code, if the transferor's spouse is the only noncharitable beneficiary.      Sec. 85. RCW 11.28.237 and 1994 c 221 s 24 are each amended to read as follows:           (1) Within twenty days after appointment, the personal representative of the estate of a decedent shall cause written notice of his or her appointment and the pendency of said probate proceedings, to be served personally or by mail to each heir, legatee and devisee of the estate and each beneficiary or transferee of a nonprobate asset of the decedent whose names and addresses are known to him or her, and proof of such mailing or service shall be made by affidavit and filed in the cause.          (2) If the personal representative does not otherwise give notice to creditors under chapter 11.40 RCW within thirty days after appointment, the personal representative shall cause written notice of his or her appointment and the pendency of the probate proceedings to be mailed to the state of Washington department of social and health services office of financial recovery, and proof of the mailing shall be made by affidavit and filed in the cause.            Sec. 86. RCW 11.108.060 and 1989 c 35 s 1 are each amended to read as follows:              ((If a governing instrument contains a marital deduction gift, whether outright or in trust and whether there is a specific reference to this section, any survivorship requirement expressed in the governing instrument in excess of six months, other than survival by a spouse of a common disaster resulting in the death of the decedent, does not apply to property passing under a marital deduction gift, and in addition, is limited to a six-month period beginning with the testator's death.)) For an estate that exceeds the amount exempt from tax by virtue of the unified credit under section 2010 of the Internal Revenue Code, if taking into account applicable adjusted taxable gifts as defined in section 2001(b) of the Internal Revenue Code, any marital deduction gift that is conditioned upon the transferor's spouse surviving the transferor for a period of more than six months, is governed by the following:            (1) A survivorship requirement expressed in the governing instrument in excess of six months, other than survival by a spouse of a common disaster resulting in the death of the transferor, does not apply to property passing under the marital deduction gift, and for the gift, the survivorship requirement is limited to a six-month period beginning with the transferor's death.          (2) The property that is the subject of the marital deduction gift must be held in a trust meeting the requirements of section 2056(b)(7) of the Internal Revenue Code the corpus of which must: (a) Pass as though the spouse failed to survive the transferor if the spouse, in fact, fails to survive the term specified in the governing instrument; and (b) pass to the spouse under the terms of the governing instrument if the spouse, in fact, survives the term specified in the governing instrument.          NEW SECTION. Sec. 87. The following acts or parts of acts are each repealed:                 (1) RCW 11.40.011 and 1989 c 333 s 2, 1983 c 201 s 1, & 1967 ex.s. c 106 s 3;      (2) RCW 11.40.012 and 1989 c 333 s 3;                (3) RCW 11.40.013 and 1994 c 221 s 26 & 1989 c 333 s 4;                  (4) RCW 11.40.014 and 1989 c 333 s 5;       (5) RCW 11.40.015 and 1994 c 221 s 27 & 1989 c 333 s 6;                  (6) RCW 11.42.160 and 1994 c 221 s 46;      (7) RCW 11.42.170 and 1994 c 221 s 47;              (8) RCW 11.42.180 and 1994 c 221 s 48;              (9) RCW 11.44.066 and 1990 c 180 s 1 & 1974 ex.s. c 117 s 49;          (10) RCW 11.52.010 and 1987 c 442 s 1116, 1984 c 260 s 17, 1974 ex.s. c 117 s 7, 1971 ex.s. c 12 s 2, 1967 c 168 s 12, & 1965 c 145 s 11.52.010;          (11) RCW 11.52.012 and 1985 c 194 s 1, 1984 c 260 s 18, 1977 ex.s. c 234 s 9, 1974 ex.s. c 117 s 8, & 1965 c 145 s 11.52.012;     (12) RCW 11.52.014 and 1965 c 145 s 11.52.014;                (13) RCW 11.52.016 and 1988 c 202 s 18, 1972 ex.s. c 80 s 1, & 1965 c 145 s 11.52.016;     (14) RCW 11.52.020 and 1985 c 194 s 2, 1984 c 260 s 19, 1974 ex.s. c 117 s 9, 1971 ex.s. c 12 s 3, 1967 c 168 s 13, & 1965 c 145 s 11.52.020;          (15) RCW 11.52.022 and 1985 c 194 s 3, 1984 c 260 s 20, 1977 ex.s. c 234 s 10, 1974 ex.s. c 117 s 10, 1971 ex.s. c 12 s 4, & 1965 c 145 s 11.52.022;                  (16) RCW 11.52.024 and 1972 ex.s. c 80 s 2 & 1965 c 145 s 11.52.024;          (17) RCW 11.52.030 and 1965 c 145 s 11.52.030;            (18) RCW 11.52.040 and 1965 c 145 s 11.52.040;      (19) RCW 11.52.050 and 1967 c 168 s 14;            (20) RCW 11.68.010 and 1994 c 221 s 50, 1977 ex.s. c 234 s 18, 1974 ex.s. c 117 s 13, 1969 c 19 s 1, & 1965 c 145 s 11.68.010;     (21) RCW 11.68.020 and 1974 ex.s. c 117 s 14 & 1965 c 145 s 11.68.020;          (22) RCW 11.68.030 and 1977 ex.s. c 234 s 19, 1974 ex.s. c 117 s 15, & 1965 c 145 s 11.68.030; and        (23) RCW 11.68.040 and 1977 ex.s. c 234 s 20, 1974 ex.s. c 117 s 16, & 1965 c 145 s 11.68.040.          NEW SECTION. Sec. 88. Sections 48 through 57 of this act constitute a new chapter in Title 11 RCW.                 NEW SECTION. Sec. 89. Sections 1 through 73 of this act apply to estates of decedents dying after December 31, 1997."      On page 1, line 1 of the title, after "probate;" strike the remainder of the title and insert "amending RCW 11.02.005, 11.07.010, 11.18.200, 11.28.240, 11.28.270, 11.28.280, 11.40.010, 11.40.020, 11.40.030, 11.40.040, 11.40.060, 11.40.070, 11.40.080, 11.40.090, 11.40.100, 11.40.110, 11.40.120, 11.40.130, 11.40.140, 11.40.150, 11.42.010, 11.42.020, 11.42.030, 11.42.040, 11.42.050, 11.42.060, 11.42.070, 11.42.080, 11.42.090, 11.42.100, 11.42.110, 11.42.120, 11.42.130, 11.42.140, 11.42.150, 11.44.015, 11.44.025, 11.44.035, 11.44.050, 11.44.070, 11.44.085, 11.44.090, 11.48.130, 11.68.050, 11.68.060, 11.68.080, 11.68.090, 11.68.110, 11.76.080, 11.76.095, 11.86.041, 11.95.140, 11.98.070, 11.98.240, 11.96.070, 11.104.010, 11.104.110, 11.108.010, 11.108.020, 11.108.025, 11.108.050, 11.28.237, and 11.108.060; adding new sections to chapter 11.40 RCW; adding new sections to chapter 11.42 RCW; adding new sections to chapter 11.68 RCW; adding a new section to chapter 11.104 RCW; adding a new chapter to Title 11 RCW; creating a new section; and repealing RCW 11.40.011, 11.40.012, 11.40.013, 11.40.014, 11.40.015, 11.42.160, 11.42.170, 11.42.180, 11.44.066, 11.52.010, 11.52.012, 11.52.014, 11.52.016, 11.52.020, 11.52.022, 11.52.024, 11.52.030, 11.52.040, 11.52.050, 11.68.010, 11.68.020, 11.68.030, and 11.68.040.",      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Roach moved that the Senate do concur in the House amendments to Substitute Senate Bill No. 5110.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Roach to concur in the House amendments to Substitute Senate Bill No. 5110.

      The motion by Senator Roach carried and the Senate concurred in the House amendments to Substitute Senate Bill No. 5110.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5110, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5110, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Excused: Senators Heavey, Loveland and Snyder - 3.          SUBSTITUTE SENATE BILL NO. 5110, as amended by the House, 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.

MOTION

      On motion of Senator Johnson, the Senate advanced to the eighth order of business.

MOTION

      On motion of Senator Wood, the following resolution was adopted:

SENATE RESOLUTION 1997-8666

By Senators Wood, Winsley, Swecker, Prince, Deccio, Oke, McDonald, Strannigan, Patterson, Snyder, Spanel, Loveland, Heavey, Thibaudeau, Fairley, Sellar, Newhouse, Rossi, Finkbeiner, Benton, Hochstatter, Johnson, McAuliffe, Hargrove, Fraser, Sheldon, Franklin, Morton, Rasmussen, Jacobsen, Kline, Wojahn and Kohl

      WHEREAS, Washington's 1993 School Improvement Act (Chapter 336, Laws of 1993) established higher academic standards for Washington State students; and

      WHEREAS, In a society increasingly dependent on information and the ability to understand and use that information, a critical component of education is equitable and universal access to technology, media, and information resources; and

      WHEREAS, The Washington State Legislature passed legislation in 1996, to establish a state-wide K-20 telecommunications network to provide that access; and

      WHEREAS, K-12 educators in Washington State now have access to powerful tools that can dramatically enhance student learning when used effectively and thoughtfully within curricula; and

      WHEREAS, Educational technology is an essential tool to all students' achievement of higher academic standards, including the basic skills of reading, writing, mathematics, and communications; and

      WHEREAS, Networked technology will enhance the communication, sharing of ideas, skill building, and collaboration between students, teachers, administrators, parents, policymakers, and community leaders in the pursuit of learning; and

      WHEREAS, The practical use of computers and the Internet is a required skill for anyone to live, learn, and work in today's and tomorrow's society;

      WHEREAS, 1997 was proclaimed as The Year of the Reader, which has focused the attention of Washington citizens on the foundation skill for all learning;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington proclaim 1998 as The Year of Learning Through Technology in Washington State, the purpose of which is:

      (1) To acknowledge the completion of the first phase of Washington's telecommunications network, the first of its kind in our nation, and to declare our commitment of bringing the educational promise of this network to fruition;

      (2) To continue the focus on high academic standards in Washington schools;

      (3) To ensure equitable access to the learning opportunities provided by the state-wide K-20 telecommunications network;

      (4) To identify, implement, highlight, and share the best applications of educational technology to the learning environment; and

      (5) To enhance learning and raise the academic achievement of all students in Washington State.

      Senators Wood, Hochstatter and Kohl spoke to Senate Resolution 1997-8666.

INTRODUCTION OF SPECIAL GUEST

      The President Pro Tempore welcomed and introduced Terry Bergerson, Superintendent of Public Instruction for the state of Washington, who was seated in the gallery.

MOTION

      On motion of Senator Johnson, the Senate reverted to the fifth order of business.

INTRODUCTION AND FIRST READING OF HOUSE BILL

ESHB 2069                   by Committee on appropriations (originally sponsored by Representatives Wensman, Cole, Bush, H. Sommers, Benson, D. Schmidt, L. Thomas, Dyer, B. Thomas, Reams, Doumit, Ballasiotes, Alexander, Hatfield, Lantz, Sullivan, Thompson, Kessler and Butler)

                           Changing school levy provisions.

                           Referred to Committee on Education.

MOTION

      At 3:29 p.m., on motion of Senator Johnson, the Senate was declared to be at ease.

      The Senate was called to order at 4:24 p.m. by President Pro Tempore Newhouse.

MOTION

      On motion of Senator Johnson, the Senate returned to the fourth order of business.

MESSAGES FROM THE HOUSE

April 19, 1997

MR. PRESIDENT:

      The House concurred in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2018 and passed the bill as amended by the Senate.

TIMOTHY A. MARTIN, Chief Clerk

April 19, 1997

MR. PRESIDENT:

      The Speaker has signed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2018, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 19, 1997

MR. PRESIDENT:

      The House concurred in the Senate amendment(s) to the following House Bills and passed the bills as amended by the Senate:

      SUBSTITUTE HOUSE BILL NO. 1008,

      HOUSE BILL NO. 1019,

      SUBSTITUTE HOUSE BILL NO. 1022,

      SUBSTITUTE HOUSE BILL NO. 1033,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1057,

      SUBSTITUTE HOUSE BILL NO. 1190,

      SUBSTITUTE HOUSE BILL NO. 1235,

      SUBSTITUTE HOUSE BILL NO. 1257,

      SUBSTITUTE HOUSE BILL NO. 1261,

      SUBSTITUTE HOUSE BILL NO. 1272,

      SUBSTITUTE HOUSE BILL NO. 1277,

      SUBSTITUTE HOUSE BILL NO. 1325,

      HOUSE BILL NO. 1353,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1360,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1361.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

      The President signed:

       ENGROSSED SUBSTITUTE HOUSE BILL NO. 2018.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5144 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 6.36.035 and 1994 c 185 s 7 are each amended to read as follows:          (1) At the time of the filing of the foreign judgment, the judgment creditor or the judgment creditor's lawyer shall make and file with the clerk of court an affidavit setting forth the name and last known post office address of the judgment debtor, and the judgment creditor.              (2) Promptly upon the filing of the foreign judgment and the affidavit, the ((clerk)) judgment creditor shall mail notice of the filing of the foreign judgment to the judgment debtor at the address given ((and shall make a note of the mailing in the docket)). The notice shall include the name and post office address of the judgment creditor and the judgment creditor's lawyer if any in this state. In addition, the judgment creditor ((may mail a notice of the filing of the judgment to the judgment debtor and may)) shall file proof of mailing with the clerk. ((Lack of notice of filing by the clerk shall not affect the enforcement proceedings if proof of mailing by the judgment creditor has been filed.))      (3)(a) No execution or other process for enforcement of a foreign judgment filed in the office of the clerk of a superior court shall ((issue until ten days after the date the judgment is filed, or)) be allowed until ten days after ((mailing the notice of filing, whether mailed by the clerk or)) the proof of mailing has been filed with the clerk by the judgment creditor((, whichever is later)).     (b) No execution or other process for enforcement of a foreign judgment filed in the office of the clerk of a district court shall ((issue until fourteen days after the date the judgment is filed, or)) be allowed until fourteen days after ((mailing the notice of filing, whether mailed by the clerk or)) the proof of mailing has been filed with the clerk by the judgment creditor((, whichever is later)).            Sec. 2. RCW 4.64.120 and 1987 c 442 s 1111 and 1987 c 202 s 119 are each reenacted and amended to read as follows:     It shall be the duty of the county clerk to enter in the execution docket any duly certified transcript of a judgment of a district court of this state and any duly certified abstract of any judgment of any court mentioned in RCW 4.56.200, filed in the county clerk's office, and to index the same in the same manner as judgments originally rendered in the superior court for the county of which he or she is clerk. Jurisdiction over the judgment, including modification to or vacation of the original judgment, transfers to the superior court. The superior court may, in its discretion, remand the cause to district court for determination of any motion to vacate or modify the original judgment.   Sec. 3. RCW 7.68.290 and 1987 c 281 s 2 are each amended to read as follows:                 If a defendant has paid restitution pursuant to court order under RCW 9.92.060, 9.94A.140, 9.94A.142, 9.95.210, or 9A.20.030 and the victim entitled to restitution cannot be found or has died, the clerk of the court shall deposit with the county treasurer the amount of restitution unable to be paid to the victim. The county treasurer shall monthly transmit the money to the state treasurer for deposit as provided in RCW 43.08.250. Moneys deposited under this section shall be used to compensate victims of crimes through the crime victims compensation fund.      Sec. 4. RCW 4.56.100 and 1994 c 185 s 1 are each amended to read as follows:              (1) When any judgment for the payment of money only shall have been paid or satisfied, the clerk of the court in which such judgment was rendered shall note upon the record in the execution docket satisfaction thereof giving the date of such satisfaction upon either the payment to such clerk of the amount of such judgment, costs and interest and any accrued costs by reason of the issuance of any execution, or the filing with such clerk of a satisfaction entitled in such action and identifying the same executed by the judgment creditor or his or her attorney of record in such action or his or her assignee acknowledged as deeds are acknowledged. The clerk has the authority to note the satisfaction of judgments for criminal and juvenile legal financial obligations when the clerk's record indicates payment in full or as directed by the court. Every satisfaction of judgment and every partial satisfaction of judgment which provides for the payment of money shall clearly designate the judgment creditor and his or her attorney if any, the judgment debtor, the amount or type of satisfaction, whether the satisfaction is full or partial, the cause number, and the date of entry of the judgment. A certificate by such clerk of the entry of such satisfaction by him or her may be filed in the office of the clerk of any county in which an abstract of such judgment has been filed. When so satisfied by the clerk or the filing of such certificate the lien of such judgment shall be discharged.      (2) The department of social and health services shall file a satisfaction of judgment for welfare fraud conviction if a person does not pay money through the clerk as required under subsection (1) of this section.   (3) The department of corrections shall file a satisfaction of judgment if a person does not pay money through the clerk's office as required under subsection (1) of this section.                Sec. 5. RCW 4.64.030 and 1995 c 149 s 1 are each amended to read as follows:   The clerk shall enter all judgments in the execution docket, subject to the direction of the court and shall specify clearly the amount to be recovered, the relief granted, or other determination of the action.              On the first page of each judgment which provides for the payment of money, including judgments in rem, mandates of judgments, and judgments on garnishments, the following shall be succinctly summarized: The judgment creditor and the name of his or her attorney, the judgment debtor, the amount of the judgment, the interest owed to the date of the judgment, and the total of the taxable costs and attorney fees, if known at the time of the entry of the judgment. If the attorney fees and costs are not included in the judgment, they shall be summarized in the cost bill when filed. ((This information is included in the judgment to assist the county clerk in his or her record-keeping function.)) The clerk may not ((sign or file)) enter a judgment, and a judgment does not take effect, until the judgment has a summary in compliance with this section. The clerk is not liable for an incorrect summary.         Sec. 6. RCW 4.64.060 and 1987 c 442 s 1105 are each amended to read as follows:      Every county clerk shall keep in the clerk's office a record, to be called the execution docket, which shall be a public record and open during the usual business hours to all persons desirous of inspecting it. The record must be indexed both directly and inversely, and include all judgments, abstracts, and transcripts of judgments in the clerk's office. The index must refer to each party against whom the judgment is rendered or whose property is affected by the judgment.             Sec. 7. RCW 5.44.010 and Code 1881 s 430 are each amended to read as follows:              The records and proceedings of any court of the United States, or any state or territory, shall be admissible in evidence in all cases in this state when duly ((authenticated)) certified by the attestation of the clerk, prothonotary or other officer having charge of the records of such court, with the seal of such court annexed.       NEW SECTION. Sec. 8. RCW 4.64.070 and 1987 c 442 s 1106, 1935 c 22 s 1, & 1929 c 60 s 5 are each repealed."           Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Johnson moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5144.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Johnson to concur in the House amendment to Substitute Senate Bill No. 5144.

      The motion by Senator Johnson carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5144.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5144, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5144, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 2; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.  Absent: Senators Finkbeiner and Sellar - 2.          Excused: Senator Heavey - 1.                SUBSTITUTE SENATE BILL NO. 5144, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 16, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5175 with the following amendment(s):

      On page 2, line 3, strike "or processed" and insert "((or processed))"    On page 5, beginning on line 4, after "(16)" strike everything through "(17)" on line 8, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Morton moved that the Senate refuse to concur in the House amendments to Substitute Senate Bill No. 5175 and asks he House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Morton that the Senate refuse to concur in the House amendments to Substitute Senate Bill No. 5175 and asks the House to recede therefrom.

      The motion by Senator Morton carried and the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5175 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5253 with the following amendment(s):

      On page 1, line 12, after “(3)” insert “(a)”             On page 1, line 17, after “older.” insert the following:           (b) There is no fee for nonresident juveniles under fifteen years of age if the juvenile is fishing with an adult who holds a current game fish license. The total catch limit for the persons using this exemption, both juvenile and adult, shall be limited to the quantity of game fish that is conveyed by the adult license. The license fee for a nonresident juvenile under fifteen years of age is twenty dollars if the juvenile: (i) is not fishing with an adult who holds a current game fish license; or (ii) desires to have a complete catch limit.”,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Oke, the Senate refuses to concur in the House amendments to Senate Bill No. 5253 and asks he House to recede therefrom.

MESSAGE FROM THE HOUSE

April 16, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5336 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 19.16.500 and 1982 c 65 s 1 are each amended to read as follows:          (1) Agencies, departments, taxing districts, political subdivisions of the state, counties, and incorporated cities may retain, by written contract, collection agencies licensed under this chapter for the purpose of collecting public debts owed by any person.      (2) No debt may be assigned to a collection agency unless (a) there has been an attempt to advise the debtor (i) of the existence of the debt and (ii) that the debt may be assigned to a collection agency for collection if the debt is not paid, and (b) at least thirty days have elapsed from the time the notice was sent.         (3) Collection agencies assigned debts under this section shall have only those remedies and powers which would be available to them as assignees of private creditors.       (4) For purposes of this section, the term debt shall include fines, fees, penalties, reasonable costs, assessments, and other debts.            (5) The reasonable costs involved in the collection of the debts through the use of a collection agency are reasonable costs that may be added to and included in the debt to be paid by the debtor.         Sec. 2. RCW 39.30.010 and 1970 ex.s. c 42 s 26 are each amended to read as follows:           Any city or town or metropolitan park district or county or library district may execute an executory conditional sales contract with a county or counties, the state or any of its political subdivisions, the government of the United States, or any private party for the purchase of any real or personal property, or property rights in connection with the exercise of any powers or duties which they now or hereafter are authorized to exercise, if the entire amount of the purchase price specified in such contract does not result in a total indebtedness in excess of three-fourths of one percent of the value of the taxable property in such ((city or town or metropolitan park district or county or)) library district((: PROVIDED, That)) or the maximum amount of nonvoter-approved indebtedness authorized in such county, city, town, or metropolitan park district. If such a proposed contract would result in a total indebtedness in excess of ((three-fourths of one percent of the value of the taxable property of such city or town or metropolitan park district or county or library district, as the case may be)) this amount, a proposition in regard to whether or not such a contract may be executed 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((: PROVIDED FURTHER, That)). Any city or town or metropolitan park district or county or library district may jointly execute contracts authorized by this section, if the entire amount of the purchase price does not result in a joint total indebtedness in excess of ((three-fourths of one percent of the value of the taxable property in such)) the nonvoter-approved indebtedness limitation of any city ((or)), town ((or)), metropolitan park district ((or)), county, or library district that participates in the jointly executed contract. The term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.              Sec. 3. RCW 35.27.070 and 1993 c 47 s 2 are each amended to read as follows:                 The government of a town shall be vested in a mayor and a council consisting of five members and a treasurer, all elective; the mayor shall appoint a clerk and a marshal; and may appoint a town attorney, pound master, street superintendent, a civil engineer, and such police and other subordinate officers and employees as may be provided for by ordinance. All appointive officers and employees shall hold office at the pleasure of the mayor, subject to any applicable law, rule, or regulation relating to civil service, and shall not be subject to confirmation by the town council.      Sec. 4. RCW 35.07.040 and 1965 c 7 s 35.07.040 are each amended to read as follows:     ((If the applicable census shows a population of less than four thousand,)) The council shall cause an election to be called upon the proposition of disincorporation. If the city or town has any indebtedness or outstanding liabilities, it shall order the election of a receiver at the same time.                Sec. 5. RCW 9.41.050 and 1996 c 295 s 4 are each amended to read as follows:      (1)(a) Except in the person's place of abode or fixed place of business, a person shall not carry a pistol concealed on his or her person without a license to carry a concealed pistol.     (b) Every licensee shall have his or her concealed pistol license in his or her immediate possession at all times that he or she is required by this section to have a concealed pistol license and shall display the same upon demand to any police officer or to any other person when and if required by law to do so. Any violation of this subsection (1)(b) shall be a class 1 civil infraction under chapter ((7.84)) 7.80 RCW and shall be punished accordingly pursuant to chapter ((7.84)) 7.80 RCW and the infraction rules for courts of limited jurisdiction.              (2) A person shall not carry or place a loaded pistol in any vehicle unless the person has a license to carry a concealed pistol and: (a) The pistol is on the licensee's person, (b) the licensee is within the vehicle at all times that the pistol is there, or (c) the licensee is away from the vehicle and the pistol is locked within the vehicle and concealed from view from outside the vehicle.             (3) A person at least eighteen years of age who is in possession of an unloaded pistol shall not leave the unloaded pistol in a vehicle unless the unloaded pistol is locked within the vehicle and concealed from view from outside the vehicle.      (4) Except as otherwise provided in this chapter, no person may carry a firearm unless it is unloaded and enclosed in an opaque case or secure wrapper or the person is:    (a) Licensed under RCW 9.41.070 to carry a concealed pistol;             (b) In attendance at a hunter's safety course or a firearms safety course;                (c) Engaging in practice in the use of a firearm or target shooting at an established range authorized by the governing body of the jurisdiction in which such range is located or any other area where the discharge of a firearm is not prohibited;      (d) Engaging in an organized competition involving the use of a firearm, or participating in or practicing for a performance by an organized group that uses firearms as a part of the performance;  (e) Engaging in a lawful outdoor recreational activity such as hunting, fishing, camping, hiking, or horseback riding, only if, considering all of the attendant circumstances, including but not limited to whether the person has a valid hunting or fishing license, it is reasonable to conclude that the person is participating in lawful outdoor activities or is traveling to or from a legitimate outdoor recreation area;               (f) In an area where the discharge of a firearm is permitted, and is not trespassing;      (g) Traveling with any unloaded firearm in the person's possession to or from any activity described in (b), (c), (d), (e), or (f) of this subsection, except as provided in (h) of this subsection;              (h) Traveling in a motor vehicle with a firearm, other than a pistol, that is unloaded and locked in the trunk or other compartment of the vehicle, placed in a gun rack, or otherwise secured in place in a vehicle, provided that this subsection (4)(h) does not apply to motor homes if the firearms are not within the driver's compartment of the motor home while the vehicle is in operation. Notwithstanding (a) of this subsection, and subject to federal and state park regulations regarding firearm possession therein, a motor home shall be considered a residence when parked at a recreational park, campground, or other temporary residential setting for the purposes of enforcement of this chapter;           (i) On real property under the control of the person or a relative of the person;      (j) At his or her residence;      (k) Is a member of the armed forces of the United States, national guard, or organized reserves, when on duty;      (l) Is a law enforcement officer;             (m) Carrying a firearm from or to a vehicle for the purpose of taking or removing the firearm to or from a place of business for repair; or      (n) An armed private security guard or armed private detective licensed by the department of licensing, while on duty or enroute to and from employment.      (5) Violation of any of the prohibitions of subsections (2) through (4) of this section is a misdemeanor.             (6) Nothing in this section permits the possession of firearms illegal to possess under state or federal law.      (7) Any city, town, or county may enact an ordinance to exempt itself from the prohibition of subsection (4) of this section.      Sec. 6. RCW 35A.12.010 and 1994 c 223 s 30 are each amended to read as follows:          The government of any noncharter code city or charter code city electing to adopt the mayor-council plan of government authorized by this chapter shall be vested in an elected mayor and an elected council. The council of a noncharter code city having less than twenty-five hundred inhabitants shall consist of five members; when there are twenty-five hundred or more inhabitants, the council shall consist of seven members((: PROVIDED, That)). A city with a population of less than twenty-five hundred at the time of reclassification as an optional municipal code city may choose to maintain a seven-member council. The decision concerning the number of councilmembers shall be made by the council and be incorporated as a section of the ordinance adopting for the city the classification of noncharter code city. If the population of a city after having become a code city decreases from twenty-five hundred or more to less than twenty-five hundred, it shall continue to have a seven member council. If, after a city has become a mayor-council code city, its population increases to twenty-five hundred or more inhabitants, the number of councilmanic offices in such city may increase from five to seven members upon the affirmative vote of a majority of the existing council to increase the number of councilmanic offices in the city. When the population of a mayor-council code city having five councilmanic offices increases to five thousand or more inhabitants, the number of councilmanic offices in the city shall increase from five to seven members. In the event of an increase in the number of councilmanic offices, the city council shall, by majority vote, pursuant to RCW 35A.12.050, appoint two persons to serve in these offices until the next municipal general election, at which election one person shall be elected for a two-year term and one person shall be elected for a four-year term. The number of inhabitants shall be determined by the most recent official state or federal census or determination by the state office of financial management. A charter adopted under the provisions of this title, incorporating the mayor-council plan of government set forth in this chapter, may provide for an uneven number of councilmembers not exceeding eleven.           A noncharter code city of less than five thousand inhabitants which has elected the mayor-council plan of government and which has seven councilmanic offices may establish a five-member council in accordance with the following procedure. At least six months prior to a municipal general election, the city council shall adopt an ordinance providing for reduction in the number of councilmanic offices to five. The ordinance shall specify which two councilmanic offices, the terms of which expire at the next general election, are to be terminated. The ordinance shall provide for the renumbering of council positions and shall also provide for a two-year extension of the term of office of a retained councilmanic office, if necessary, in order to comply with RCW 35A.12.040.                However, a noncharter code city that has retained its old mayor-council plan of government, as provided in RCW 35A.02.130, is subject to the laws applicable to that old plan of government.   NEW SECTION. Sec. 7. A new section is added to chapter 35.23 RCW to read as follows:     No person is eligible to hold an elective office in a second class city unless the person is a resident and registered voter in the city.           Sec. 8. RCW 35.27.080 and 1965 c 7 s 35.27.080 are each amended to read as follows:     No person shall be eligible to or hold an elective office in a town unless he or she is a resident and ((elector therein)) registered voter in the town.      Sec. 9. RCW 35.01.020 and 1994 c 81 s 4 are each amended to read as follows:                 A second class city is a city with a population of ((more than)) fifteen hundred or more at the time of its organization or reorganization that does not have a charter adopted under Article XI, section 10, of the state Constitution, and does not operate under Title 35A RCW.      Sec. 10. RCW 35.01.040 and 1994 c 81 s 5 are each amended to read as follows:          A town has a population of less than fifteen hundred ((or less)) at the time of its organization and does not operate under Title 35A RCW.     Sec. 11. RCW 35.02.130 and 1994 c 154 s 308 are each amended to read as follows:         The city or town officially shall become incorporated at a date from one hundred eighty days to three hundred sixty days after the date of the election on the question of incorporation. An interim period shall exist between the time the newly elected officials have been elected and qualified and this official date of incorporation. During this interim period, the newly elected officials are authorized to adopt ordinances and resolutions which shall become effective on or after the official date of incorporation, and to enter into contracts and agreements to facilitate the transition to becoming a city or town and to ensure a continuation of governmental services after the official date of incorporation. Periods of time that would be required to elapse between the enactment and effective date of such ordinances, including but not limited to times for publication or for filing referendums, shall commence upon the date of such enactment as though the city or town were officially incorporated.      During this interim period, the city or town governing body may adopt rules establishing policies and procedures under the state environmental policy act, chapter 43.21C RCW, and may use these rules and procedures in making determinations under the state environmental policy act, chapter 43.21C RCW. During this interim period, the newly formed city or town and its governing body shall be subject to the following as though the city or town were officially incorporated: RCW 4.24.470 relating to immunity; chapter 42.17 RCW relating to open government; chapter 40.14 RCW relating to the preservation and disposition of public records; chapters 42.20 and 42.23 RCW relating to ethics and conflicts of interest; chapters 42.30 and 42.32 RCW relating to open public meetings and minutes; RCW 35.22.288, ((35.23.310, 35.24.220)) 35.23.221, 35.27.300, 35A.12.160, as appropriate, and chapter 35A.65 RCW relating to the publication of notices and ordinances; RCW 35.21.875 and 35A.21.230 relating to the designation of an official newspaper; RCW 36.16.138 relating to liability insurance; RCW 35.22.620, 35.23.352, and 35A.40.210, as appropriate, and statutes referenced therein relating to public contracts and bidding; and chapter 39.34 RCW relating to interlocal cooperation. Tax anticipation or revenue anticipation notes or warrants and other short-term obligations may be issued and funds may be borrowed on the security of these instruments during this interim period, as provided in chapter 39.50 RCW. Funds also may be borrowed from federal, state, and other governmental agencies in the same manner as if the city or town were officially incorporated.      RCW 84.52.020 and 84.52.070 shall apply to the extent that they may be applicable, and the governing body of such city or town may take appropriate action by ordinance during the interim period to adopt the property tax levy for its first full calendar year following the interim period.         The governing body of the new city or town may acquire needed facilities, supplies, equipment, insurance, and staff during this interim period as if the city or town were in existence. An interim city manager or administrator, who shall have such administrative powers and duties as are delegated by the governing body, may be appointed to serve only until the official date of incorporation. After the official date of incorporation the governing body of such a new city organized under the council manager form of government may extend the appointment of such an interim manager or administrator with such limited powers as the governing body determines, for up to ninety days. This governing body may submit ballot propositions to the voters of the city or town to authorize taxes to be collected on or after the official date of incorporation, or authorize an annexation of the city or town by a fire protection district or library district to be effective immediately upon the effective date of the incorporation as a city or town.     The boundaries of a newly incorporated city or town shall be deemed to be established for purposes of RCW 84.09.030 on the date that the results of the initial election on the question of incorporation are certified or the first day of January following the date of this election if the newly incorporated city or town does not impose property taxes in the same year that the voters approve the incorporation.             The newly elected officials shall take office immediately upon their election and qualification with limited powers during this interim period as provided in this section. They shall acquire their full powers as of the official date of incorporation and shall continue in office until their successors are elected and qualified at the next general municipal election after the official date of incorporation: PROVIDED, That if the date of the next general municipal election is less than twelve months after the date of the first election of councilmembers, those initially elected councilmembers shall serve until their successors are elected and qualified at the next following general municipal election as provided in RCW 29.04.170. For purposes of this section, the general municipal election shall be the date on which city and town general elections are held throughout the state of Washington, pursuant to RCW 29.13.020.      In any newly incorporated city that has adopted the council-manager form of government, the term of office of the mayor, during the interim period only, shall be set by the council, and thereafter shall be as provided by law.    The official date of incorporation shall be on a date from one hundred eighty to three hundred sixty days after the date of the election on the question of incorporation, as specified in a resolution adopted by the governing body during this interim period. A copy of the resolution shall be filed with the county legislative authority of the county in which all or the major portion of the newly incorporated city or town is located. If the governing body fails to adopt such a resolution, the official date of incorporation shall be three hundred sixty days after the date of the election on the question of incorporation. The county legislative authority of the county in which all or the major portion of the newly incorporated city or town is located shall file a notice with the county assessor that the city or town has been authorized to be incorporated immediately after the favorable results of the election on the question of incorporation have been certified. The county legislative authority shall file a notice with the secretary of state that the city or town is incorporated as of the official date of incorporation.                 Sec. 12. RCW 35.22.010 and 1965 c 7 s 35.22.010 are each amended to read as follows:          Cities of the first class shall be organized and governed according to the law providing for the government of cities having a population of ((twenty)) ten thousand or more inhabitants that have adopted a charter in accordance with Article ((11)) XI, section 10 of the state Constitution.         Sec. 13. RCW 35.23.051 and 1995 c 134 s 8 are each amended to read as follows:             General municipal elections in second class cities ((not operating under the commission form of government)) shall be held biennially in the odd-numbered years and shall be subject to general election law.                The terms of office of the mayor, city attorney, clerk, and treasurer shall be four years and until their successors are elected and qualified and assume office in accordance with RCW 29.04.170: PROVIDED, That if the offices of city attorney, clerk, and treasurer are made appointive, the city attorney, clerk, and treasurer shall not be appointed for a definite term: PROVIDED FURTHER, That the term of the elected treasurer shall not commence in the same biennium in which the term of the mayor commences, nor in which the terms of the city attorney and clerk commence if they are elected.          Council positions shall be numbered in each second class city so that council position seven has a two-year term of office and council positions one through six shall each have four-year terms of office. Each councilmember shall remain in office until a successor is elected and qualified and assumes office in accordance with RCW 29.04.170.      In its discretion the council of a second class city may divide the city by ordinance, into a convenient number of wards, not exceeding six, fix the boundaries of the wards, and change the ward boundaries from time to time and as provided in RCW 29.70.100. No change in the boundaries of any ward shall be made within one hundred twenty days next before the date of a general municipal election, nor within twenty months after the wards have been established or altered. However, if a boundary change results in one ward being represented by more councilmembers than the number to which it is entitled, those having the shortest unexpired terms shall be assigned by the council to wards where there is a vacancy, and the councilmembers so assigned shall be deemed to be residents of the wards to which they are assigned for purposes of determining whether those positions are vacant.       Whenever such city is so divided into wards, the city council shall designate by ordinance the number of councilmembers to be elected from each ward, apportioning the same in proportion to the population of the wards. Thereafter the councilmembers so designated shall be elected by the voters resident in such ward, or by general vote of the whole city as may be designated in such ordinance. Council position seven shall not be associated with a ward and the person elected to that position may reside anywhere in the city and voters throughout the city may vote at a primary to nominate candidates for position seven, when a primary is necessary, and at a general election to elect the person to council position seven. ((When)) Additional territory that is added to the city ((it may)) shall, by act of the council, be annexed to contiguous wards without affecting the right to redistrict at the expiration of twenty months after last previous division. The removal of a councilmember from the ward for which he or she was elected shall create a vacancy in such office.      Wards shall be redrawn as provided in chapter 29.70 RCW. Wards shall be used as follows: (1) Only a resident of the ward may be a candidate for, or hold office as, a councilmember of the ward; and (2) only voters of the ward may vote at a primary to nominate candidates for a councilmember of the ward. Voters of the entire city may vote at the general election to elect a councilmember of a ward, unless the city had prior to January 1, 1994, limited the voting in the general election for any or all council positions to only voters residing within the ward associated with the council positions. If a city had so limited the voting in the general election to only voters residing within the ward, then the city shall be authorized to continue to do so. The elections for the remaining council position or council positions that are not associated with a ward shall be conducted as if the wards did not exist.       Sec. 14. RCW 35.33.020 and 1985 c 175 s 4 are each amended to read as follows:              The provisions of this chapter apply to all cities of the first class ((which)) that have a population of less than three hundred thousand, to all cities of the second ((and third classes)) class, and to all towns, except those cities and towns ((which)) that have adopted an ordinance under RCW 35.34.040 providing for a biennial budget.              Sec. 15. RCW 35.34.020 and 1985 c 175 s 5 are each amended to read as follows:  This chapter applies to all cities of the first((,)) and second((, and third)) classes and to all towns ((which)), that have by ordinance adopted this chapter authorizing the adoption of a fiscal biennium budget.                 Sec. 16. RCW 35.86.010 and 1975 1st ex.s. c 221 s 1 are each amended to read as follows:               Cities of the first((,)) and second((, and third)) classes are authorized to provide off-street parking space and facilities located on land dedicated for park or civic center purposes, or on other municipally-owned land where the primary purpose of such off-street parking facility is to provide parking for persons who use such park or civic center facilities. In addition a city may own other off-street parking facilities and operate them in accordance with RCW 35.86A.120.                 Sec. 17. RCW 35A.06.020 and 1995 c 134 s 11 are each amended to read as follows:          The classifications of municipalities ((which existed prior to the time this title goes into effect—)) as first class cities, second class cities, unclassified cities, and towns((—)), and the restrictions, limitations, duties, and obligations specifically imposed by law upon such classes of cities and towns, shall have no application to noncharter code cities, but every noncharter code city, by adopting such classification, has elected to be governed by the provisions of this title, with the powers granted hereby. However, any code city that retains its old plan of government is subject to the laws applicable to that old plan of government until the city abandons its old plan of government and reorganizes and adopts a plan of government under chapter 35A.12 or 35A.13 RCW.         NEW SECTION. Sec. 18. A new section is added to chapter 35.13 RCW to read as follows:              A city or town may not annex territory located in a county with a population of less than six hundred sixty thousand in which the city or town is not currently located, if the territory proposed to be annexed is characterized by industrial or commercial development and was designated as all or part of an urban growth area under RCW 36.70A.110 within two years of the effective date of this act as the result of a decision by a growth management hearings board.               This section expires July 1, 1999.      NEW SECTION. Sec. 19. A new section is added to chapter 35A.14 RCW to read as follows:    A code city may not annex territory located in a county with a population of less than six hundred sixty thousand in which the city is not currently located, if the territory proposed to be annexed is characterized by industrial or commercial development and was designated as all or part of an urban growth area under RCW 36.70A.110 within two years of the effective date of this act as the result of a decision by a growth management hearings board.      This section expires July 1, 1999.          Sec. 20. RCW 35.13.005 and 1990 1st ex.s. c 17 s 30 are each amended to read as follows:      ((No)) A city or town may not annex territory located in a county in which urban growth areas have been designated under RCW 36.70A.110 ((may annex territory)) that is located beyond an urban growth area unless the territory is annexed under RCW 35.13.180.      Sec. 21. RCW 35A.14.005 and 1990 1st ex.s. c 17 s 31 are each amended to read as follows:            ((No)) A code city may not annex territory located in a county in which urban growth areas have been designated under RCW 36.70A.110 ((may annex territory)) that is located beyond an urban growth area unless the territory is annexed under RCW 35A.14.300.               Sec. 22. RCW 35.13.180 and 1994 c 81 s 11 are each amended to read as follows: City and town councils ((of second class cities and towns)) may by a majority vote annex new unincorporated territory outside the city or town limits, whether contiguous or noncontiguous for park, cemetery, or other municipal purposes when such territory is owned by the city or town ((or all of the owners of the real property in the territory give their written consent to the annexation)).      Sec. 23. RCW 36.70A.110 and 1995 c 400 s 2 are each amended to read as follows:          (1) Each county that is required or chooses to plan under RCW 36.70A.040 shall designate an urban growth area or areas within which urban growth shall be encouraged and outside of which growth can occur only if it is not urban in nature. Each city that is located in such a county shall be included within an urban growth area, except that an area owned by a city or town that was annexed to the city or town under RCW 35.13.180 or 35A.14.300 may be located outside of an urban growth area. An urban growth area may include more than a single city. An urban growth area may include territory that is located outside of a city only if such territory already is characterized by urban growth whether or not the urban growth area includes a city, or is adjacent to territory already characterized by urban growth, or is a designated new fully contained community as defined by RCW 36.70A.350.      (2) Based upon the growth management population projection made for the county by the office of financial management, the urban growth areas in the county shall include areas and densities sufficient to permit the urban growth that is projected to occur in the county for the succeeding twenty-year period. Each urban growth area shall permit urban densities and shall include greenbelt and open space areas. An urban growth area determination may include a reasonable land market supply factor and shall permit a range of urban densities and uses. In determining this market factor, cities and counties may consider local circumstances. Cities and counties have discretion in their comprehensive plans to make many choices about accommodating growth.        Within one year of July 1, 1990, each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040, shall begin consulting with each city located within its boundaries and each city shall propose the location of an urban growth area. Within sixty days of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall begin this consultation with each city located within its boundaries. The county shall attempt to reach agreement with each city on the location of an urban growth area within which the city is located. If such an agreement is not reached with each city located within the urban growth area, the county shall justify in writing why it so designated the area an urban growth area. A city may object formally with the department over the designation of the urban growth area within which it is located. Where appropriate, the department shall attempt to resolve the conflicts, including the use of mediation services.        (3) Urban growth should be located first in areas already characterized by urban growth that have adequate existing public facility and service capacities to serve such development, second in areas already characterized by urban growth that will be served adequately by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources, and third in the remaining portions of the urban growth areas. Urban growth may also be located in designated new fully contained communities as defined by RCW 36.70A.350.     (4) In general, cities are the units of local government most appropriate to provide urban governmental services. In general, it is not appropriate that urban governmental services be extended to or expanded in rural areas except in those limited circumstances shown to be necessary to protect basic public health and safety and the environment and when such services are financially supportable at rural densities and do not permit urban development.      (5) On or before October 1, 1993, each county that was initially required to plan under RCW 36.70A.040(1) shall adopt development regulations designating interim urban growth areas under this chapter. Within three years and three months of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall adopt development regulations designating interim urban growth areas under this chapter. Adoption of the interim urban growth areas may only occur after public notice; public hearing; and compliance with the state environmental policy act, chapter 43.21C RCW, and RCW 36.70A.110. Such action may be appealed to the appropriate growth management hearings board under RCW 36.70A.280. Final urban growth areas shall be adopted at the time of comprehensive plan adoption under this chapter.              (6) Each county shall include designations of urban growth areas in its comprehensive plan.          NEW SECTION. Sec. 24. RCW 35.21.620 shall be recodified as a section in chapter 35.22 RCW.     NEW SECTION. Sec. 25. The following acts or parts of acts are each repealed:    (1) RCW 35.07.030 and 1965 c 7 s 35.07.030;                  (2) RCW 35.17.160 and 1965 c 7 s 35.17.160;      (3) RCW 35.23.390 and 1965 c 7 s 35.23.390;             (4) RCW 35.23.400 and 1965 c 7 s 35.23.400;      (5) RCW 35.21.600 and 1979 c 151 s 27, 1965 ex.s. c 47 s 6, & 1965 c 7 s 35.21.600;         (6) RCW 35.21.610 and 1965 ex.s. c 47 s 1; and   (7) RCW 35A.61.010 and 1967 ex.s. c 119 s 35A.61.010.      NEW SECTION. Sec. 26. 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 accordingly.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator McCaslin moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5336.

      Debate ensued.

WITHDRAWAL OF MOTION

      On motion of Senator McCaslin, the motion to concur in the House amendment to Substitute Senate Bill No. 5336 was withdrawn.

MOTION

      On motion of Senator McCaslin, the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5336 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5468 with the following amendment(s)

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature declares that it is the policy of this state to promote beekeeping to maintain and enhance the pollination of plants for the production of commercial and noncommercial products. In support of this policy the legislature declares its recognition and support for efforts to enhance and encourage beekeeping operations in urban and rural areas of the state that benefit a wide range of activities such as commercial agriculture, gardening, and pollination of wildlife-supporting plants.        It is the intent of the legislature to recognize the keeping of bees for pollination of agricultural products as an agricultural activity to aid in protection of this essential activity from nuisance lawsuits.      It is the intent of the legislature in sections 3 and 4 of this act for the apiary advisory committee to provide advice and input to state agencies that own and manage lands regarding the means necessary to enhance the pollination of plants on state-owned lands while furnishing pasture for honey bees.           Sec. 2. RCW 7.48.310 and 1992 c 52 s 4 are each amended to read as follows:     As used in RCW 7.48.305:     (1) "Agricultural activity" means a condition or activity which occurs on a farm in connection with the commercial production of farm products and includes, but is not limited to, marketed produce at roadside stands or farm markets; noise; odors; dust; fumes; operation of machinery and irrigation pumps; movement, including, but not limited to, use of current county road ditches, streams, rivers, canals, and drains, and use of water for agricultural activities; ground and aerial application of seed, fertilizers, conditioners, and plant protection products; keeping of bees for pollination of agricultural products; employment and use of labor; roadway movement of equipment and livestock; protection from damage by wildlife; prevention of trespass; construction and maintenance of buildings, fences, roads, bridges, ponds, drains, waterways, and similar features and maintenance of streambanks and watercourses; and conversion from one agricultural activity to another.      (2) "Farm" means the land, buildings, freshwater ponds, freshwater culturing and growing facilities, and machinery used in the commercial production of farm products.       (3) "Farmland" means land or freshwater ponds devoted primarily to the production, for commercial purposes, of livestock, freshwater aquacultural, or other agricultural commodities.      (4) "Farm product" means those plants and animals useful to humans and includes, but is not limited to, forages and sod crops, dairy and dairy products, poultry and poultry products, livestock, including breeding, grazing, and recreational equine use, fruits, vegetables, flowers, seeds, grasses, trees, freshwater fish and fish products, apiaries, equine and other similar products, or any other product which incorporates the use of food, feed, fiber, or fur.      (5) "Forest practice" means "forest practice" as defined in RCW 76.09.020.        NEW SECTION. Sec. 3. The commissioner of public lands shall confer with the apiary advisory committee established under RCW 15.60.010, for the purpose of implementing the policy under section 1 of this act and exploring the benefits to resources that could result from locating additional pollinating bees on lands managed by the department of natural resources. The discussion shall also include the benefits to beekeepers of making additional pasture for domesticated bees available at a reasonable cost.       The department shall report to the legislature by December 1, 1997, on actions taken to implement the policy in section 1 of this act.  NEW SECTION. Sec. 4. The department of fish and wildlife shall confer with the apiary advisory committee established under RCW 15.60.010, for the purpose of implementing the policy under section 1 of this act and exploring the benefits to resources that could result from locating additional pollinating bees on lands managed by the department of fish and wildlife. The discussion shall also include the benefits to beekeepers of making additional pasture for domesticated bees available at a reasonable cost.      The department shall report to the legislature by December 1, 1997, on actions taken to implement the policy in section 1 of this act.      Sec. 5. RCW 15.60.040 and 1994 c 178 s 4 are each amended to read as follows:               (((1) There is hereby established a fee on the use, by growers of agricultural crops, of bee pollination services provided by others. This pollination service fee is in the amount of fifty cents for each setting of each hive containing a colony that is used by the grower. The fee shall be paid by the grower using the service, shall be collected by the beekeeper providing the service, and shall be remitted by the beekeeper to the department as provided by rules adopted by the director. All such fees shall be deposited in the industry apiary program account. Revenues from these fees shall be directed to use in providing services to the apiary industry that assist in ensuring the vitality and availability of bees for commercial pollination services for the agricultural industry.      (2))) There is established an industry apiary program account within the agricultural local fund. All money collected under this chapter including fees for requested services, required inspections, or treatments, and registration fees((, and apiary assessments)) shall be placed in the industry apiary program account. Money in the account may only be used to carry out the purposes of this chapter. No appropriation is required for disbursement from the industry apiary program account.         NEW SECTION. Sec. 6. The apiary advisory committee established under RCW 15.60.010 shall, in consultation with the director of agriculture, examine means of offsetting the reduction in revenues to the industry apiary program account resulting from the amendments to RCW 15.60.040 made by section 5 of this act by providing alternative revenues to the account from sources within the apiary industry. Any recommendation of the committee shall be made to the house agriculture and ecology committee and the senate agriculture and environment committee by December 1, 1997, in the form of legislation providing such offsetting revenues. Any alternative source or sources of revenues included in such a recommendation shall be exclusively from sources within the apiary industry and shall not be in the form of state fees imposed upon other segments of the agricultural community.",    Correct the title.      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

POINT OF ORDER

      Senator Rasmussen: “Mr. President, I raise the question of scope and object on Senate Bill No. 5468. The bill as it left the committee related to the agricultural lands and the DNR lands that bees could be kept upon and what the House did was send over an amendment that related to funding it and it did not go to the Ways and Means Committee and I would raise the scope on that issue. There are a few others I could raise it on , but as our distinguished gentleman, who is chair of the committee, says that he will get stung on this bill. You didn't get stung on it as it left the Senate, but as it is coming back these bees are running out of the hives and we need to control them.”

MOTION

      On motion of Senator Johnson, further consideration of Senate Bill No. 5468 was deferred.

MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5511 with the following amendment(s)

      On page 3, after line 12, insert the following:        "Sec. 4. RCW 26.44.020 and 1996 c 178 s 10 are each amended to read as follows:      For the purpose of and as used in this chapter:       (1) "Court" means the superior court of the state of Washington, juvenile department.      (2) "Law enforcement agency" means the police department, the prosecuting attorney, the state patrol, the director of public safety, or the office of the sheriff.      (3) "Practitioner of the healing arts" or "practitioner" means a person licensed by this state to practice podiatric medicine and surgery, optometry, chiropractic, nursing, dentistry, osteopathic medicine and surgery, or medicine and surgery or to provide other health services. The term "practitioner" shall include a duly accredited Christian Science practitioner: PROVIDED, HOWEVER, That a person who is being furnished Christian Science treatment by a duly accredited Christian Science practitioner shall not be considered, for that reason alone, a neglected person for the purposes of this chapter.      (4) "Institution" means a private or public hospital or any other facility providing medical diagnosis, treatment or care.         (5) "Department" means the state department of social and health services.          (6) "Child" or "children" means any person under the age of eighteen years of age.            (7) "Professional school personnel" shall include, but not be limited to, teachers, counselors, administrators, child care facility personnel, and school nurses.               (8) "Social service counselor" shall mean anyone engaged in a professional capacity during the regular course of employment in encouraging or promoting the health, welfare, support or education of children, or providing social services to adults or families, including mental health, drug and alcohol treatment, and domestic violence programs, whether in an individual capacity, or as an employee or agent of any public or private organization or institution.    (9) "Psychologist" shall mean any person licensed to practice psychology under chapter 18.83 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.          (10) "Pharmacist" shall mean any registered pharmacist under the provisions of chapter 18.64 RCW, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.      (11) "Clergy" shall mean any regularly licensed or ordained minister, priest or rabbi of any church or religious denomination, whether acting in an individual capacity or as an employee or agent of any public or private organization or institution.                   (12) "Abuse or neglect" shall mean the injury, sexual abuse, sexual exploitation, negligent treatment, or maltreatment of a child, adult dependent, or developmentally disabled person by any person under circumstances which indicate that the child's or adult's health, welfare, and safety is harmed. An abused child is a child who has been subjected to child abuse or neglect as defined herein.                (13) "Child protective services section" shall mean the child protective services section of the department.              (14) "Adult dependent persons" shall be defined as those persons over the age of eighteen years who have been found to be legally incompetent or disabled pursuant to chapter 11.88 RCW.           (15) "Sexual exploitation" includes: (a) Allowing, permitting, or encouraging a child to engage in prostitution by any person; or (b) allowing, permitting, encouraging, or engaging in the obscene or pornographic photographing, filming, or depicting of a child by any person.                  (16) "Negligent treatment or maltreatment" means an act or omission which evidences a serious disregard of consequences of such magnitude as to constitute a clear and present danger to the child's health, welfare, and safety.              (17) "Developmentally disabled person" means a person who has a disability defined in RCW 71A.10.020.       (18) "Child protective services" means those services provided by the department designed to protect children from child abuse and neglect and safeguard the general welfare of such children and shall include investigations of child abuse and neglect reports, including reports regarding child care centers and family child care homes, and the development, management, and provision of or referral to services to ameliorate conditions which endanger the welfare of children, the coordination of necessary programs and services relevant to the prevention, intervention, and treatment of child abuse and neglect, and services to children to ensure that each child has a permanent home. In determining whether protective services should be provided, the department shall not decline to provide such services solely because of the child's unwillingness or developmental inability to describe the nature and severity of the abuse or neglect.      (19) "Malice" or "maliciously" means an evil intent, wish, or design to vex, annoy, or injure another person. Such malice may be inferred from an act done in wilful disregard of the rights of another, or an act wrongfully done without just cause or excuse, or an act or omission of duty betraying a wilful disregard of social duty.           (20) "Sexually aggressive youth" means a child who is defined in RCW 74.13.075(1)(b) as being a "sexually aggressive youth."        (21) "Information determined to be unfounded" means information related to the allegations in a child protective services referral for which there is reasonable cause for the social worker to believe, based on a child protective services investigation, that the allegations are untrue or that sufficient evidence exists to reasonably conclude that the child has not been abused or neglected nor is at risk of abuse or neglect."                 Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Long moved that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5511 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Long that the Senate refuse to concur in the House amendment to Substitute Senate Bill No. 5511 and asks the House to recede therefrom.

      The motion by Senator Long carried and the Senate refuses to concur in the House amendment to Substitute Senate Bill No. 5511 and asks the House to recede therefrom.

MOTION

      On motion of Senator Goings, Senator Loveland was excused.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5650 with the following amendment(s)

      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, with fewer than one hundred twenty customers on the effective date of this act, may by resolution declare that it is in the best interests of the district for a city, with a population greater than one hundred thousand on the effective date of this act, 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.         This section expires December 31, 1998.               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)) 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.                Sec. 4. RCW 57.04.050 and 1996 c 230 s 204 are each amended to read as follows:              Upon entry of the findings of the final hearing on the petition if one or more county legislative authorities find that the proposed district will be conducive to the public health, welfare, and convenience and will benefit the land therein, they shall ((call)) present a resolution to the county auditor calling for a special election ((by presenting a resolution to the county auditor at least forty-five days prior to the proposed election date. A special election shall be held on a date decided by the commissioners in accordance with RCW 29.13.020)) to be held at a date specified under RCW 29.13.020, that occurs forty-five or more days after the resolution is presented, at which a ballot proposition authorizing the district to be created shall be submitted to voters for their approval or rejection. The commissioners shall cause to be published a notice of the election for four successive weeks in a newspaper of general circulation in the proposed district, which notice shall state the hours during which the polls will be open, the boundaries of the district as finally adopted and the object of the election, and the notice shall also be posted ten days in ten public places in the proposed district. ((In submitting the proposition to the voters, it shall be expressed on the ballots in the following terms:

       . . . . . District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . YES □ . . . . . DistrictNO □

giving the name of the district as provided in the petition. The proposition to be effective must be)) The district shall be created if the ballot proposition authorizing the district to be created is approved by a majority of the voters voting on the proposition.                  A separate ballot proposition authorizing the district, if created, to impose a single-year excess levy for the preliminary expenses of the district shall be submitted to voters for their approval or rejection at the same special election ((a proposition shall be submitted to the voters, for their approval or rejection, authorizing the district, if formed, to impose on all property located in the district a general tax for one year, in excess of the limitations provided by law)), if the petition to create the district also proposed that a ballot proposition authorizing an excess levy be submitted to voters for their approval or rejection. The excess levy shall be proposed in the amount specified in the petition to create the district, not to exceed one dollar and twenty-five cents per thousand dollars of assessed value, ((for general preliminary expenses of the district, that proposition to be expressed on the ballots in the following terms:

      One year . . . . . . dollars and . . . . . . cents per thousand dollars of assessed value tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . YES □ NO □

      Such a ballot proposition)) and may only be submitted to voters for their approval or rejection if the special election is held in February, March, April, or May. The proposition to be effective must be approved ((by at least three-fifths of the voters voting on the proposition)) in the manner set forth in Article VII, section 2(a) of the state Constitution.   Sec. 5. RCW 57.08.005 and 1996 c 230 s 301 are each amended to read as follows:  A district shall have the following powers:       (1) To acquire by purchase or condemnation, or both, all lands, property and property rights, and all water and water rights, both within and without the district, necessary for its purposes. The right of eminent domain shall be exercised in the same manner and by the same procedure as provided for cities and towns, insofar as consistent with this title, except that all assessment or reassessment rolls to be prepared and filed by eminent domain commissioners or commissioners appointed by the court shall be prepared and filed by the district, and the duties devolving upon the city treasurer are imposed upon the county treasurer;      (2) To lease real or personal property necessary for its purposes for a term of years for which that leased property may reasonably be needed;      (3) To construct, condemn and purchase, add to, maintain, and supply waterworks to furnish the district and inhabitants thereof and any other persons, both within and without the district, with an ample supply of water for all uses and purposes public and private with full authority to regulate and control the use, content, distribution, and price thereof in such a manner as is not in conflict with general law and may construct, acquire, or own buildings and other necessary district facilities. Where a customer connected to the district's system uses the water on an intermittent or transient basis, a district may charge for providing water service to such a customer, regardless of the amount of water, if any, used by the customer. District waterworks may include facilities which result in combined water supply and electric generation, if the electricity generated thereby is a byproduct of the water supply system. That electricity may be used by the district or sold to any entity authorized by law to use or distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of water supply. For such purposes, a district may take, condemn and purchase, acquire, and retain water from any public or navigable lake, river or watercourse, or any underflowing water, and by means of aqueducts or pipeline conduct the same throughout the district and any city or town therein and carry it along and upon public highways, roads, and streets, within and without such district. For the purpose of constructing or laying aqueducts or pipelines, dams, or waterworks or other necessary structures in storing and retaining water or for any other lawful purpose such district may occupy the beds and shores up to the high water mark of any such lake, river, or other watercourse, and may acquire by purchase or condemnation such property or property rights or privileges as may be necessary to protect its water supply from pollution. For the purposes of waterworks which include facilities for the generation of electricity as a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owner;     (4) To purchase and take water from any municipal corporation, private person, or entity. A district contiguous to Canada may contract with a Canadian corporation for the purchase of water and for the construction, purchase, maintenance, and supply of waterworks to furnish the district and inhabitants thereof and residents of Canada with an ample supply of water under the terms approved by the board of commissioners;          (5) To construct, condemn and purchase, add to, maintain, and operate systems of sewers for the purpose of furnishing the district, the inhabitants thereof, and persons outside the district with an adequate system of sewers for all uses and purposes, public and private, including but not limited to on-site sewage disposal facilities, approved septic tanks or approved septic tank systems, other facilities and systems for the collection, interception, treatment, and disposal of wastewater, and for the control of pollution from wastewater ((and for the protection, preservation, and rehabilitation of surface and underground waters, facilities for the drainage and treatment of storm or surface waters, public highways, streets, and roads)) with full authority to regulate the use and operation thereof and the service rates to be charged. Sewage facilities may include facilities which result in combined sewage disposal((,)) or treatment((, or drainage)) and electric generation, except that the electricity generated thereby is a byproduct of the system of sewers. Such electricity may be used by the district or sold to any entity authorized by law to distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of sewage disposal((,)) or treatment((, or drainage)). For such purposes a district may conduct sewage throughout the district and throughout other political subdivisions within the district, and construct and lay sewer pipe along and upon public highways, roads, and streets, within and without the district, and condemn and purchase or acquire land and rights of way necessary for such sewer pipe. A district may erect sewage treatment plants within or without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to protect any lakes, rivers, or watercourses and also other areas of land from pollution from its sewers or its sewage treatment plant. For the purposes of sewage facilities which include facilities that result in combined sewage disposal((,)) or treatment((, or drainage)) and electric generation where the electric generation is a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owners;      (6) To construct, condemn and purchase, add to, maintain, and operate systems of drainage for the benefit and use of the district, the inhabitants thereof, and persons outside the district with an adequate system of drainage, including but not limited to facilities and systems for the collection, interception, treatment, and disposal of storm or surface waters, and for the protection, preservation, and rehabilitation of surface and underground waters, and drainage facilities for public highways, streets, and roads, with full authority to regulate the use and operation thereof and the service rates to be charged. Drainage facilities may include natural systems. Drainage facilities may include facilities which result in combined drainage facilities and electric generation, except that the electricity generated thereby is a byproduct of the drainage system. Such electricity may be used by the district or sold to any entity authorized by law to distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of drainage collection, disposal, and treatment. For such purposes, a district may conduct storm or surface water throughout the district and throughout other political subdivisions within the district, construct and lay drainage pipe and culverts along and upon public highways, roads, and streets, within and without the district, and condemn and purchase or acquire land and rights of way necessary for such drainage systems. A district may provide or erect facilities and improvements for the treatment and disposal of storm or surface water within or without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to protect any lakes, rivers, or watercourses and also other areas of land from pollution from storm or surface waters. For the purposes of drainage facilities which include facilities that also generate electricity as a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owners;    (7) To construct, condemn, acquire, and own buildings and other necessary district facilities;  (((7))) (8) To compel all property owners within the district located within an area served by the district's system of sewers to connect their private drain and sewer systems with the district's system under such penalty as the commissioners shall prescribe by resolution. The district may for such purpose enter upon private property and connect the private drains or sewers with the district system and the cost thereof shall be charged against the property owner and shall be a lien upon property served;    (((8))) (9) Where a district contains within its borders, abuts, or is located adjacent to any lake, stream, ground water as defined by RCW 90.44.035, or other waterway within the state of Washington, to provide for the reduction, minimization, or elimination of pollutants from those waters in accordance with the district's comprehensive plan, and to issue general obligation bonds, revenue bonds, local improvement district bonds, or utility local improvement bonds for the purpose of paying all or any part of the cost of reducing, minimizing, or eliminating the pollutants from these waters;      (((9))) (10) To fix rates and charges for water, sewer, and drain service supplied and to charge property owners seeking to connect to the district's systems, as a condition to granting the right to so connect, in addition to the cost of the connection, such reasonable connection charge as the board of commissioners shall determine to be proper in order that those property owners shall bear their equitable share of the cost of the system. For the purposes of calculating a connection charge, the board of commissioners shall determine the pro rata share of the cost of existing facilities and facilities planned for construction within the next ten years and contained in an adopted comprehensive plan and other costs borne by the district which are directly attributable to the improvements required by property owners seeking to connect to the system. The cost of existing facilities shall not include those portions of the system which have been donated or which have been paid for by grants. The connection charge may include interest charges applied from the date of construction of the system until the connection, or for a period not to exceed ten years, whichever is shorter, at a rate commensurate with the rate of interest applicable to the district at the time of construction or major rehabilitation of the system, or at the time of installation of the lines to which the property owner is seeking to connect. A district may permit payment of the cost of connection and the reasonable connection charge to be paid with interest in installments over a period not exceeding fifteen years. The county treasurer may charge and collect a fee of three dollars for each year for the treasurer's services. Those fees shall be a charge to be included as part of each annual installment, and shall be credited to the county current expense fund by the county treasurer. Revenues from connection charges excluding permit fees are to be considered payments in aid of construction as defined by department of revenue rule.          Except as otherwise provided in RCW 90.03.525, any public entity and public property, including the state of Washington and state property, shall be subject to rates and charges for sewer, water, storm water control, drainage, and street lighting facilities to the same extent private persons and private property are subject to those rates and charges that are imposed by districts. In setting those rates and charges, consideration may be made of in-kind services, such as stream improvements or donation of property;      (((10))) (11) To contract with individuals, associations and corporations, the state of Washington, and the United States;      (((11))) (12) To employ such persons as are needed to carry out the district's purposes and fix salaries and any bond requirements for those employees;         (((12))) (13) To contract for the provision of engineering, legal, and other professional services as in the board of commissioner's discretion is necessary in carrying out their duties;             (((13))) (14) To sue and be sued;            (((14))) (15) To loan and borrow funds and to issue bonds and instruments evidencing indebtedness under chapter 57.20 RCW and other applicable laws;      (((15))) (16) To transfer funds, real or personal property, property interests, or services subject to RCW 57.08.015;          (((16))) (17) To levy taxes in accordance with this chapter and chapters 57.04 and 57.20 RCW;         (((17))) (18) To provide for making local improvements and to levy and collect special assessments on property benefitted thereby, and for paying for the same or any portion thereof in accordance with chapter 57.16 RCW;             (((18))) (19) To establish street lighting systems under RCW 57.08.060;              (((19))) (20) To exercise such other powers as are granted to water-sewer districts by this title or other applicable laws; and   (((20))) (21) To exercise any of the powers granted to cities and counties with respect to the acquisition, construction, maintenance, operation of, and fixing rates and charges for waterworks and systems of sewerage and drainage.               Sec. 6. RCW 57.08.014 and 1996 c 230 s 304 are each amended to read as follows:      In addition to the authority of a district to establish classifications for rates and charges and impose such rates and charges, a district may adjust or delay those rates and charges for low-income persons or classes of low-income persons, including but not limited to, ((poor)) low-income handicapped persons and ((poor)) low-income senior citizens. Other financial assistance available to low-income persons shall be considered in determining charges and rates under this section. Notification of special rates or charges established under this section shall be provided to all persons served by the district annually and upon initiating service. Information on cost shifts caused by establishment of the special rates or charges shall be included in the notification. Any reduction in charges and rates granted to low-income persons in one part of a service area shall be uniformly extended to low-income persons in all other parts of the service area.     Sec. 7. RCW 57.08.030 and 1996 c 230 s 307 are each amended to read as follows:           (1) Whenever any district shall have installed a distributing system of water mains and laterals, and as a source of supply of water shall be purchasing or intending to purchase water from any city or town, and whenever it appears to be advantageous to the water consumers in the district that such city or town shall take over the water system of the district and supply water to those water users, the commissioners of the district, when authorized as provided in subsection (2) of this section, shall have the right to convey the distributing system to that city or town if that city or town is willing to accept, maintain, and repair the same.        (2) Should the commissioners of the district decide that it would be to the advantage of the water consumers of the district to make the conveyance provided for in subsection (1) of this section, they shall cause the proposition of making that conveyance to be submitted to the voters of the district at any general election or at a special election to be called for the purpose of voting on the same. If at the election a majority of the voters voting on the proposition shall be in favor of making the conveyance, the district commissioners shall have the right to convey to the city or town the mains and laterals belonging to the district upon the city or town entering into a contract satisfactory to the commissioners to maintain and repair the same.            (3) Whenever a city or town located wholly or in part within a district shall enter into a contract with the commissioners of a district providing that the city or town shall take over all of the operation of the water supply facilities of the district located within its boundaries, the area of the district located within the city or town shall upon the execution of the contract cease to be served by the district for water service purposes. However, the affected land within that city or town shall remain liable for the payment of all assessments, any lien upon the property at the time of the execution of the agreement, and for any lien of all general obligation bonds due at the date of the contract, and the city or town shall remain liable for its fair prorated share of the debt of the area for any revenue bonds, outstanding as of the date of contract.      Sec. 8. RCW 57.08.044 and 1996 c 230 s 309 are each amended to read as follows:           A district may enter into contracts with any county, city, town, or any other municipal or quasi-municipal corporation, or with any private person or corporation, for the acquisition, ownership, use, and operation of any property, facilities, or services, within or without the district, and necessary or desirable to carry out the purposes of the district. A district may provide water, sewer, drainage, or street lighting services to property owners in areas within or without the limits of the district, except that if the area to be served is located within another existing district duly authorized to exercise district powers in that area, then water, sewer, drainage, or street lighting service may not be so provided by contract or otherwise without the consent by resolution of the board of commissioners of that other district.     Sec. 9. RCW 57.08.047 and 1996 c 230 s 310 are each amended to read as follows:      The provision of water ((or)), sewer, or drainage service beyond the boundaries of a district may be subject to potential review by a boundary review board under chapter 36.93 RCW.      Sec. 10. RCW 57.08.050 and 1996 c 230 s 311 and 1996 c 18 s 14 are each reenacted and amended to read as follows:   (1) All ((work)) projects ordered, the estimated cost of which is in excess of ((five)) ten thousand dollars, shall be let by contract. The cost of a project is the aggregate amount to be paid for all labor, materials, supplies, and equipment of a continuous or interrelated project if the work is to be performed simultaneously or in close sequence. All contract projects, the estimated cost of which is less than fifty thousand dollars, may be awarded to a contractor using the small works roster process provided in RCW 39.04.155. The board of commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster. All contract projects equal to or in excess of fifty thousand dollars shall be let by competitive bidding. Before awarding any such contract the board of commissioners shall publish a notice in a newspaper of general circulation where the district is located at least once thirteen days before the last date upon which bids will be received, inviting sealed proposals for such work, plans and specifications ((which)). The work plans and specifications must at the time of publication of such notice be on file in the office of the board of commissioners and be subject to ((the)) public inspection. The notice shall state generally the work to be done and shall call for proposals for doing the same to be sealed and filed with the board of water commissioners on or before the day and hour named therein.      Each bid shall be accompanied by a certified or cashier's check or postal money order payable to the order of the county treasurer for a sum not less than five percent of the amount of the bid, or accompanied by a bid bond in an amount not less than five percent of the bid with a corporate surety licensed to do business in the state, conditioned that the bidder will pay the district as liquidated damages the amount specified in the bond, unless the bidder enters into a contract in accordance with the bidder's bid, and no bid shall be considered unless accompanied by such check, cash or bid bond. At the time and place named such bids shall be publicly opened and read and the board of commissioners shall proceed to canvass the bids and may let such contract to the lowest responsible bidder upon plans and specifications on file or to the best bidder submitting the bidder's own plans and specifications. ((However, no contract shall be let in excess of the cost of the materials or work.)) The board of commissioners may reject all bids for good cause and readvertise and in such case all checks, cash or bid bonds shall be returned to the bidders. If the contract is let, then all checks, cash, or bid bonds shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for doing the work, and a bond to perform such work furnished with sureties satisfactory to the board of commissioners in the full amount of the contract price between the bidder and the commission in accordance with the bid. If the bidder fails to enter into the contract in accordance with the bid and furnish the bond within ten days from the date at which the bidder is notified that the bidder is the successful bidder, the check, cash, or bid bonds and the amount thereof shall be forfeited to the district. If the bidder fails to enter into a contract in accordance with the bidder's bid, and the board of commissioners deems it necessary to take legal action to collect on any bid bond required by this section, then the district shall be entitled to collect from the bidder any legal expenses, including reasonable attorneys' fees occasioned thereby. A low bidder who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.               (2) Any purchase of materials, supplies, or equipment, with an estimated cost in excess of ten thousand dollars, shall be by contract. Any purchase of materials, supplies, or equipment, with an estimated cost ((of from five)) in excess of ten thousand dollars ((to)) but less than fifty thousand dollars shall be made using the process provided in RCW ((39.04.155)) 39.04.190 or by competitive bidding following the procedure for letting contracts for projects under subsection (1) of this section. Any purchase of materials, supplies, or equipment with an estimated cost of fifty thousand dollars or more shall be made by competitive bidding following the procedure for letting contracts for projects under subsection (1) of this section.              (3) In the event of an emergency when the public interest or property of the district would suffer material injury or damage by delay, upon resolution of the board of commissioners, or proclamation of an official designated by the board to act for the board during such emergencies, declaring the existence of such emergency and reciting the facts constituting the same, the board or official acting for the board may waive the requirements of this chapter with reference to any purchase or contract. In addition, these requirements may be waived for purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation.      Sec. 11. RCW 57.08.081 and 1996 c 230 s 314 are each amended to read as follows:         The commissioners of any district shall provide for revenues by fixing rates and charges for furnishing sewer and drainage service to those to whom service is available or for providing water, such rates and charges to be fixed as deemed necessary by the commissioners, so that uniform charges will be made for the same class of customer or service. Rates and charges may be combined for the furnishing of more than one type of sewer service or drainage service, such as but not limited to storm or surface water and sanitary sewer service.      In classifying customers of such water, sewer, or drainage system, the board of commissioners may in its discretion consider any or all of the following factors: The difference in cost of service to various customers; the location of the various customers within and without the district; the difference in cost of maintenance, operation, repair, and replacement of the various parts of the system; the different character of the service furnished various customers; the quantity and quality of the service furnished; the time of its use; the achievement of water conservation goals and the discouragement of wasteful practices; capital contributions made to the system including but not limited to assessments; and any other matters which present a reasonable difference as a ground for distinction. Rates shall be established as deemed proper by the commissioners and as fixed by resolution and shall produce revenues sufficient to take care of the costs of maintenance and operation, revenue bond and warrant interest and principal amortization requirements, and all other charges necessary for efficient and proper operation of the system.        The commissioners shall enforce collection of connection charges, and rates and charges for water supplied against property owners connecting with the system or receiving such water, and for sewer and drainage services charged against property to which and its owners to whom the service is available, such charges being deemed charges against the property served, by addition of penalties of not more than ten percent thereof in case of failure to pay the charges at times fixed by resolution. The commissioners may provide by resolution that where either connection charges or rates and charges for services supplied are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon at the rate of not more than the prime lending rate of the district's bank plus four percentage points per year shall be a lien against the property upon which the service was received, subject only to the lien for general taxes.     The district may, at any time after the connection charges or rates and charges for services supplied or available and penalties are delinquent for a period of ((sixty)) thirty days, bring suit in foreclosure by civil action in the superior court of the county in which the real property is located. The court may allow, in addition to the costs and disbursements provided by statute, attorneys' fees, title search and report costs, and expenses as it adjudges reasonable. The action shall be in rem, and may be brought in the name of the district against an individual or against all of those who are delinquent in one action. The laws and rules of the court shall control as in other civil actions.      In addition to the right to foreclose provided in this section, the district may also cut off all or part of the service after charges for water or sewer service supplied or available are delinquent for a period of sixty days.              Sec. 12. RCW 57.08.085 and 1996 c 230 s 315 are each amended to read as follows:          Except as otherwise provided in RCW 90.03.525, any public entity and public property, including state of Washington property, shall be subject to rates and charges for ((storm water control)) drainage facilities to the same extent as private persons and private property are subject to such rates and charges that are imposed by districts pursuant to RCW 57.08.005 or 57.08.081. In setting those rates and charges, consideration may be given to in-kind services, such as stream improvements or donation of property.      Sec. 13. RCW 57.08.110 and 1996 c 230 s 318 are each amended to read as follows:         To improve the organization and operation of districts, the commissioners of two or more such districts may form an association thereof, for the purpose of securing and disseminating information of value to the members of the association and for the purpose of promoting the more economical and efficient operation of the comprehensive plans of water supply ((and)), sewage treatment and disposal, and drainage collection, treatment, and disposal in their respective districts. The commissioners of districts so associated shall adopt articles of association, select such officers as they may determine, and employ and discharge such agents and employees as shall be deemed convenient to carry out the purposes of the association. District commissioners and employees are authorized to attend meetings of the association. The expenses of an association may be paid from the maintenance or general funds of the associated districts in such manner as shall be provided in the articles of association. However, the aggregate contributions made to an association by a district in any calendar year shall not exceed the amount that would be raised by a levy of two and one-half cents per thousand dollars of assessed value against the taxable property of the district. The financial records of such an association shall be subject to audit by the state auditor.          Sec. 14. RCW 57.08.180 and 1996 c 230 s 322 are each amended to read as follows:         It is unlawful and a misdemeanor to make, or cause to be made, or to maintain any connection with any sewer, drainage, or water system of any district, or with any sewer, drainage, or water system which is connected directly or indirectly with any sewer, drainage, or water system of any district without having permission from the district.             Sec. 15. RCW 57.16.060 and 1996 c 230 s 602 are each amended to read as follows:      Local improvement districts or utility local improvement districts to carry out the whole or any portion of the general comprehensive plan of improvements or plan providing for additions and betterments to an original general comprehensive plan previously adopted may be initiated either by resolution of the board of commissioners or by petition signed by the owners according to the records of the office of the applicable county auditor of at least fifty-one percent of the area of the land within the limits of the improvement district to be created.      In case the board of commissioners desires to initiate the formation of an improvement district by resolution, it first shall pass a resolution declaring its intention to order the improvement, setting forth the nature and territorial extent of such proposed improvement, designating the number of the proposed improvement district, and describing the boundaries thereof, stating the estimated cost and expense of the improvement and the proportionate amount thereof which will be borne by the property within the proposed improvement district, and fixing a date, time, and place for a public hearing on the formation of the proposed improvement district.               In case any such improvement district is initiated by petition, the petition shall set forth the nature and territorial extent of the proposed improvement requested to be ordered and the fact that the signers thereof are the owners according to the records of the applicable county auditor of at least fifty-one percent of the area of land within the limits of the improvement district to be created. Upon the filing of such petition the board shall determine whether the petition is sufficient, and the board's determination thereof shall be conclusive upon all persons. No person may withdraw his or her name from the petition after it has been filed with the board of commissioners. If the board finds the petition to be sufficient, it shall proceed to adopt a resolution declaring its intention to order the improvement petitioned for, setting forth the nature and territorial extent of the improvement, designating the number of the proposed improvement district and describing the boundaries thereof, stating the estimated cost and expense of the improvement and the proportionate amount thereof which will be borne by the property within the proposed improvement district, and fixing a date, time, and place for a public hearing on the formation of the proposed improvement district.      Notice of the adoption of the resolution of intention, whether the resolution was adopted on the initiative of the board or pursuant to a petition of the property owners, shall be published in at least two consecutive issues of a newspaper of general circulation in the proposed improvement district, the date of the first publication to be at least fifteen days prior to the date fixed by such resolution for hearing before the board of commissioners. Notice of the adoption of the resolution of intention shall also be given each owner or reputed owner of any lot, tract, parcel of land, or other property within the proposed improvement district by mailing the notice at least fifteen days before the date fixed for the public hearing to the owner or reputed owner of the property as shown on the tax rolls of the county ((auditor)) treasurer of the county in which the real property is located at the address shown thereon. Whenever such notices are mailed, the commissioners shall maintain a list of the reputed property owners, which list shall be kept on file at a location within the district and shall be made available for public perusal. The notices shall refer to the resolution of intention and designate the proposed improvement district by number. The notices also shall set forth the nature of the proposed improvement, the total estimated cost, the proportion of total cost to be borne by assessments, and the date, time, and place of the hearing before the board of commissioners. In the case of improvements initiated by resolution, the notice also shall: (1) State that all persons desiring to object to the formation of the proposed district must file their written protests with the secretary of the board of commissioners no later than ten days after the public hearing; (2) state that if owners of at least forty percent of the area of land within the proposed improvement district file written protests with the secretary of the board, the power of the commissioners to proceed with the creation of the proposed improvement district shall be divested; (3) provide the name and address of the secretary of the board; and (4) state the hours and location within the district where the names of the property owners within the proposed improvement district are kept available for public perusal. In the case of the notice given each owner or reputed owner by mail, the notice shall set forth the estimated amount of the cost and expense of such improvement to be borne by the particular lot, tract, parcel of land, or other property.   Sec. 16. RCW 57.16.110 and 1996 c 230 s 610 are each amended to read as follows:         Whenever any land against which there has been levied any special assessment by any district shall have been sold in part or ((subdivided)) divided, the board of commissioners of the district shall have the power to order a segregation of the assessment.      Any person desiring to have a special assessment against a tract of land segregated to apply to smaller parts thereof shall apply to the board of commissioners of the district that levied the assessment. If the commissioners determine that a segregation should be made, they shall by resolution order the treasurer of the county in which the real property is located to make segregation on the original assessment roll as directed in the resolution. The segregation shall be made as nearly as possible on the same basis as the original assessment was levied, and the total of the segregated parts of the assessment shall equal the assessment before segregation. The resolution shall describe the original tract and the amount and date of the original assessment, and shall define the boundaries of the divided parts and the amount of the assessment chargeable to each part. A certified copy of the resolution shall be delivered to the treasurer of the county in which the real property is located who shall proceed to make the segregation ordered upon being tendered a fee of three dollars for each tract of land for which a segregation is to be made. In addition to the charge the board of commissioners may require as a condition to the order of segregation that the person seeking it pay the district the reasonable engineering and clerical costs incident to making the segregation.         Sec. 17. RCW 57.20.120 and 1996 c 230 s 714 are each amended to read as follows:      A district may contract indebtedness in excess of the amount named in RCW 57.20.110, but not exceeding in amount, together with existing indebtedness, two and one-half percent of the value of the taxable property in that district, as the term "value of the taxable property" is defined in RCW 39.36.015, and impose excess property tax levies to retire the indebtedness whenever ((three-fifths of the voters voting at the election in such district assent thereto, at which election the total number of persons voting on the proposition shall constitute not less than forty percent of the total number of votes cast in the district at the last preceding general election)) a ballot proposition authorizing the indebtedness and excess levies is approved as provided under Article VII, section 2, and Article VIII, section 6, of the state Constitution, at an election to be held in the district in the manner provided by this title and RCW 39.36.050.      Sec. 18. RCW 57.20.140 and 1996 c 230 s 717 are each amended to read as follows:         The treasurer ((designated under RCW 57.20.135)) shall create and maintain a separate fund designated as the maintenance fund or general fund of the district into which shall be paid all money received by the treasurer from the collection of taxes other than taxes levied for the payment of general obligation bonds of the district and all revenues of the district other than assessments levied in local improvement districts or utility local improvement districts, and no money shall be disbursed therefrom except upon warrants of the county auditor issued by authority of the commissioners or upon a resolution of the commissioners ordering a transfer to any other fund of the district. The treasurer also shall maintain such other special funds as may be prescribed by the district, into which shall be placed such money as the board of commissioners may by its resolution direct, and from which disbursements shall be made upon proper warrants of the county auditor issued against the same by authority of the board of commissioners.           Sec. 19. RCW 57.24.040 and 1996 c 230 s 904 are each amended to read as follows:         (1) The annexation election shall be held on the date designated in the notice and shall be conducted in accordance with the general election laws of the state. If the original petition for annexation is signed by qualified voters, then only qualified voters at the date of election residing in the territory proposed to be annexed, shall be permitted to vote at the election.       (2) If the original petition for annexation is signed by property owners as provided for in this chapter, then no person shall be entitled to vote at that election unless at the time of the filing of the original petition he or she owned land in the district of record and in addition thereto at the date of election shall be a qualified voter of the county in which such district is located. It shall be the duty of the county auditor, upon request of the county legislative authority, to certify the names of all persons owning land in the district at the date of the filing of the original petition as shown by the records of the auditor's office; and at any such election the county auditor may require any such property owner offering to vote to take an oath that the property owner is a qualified voter of the county before the property owner shall be allowed to vote. However, at any election held under the provisions of this chapter an officer or agent of any corporation having its principal place of business in the county and owning land at the date of filing the original petition in the district duly authorized in writing may cast a vote on behalf of such corporation. When so voting the person shall file with the county auditor such a written instrument of that person's authority.               (3) If the majority of the votes cast upon the question of such election shall be for annexation, then the territory concerned shall immediately be and become annexed to such district and the same shall then forthwith be a part of the district, the same as though originally included in that district.    Sec. 20. RCW 57.24.050 and 1996 c 230 s 905 are each amended to read as follows:           All elections held pursuant to this chapter, whether general or special, shall be conducted by the county ((election board)) auditor of the county in which the district is located. The expense of all such elections shall be paid for out of the funds of such district.    Sec. 21. RCW 57.28.050 and 1996 c 230 s 1007 are each amended to read as follows:       The petition for withdrawal shall be heard at the time and place specified in such notice or the hearing may be adjourned from time to time, not exceeding one month in all, and any person may appear at such hearing and make objections to the withdrawal of such territory or to the proposed boundary lines thereof. Upon final hearing on the petition for withdrawal, the board of commissioners of the district shall make such changes in the proposed boundary lines as it deems to be proper, except that no changes in the boundary lines shall be made by the board of commissioners to include lands not within the boundaries of the territory as described in such petition. In establishing and defining such boundaries the board of commissioners shall exclude any property which is then being furnished with water ((or)), sewer, or drainage service by the district or which is included in any distribution or collection system the construction of which is included within any duly established local improvement district or utility local improvement district, and the territory as finally established and defined must be substantial in area and consist of adjoining or contiguous properties. The board of commissioners shall thereupon make and by resolution adopt findings of fact as to the following questions:      (1) Would the withdrawal of such territory be of benefit to such territory?           (2) Would such withdrawal be conducive to the general welfare of the balance of the district?           Such findings shall be entered in the records of the district, together with any recommendations the board of commissioners may by resolution adopt.  Sec. 22. RCW 57.32.023 and 1996 c 230 s 1106 are each amended to read as follows:      If at the election a majority of the voters in each of the consolidating districts vote in favor of the consolidation, the ((county canvassing board shall so declare in its canvass and the return of such election shall be made within ten days after the date thereof. Upon the return)) consolidation shall be authorized. The consolidation shall be effective and the consolidating districts shall cease to exist and shall then be and become a new district and municipal corporation of the state of Washington, upon the certification of the election results. The name of the new district shall be ". . . . . Water-Sewer District," ". . . . . Water District," ". . . . . Sewer District," or ". . . . . District No. . . . . .," which shall be the name appearing on the ballot. The district shall have all and every power, right, and privilege possessed by other water-sewer, sewer, or water districts of the state of Washington. The district may issue revenue bonds to pay for the construction of any additions and betterments set forth in the comprehensive plan of water supply, sewer, and drainage services contained in the agreement for consolidation and any future additions and betterments to the comprehensive plan of water supply, sewer, and drainage services, as its board of district commissioners shall by resolution adopt, without submitting a proposition therefor to the voters of the district.         Sec. 23. RCW 57.36.040 and 1996 c 230 s 1205 are each amended to read as follows:           If at such election a majority of the voters of the merging district or districts shall vote in favor of the merger, the ((county canvassing board shall so declare in its canvass and the return of such election shall be made within ten days after the date thereof, and upon such return)) merger shall be authorized. The merger shall be effective and the merging district or districts shall cease to exist and shall become a part of the merger district, upon the certification of the election results. The commissioners of the merging district or districts shall hold office as commissioners of the new merged district until their respective terms of office expire or until they resign from office if the resignation is before the expiration of their terms of office. The election of commissioners in the merger district after the merger shall occur as provided in RCW 57.32.130 in a consolidated district after the consolidation.     Sec. 24. RCW 57.90.010 and 1996 c 230 s 1502 are each amended to read as follows:           Water-sewer, ((sewer, water,)) park and recreation, metropolitan park, county rural library, cemetery, flood control, mosquito control, diking and drainage, irrigation or reclamation, weed, health, or fire protection districts, and any air pollution control authority, hereinafter referred to as "special districts," which are located wholly or in part within a county with a population of two hundred ten thousand or more may be disincorporated when the district has not actively carried out any of the special purposes or functions for which it was formed within the preceding consecutive five-year period.                Sec. 25. RCW 27.12.470 and 1994 c 198 s 2 are each amended to read as follows:          A rural partial-county library district may be created in a portion of the unincorporated area of a county as provided in this section if a rural county library district, intercounty rural library district, or island library district has not been created in the county.               The procedure to create a rural partial-county library district is initiated by the filing of petitions with the county auditor proposing the creation of the district that have been signed by at least ten percent of the registered voters residing in the area proposed to be included in the rural partial-county library district. The county auditor shall review the petitions and certify the sufficiency or insufficiency of the signatures to the county legislative authority.     If the petitions are certified as having sufficient valid signatures, the county legislative authority shall hold a public hearing on the proposed rural partial-county library district, may adjust the boundaries of the proposed district, and may cause a ballot proposition to be submitted to the voters of the proposed rural partial-county library district authorizing its creation if the county legislative authority finds that the creation of the rural partial-county library district is in the public interest. A subsequent public hearing shall be held if additional territory is added to the proposed rural partial-county library district by action of the county legislative authority.            The rural partial-county library district shall be created if the ballot proposition authorizing the creation of the district is approved by a simple majority vote of the voters voting on the proposition. Immediately after creation of the rural partial-county library district the county legislative authority shall appoint a board of library trustees for the district as provided under RCW 27.12.190.      Except as provided in this section, a rural partial-county library district is subject to all the provisions of law applicable to a rural county library district and shall have all the powers, duties, and authorities of a rural county library district, including, but not limited to, the authority to impose property taxes, incur debt, and annex a city or town with a population of less than one hundred thousand at the time of the annexation that is located in the same county as the rural partial-county library district.         Adjacent unincorporated territory in the county may be annexed to a rural partial-county library district in the same manner as territory is annexed to a water-sewer district, except that an annexation is not subject to potential review by a boundary review board.         If, at the time of creation, a rural partial-county library district has an assessed valuation of less than fifty million dollars, it may provide library services only by contracting for the services through an interlocal agreement with an adjacent library district, or an adjacent city or town that maintains its own library. If the assessed valuation of the rural partial-county library district subsequently reaches fifty million dollars as a result of annexation or appreciation, the fifty million dollar limitation shall not apply.      If a ballot proposition is approved creating a rural county library district in the county, every rural partial-county library district in that county shall be dissolved and its assets and liabilities transferred to the rural county library district. Where a rural partial-county library district has annexed a city or town, the voters of the city or town shall be allowed to vote on the proposed creation of a rural county library district and, if created, the rural county library district shall include each city and town that was annexed to the rural partial-county library district.      Nothing in this section authorizes the consolidation of a rural partial-county library district with any rural county library district; island library district; city, county, or regional library; intercounty library district; or other rural partial-county library district, unless, in addition to any other requirements imposed by statute, the boards of all library districts involved approve the consolidation.     Sec. 26. RCW 32.20.070 and 1955 c 13 s 32.20.070 are each amended to read as follows:                 A mutual savings bank may invest its funds in the valid warrants or bonds of any county, city, town, school district, port district, water-sewer district, or other municipal corporation in the state of Washington issued pursuant to law and for the payment of which the faith and credit of such county, municipality, or district is pledged and taxes are leviable upon all taxable property within its limits.    A mutual savings bank may invest its funds in the water revenue, sewer revenue, or electric revenue bonds of any city or public utility district of this state for the payment of which the entire revenue of the city's or district's water system, sewer system, or electric system, less maintenance and operating costs, is irrevocably pledged.           Sec. 27. RCW 32.20.110 and 1955 c 13 s 32.20.110 are each amended to read as follows:           A mutual savings bank may invest its funds in the bonds of any port district, ((water district,)) sanitary district, water-sewer district, tunnel district, bridge district, flood control district, park district, or highway district in the United States which has a population as shown by the last decennial federal census of not less than one hundred fifty thousand inhabitants, and has taxable real property with an assessed valuation in excess of two hundred million dollars and has power to levy taxes on the taxable real property therein for the payment of the bonds without limitation of rate or amount.   Sec. 28. RCW 35.13A.010 and 1971 ex.s. c 95 s 1 are each amended to read as follows:          Whenever used in this chapter, the following words shall have the following meanings:      (1) The word "district" shall mean a water-sewer district ((or sewer district as indicated by the context of the section in which used)).          (2) The word "city" shall mean a city or town of any class and shall also include any code city as defined in chapter 35A.01 RCW.        (3) The words "included with" shall mean the inclusion of all or part of the territory of a district, as indicated by the context, within the corporate limits of a city either by incorporation of a city, annexation to a city, consolidation of cities or any combination thereof.                (4) The word "indebtedness" shall include general obligation, revenue, and special indebtedness and temporary, emergency, and interim loans.           Sec. 29. RCW 35.13A.020 and 1971 ex.s. c 95 s 2 are each amended to read as follows:      Whenever all of the territory of a ((water district or sewer)) district is included within the corporate boundaries of a city, and the city legislative body has elected by resolution or ordinance to assume jurisdiction thereof, 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 shall become the property of such city subject to all financial, statutory, or contractual obligations of the district for the security or performance of which such property may have been pledged. Such city, in addition to its other powers, shall have the power to manage, control, maintain and operate such property, facilities and equipment and to fix and collect service and other charges from owners and occupants of properties so served by the city, subject, however, 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.               Such city may by resolution of its legislative body, assume the obligation of paying such district indebtedness and of levying and of collecting or causing to be collected such district taxes, assessments and utility rates and charges of any kind or nature to pay and secure the payment of such indebtedness, according to all of the terms, conditions and covenants incident to such indebtedness, and shall assume and perform all other outstanding contractual obligation of the district in accordance with all of its terms, conditions and covenants. No such assumption shall be deemed to impair the obligation of any indebtedness or other contractual obligation entered into after August 9, 1971. During the period until the outstanding indebtedness of the district has been discharged, the territory of the district and the owners and occupants of property therein, shall continue to be liable for its and their proportionate share of such indebtedness, including any outstanding assessments levied within any local improvement district or utility local improvement district thereof. The city shall assume the obligation of causing the payment of such indebtedness, collecting such taxes, 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 therein, and causing service and other charges and assessments to be collected from such property or owners or occupants thereof, enforcing such collection and performing all other acts necessary to insure performance of the district's contractual obligations in the same manner and by the same means as if the territory of the district had not been included within the boundaries of a city.      When a city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service and other charges have accrued for such purpose but have not been collected by the district prior to such election, the same when collected shall belong and be paid to the city and be used by such city so far as necessary for payment of the indebtedness of the district existing and unpaid on the date such city elects to assume the indebtedness. Any funds received by the city which have been collected for the purpose of paying any bonded or other indebtedness of the district, shall be used for the purpose for which they were collected and for no other purpose. Any outstanding indebtedness shall be paid as provided in the bond covenants. All funds of the district on deposit with the county treasurer at the time of title transfer shall be used by the city solely for the benefit of the utility and shall not be transferred to or used for the benefit of the city's general fund.  Sec. 30. RCW 35.13A.030 and 1971 ex.s. c 95 s 3 are each amended to read as follows:    Whenever a portion of a ((water district or sewer)) district equal to at least sixty percent of the area or sixty percent of the assessed valuation of the real property lying within such district, is included within the corporate boundaries of a city, the city may either:   (1) Assume by ordinance the full and complete management and control of that portion of the entire district that is contiguous to the city and not included within another city, ((whereupon)) if the district voters of such an area approve a ballot proposition authorizing the assumption requested by the city, submitted to these voters by the board of commissioners of the district. The provisions of RCW 35.13A.020 shall be operative if the city proceeds under this subsection, and any rates that are charged for service outside of the city shall be reasonable to all parties; or               (2) The city may proceed directly under the provisions of RCW 35.13A.050.             The city or district may petition to dissolve the district under the provisions of RCW 35.13A.080.      Sec. 31. RCW 35.13A.040 and 1971 ex.s. c 95 s 4 are each amended to read as follows:    Whenever the portion of a ((water or sewer)) district included within the corporate boundaries of a city is less than sixty percent of the area of the district and less than sixty percent of the assessed valuation of the real property within the district, the city may elect to proceed under the provisions of RCW 35.13A.050.      Sec. 32. RCW 35.13A.050 and 1971 ex.s. c 95 s 5 are each amended to read as follows:    When electing under RCW 35.13A.030 or 35.13A.040 to proceed under this section, the city may assume, by ordinance, jurisdiction of the district's responsibilities, property, facilities and equipment within the corporate limits of the city((: PROVIDED, That)).            If on the effective date of such an ordinance the territory of the district included within the city contains any facilities serving or designed to serve any portion of the district outside the corporate limits of the city or if the territory lying within the district and outside the city contains any facilities serving or designed to serve territory included within the city (which facilities are hereafter in this section called the "serving facilities"), the city or district shall for the economically useful life of any such serving facilities make available sufficient capacity therein to serve the sewage, drainage, or water requirements of such territory, to the extent that such facilities were designed to serve such territory at a rate charged to the municipality being served which is reasonable to all parties.          In the event a city proceeds under this section, the ((district may elect upon a favorable vote of a majority of all voters within the district voting upon such propositions to require the)) city shall be required to assume responsibility for ((the operation and maintenance of)) operating and maintaining the district's property, facilities, and equipment throughout that portion of the entire district that is contiguous to the city but not included in any other city, and ((to)) the district shall pay the city a charge for such operation and maintenance which is reasonable under all of the circumstances, if the voters of the district who reside in such an area approve a ballot proposition providing for this transfer of responsibility, submitted to the voters by the board of commissioners of the district.                A city acquiring property, facilities and equipment under the provisions of this section shall acquire such property, facilities and equipment, and fix and collect service and other charges from owners and occupants of properties served by the city, subject, to any contractual obligations of the district which relate to the property, facilities, or equipment so acquired by the city or which are secured by taxes, assessments or revenues from the territory of the district included within the city. In such cases, the property included within the city and the owners and occupants thereof shall continue to be liable for payment of its and their proportionate share of any outstanding district indebtedness. The district and its officers shall continue to levy taxes and assessments on and to collect service and other charges from such property, or owners or occupants thereof, to enforce such collections, and to perform all other acts necessary to insure performance of the district's contractual obligations in the same manner and by the same means as if the territory of the district had not been included within the boundaries of a city.                The city or district may petition to dissolve the district under the provisions of RCW 35.13A.080.       Sec. 33. RCW 35.13A.060 and 1971 ex.s. c 95 s 6 are each amended to read as follows:      Whenever more than one city, in whole or in part, is included within a ((water district or sewer)) district, the city which has within its boundaries sixty percent or more of the area of the assessed valuation of the district (in this section referred to as the "principal city") may, with the approval of any other city containing part of such district, assume responsibility for operation and maintenance of the district's property, facilities and equipment within such other city and make and enforce such charges for operation, maintenance and retirement of indebtedness as may be reasonable under all the circumstances.       Any other city having less than sixty percent in area or assessed valuation of such district, within its boundaries may install facilities and create local improvement districts or otherwise finance the cost of installation of such facilities and if such facilities have been installed in accordance with reasonable standards fixed by the principal city, such other city may connect such facilities to the utility system of such district operated by the principal city upon providing for payment by the owners or occupants of properties served thereby, of such charges established by the principal city as may be reasonable under the circumstances.      Sec. 34. RCW 35.13A.090 and 1971 ex.s. c 95 s 9 are each amended to read as follows:      Whenever a city acquires all of the facilities of a ((water district or sewer)) district, pursuant to this chapter, such a city shall offer to employ every full time employee of the district who is engaged in the operation of such a district's facilities on the date on which such city acquires the district facilities. When a city acquires any portion of the facilities of such a district, such a city shall offer to employ full time employees of the district as of the date of the acquisition of the facilities of the district who are not longer needed by the district.            Whenever a city employs a person who was employed immediately prior thereto by the district, arrangements shall be made:         (1) ((For the retention of service credits under the pension plan of the district pursuant to RCW 41.04.070 through 41.04.110.        (2))) For the retention of all sick leave standing to the employee's credit in the plan of such district.   (((3))) (2) For a vacation with pay during the first year of employment equivalent to that to which he would have been entitled if he had remained in the employment of the district.           NEW SECTION. Sec. 35. A new section is added to chapter 35.51 RCW to read as follows:      Assessments for local improvements in a local improvement district created by a municipality may be pledged and applied when collected to the payment of its obligations under a loan agreement entered into pursuant to chapter 39.69 RCW to pay costs of improvements in such a local improvement district.           NEW SECTION. Sec. 36. A new section is added to chapter 35.51 RCW to read as follows:      The authority granted by section 35 of this act is supplemental and in addition to the authority granted by Title 35 RCW and to any other authority granted to cities, towns, or municipal corporations to levy, pledge, and apply special assessments.            Sec. 37. RCW 35.58.210 and 1974 ex.s. c 70 s 7 are each amended to read as follows:      If a metropolitan municipal corporation shall be authorized to perform the function of metropolitan water pollution abatement, the metropolitan council shall, prior to the effective date of the assumption of such function, cause a metropolitan water pollution abatement advisory committee to be formed by notifying the legislative body of each component city and county which operates a sewer system to appoint one person to serve on such advisory committee and the board of commissioners of each water-sewer district ((and water district)) which operates a sewer system, any portion of which lies within the metropolitan area, to appoint one person to serve on such committee who shall be a commissioner of such a water-sewer ((or water)) district. The metropolitan water pollution abatement advisory committee shall meet at the time and place provided in the notice and elect a chairman. The members of such committee shall serve at the pleasure of the appointing bodies and shall receive no compensation other than reimbursement for expenses actually incurred in the performance of their duties. The function of such advisory committee shall be to advise the metropolitan council in matters relating to the performance of the water pollution (([abatement])) abatement function.     Sec. 38. RCW 35.58.220 and 1965 c 7 s 35.58.220 are each amended to read as follows:         If a metropolitan municipal corporation shall be authorized to perform the function of metropolitan water supply, it shall have the following powers in addition to the general powers granted by this chapter:        (1) To prepare a comprehensive plan for the development of sources of water supply, trunk supply mains and water treatment and storage facilities for the metropolitan area.      (2) To acquire by purchase, condemnation, gift or grant and to lease, construct, add to, improve, replace, repair, maintain, operate and regulate the use of metropolitan facilities for water supply within or without the metropolitan area, including buildings, structures, water sheds, wells, springs, dams, settling basins, intakes, treatment plants, trunk supply mains and pumping stations, together with all lands, property, equipment and accessories necessary to enable the metropolitan municipal corporation to obtain and develop sources of water supply, treat and store water and deliver water through trunk supply mains. Water supply facilities which are owned by a city or special district may be acquired or used by the metropolitan municipal corporation only with the consent of the legislative body of the city or special district owning such facilities. Cities and special districts are hereby authorized to convey or lease such facilities to metropolitan municipal corporations or to contract for their joint use on such terms as may be fixed by agreement between the legislative body of such city or special district and the metropolitan council, without submitting the matter to the voters of such city or special district.               (3) To fix rates and charges for water supplied by the metropolitan municipal corporation.    (4) To acquire by purchase, condemnation, gift or grant and to lease, construct, add to, improve, replace, repair, maintain, operate and regulate the use of facilities for the local distribution of water in portions of the metropolitan area not contained within any city, or water-sewer district that operates a water system, and, with the consent of the legislative body of any city or the water-sewer district, to exercise such powers within such city or water-sewer district and for such purpose to have all the powers conferred by law upon such city or water-sewer district with respect to such local distribution facilities. All costs of such local distribution facilities shall be paid for by the area served thereby.         Sec. 39. RCW 35.58.230 and 1993 c 240 s 5 are each amended to read as follows:      If a metropolitan municipal corporation shall be authorized to perform the function of metropolitan water supply, the metropolitan council shall, prior to the effective date of the assumption of such function, cause a metropolitan water advisory committee to be formed by notifying the legislative body of each component city which operates a water system to appoint one person to serve on such advisory committee and the board of commissioners of each water-sewer district that operates a water system, any portion of which lies within the metropolitan area, to appoint one person to serve on such committee who shall be a water-sewer district commissioner. The metropolitan water advisory committee shall meet at the time and place provided in the notice and elect a chairman. The members of such committee shall serve at the pleasure of the appointing bodies and shall receive no compensation other than reimbursement for expenses actually incurred in the performance of their duties. The function of such advisory committee shall be to advise the metropolitan council with respect to matters relating to the performance of the water supply function.  The requirement to create a metropolitan water advisory committee shall not apply to a county that has assumed the rights, powers, functions, and obligations of the metropolitan municipal corporation under chapter 36.56 RCW.      Sec. 40. RCW 35.58.410 and 1993 c 240 s 11 are each amended to read as follows:           (1) On or before the third Monday in June of each year, each metropolitan municipal corporation shall adopt a budget for the following calendar year. Such budget shall include a separate section for each authorized metropolitan function. Expenditures shall be segregated as to operation and maintenance expenses and capital and betterment outlays. Administrative and other expense general to the corporation shall be allocated between the authorized metropolitan functions. The budget shall contain an estimate of all revenues to be collected during the following budget year, including any surplus funds remaining unexpended from the preceding year. The metropolitan council shall not be required to confine capital or betterment expenditures made from bond proceeds or emergency expenditures to items provided in the budget. The affirmative vote of three-fourths of all members of the metropolitan council shall be required to authorize emergency expenditures.        (2) Subsection (1) of this section shall not apply to a county that has assumed the rights, powers, functions, and obligations of a metropolitan municipal corporation under chapter 36.56 RCW. This subsection (2) shall apply only to each county that has assumed the rights, powers, functions, and obligations of a metropolitan municipal corporation under chapter 36.56 RCW.                 Each county that has assumed the rights, powers, functions, and obligations of a metropolitan municipal corporation under chapter 36.56 RCW shall, on or before the third Monday in June of each year, prepare an estimate of all revenues to be collected during the following calendar year, including any surplus funds remaining unexpended from the preceding year for each authorized metropolitan function.      By June 30 of each year, the county shall adopt the rate for sewage disposal that will be charged to component cities and water-sewer districts during the following budget year.   As long as any general obligation indebtedness remains outstanding that was issued by the metropolitan municipal corporation prior to the assumption by the county, the county shall continue to impose the taxes authorized by RCW 82.14.045 and 35.58.273(5) at the maximum rates and on all of the taxable events authorized by law. If, despite the continued imposition of those taxes, the estimate of revenues made on or before the third Monday in June shows that estimated revenues will be insufficient to make all debt service payments falling due in the following calendar year on all general obligation indebtedness issued by the metropolitan municipal corporation prior to the assumption by the county of the rights, powers, functions, and obligations of the metropolitan municipal corporation, the remaining amount required to make the debt service payments shall be designated as "supplemental income" and shall be obtained from component cities and component counties as provided under RCW 35.58.420.          The county shall prepare and adopt a budget each year in accordance with applicable general law or county charter. If supplemental income has been designated under this subsection, the supplemental income shall be reflected in the budget that is adopted. If during the budget year the actual tax revenues from the taxes imposed under the authority of RCW 82.14.045 and 35.58.273(5) exceed the estimates upon which the supplemental income was based, the difference shall be refunded to the component cities and component counties in proportion to their payments promptly after the end of the budget year. A county that has assumed the rights, powers, functions, and obligations of a metropolitan municipal corporation under chapter 36.56 RCW shall not be required to confine capital or betterment expenditures for authorized metropolitan functions from bond proceeds or emergency expenditures to items provided in the budget.    Sec. 41. RCW 35.67.300 and 1965 c 7 s 35.67.300 are each amended to read as follows:   Any city, town, or organized and established water-sewer district owning or operating its own sewer system, whenever topographic conditions shall make it feasible and whenever such existing sewer system shall be adequate therefor in view of the sewerage and drainage requirements of the property in such city, town, or water-sewer district, served or to be served by such system, may contract with any other city, town, or organized and established water-sewer district for the discharge into its sewer system of sewage from all or any part or parts of such other city, town, or water-sewer district upon such terms and conditions and for such periods of time as may be deemed reasonable.               Any city, town, or organized and established water-sewer district may contract with any other city, town, or organized and established water-sewer district for the construction and/or operation of any sewer or sewage disposal facilities for the joint use and benefit of the contracting parties upon such terms and conditions and for such period of time as the governing bodies of the contracting parties may determine. Any such contract may provide that the responsibility for the management of the construction and/or maintenance and operation of any sewer disposal facilities or part thereof covered by such contract shall be vested solely in one of the contracting parties, with the other party or parties thereto paying to the managing party such portion of the expenses thereof as shall be agreed upon.              Sec. 42. RCW 35.91.020 and 1981 c 313 s 11 are each amended to read as follows:              The governing body of any city, town, county, water-sewer district, ((water district,)) or drainage district, hereinafter referred to as a "municipality" may contract with owners of real estate for the construction of storm, sanitary, or combination sewers, pumping stations, and disposal plants, water mains, hydrants, reservoirs, or appurtenances, hereinafter called "water or sewer facilities," within their boundaries or (except for counties) within ten miles from their corporate limits connecting with the public water or sewerage system to serve the area in which the real estate of such owners is located, and to provide for a period of not to exceed fifteen years for the reimbursement of such owners and their assigns by any owner of real estate who did not contribute to the original cost of such water or sewer facilities and who subsequently tap onto or use the same of a fair pro rata share of the cost of the construction of said water or sewer facilities, including not only those directly connected thereto, but also users connected to laterals or branches connecting thereto, subject to such reasonable rules and regulations as the governing body of such municipality may provide or contract, and notwithstanding the provisions of any other law. To the extent it may require in the performance of such contract, such municipality may install said water or sewer facilities in and along the county streets in the area to be served as hereinabove provided, subject to such reasonable requirements as to the manner of occupancy of such streets as the county may by resolution provide. The provisions of such contract shall not be effective as to any owner of real estate not a party thereto unless such contract has been recorded in the office of the county auditor of the county in which the real estate of such owner is located prior to the time such owner taps into or connects to said water or sewer facilities. ((The power of the governing body of such municipality to so contract also applies to water or sewer facilities in process of construction on June 10, 1959, or which have not been finally approved or accepted for full maintenance and operation by such municipality upon June 10, 1959.))      Sec. 43. RCW 35.92.012 and 1965 c 7 s 35.92.012 are each amended to read as follows:         A city or town, whose boundaries are identical with those of a water-sewer district, or within which a water-sewer district is entirely located, which is free from all debts and liabilities except contractual obligations between the district and the town, may accept the property and assets of the ((water)) district and operate such property and assets as a municipal waterworks, if the district and the city or town each participate in a summary dissolution proceedings for the district as provided in RCW 57.04.110.             Sec. 44. RCW 35.92.170 and 1965 c 7 s 35.92.170 are each amended to read as follows:   When a city or town owns or operates a municipal waterworks system and desires to extend such utility beyond its corporate limits it may acquire, construct and maintain any addition to or extension of the system, and dispose of and distribute water to any other municipality, water-sewer district, community, or person desiring to purchase it.      Sec. 45. RCW 35.97.010 and 1987 c 522 s 4 are each amended to read as follows:             Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.        (1) "Biomass energy system" means a system that provides for the production or collection of organic materials such as wood and agricultural residues and municipal solid waste that are primarily organic materials and the conversion or use of that material for the production of heat or substitute fuels through several processes including, but not limited to, burning, pyrolysis, or anaerobic digestion. (2) "Cogeneration" means the sequential generation of two or more forms of energy from a common fuel or energy source.    (3) "Cogeneration facility" means any machinery, equipment, structure, process, or property or any part thereof, installed or acquired for the primary purpose of cogeneration by a person or corporation.             (4) "Geothermal heat" means the natural thermal energy of the earth.        (5) "Waste heat" means the thermal energy which otherwise would be released to the environment from an industrial process, electric generation, or other process.            (6) "Heat" means thermal energy.          (7) "Heat source" includes but is not limited to (a) any integral part of a heat production or heat rejection system of an industrial facility, cogeneration facility, or electric power generation facility, (b) geothermal well or spring, (c) biomass energy system, (d) solar collection facility, and (e) hydrothermal resource or heat extraction process.      (8) "Municipality" means a county, city, town, irrigation district which distributes electricity, water-sewer district, ((water district,)) port district, or metropolitan municipal corporation.            (9) "Heating facilities or heating systems" means all real and personal property, or interests therein, necessary or useful for: (a) The acquisition, production, or extraction of heat; (b) the storage of heat; (c) the distribution of heat from its source to the place of utilization; (d) the extraction of heat at the place of utilization from the medium by which the heat is distributed; (e) the distribution of heat at the place of utilization; and (f) the conservation of heat.     (10) "Hydrothermal resource" means the thermal energy available in wastewater, sewage effluent, wells, or other water sources, natural or manmade.    Sec. 46. RCW 35.97.050 and 1996 c 230 s 1603 are each amended to read as follows:           If the legislative authority of a municipality deems it advisable that the municipality purchase, acquire, or construct a heating system, or make any additions or extensions to a heating system, the legislative authority shall so provide by an ordinance or a resolution specifying and adopting the system or plan proposed, declaring the estimated cost thereof, as near as may be, and specifying the method of financing and source of funds. Any construction, alteration, or improvement of a heating system by any ((county, city, town, irrigation district, water-sewer district, or port district)) municipality shall be in compliance with the appropriate competitive bidding requirements in Titles 35, 36, 53, 57, or 87 RCW.       Sec. 47. RCW 36.16.138 and 1975 c 16 s 1 are each amended to read as follows:      Any board of commissioners, council, or board of directors or other governing board of any county, city, town, school district, port district, public utility district, water-sewer district, ((water district,)) irrigation district, or other municipal corporation or political subdivision is authorized to purchase insurance to protect and hold personally harmless any of its commissioners, council members, directors, or other governing board members, and any of its other officers, employees, and agents from any action, claim, or proceeding instituted against the foregoing individuals arising out of the performance, purported performance, or failure of performance, in good faith of duties for, or employment with, such institutions and to hold these individuals harmless from any expenses connected with the defense, settlement, or monetary judgments from such actions, claims, or proceedings. The purchase of such insurance for any of the foregoing individuals and the policy limits shall be discretionary with the municipal corporation or political subdivision, and such insurance shall not be considered to be compensation for these individuals.              The provisions of this section are cumulative and in addition to any other provision of law authorizing any municipal corporation or political subdivision to purchase liability insurance.                  Sec. 48. RCW 36.93.020 and 1979 ex.s. c 30 s 5 are each amended to read as follows:      As used herein:       (1) "Governmental unit" means any incorporated city or town, metropolitan municipal corporation, or any special purpose district as defined in this section.   (2) "Special purpose district" means any water-sewer district, ((water district,)) fire protection district, drainage improvement district, drainage and diking improvement district, flood control zone district, irrigation district, metropolitan park district, drainage district, or public utility district engaged in water distribution.      (3) "Board" means a boundary review board created by or pursuant to this chapter.             Sec. 49. RCW 36.93.093 and 1971 ex.s. c 127 s 2 are each amended to read as follows:      Whenever a ((sewer or)) water-sewer district files with the board a notice of intention as required by RCW 36.93.090, the board shall send a copy of such notice of intention to the legislative authority of the county wherein such action is proposed to be taken and one copy to the state department of ecology.       Sec. 50. RCW 36.93.105 and 1989 c 84 s 4 are each amended to read as follows:          The following actions shall not be subject to potential review by a boundary review board:            (1) Annexations of territory to a water ((or))- sewer district pursuant to RCW 36.94.410 through 36.94.440;         (2) Revisions of city or town boundaries pursuant to RCW 35.21.790 or 35A.21.210;             (3) Adjustments to city or town boundaries pursuant to RCW 35.13.340; and      (4) Adjustments to city and town boundaries pursuant to RCW 35.13.300 through 35.13.330.               Sec. 51. RCW 36.93.185 and 1989 c 308 s 13 are each amended to read as follows:  The proposal by a ((water district or)) water-sewer district to annex territory that is not adjacent to the district shall not be deemed to be violative of the objectives of a boundary review board solely due to the fact that the territory is not adjacent to the ((water district or)) water-sewer district. The proposed consolidation or merger of two or more ((water districts or two or more)) water-sewer districts that are not adjacent to each other shall not be deemed to be violative of the objectives of a boundary review board solely due to the fact that the districts are not adjacent.            Sec. 52. RCW 36.94.220 and 1981 c 313 s 3 are each amended to read as follows:             (1) A county shall have the power to establish utility local improvement districts and local improvement districts within the area of a sewerage and/or water general plan and to levy special assessments under a mode of annual installments extending over a period not exceeding twenty years on all property specially benefited by any local improvement on the basis of the special benefits to pay in whole or in part the damages or costs of any improvements ordered in such county.                 (2) Utility local improvement districts and local improvement districts may include territory within a city or town only with the written consent of the city or town, but if the local district is formed before such area is included within the city or town, no such consent shall be necessary. Utility local improvement districts and local improvement districts used to provide sewerage disposal systems may include territory within a ((sewer district or within a)) water-sewer district providing sewerage disposal systems only with the written consent of ((the sewer district or)) such a water-sewer district, but if the local district is formed before such area is included within ((the sewer district or)) such a water-sewer district, no consent is necessary. Utility local improvement districts and local improvement districts used to provide water systems may include territory within ((a water district or within)) a water-sewer district providing water systems only with the written consent of ((the water district or)) such a water-sewer district, but if the local district is formed before such area is included within ((the water district or)) such a water-sewer district, no consent is necessary.      (3) The levying, collection, and enforcement of all public assessments hereby authorized shall be in the manner now and hereafter provided by law for the levying, collection, and enforcement of local improvement assessments by cities and towns, insofar as the same shall not be inconsistent with the provisions of this chapter. In addition, the county shall file the preliminary assessment roll at the time and in the manner prescribed in RCW 35.50.005. The duties devolving upon the city or town treasurer under such laws are imposed upon the county treasurer for the purposes of this chapter. The mode of assessment shall be in the manner to be determined by the county legislative authority by ordinance or resolution. As an alternative to equal annual assessment installments of principal provided for cities and towns, a county legislative authority may provide for the payment of such assessments in equal annual installments of principal and interest. Assessments in any local district may be made on the basis of special benefits up to but not in excess of the total cost of any sewerage and/or water improvement made with respect to that local district and the share of any general sewerage and/or water facilities allocable to that district. In utility local improvement districts, assessments shall be deposited into the revenue bond fund or general obligation bond fund established for the payment of bonds issued to pay such costs which bond payments are secured in part by the pledge of assessments, except pending the issuance and sale of such bonds, assessments may be deposited in a fund for the payment of such costs. In local improvement districts, assessments shall be deposited into a fund for the payment of such costs and local improvement bonds issued to finance the same or into the local improvement guaranty fund as provided by applicable statute.                Sec. 53. RCW 36.94.430 and 1984 c 147 s 3 are each amended to read as follows:             The provisions of RCW 36.94.410 and 36.94.420 provide an alternative method of accomplishing the transfer permitted by those sections and do not impose additional conditions upon the exercise of powers vested in water ((and))- sewer districts and counties.            Sec. 54. RCW 36.96.010 and 1979 ex.s. c 5 s 1 are each amended to read as follows:      As used in this chapter, unless the context requires otherwise:              (1) "Special purpose district" means every municipal and quasi-municipal corporation other than counties, cities, and towns. Such special purpose districts shall include, but are not limited to, water-sewer districts, fire protection districts, port districts, public utility districts, county park and recreation service areas, flood control zone districts, diking districts, drainage improvement districts, and solid waste collection districts, but shall not include industrial development districts created by port districts, and shall not include local improvement districts, utility local improvement districts, and road improvement districts;      (2) "Governing authority" means the commission, council, or other body which directs the affairs of a special purpose district;      (3) "Inactive" means that a special purpose district, other than a public utility district, is characterized by either of the following criteria:      (a) Has not carried out any of the special purposes or functions for which it was formed within the preceding consecutive five-year period; or   (b) No election has been held for the purpose of electing a member of the governing body within the preceding consecutive seven-year period or, in those instances where members of the governing body are appointed and not elected, where no member of the governing body has been appointed within the preceding seven-year period.A public utility district is inactive when it is characterized by both criteria (a) and (b) of this subsection.    Sec. 55. RCW 36.94.410 and 1984 c 147 s 1 are each amended to read as follows:             A system of sewerage, system of water or combined water and sewerage systems operated by a county under the authority of this chapter may be transferred from that county to a water ((or))- sewer district in the same manner as is provided for the transfer of those functions from a water ((or))- sewer district to a county in RCW 36.94.310 through 36.94.340.         Sec. 56. RCW 36.94.420 and 1996 c 230 s 1609 are each amended to read as follows:      If so provided in the transfer agreement, the area served by the system shall, upon completion of the transfer, be deemed annexed to and become a part of the water-sewer district acquiring the system. The county shall provide notice of the hearing by the county legislative authority on the ordinance executing the transfer agreement under RCW 36.94.330 as follows: (1) By mailed notice to all ratepayers served by the system at least fifteen days prior to the hearing; and (2) by notice in a newspaper of general circulation once at least fifteen days prior to the hearing.      In the event of an annexation under this section resulting from the transfer of a system of sewerage, a system of water, or combined water and sewer systems from a county to a water-sewer district ((governed by Title 57 RCW)), the water-sewer district shall ((have all the powers of a water-sewer district provided by chapter 57.36 RCW, as if a water-sewer district had been merged into a water-sewer district)) operate the system or systems under the provisions of Title 57 RCW.           Sec. 57. RCW 39.69.010 and 1987 c 19 s 1 are each amended to read as follows:              As used in this chapter, "municipal corporation" includes counties, cities, towns, port districts, ((sewer districts,)) water-sewer districts, school districts, metropolitan park districts, or such other units of local government which are authorized to issue obligations.      Sec. 58. RCW 39.80.020 and 1981 c 61 s 2 are each amended to read as follows:               Unless the context clearly requires otherwise, the definitions in this section shall apply throughout this chapter.               (1) "State agency" means any department, agency, commission, bureau, office, or any other entity or authority of the state government.      (2) "Local agency" means any city and any town, county, special district, municipal corporation, agency, port district or authority, or political subdivision of any type, or any other entity or authority of local government in corporate form or otherwise.                 (3) "Special district" means a local unit of government, other than a city, town, or county, authorized by law to perform a single function or a limited number of functions, and including but not limited to, water-sewer districts, irrigation districts, fire districts, school districts, community college districts, hospital districts, ((sewer districts,)) transportation districts, and metropolitan municipal corporations organized under chapter 35.58 RCW.     (4) "Agency" means both state and local agencies and special districts as defined in subsection(([s]))s (1), (2), and (3) of this section.     (5) "Architectural and engineering services" or "professional services" means professional services rendered by any person, other than as an employee of the agency, contracting to perform activities within the scope of the general definition of professional practice in chapters 18.08, 18.43, or 18.96 RCW.               (6) "Person" means any individual, organization, group, association, partnership, firm, joint venture, corporation, or any combination thereof.                (7) "Consultant" means any person providing professional services who is not an employee of the agency for which the services are provided.              (8) "Application" means a completed statement of qualifications together with a request to be considered for the award of one or more contracts for professional services.      Sec. 59. RCW 39.50.010 and 1985 c 332 s 8 are each amended to read as follows:             As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.         (1) "Governing body" means the legislative authority of a municipal corporation by whatever name designated;   (2) "Local improvement district" includes local improvement districts, utility local improvement districts, road improvement districts, and other improvement districts that a municipal corporation is authorized by law to establish;      (3) "Municipal corporation" means any city, town, county, ((water district,)) water-sewer district, school district, port district, public utility district, metropolitan municipal corporation, public transportation benefit area, park and recreation district, irrigation district, or fire protection district or any other municipal or quasi- municipal corporation described as such by statute, except joint operating agencies under chapter 43.52 RCW;                 (4) "Ordinance" means an ordinance of a city or town or resolution or other instrument by which the governing body of the municipal corporation exercising any power under this chapter takes formal action and adopts legislative provisions and matters of some permanency; and           (5) "Short-term obligations" are warrants, notes, or other evidences of indebtedness, except bonds.    Sec. 60. RCW 43.20.240 and 1990 c 132 s 3 are each amended to read as follows:            (1) The department shall have primary responsibility among state agencies to receive complaints from persons aggrieved by the failure of a public water system. If the remedy to the complaint is not within the jurisdiction of the department, the department shall refer the complaint to the state or local agency that has the appropriate jurisdiction. The department shall take such steps as are necessary to inform other state agencies of their primary responsibility for such complaints and the implementing procedures.             (2) Each county shall designate a contact person to the department for the purpose of receiving and following up on complaint referrals that are within county jurisdiction. In the absence of any such designation, the county health officer shall be responsible for performing this function.      (3) The department and each county shall establish procedures for providing a reasonable response to complaints received from persons aggrieved by the failure of a public water system.             (4) The department and each county shall use all reasonable efforts to assist customers of public water systems in obtaining a dependable supply of water at all times. The availability of resources and the public health significance of the complaint shall be considered when determining what constitutes a reasonable effort.      (5) The department shall, in consultation with local governments, water utilities, water-sewer districts, public utility districts, and other interested parties, develop a booklet or other single document that will provide to members of the public the following information:      (a) A summary of state law regarding the obligations of public water systems in providing drinking water supplies to their customers;      (b) A summary of the activities, including planning, rate setting, and compliance, that are to be performed by both local and state agencies;      (c) The rights of customers of public water systems, including identification of agencies or offices to which they may address the most common complaints regarding the failures or inadequacies of public water systems.                  This booklet or document shall be available to members of the public no later than January 1, 1991.   Sec. 61. RCW 43.70.195 and 1994 c 292 s 3 are each amended to read as follows:      (1) In any action brought by the secretary of health or by a local health officer pursuant to chapter 7.60 RCW to place a public water system in receivership, the petition shall include the names of one or more suitable candidates for receiver who have consented to assume operation of the water system. The department shall maintain a list of interested and qualified individuals, municipal entities, special purpose districts, and investor-owned water companies with experience in the provision of water service and a history of satisfactory operation of a water system. If there is no other person willing and able to be named as receiver, the court shall appoint the county in which the water system is located as receiver. The county may designate a county agency to operate the system, or it may contract with another individual or public water system to provide management for the system. If the county is appointed as receiver, the secretary of health and the county health officer shall provide regulatory oversight for the agency or other person responsible for managing the water system.                (2) In any petition for receivership under subsection (1) of this section, the department shall recommend that the court grant to the receiver full authority to act in the best interests of the customers served by the public water system. The receiver shall assess the capability, in conjunction with the department and local government, for the system to operate in compliance with health and safety standards, and shall report to the court and the petitioning agency its recommendations for the system's future operation, including the formation of a water-sewer district or other public entity, or ownership by another existing water system capable of providing service.   (3) If a petition for receivership and verifying affidavit executed by an appropriate departmental official allege an immediate and serious danger to residents constituting an emergency, the court shall set the matter for hearing within three days and may appoint a temporary receiver ex parte upon the strength of such petition and affidavit pending a full evidentiary hearing, which shall be held within fourteen days after receipt of the petition.         (4) A bond, if any is imposed upon a receiver, shall be minimal and shall reasonably relate to the level of operating revenue generated by the system. Any receiver appointed pursuant to this section shall not be held personally liable for any good faith, reasonable effort to assume possession of, and to operate, the system in compliance with the court's orders.  (5) The court shall authorize the receiver to impose reasonable assessments on a water system's customers to recover expenditures for improvements necessary for the public health and safety.                 (6) No later than twelve months after appointment of a receiver, the petitioning agency, in conjunction with the county in which the system is located, and the appropriate state and local health agencies, shall develop and present to the court a plan for the disposition of the system. The report shall include the recommendations of the receiver made pursuant to subsection (2) of this section. The report shall include all reasonable and feasible alternatives. After receiving the report, the court shall provide notice to interested parties and conduct such hearings as are necessary. The court shall then order the parties to implement one of the alternatives, or any combination thereof, for the disposition of the system. Such order shall include a date, or proposed date, for the termination of the receivership. Nothing in this section authorizes a court to require a city, town, public utility district, water-sewer district, or irrigation district to accept a system that has been in receivership unless the city, town, public utility district, water-sewer district, or irrigation district agrees to the terms and conditions outlined in the plan adopted by the court.              (7) The court shall not terminate the receivership, and order the return of the system to the owners, unless the department of health approves of such an action. The court may impose reasonable conditions upon the return of the system to the owner, including the posting of a bond or other security, routine performance and financial audits, employment of qualified operators and other staff or contracted services, compliance with financial viability requirements, or other measures sufficient to ensure the ongoing proper operation of the system.     (8) If, as part of the ultimate disposition of the system, an eminent domain action is commenced by a public entity to acquire the system, the court shall oversee any appraisal of the system conducted under Title 7 RCW to assure that the appraised value properly reflects any reduced value because of the necessity to make improvements to the system. The court shall have the authority to approve the appraisal, and to modify it based on any information provided at an evidentiary hearing. The court's determination of the proper value of the system, based on the appraisal, shall be final, and only appealable if not supported by substantial evidence. If the appraised value is appealed, the court may order that the system's ownership be transferred upon payment of the approved appraised value.       Sec. 62. RCW 43.155.030 and 1985 c 446 s 9 are each amended to read as follows:           (1) The public works board is hereby created.                (2) The board shall be composed of thirteen members appointed by the governor for terms of four years, except that five members initially shall be appointed for terms of two years. The board shall include: (a) Three members, two of whom shall be elected officials and one shall be a public works manager, appointed from a list of at least six persons nominated by the association of Washington cities or its successor; (b) three members, two of whom shall be elected officials and one shall be a public works manager, appointed from a list of at least six persons nominated by the Washington state association of counties or its successor; (c) three members appointed from a list of at least six persons nominated jointly by the ((Washington state association of water districts, the)) Washington public utility districts association((,)) and ((the Washington)) a state association of water-sewer districts, or their successors; and (d) four members appointed from the general public. In appointing the four general public members, the governor shall endeavor to balance the geographical composition of the board and to include members with special expertise in relevant fields such as public finance, architecture and civil engineering, and public works construction. The governor shall appoint one of the general public members of the board as chair. The term of the chair shall coincide with the term of the governor.       (3) Staff support to the board shall be provided by the department.       (4) Members of the board shall receive no compensation but shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.         (5) If a vacancy on the board occurs by death, resignation, or otherwise, the governor shall fill the vacant position for the unexpired term. Each vacancy in a position appointed from lists provided by the associations under subsection (2) of this section shall be filled from a list of at least three persons nominated by the relevant association or associations. Any members of the board, appointive or otherwise, may be removed by the governor for cause in accordance with RCW 43.06.070 and 43.06.080.         Sec. 63. RCW 44.04.170 and 1970 ex.s. c 69 s 2 are each amended to read as follows:      It shall be the duty of each association of municipal corporations or municipal officers, which is recognized by law and utilized as an official agency for the coordination of the policies and/or administrative programs of municipal corporations, to submit biennially, or oftener as necessary, to the governor and to the legislature the joint recommendations of such participating municipalities regarding changes which would affect the efficiency of such municipal corporations. Such associations shall include but shall not be limited to the Washington state association of fire commissioners, ((the Washington)) a state association of water/wastewater districts, ((the Washington state association of sewer districts,)) and the Washington state school directors' association.               Sec. 64. RCW 48.62.021 and 1991 sp.s. c 30 s 2 are each amended to read as follows:         Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.      (1) "Local government entity" or "entity" means every unit of local government, both general purpose and special purpose, and includes, but is not limited to, counties, cities, towns, port districts, public utility districts, ((water districts,)) water-sewer districts, school districts, fire protection districts, irrigation districts, metropolitan municipal corporations, conservation districts, and other political subdivisions, governmental subdivisions, municipal corporations, and quasi-municipal corporations.             (2) "Risk assumption" means a decision to absorb the entity's financial exposure to a risk of loss without the creation of a formal program of advance funding of anticipated losses.      (3) "Self-insurance" means a formal program of advance funding and management of entity financial exposure to a risk of loss that is not transferred through the purchase of an insurance policy or contract.            (4) "Health and welfare benefits" means a plan or program established by a local government entity or entities for the purpose of providing its employees and their dependents, and in the case of school districts, its district employees, students, directors, or any of their dependents, with health care, accident, disability, death, and salary protection benefits.      (5) "Property and liability risks" includes the risk of property damage or loss sustained by a local government entity and the risk of claims arising from the tortious or negligent conduct or any error or omission of the local government entity, its officers, employees, agents, or volunteers as a result of which a claim may be made against the local government entity.          (6) "State risk manager" means the state risk manager of the division of risk management within the department of general administration.   Sec. 65. RCW 52.08.011 and 1984 c 230 s 54 are each amended to read as follows:           Territory within a fire protection district may be withdrawn from the district in the same manner provided by law for withdrawal of territory from water-sewer districts, as provided by chapter 57.28 RCW.            Sec. 66. RCW 53.48.001 and 1989 c 84 s 46 are each amended to read as follows:             The dissolution of a metropolitan park district, fire protection district, ((sewer district,)) water-sewer district, or flood control zone district under chapter 53.48 RCW may be subject to potential review by a boundary review board under chapter 36.93 RCW. Sec. 67. RCW 53.48.010 and 1986 c 278 s 17 are each amended to read as follows:           The following words and terms shall, whenever used in this chapter, have the meaning set forth in this section:         (1) The term "district" as used herein, shall include all municipal and quasi-municipal corporations having a governing body, other than cities, towns, counties, and townships, such as port districts, school districts, water-sewer districts, fire protection districts, and all other special districts of similar organization, but shall not include local improvement districts, diking, drainage and irrigation districts, special districts as defined in RCW 85.38.010, nor public utility districts.      (2) The words "board of commissioners," as used herein, shall mean the governing authority of any district as defined in subdivision (1) of this section.    Sec. 68. RCW 54.04.030 and 1931 c 1 s 12 are each amended to read as follows:          ((This act)) Chapter 1, Laws of 1931, shall not be deemed or construed to repeal or affect any existing act, or any part thereof, relating to the construction, operation and maintenance of public utilities by irrigation or water-sewer districts or other municipal corporations, but shall be supplemental thereto and concurrent therewith. No public utility district created hereunder shall include therein any municipal corporation, or any part thereof, where such municipal corporation already owns or operates all the utilities herein authorized: PROVIDED, that in case it does not own or operate all such utilities it may be included within such public utility district for the purpose of establishing or operating therein such utilities as it does not own or operate: PROVIDED, FURTHER, That no property situated within any irrigation or water-sewer districts or other municipal corporations shall ever be taxed or assessed to pay for any utility, or part thereof, of like character to any utility, owned or operated by such irrigation or water districts or other municipal corporations.      Sec. 69. RCW 70.44.400 and 1984 c 100 s 1 are each amended to read as follows:      Territory within a public hospital district may be withdrawn therefrom in the same manner provided by law for withdrawal of territory from water-sewer districts, as provided by chapter 57.28 RCW. For purposes of conforming with such procedure, the public hospital district shall be deemed to be the water-sewer district and the public hospital board of commissioners shall be deemed to be the water-sewer district board of commissioners.         Sec. 70. RCW 70.95B.020 and 1995 c 269 s 2901 are each amended to read as follows:    As used in this chapter unless context requires another meaning:                (1) "Director" means the director of the department of ecology.            (2) "Department" means the department of ecology. (3) "Certificate" means a certificate of competency issued by the director stating that the operator has met the requirements for the specified operator classification of the certification program.     (4) "Wastewater treatment plant" means a facility used to treat any liquid or waterborne waste of domestic origin or a combination of domestic, commercial or industrial origin, and which by its design requires the presence of an operator for its operation. It shall not include any facility used exclusively by a single family residence, septic tanks with subsoil absorption, industrial wastewater treatment plants, or wastewater collection systems.            (5) "Operator in responsible charge" means an individual who is designated by the owner as the person on-site in responsible charge of the routine operation of a wastewater treatment plant.  (6) "Nationally recognized association of certification authorities" shall mean that organization which serves as an information center for certification activities, recommends minimum standards and guidelines for classification of potable water treatment plants, water distribution systems and wastewater facilities and certification of operators, facilitates reciprocity between state programs and assists authorities in establishing new certification programs and updating existing ones.       (7) "Wastewater collection system" means any system of lines, pipes, manholes, pumps, liftstations, or other facilities used for the purpose of collecting and transporting wastewater.      (8) "Operating experience" means routine performance of duties, on-site in a wastewater treatment plant, that affects plant performance or effluent quality.      (9) "Owner" means in the case of a town or city, the city or town acting through its chief executive officer or the lessee if operated pursuant to a lease or contract; in the case of a county, the chairman of the county legislative authority or the chairman's designee; in the case of a water-sewer district, board of public utilities, association, municipality or other public body, the president or chairman of the body or the president's or chairman's designee; in the case of a privately owned wastewater treatment plant, the legal owner.       (10) "Wastewater certification program coordinator" means an employee of the department who administers the wastewater treatment plant operators' certification program.      Sec. 71. RCW 70.119.020 and 1995 c 269 s 2904 are each amended to read as follows:     As used in this chapter unless context requires another meaning:          (1) "Certificate" means a certificate of competency issued by the secretary stating that the operator has met the requirements for the specified operator classification of the certification program.     (2) "Certified operator" means an individual holding a valid certificate and employed or appointed by any county, water-sewer district, municipality, public or private corporation, company, institution, person, or the state of Washington and who is designated by the employing or appointing officials as the person responsible for active daily technical operation.       (3) "Department" means the department of health.                (4) "Distribution system" means that portion of a public water system which stores, transmits, pumps and distributes water to consumers.      (5) "Ground water under the direct influence of surface water" means any water beneath the surface of the ground with:                 (a) Significant occurrence of insects or other macroorganisms, algae, or large diameter pathogens such as giardia lamblia; or               (b) Significant and relatively rapid shifts in water characteristics such as turbidity, temperature, conductivity, or pH which closely correlate to climatological or surface water conditions.    (6) "Group A water system" means a system with fifteen or more service connections, regardless of the number of people; or a system serving an average of twenty-five or more people per day for sixty or more days within a calendar year, regardless of the number of service connections. Group A water system does not include a system serving fewer than fifteen single-family residences, regardless of the number of people.          (7) "Nationally recognized association of certification authorities" shall mean an organization which serves as an information center for certification activities, recommends minimum standards and guidelines for classification of potable water treatment plants, water distribution systems and waste water facilities and certification of operators, facilitates reciprocity between state programs and assists authorities in establishing new certification programs and updating existing ones. (8) "Public water system" means any system, excluding a system serving only one single-family residence and a system with four or fewer connections all of which serve residences on the same farm, providing piped water for human consumption, including any collection, treatment, storage, or distribution facilities under control of the purveyor and used primarily in connection with the system; and collection or pretreatment storage facilities not under control of the purveyor but primarily used in connection with the system.      (9) "Purification plant" means that portion of a public water system which treats or improves the physical, chemical or bacteriological quality of the system's water to bring the water into compliance with state board of health standards.   (10) "Secretary" means the secretary of the department of health.    (11) "Service" means a connection to a public water system designed to serve a single-family residence, dwelling unit, or equivalent use. If the facility has group home or barracks-type accommodations, three persons will be considered equivalent to one service.      (12) "Surface water" means all water open to the atmosphere and subject to surface runoff.                Sec. 72. RCW 79.44.003 and 1989 c 243 s 13 are each amended to read as follows:          As used in this chapter "assessing district" means:                (1) Incorporated cities and towns;                (2) Diking districts;           (3) Drainage districts;             (4) Port districts;     (5) Irrigation districts;            (6) Water-sewer districts;             (7) ((Sewer districts;          (8))) Counties; and (((9))) (8) Any municipal corporation or public agency having power to levy local improvement or other assessments, rates, or charges which by statute are expressly made applicable to lands of the state.      Sec. 73. RCW 84.04.120 and 1961 c 15 s 84.04.120 are each amended to read as follows:                 "Taxing district" shall be held and construed to mean and include the state and any county, city, town, ((township,)) port district, school district, road district, metropolitan park district, water-sewer district or other municipal corporation, now or hereafter existing, having the power or authorized by law to impose burdens upon property within the district in proportion to the value thereof, for the purpose of obtaining revenue for public purposes, as distinguished from municipal corporations authorized to impose burdens, or for which burdens may be imposed, for such purposes, upon property in proportion to the benefits accruing thereto.  Sec. 74. RCW 84.33.100 and 1992 c 52 s 6 are each amended to read as follows:      As used in RCW 84.33.110 through 84.33.140 and 84.33.210 through 84.33.270:               (1) "Forest land" is synonymous with timberland and means all land in any contiguous ownership of twenty or more acres which is primarily devoted to and used for growing and harvesting timber and means the land only.   (2) "Owner" means the party or parties having the fee interest in land, except where land is subject to a real estate contract "owner" means the contract vendee.     (3) "Local government" shall mean any city, town, county, ((sewer district,)) water-sewer district, public utility district, port district, irrigation district, flood control district, or any other municipal corporation, quasi-municipal corporation, or other political subdivision authorized to levy special benefit assessments for sanitary or storm sewerage systems, domestic water supply or distribution systems, or road construction or improvement purposes.          (4) "Local improvement district" shall mean any local improvement district, utility local improvement district, local utility district, road improvement district, or any similar unit created by a local government for the purpose of levying special benefit assessments against property specially benefited by improvements relating to such districts.             (5) The term "average rate of inflation" shall mean the annual rate of inflation as determined by the department of revenue averaged over the period of time as provided in RCW 84.33.220 (1) and (2). Such determination shall be published not later than January 1 of each year for use in that assessment year.                (6) "Special benefit assessments" shall mean special assessments levied or capable of being levied in any local improvement district or otherwise levied or capable of being levied by a local government to pay for all or part of the costs of a local improvement and which may be levied only for the special benefits to be realized by property by reason of that local improvement.      Sec. 75. RCW 84.34.310 and 1992 c 52 s 15 are each amended to read as follows:             As used in RCW 84.34.300 through 84.34.380, unless a different meaning is required, the words defined in this section shall have the meanings indicated.              (1) "Farm and agricultural land" shall mean the same as defined in RCW 84.34.020(2).       (2) "Timber land" shall mean the same as defined in RCW 84.34.020(3).      (3) "Local government" shall mean any city, town, county, ((sewer district,)) water-sewer district, public utility district, port district, irrigation district, flood control district, or any other municipal corporation, quasi-municipal corporation, or other political subdivision authorized to levy special benefit assessments for sanitary and/or storm sewerage systems, domestic water supply and/or distribution systems, or road construction or improvement purposes.            (4) "Local improvement district" shall mean any local improvement district, utility local improvement district, local utility district, road improvement district, or any similar unit created by a local government for the purpose of levying special benefit assessments against property specially benefited by improvements relating to such districts.             (5) "Owner" shall mean the same as defined in RCW 84.34.020(5) or the applicable statutes relating to special benefit assessments.   (6) The term "average rate of inflation" shall mean the annual rate of inflation as determined by the department of revenue averaged over the period of time as provided in RCW 84.34.330 (1) and (2). Such determination shall be published not later than January 1 of each year for use in that assessment year.      (7) "Special benefit assessments" shall mean special assessments levied or capable of being levied in any local improvement district or otherwise levied or capable of being levied by a local government to pay for all or part of the costs of a local improvement and which may be levied only for the special benefits to be realized by property by reason of that local improvement.           Sec. 76. RCW 84.64.080 and 1991 c 245 s 27 are each amended to read as follows:          The court shall examine each application for judgment foreclosing tax lien, and if defense (specifying in writing the particular cause of objection) be offered by any person interested in any of the lands or lots to the entry of judgment against the same, the court shall hear and determine the matter in a summary manner, without other pleadings, and shall pronounce judgment as the right of the case may be; or the court may, in its discretion, continue such individual cases, wherein defense is offered, to such time as may be necessary, in order to secure substantial justice to the contestants therein; but in all other cases the court shall proceed to determine the matter in a summary manner as above specified. In all judicial proceedings of any kind for the collection of taxes, and interest and costs thereon, all amendments which by law can be made in any personal action pending in such court shall be allowed, and no assessments of property or charge for any of the taxes shall be considered illegal on account of any irregularity in the tax list or assessment rolls or on account of the assessment rolls or tax list not having been made, completed or returned within the time required by law, or on account of the property having been charged or listed in the assessment or tax lists without name, or in any other name than that of the owner, and no error or informality in the proceedings of any of the officers connected with the assessment, levying or collection of the taxes, shall vitiate or in any manner affect the tax or the assessment thereof, and any irregularities or informality in the assessment rolls or tax lists or in any of the proceedings connected with the assessment or levy of such taxes or any omission or defective act of any officer or officers connected with the assessment or levying of such taxes, may be, in the discretion of the court, corrected, supplied and made to conform to the law by the court. The court shall give judgment for such taxes, interest and costs as shall appear to be due upon the several lots or tracts described in the notice of application for judgment or complaint, and such judgment shall be a several judgment against each tract or lot or part of a tract or lot for each kind of tax included therein, including all interest and costs, and the court shall order and direct the clerk to make and enter an order for the sale of such real property against which judgment is made, or vacate and set aside the certificate of delinquency or make such other order or judgment as in the law or equity may be just. The order shall be signed by the judge of the superior court, shall be delivered to the county treasurer, and shall be full and sufficient authority for him or her to proceed to sell the property for the sum as set forth in the order and to take such further steps in the matter as are provided by law. The county treasurer shall immediately after receiving the order and judgment of the court proceed to sell the property as provided in this chapter to the highest and best bidder for cash. The acceptable minimum bid shall be the total amount of taxes, interest, penalties, and costs. All sales shall be made at a location in the county on a date and time (except Saturdays, Sundays, or legal holidays) as the county treasurer may direct, and shall continue from day to day (Saturdays, Sundays, and legal holidays excepted) during the same hours until all lots or tracts are sold, after first giving notice of the time, and place where such sale is to take place for ten days successively by posting notice thereof in three public places in the county, one of which shall be in the office of the treasurer. The notice shall be substantially in the following form:

TAX JUDGMENT SALE

      Public notice is hereby given that pursuant to real property tax judgment of the superior court of the county of . . . . . . in the state of Washington, and an order of sale duly issued by the court, entered the . . . . day of . . . . . ., . . . ., in proceedings for foreclosure of tax liens upon real property, as per provisions of law, I shall on the . . . . day of . . . . . ., . . . ., at . . . . o'clock a.m., at . . . . . . in the city of . . . . . ., and county of . . . . . ., state of Washington, sell the real property to the highest and best bidder for cash, to satisfy the full amount of taxes, interest and costs adjudged to be due.       In witness whereof, I have hereunto affixed my hand and seal this . . . . day of . . . . . ., . . . . .

                                                                                      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Treasurer of county.

      No county officer or employee shall directly or indirectly be a purchaser of such property at such sale.              If any buildings or improvements are upon an area encompassing more than one tract or lot, the same must be advertised and sold as a single unit.      If the highest amount bid for any such separate unit tract or lot is in excess of the minimum bid due upon the whole property included in the certificate of delinquency, the excess shall be refunded following payment of all water ((and))- sewer district liens, on application therefor, to the record owner of the property. The record owner of the property is the person who held title on the date of issuance of the certificate of delinquency. In the event no claim for the excess is received by the county treasurer within three years after the date of the sale he or she shall at expiration of the three year period deposit such excess in the current expense fund of the county. The county treasurer shall execute to the purchaser of any piece or parcel of land a tax deed. The deed so made by the county treasurer, under the official seal of his or her office, shall be recorded in the same manner as other conveyances of real property, and shall vest in the grantee, his or her heirs and assigns the title to the property therein described, without further acknowledgment or evidence of such conveyance, and shall be substantially in the following form:

State of Washington                                                                                                                 ss.County of . . . . . . . . . . . . . . . .                               

      This indenture, made this . . . . day of . . . . . ., . . . . . ., between . . . . . ., as treasurer of . . . . . . county, state of Washington, party of the first part, and . . . . . ., party of the second part:    Witnesseth, that, whereas, at a public sale of real property held on the . . . . day of . . . . . ., . . . ., pursuant to a real property tax judgment entered in the superior court in the county of . . . . . . on the . . . . day of . . . . . ., . . . ., in proceedings to foreclose tax liens upon real property and an order of sale duly issued by the court, . . . . . . duly purchased in compliance with the laws of the state of Washington, the following described real property, to wit: (Here place description of real property conveyed) and that the . . . . . . has complied with the laws of the state of Washington necessary to entitle (him, or her or them) to a deed for the real property.      Now, therefore, know ye, that, I . . . . . ., county treasurer of the county of . . . . . ., state of Washington, in consideration of the premises and by virtue of the statutes of the state of Washington, in such cases provided, do hereby grant and convey unto . . . . . ., his or her heirs and assigns, forever, the real property hereinbefore described.           Given under my hand and seal of office this . . . . day of . . . . . ., A.D. . . . .                                                                                                      County Treasurer.Sec. 77. RCW 84.69.010 and 1961 c 15 s 84.69.010 are each amended to read as follows:As used in this chapter, unless the context indicates otherwise:    (1) "Taxing district" means any county, city, town, ((township,)) port district, school district, road district, metropolitan park district, water-sewer district, or other municipal corporation now or hereafter authorized by law to impose burdens upon property within the district in proportion to the value thereof, for the purpose of obtaining revenue for public purposes, as distinguished from municipal corporations authorized to impose burdens, or for which burdens may be imposed, for such purposes, upon property in proportion to the benefits accruing thereto.    (2) "Tax" includes penalties and interest.               Sec. 78. RCW 87.03.015 and 1979 ex.s. c 185 s 2 are each amended to read as follows:          Any irrigation district, operating and maintaining an irrigation system, in addition to other powers conferred by law, shall have authority:         (1) To purchase and sell electric power to the inhabitants of the irrigation district for the purposes of irrigation and domestic use, to acquire, construct, and lease dams, canals, plants, transmission lines, and other power equipment and the necessary property and rights therefor and to operate, improve, repair, and maintain the same, for the generation and transmission of electrical energy for use in the operation of pumping plants and irrigation systems of the district and for sale to the inhabitants of the irrigation district for the purposes of irrigation and domestic use; and, as a further and separate grant of authority and in furtherance of a state purpose and policy of developing hydroelectric capability in connection with irrigation facilities, to construct, finance, acquire, own, operate, and maintain, alone or jointly with other irrigation districts, boards of control, other municipal or quasi-municipal corporations or cooperatives authorized to engage in the business of distributing electricity, or electrical companies subject to the jurisdiction of the utilities and transportation commission, hydroelectric facilities including but not limited to dams, canals, plants, transmission lines, other power equipment, and the necessary property and rights therefor, located within or outside the district, for the purpose of utilizing for the generation of electricity, water power made available by and as a part of the irrigation water storage, conveyance, and distribution facilities, waste ways, and drainage water facilities which serve irrigation districts, and to sell any and all the electric energy generated at any such hydroelectric facilities or the irrigation district's share of such energy, to municipal or quasi-municipal corporations and cooperatives authorized to engage in the business of distributing electricity, and electrical companies subject to the jurisdiction of the utilities and transportation commission, or to other irrigation districts, and on such terms and conditions as the board of directors shall determine, and to enter into contracts with other irrigation districts, boards of control, other municipal or quasi-municipal corporations and cooperatives authorized to engage in the business of distributing electricity, and electrical companies subject to the jurisdiction of the utilities and transportation commission: PROVIDED, That no contract entered into by the board of directors of any irrigation district for the sale of electrical energy from such hydroelectric facility for a period longer than forty years from the date of commercial operation of such hydroelectric facility shall be binding on the district until ratified by a majority vote of the electors of the district at an election therein, called, held and canvassed for that purpose in the same manner as that provided by law for district bond elections.      (2) To construct, repair, purchase, maintain or lease a system for the sale or lease of water to the owners of irrigated lands within the district for domestic purposes.  (3) To construct, repair, purchase, lease, acquire, operate and maintain a system of drains, sanitary sewers, and sewage disposal or treatment plants as herein provided.           (4) To assume, as principal or guarantor, any indebtedness to the United States under the federal reclamation laws, on account of district lands.                 (5) To maintain, repair, construct and reconstruct ditches, laterals, pipe lines and other water conduits used or to be used in carrying water for irrigation of lands located within the boundaries of a city or town or for the domestic use of the residents of a city or town where the owners of land within such city or town shall use such works to carry water to the boundaries of such city or town for irrigation, domestic or other purposes within such city or town, and to charge to such city or town the pro rata proportion of the cost of such maintenance, repair, construction and reconstruction work in proportion to the benefits received by the lands served and located within the boundaries of such city or town, and if such cost is not paid, then and in that event said irrigation district shall have the right to prevent further water deliveries through such works to the lands located within the boundaries of such city or town until such charges have been paid.                (6) To acquire, install and maintain as a part of the irrigation district's water system the necessary water mains and fire hydrants to make water available for fire fighting purposes; and in addition any such irrigation district shall have the authority to repair, operate and maintain such hydrants and mains.            (7) To enter into contracts with other irrigation districts, boards of control, municipal or quasi-municipal corporations and cooperatives authorized to engage in the business of distributing electricity, and electrical companies subject to the jurisdiction of the utilities and transportation commission to jointly acquire, construct, own, operate, and maintain irrigation water, domestic water, drainage and sewerage works, and electrical power works to the same extent as authorized by subsection (1) of this section, or portions of such works.             (8) To acquire from a water-sewer district wholly within the irrigation district's boundaries, by a conveyance without cost, the water-sewer district's water system and to operate the same to provide water for the domestic use of the irrigation district residents. As a part of its acceptance of the conveyance the irrigation district must agree to relieve the water-sewer district of responsibility for maintenance and repair of the system. Any such water-sewer district is authorized to make such a conveyance if all indebtedness of the water-sewer district, except local improvement district bonds, has been paid and the conveyance has been approved by a majority of the water-sewer district's ((electors)) voters voting at a general or special election.    This section shall not be construed as in any manner abridging any other powers of an irrigation district conferred by law.                Sec. 79. RCW 87.03.720 and 1977 ex.s. c 208 s 1 are each amended to read as follows:          The board of directors of an irrigation district shall, after being notified by the legislative authority of the county or counties within which the irrigation district lies of the filing of the petition therefor, have the power to assent to the proposed merger with the irrigation district of that portion of a drainage improvement district, joint drainage improvement district, consolidated drainage improvement district, or water-sewer district within its boundaries at a hearing duly called by the board to consider the proposed merger if sufficient objections thereto have not been presented, as hereinafter provided.        Sec. 80. RCW 87.03.725 and 1977 ex.s. c 208 s 2 are each amended to read as follows:      The secretary of the board of directors shall cause a notice of the proposed merger to be posted and published in the same manner and for the same time as notice of a special election for the issue of bonds. The notice shall state that a petition has been filed with the legislative authority of the county or counties within which the irrigation districts lies by the board of supervisors of the drainage improvement district, joint drainage improvement district, or consolidated drainage improvement district or by the board of commissioners of a water-sewer district requesting that the drainage improvement district, joint drainage improvement district, consolidated drainage improvement district, or water-sewer district be merged with the irrigation district or irrigation districts, the names of the petitioners and the prayer thereof, and it shall notify all persons interested in the irrigation district to appear at the office of the board at the time named in the notice, and show cause in writing why the proposed merger should not take place. The time to show cause shall be the regular meeting of the board of directors of the irrigation district next after the expiration of the time for the publication of the notice.          NEW SECTION. Sec. 81. RCW 56.08.070 and 1996 c 18 s 13 are each repealed.    NEW SECTION. Sec. 82. 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 July 1, 1997."         Correct the title accordingly.,      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator McCaslin moved that the Senate refuse to concur in the House amendment to Senate Bill No. 5650 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator McCaslin that the Senate refuse to concur in the House amendment to Senate Bill No. 5650 and asks the House to recede therefrom.

      The motion by Senator McCaslin carried and the Senate refuses to concur in the House amendment to Senate Bill No. 5650 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5867 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The intent of this act is to provide uniform standards for local option excise taxation of lodging.   Sec. 2. RCW 67.28.080 and 1991 c 357 s 1 are each amended to read as follows:      ((In any county located in whole or in part in a national scenic area and the population of which county is less than 20,000, a convention center facility may include a hotel, destination resort, conference center, or similar or related facility. A convention center facility may include the land on which any of the foregoing structures or facilities are sited. A convention center facility may also include land necessary for the operation of a convention center facility)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.          (1) "Acquisition" includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purpose or purposes under this chapter.          (2) "Municipality" ((as used in this chapter)) means any county, city or town of the state of Washington.          (3) "Operation" includes, but is not limited to, operation, management, and marketing.      (4) "Person" ((as used in this chapter)) means the federal government or any agency thereof, the state or any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual.      (5) "Tourism" means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.           (6) "Tourism promotion" means activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists.      (7) "Tourism-related facility" means real or tangible personal property with a usable life of three or more years and a monetary value of ten thousand dollars or more used to support tourism or accommodate tourism activities.          (8) "Tourist" means a person who travels from a place of residence to a different town, city, county, state, or country, for purposes of business, pleasure, recreation, education, arts, heritage, or culture.           NEW SECTION. Sec. 3. A new section is added to chapter 67.28 RCW to read as follows:         (1) The legislative body of any municipality may impose an excise tax on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW, at a rate not exceeding the applicable limit under subsection (2) of this section. A tax under this chapter shall not be imposed in increments smaller than tenths of a percent.                 (2)(a) If a municipality imposed taxes under this chapter and RCW 67.40.100 with a total rate exceeding four percent on January 1, 1998, the rate of tax imposed under this chapter by the municipality shall not exceed the total rate imposed by the municipality under this chapter and RCW 67.40.100 on January 1, 1998.          (b) If a city or town other than a municipality described in (a) of this subsection is located in a county that imposed taxes under this chapter with a total rate of four percent or more on January 1, 1997, the rate of tax imposed under this chapter by the city or town shall not exceed two percent.         (c) If a city has a population of four hundred thousand or more and is located in a county with a population of one million or more, the rate of tax imposed under this chapter by the city shall not exceed the lesser of four percent or a rate that, when combined with all other taxes imposed upon sales of lodging in the municipality under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, equals fifteen and two-tenths percent.     (d) If a municipality is not subject to a limit under (a), (b), or (c) of this subsection, the rate of tax imposed under this chapter by the municipality shall not exceed the lesser of four percent or a rate that, when combined with all other taxes imposed upon sales of lodging within the municipality under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, equals twelve percent.   (3) Except as provided in RCW 67.28.180, any county ordinance or resolution adopted under this section shall contain a provision allowing a credit against the county tax for the full amount of any city or town tax imposed under this section upon the same taxable event.   (4) Tax imposed under this section on a sale of lodging shall be credited against the amount of sales tax due to the state under chapter 82.08 RCW on the same sale of lodging, but the total credit for taxes imposed by all municipalities on a sale of lodging shall not exceed the amount that would be imposed under a two percent tax under this section. This subsection does not apply to taxes which are credited against the state sales tax under RCW 67.28.180.           NEW SECTION. Sec. 4. A new section is added to chapter 67.28 RCW to read as follows:              All revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities. Municipalities may, under chapter 39.34 RCW, agree to the utilization of revenue from taxes imposed under this chapter for the purposes of funding a multijurisdictional tourism-related facility.               NEW SECTION. Sec. 5. A new section is added to chapter 67.28 RCW to read as follows:         (1) Before imposing a tax under section 3 of this act, a municipality shall establish a lodging tax advisory committee under this section. A lodging tax advisory committee shall consist of at least five members, appointed by the legislative body of the municipality, unless the municipality has a charter providing for a different appointment authority. At least two members shall be representatives of businesses required to collect tax under this chapter, and at least two members shall be persons involved in activities authorized to be funded by revenue received under this chapter. Organizations representing businesses required to collect tax under this chapter, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations for membership on the committee. The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under this chapter. One member shall be an elected official of the municipality who shall serve as chair of the committee. An advisory committee for a county may include one nonvoting member who is an elected official of a city or town in the county. An advisory committee for a city or town may include one nonvoting member who is an elected official of the county in which the city or town is located. The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate.  (2) Any municipality that proposes imposition of a tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter shall submit the proposal to the lodging tax advisory committee for review and comment. The submission shall occur at least forty-five days before final action on or passage of the proposal by the municipality. The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the fund created under section 4 of this act. Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the municipality from acting on the proposal. A municipality is not required to submit an amended proposal to an advisory committee under this section.                NEW SECTION. Sec. 6. (1) Each municipality imposing a tax under chapter 67.28 RCW shall submit a report to the department of community, trade, and economic development on October 1, 1998, and October 1, 2000. Each report shall include the following information:       (a) The rate of tax imposed under chapter 67.28 RCW;         (b) The total revenue received under chapter 67.28 RCW for each of the preceding six years;              (c) A list of projects and activities funded with revenue received under chapter 67.28 RCW; and           (d) The amount of revenue under chapter 67.28 RCW expended for each project and activity.            (2) The department of community, trade, and economic development shall summarize and analyze the data received under subsection (1) of this section in a report submitted to the legislature on January 1, 1999, and January 1, 2001. The report shall include, but not be limited to, analysis of factors contributing to growth in revenue received under chapter 67.28 RCW and the effects of projects and activities funded with revenue received under chapter 67.28 RCW on tourism growth.             Sec. 7. RCW 67.28.120 and 1979 ex.s. c 222 s 1 are each amended to read as follows:      Any municipality is authorized either individually or jointly with any other municipality, or person, or any combination thereof, to acquire ((by purchase, gift or grant, to lease as lessee,)) and to ((construct, install, add to, improve, replace, repair, maintain,)) operate ((and regulate the use of public stadium facilities, convention center facilities, performing arts center facilities, and/or visual art center)) tourism-related facilities, whether located within or without such municipality((, including but not limited to buildings, structures, concession and service facilities, roads, bridges, walks, ramps and other access facilities, terminal and parking facilities for private vehicles and public transportation vehicles and systems, together with all lands, properties, property rights, equipment, utilities, accessories and appurtenances necessary for such public stadium facilities, convention center facilities, performing arts center facilities, or visual arts center facilities, and to pay for any engineering, planning, financial, legal and professional services incident to the development and operation of such public facilities)).      Sec. 8. RCW 67.28.130 and 1979 ex.s. c 222 s 2 are each amended to read as follows:       Any municipality, taxing district, or municipal corporation is authorized to convey or lease any lands, properties or facilities to any other municipality for the development by such other municipality of ((public stadium facilities, convention center facilities, performing arts center facilities, and/or visual art center)) tourism-related facilities or to provide for the joint use of such lands, properties or facilities, or to participate in the financing of all or any part of the public facilities on such terms as may be fixed by agreement between the respective legislative bodies without submitting the matter to the voters of such municipalities, unless the provisions of general law applicable to the incurring of municipal indebtedness shall require such submission.      Sec. 9. RCW 67.28.150 and 1984 c 186 s 56 are each amended to read as follows:             To carry out the purposes of this chapter any municipality shall have the power to issue general obligation bonds within the limitations now or hereafter prescribed by the laws of this state. Such general obligation bonds shall be authorized, executed, issued and made payable as other general obligation bonds of such municipality: PROVIDED, That the governing body of such municipality may provide that such bonds mature in not to exceed forty years from the date of their issue, may provide that such bonds also be made payable from any special taxes provided for in ((RCW 67.28.180)) this chapter, and may provide that such bonds also be made payable from any otherwise unpledged revenue which may be derived from the ownership or operation of any properties.          Sec. 10. RCW 67.28.160 and 1983 c 167 s 168 are each amended to read as follows:         (1) To carry out the purposes of this chapter the legislative body of any municipality shall have the power to issue revenue bonds without submitting the matter to the voters of the municipality: PROVIDED, That the legislative body shall create a special fund or funds for the sole purpose of paying the principal of and interest on the bonds of each such issue, into which fund or funds the legislative body may obligate the municipality to pay all or part of amounts collected from the special taxes provided for in ((RCW 67.28.180)) this chapter, and/or to pay such amounts of the gross revenue of all or any part of the facilities constructed, acquired, improved, added to, repaired or replaced pursuant to this chapter, as the legislative body shall determine: PROVIDED, FURTHER, That the principal of and interest on such bonds shall be payable only out of such special fund or funds, and the owners of such bonds shall have a lien and charge against the gross revenue pledged to such fund.    Such revenue bonds and the interest thereon issued against such fund or funds shall constitute a claim of the owners thereof only as against such fund or funds and the revenue pledged therefor, and shall not constitute a general indebtedness of the municipality.   Each such revenue bond shall state upon its face that it is payable from such special fund or funds, and all revenue bonds issued under this chapter shall be negotiable securities within the provisions of the law of this state. Such revenue bonds may be registered either as to principal only or as to principal and interest as provided in RCW 39.46.030, or may be bearer bonds; shall be in such denominations as the legislative body shall deem proper; shall be payable at such time or times and at such places as shall be determined by the legislative body; shall be executed in such manner and bear interest at such rate or rates as shall be determined by the legislative body.                Such revenue bonds shall be sold in such manner as the legislative body shall deem to be for the best interests of the municipality, either at public or private sale.   The legislative body may at the time of the issuance of such revenue bonds make such covenants with the owners of said bonds as it may deem necessary to secure and guaranty the payment of the principal thereof and the interest thereon, including but not being limited to covenants to set aside adequate reserves to secure or guaranty the payment of such principal and interest, to pledge and apply thereto part or all of any lawfully authorized special taxes provided for in ((RCW 67.28.180)) this chapter, to maintain rates, charges or rentals sufficient with other available moneys to pay such principal and interest and to maintain adequate coverage over debt service, to appoint a trustee or trustees for the bond owners, to safeguard the expenditure of the proceeds of sale of such bonds and to fix the powers and duties of such trustee or trustees and to make such other covenants as the legislative body may deem necessary to accomplish the most advantageous sale of such bonds. The legislative body may also provide that revenue bonds payable out of the same source may later be issued on a parity with revenue bonds being issued and sold.        The legislative body may include in the principal amount of any such revenue bond issue an amount for engineering, architectural, planning, financial, legal, and other services and charges incident to the acquisition or construction of public stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities, an amount to establish necessary reserves, an amount for working capital and an amount necessary for interest during the period of construction of any facilities to be financed from the proceeds of such issue plus six months. The legislative body may, if it deems it in the best interest of the municipality, provide in any contract for the construction or acquisition of any facilities or additions or improvements thereto or replacements or extensions thereof that payment therefor shall be made only in such revenue bonds.        If the municipality shall fail to carry out or perform any of its obligations or covenants made in the authorization, issuance and sale of such bonds, the owner of any such bond may bring action against the municipality and compel the performance of any or all of such covenants.           (2) Notwithstanding subsection (1) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.               Sec. 11. RCW 67.28.170 and 1979 ex.s. c 222 s 4 are each amended to read as follows:     The legislative body of any municipality owning or operating ((public stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center)) tourism-related facilities acquired ((or developed pursuant to)) under this chapter shall have power to lease to any municipality or person, or to contract for the use or operation by any municipality or person, of all or any part of the facilities authorized by this chapter, including but not limited to parking facilities, concession facilities of all kinds and any property or property rights appurtenant to such ((stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center)) tourism-related facilities, for such period and under such terms and conditions and upon such rentals, fees and charges as such legislative body may determine, and may pledge all or any portion of such rentals, fees and charges and all other revenue derived from the ownership and/or operation of such facilities to pay and to secure the payment of general obligation bonds and/or revenue bonds of such municipality issued for authorized ((public stadium, convention center, performing arts center, and/or visual arts center)) tourism-related facilities purposes.  Sec. 12. RCW 67.28.180 and 1995 1st sp.s. c 14 s 10 are each amended to read as follows:      (1) ((Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of any county or any city, is authorized to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property: PROVIDED, That it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.)) (a) Tax imposed under section 3 of this act on a sale of lodging by a county exempt under subsection (2) of this section shall be credited against the amount of sales tax due to the state under chapter 82.08 RCW on the same sale of lodging, but the credit under this subsection (1)(a) shall not exceed the amount that would be imposed under a two percent tax under section 3 of this act.   (b) If a city in a county exempt under subsection (2) of this section has imposed a tax under this chapter and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, the tax imposed under section 3 of this act on a sale of lodging by such city shall be credited against the amount of sales tax due to the state under chapter 82.08 RCW on the same sale of lodging, but the credit under this subsection (1)(b) shall not exceed the amount that would be collected under a two percent tax under section 3 of this act.            (2) ((Any levy authorized by this section shall be subject to the following:  (a) Any county ordinance or resolution adopted pursuant to this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this section upon the same taxable event.   (b))) In the event that any county has levied ((the tax authorized by this section)) a tax under this chapter and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such county shall be exempt from ((the provisions of (a) of this subsection)) section 3(3) of this act, to the extent that the tax rate imposed by the county under this chapter does not exceed two percent and the revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160: PROVIDED, That so much of such pledged tax revenues, together with any investment earnings thereon, not immediately necessary for actual payment of principal and interest on such bonds may be used: (((i))) (a) In any county with a population of one million or more, for repayment either of limited tax levy general obligation bonds or of any county fund or account from which a loan was made, the proceeds from the bonds or loan being used to pay for constructing, installing, improving, and equipping stadium capital improvement projects, and to pay for any engineering, planning, financial, legal and professional services incident to the development of such stadium capital improvement projects, regardless of the date the debt for such capital improvement projects was or may be incurred; or (((ii))) (b) in other counties, for county-owned facilities for agricultural promotion. A county is exempt under this subsection in respect to city revenue or general obligation bonds issued after April 1, 1991, only if such bonds mature before January 1, 2013.                 As used in this subsection (2)(((b))), "capital improvement projects" may include, but not be limited to a stadium restaurant facility, restroom facilities, artificial turf system, seating facilities, parking facilities and scoreboard and information system adjacent to or within a county owned stadium, together with equipment, utilities, accessories and appurtenances necessary thereto. The stadium restaurant authorized by this subsection (2)(((b))) shall be operated by a private concessionaire under a contract with the county.           (((c) No city within a county exempt under subsection (2)(b) of this section may levy the tax authorized by this section so long as said county is so exempt: PROVIDED, That in the event that any city in such county has levied the tax authorized by this section and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such city may levy the tax so long as the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.))             (3) Any levy ((authorized by this section)) under this chapter by a county that ((has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160)) is exempt under subsection (2) of this section shall be subject to the following:        (a) Taxes collected under this ((section)) chapter in any calendar year in excess of five million three hundred thousand dollars shall only be used as follows:      (i) Seventy-five percent from January 1, 1992, through December 31, 2000, and seventy percent from January 1, 2001, through December 31, 2012, for art museums, cultural museums, heritage museums, the arts, and the performing arts. Moneys spent under this subsection (3)(a)(i) shall be used for the purposes of this subsection (3)(a)(i) in all parts of the county.    (ii) Twenty-five percent from January 1, 1992, through December 31, 2000, and thirty percent from January 1, 2001, through December 31, 2012, for the following purposes and in a manner reflecting the following order of priority: Stadium capital improvements, as defined in subsection (2)(((b))) of this section; acquisition of open space lands; youth sports activities; and tourism promotion.                  (b) At least seventy percent of moneys spent under (a)(i) of this subsection for the period January 1, 1992, through December 31, 2000, shall be used only for the purchase, design, construction, and remodeling of performing arts, visual arts, heritage, and cultural facilities, and for the purchase of fixed assets that will benefit art, heritage, and cultural organizations. For purposes of this subsection, fixed assets are tangible objects such as machinery and other equipment intended to be held or used for ten years or more. Moneys received under this subsection (3)(b) may be used for payment of principal and interest on bonds issued for capital projects. Qualifying organizations receiving moneys under this subsection (3)(b) must be financially stable and have at least the following:      (i) A legally constituted and working board of directors;       (ii) A record of artistic, heritage, or cultural accomplishments;      (iii) Been in existence and operating for at least two years;   (iv) Demonstrated ability to maintain net current liabilities at less than thirty percent of general operating expenses;         (v) Demonstrated ability to sustain operational capacity subsequent to completion of projects or purchase of machinery and equipment; and  (vi) Evidence that there has been independent financial review of the organization.      (c) At least forty percent of the revenues distributed pursuant to (a)(i) of this subsection for the period January 1, 2001, through December 31, 2012, shall be deposited in an account and shall be used to establish an endowment. Principal in the account shall remain permanent and irreducible. The earnings from investments of balances in the account may only be used for the purposes of (a)(i) of this subsection.      (d) School districts and schools shall not receive revenues distributed pursuant to (a)(i) of this subsection.         (e) Moneys distributed to art museums, cultural museums, heritage museums, the arts, and the performing arts, and moneys distributed for tourism promotion shall be in addition to and may not be used to replace or supplant any other funding by the legislative body of the county.    (f) As used in this section, "tourism promotion" includes activities intended to attract visitors for overnight stays, arts, heritage, and cultural events, and recreational, professional, and amateur sports events. Moneys allocated to tourism promotion in a class AA county shall be allocated to nonprofit organizations formed for the express purpose of tourism promotion in the county. Such organizations shall use moneys from the taxes to promote events in all parts of the class AA county.      (g) No taxes ((collected)) distributed under this section may be used for the operation or maintenance of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged. Expenditures for operation or maintenance include all expenditures other than expenditures that directly result in new fixed assets or that directly increase the capacity, life span, or operating economy of existing fixed assets.    (h) No ad valorem property taxes may be used for debt service on bonds issued for a public stadium that is financed by bonds to which the tax is pledged, unless the taxes ((collected)) distributed under this section are or are projected to be insufficient to meet debt service requirements on such bonds.            (i) If a substantial part of the operation and management of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged is performed by a nonpublic entity or if a public stadium is sold that is financed directly or indirectly by bonds to which the tax is pledged, any bonds to which the tax is pledged shall be retired. This subsection (3)(i) does not apply in respect to a public stadium transferred to, owned by, or constructed by a public facilities district under chapter 36.100 RCW.     (j) The county shall not lease a public stadium that is financed directly or indirectly by bonds to which the tax is pledged to, or authorize the use of the public stadium by, a professional major league sports franchise unless the sports franchise gives the right of first refusal to purchase the sports franchise, upon its sale, to local government. This subsection (3)(j) does not apply to contracts in existence on April 1, 1986.     If a court of competent jurisdiction declares any provision of this subsection (3) invalid, then that invalid provision shall be null and void and the remainder of this section is not affected.    (4) This section expires January 1, 2013.               Sec. 13. RCW 67.28.184 and 1987 1st ex.s. c 8 s 7 are each amended to read as follows:   No city imposing the tax authorized under ((RCW 67.28.180)) this chapter may use the tax proceeds directly or indirectly to acquire, construct, operate, or maintain facilities or land intended to be used by a professional sports franchise if the county within which the city is located uses the proceeds of its tax imposed under ((RCW 67.28.180)) this chapter to directly or indirectly acquire, construct, operate, or maintain a facility used by a professional sports franchise.      Sec. 14. RCW 67.28.200 and 1993 c 389 s 2 are each amended to read as follows:            The legislative body of any ((county or city)) municipality may establish reasonable exemptions ((and may adopt such reasonable rules and regulations as may be necessary for the levy and collection of the)) for taxes authorized under this chapter. The department of revenue shall perform the collection of such taxes on behalf of such ((county or city)) municipality at no cost to such ((county or city)) municipality.            Sec. 15. RCW 67.40.100 and 1990 c 242 s 1 are each amended to read as follows:      (((1))) Except as provided in chapters 67.28 and 82.14 RCW and ((subsection (2) of this)) section 3 of this act, after January 1, 1983, no city, town, or county in which the tax under RCW 67.40.090 is imposed may impose a license fee or tax on the act or privilege of engaging in business to furnish lodging by a hotel, rooming house, tourist court, motel, trailer camp, or similar facilities in excess of the rate imposed upon other persons engaged in the business of making sales at retail as that term is defined in chapter 82.04 RCW.                 (((2) A city incorporated before January 1, 1982, with a population over sixty thousand located in a county with a population over one million, other than the city of Seattle, may impose a special excise tax under the following conditions:   (a) The proceeds of the tax must be used for the acquisition, design, construction, and marketing of convention and trade facilities and may be used for and pledged to the payment of bonds, leases, or other obligations issued or incurred for such purposes. The proceeds of the tax may be used for maintenance and operation only as part of a budget which includes the use of the tax for debt service and marketing.                (b) The legislative body of the city, before imposing the tax, must authorize a complete study and investigation of the desirability and economic feasibility of the proposed convention and trade facilities.      (c) The rate of the tax shall not exceed three percent.            (d) The tax shall be imposed on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, except that no such tax may be levied on any premises having fewer than sixty lodging units.))                Sec. 16. RCW 35.43.040 and 1989 c 277 s 1 are each amended to read as follows:        Whenever the public interest or convenience may require, the legislative authority of any city or town may order the whole or any part of any local improvement including but not restricted to those, or any combination thereof, listed below to be constructed, reconstructed, repaired, or renewed and landscaping including but not restricted to the planting, setting out, cultivating, maintaining, and renewing of shade or ornamental trees and shrubbery thereon; may order any and all work to be done necessary for completion thereof; and may levy and collect special assessments on property specially benefited thereby to pay the whole or any part of the expense thereof, viz:                 (1) Alleys, avenues, boulevards, lanes, park drives, parkways, parking facilities, public places, public squares, public streets, their grading, regrading, planking, replanking, paving, repaving, macadamizing, remacadamizing, graveling, regraveling, piling, repiling, capping, recapping, or other improvement; if the management and control of park drives, parkways, and boulevards is vested in a board of park commissioners, the plans and specifications for their improvement must be approved by the board of park commissioners before their adoption;          (2) Auxiliary water systems;  (3) Auditoriums, field houses, gymnasiums, swimming pools, or other recreational, playground, museum, cultural, or arts facilities or structures;                  (4) Bridges, culverts, and trestles and approaches thereto;              (5) Bulkheads and retaining walls;         (6) Dikes and embankments;  (7) Drains, sewers, and sewer appurtenances which as to trunk sewers shall include as nearly as possible all the territory which can be drained through the trunk sewer and subsewers connected thereto;        (8) Escalators or moving sidewalks together with the expense of operation and maintenance;      (9) Parks and playgrounds;     (10) Sidewalks, curbing, and crosswalks;              (11) Street lighting systems together with the expense of furnishing electrical energy, maintenance, and operation;            (12) Underground utilities transmission lines;        (13) Water mains, hydrants, and appurtenances which as to trunk water mains shall include as nearly as possible all the territory in the zone or district to which water may be distributed from the trunk water mains through lateral service and distribution mains and services;      (14) Fences, culverts, syphons, or coverings or any other feasible safeguards along, in place of, or over open canals or ditches to protect the public from the hazards thereof;      (15) Roadbeds, trackage, signalization, storage facilities for rolling stock, overhead and underground wiring, and any other stationary equipment reasonably necessary for the operation of an electrified public streetcar line;            (16) Systems of surface, underground, or overhead railways, tramways, buses, or any other means of local transportation except taxis, and including passenger, terminal, station parking, and related facilities and properties, and such other facilities as may be necessary for passenger and vehicular access to and from such terminal, station, parking, and related facilities and properties, together with all lands, rights of way, property, equipment, and accessories necessary for such systems and facilities;   (17) Convention center facilities or structures in cities ((imposing a special excise tax pursuant to RCW 67.40.100(2))) incorporated before January 1, 1982, with a population over sixty thousand located in a county with a population over one million, other than the city of Seattle. Assessments for purposes of convention center facilities or structures may be levied only to the extent necessary to cover a funding shortfall that occurs when funds received from special excise taxes imposed pursuant to chapter 67.28 RCW ((67.28.180 and 67.40.100(2))) are insufficient to fund the annual debt service for such facilities or structures, and may not be levied on property exclusively maintained as single-family or multifamily permanent residences whether they are rented, leased, or owner occupied; and      (18) Programs of aquatic plant control, lake or river restoration, or water quality enhancement. Such programs shall identify all the area of any lake or river which will be improved and shall include the adjacent waterfront property specially benefited by such programs of improvements. Assessments may be levied only on waterfront property including any waterfront property owned by the department of natural resources or any other state agency. Notice of an assessment on a private leasehold in public property shall comply with provisions of chapter 79.44 RCW. Programs under this subsection shall extend for a term of not more than five years.    Sec. 17. RCW 59.18.440 and 1995 c 399 s 151 are each amended to read as follows:              (1) Any city, town, county, or municipal corporation that is required to develop a comprehensive plan under RCW 36.70A.040(1) is authorized to require, after reasonable notice to the public and a public hearing, property owners to provide their portion of reasonable relocation assistance to low-income tenants upon the demolition, substantial rehabilitation whether due to code enforcement or any other reason, or change of use of residential property, or upon the removal of use restrictions in an assisted-housing development. No city, town, county, or municipal corporation may require property owners to provide relocation assistance to low-income tenants, as defined in this chapter, upon the demolition, substantial rehabilitation, upon the change of use of residential property, or upon the removal of use restrictions in an assisted-housing development, except as expressly authorized herein or when authorized or required by state or federal law. As used in this section, "assisted housing development" means a multifamily rental housing development that either receives government assistance and is defined as federally assisted housing in RCW 59.28.020, or that receives other federal, state, or local government assistance and is subject to use restrictions.  (2) As used in this section, "low-income tenants" means tenants whose combined total income per dwelling unit is at or below fifty percent of the median income, adjusted for family size, in the county where the tenants reside.         The department of community, trade, and economic development shall adopt rules defining county median income in accordance with the definitions promulgated by the federal department of housing and urban development.           (3) A requirement that property owners provide relocation assistance shall include the amounts of such assistance to be provided to low-income tenants. In determining such amounts, the jurisdiction imposing the requirement shall evaluate, and receive public testimony on, what relocation expenses displaced tenants would reasonably incur in that jurisdiction including:      (a) Actual physical moving costs and expenses;    (b) Advance payments required for moving into a new residence such as the cost of first and last month's rent and security and damage deposits;              (c) Utility connection fees and deposits; and          (d) Anticipated additional rent and utility costs in the residence for one year after relocation.              (4)(a) Relocation assistance provided to low-income tenants under this section shall not exceed two thousand dollars for each dwelling unit displaced by actions of the property owner under subsection (1) of this section. A city, town, county, or municipal corporation may make future annual adjustments to the maximum amount of relocation assistance required under this subsection in order to reflect any changes in the housing component of the consumer price index as published by the United States department of labor, bureau of labor statistics.            (b) The property owner's portion of any relocation assistance provided to low-income tenants under this section shall not exceed one-half of the required relocation assistance under (a) of this subsection in cash or services.             (c) The portion of relocation assistance not covered by the property owner under (b) of this subsection shall be paid by the city, town, county, or municipal corporation authorized to require relocation assistance under subsection (1) of this section. The relocation assistance may be paid from proceeds collected from the excise tax imposed under RCW 82.46.010.       (5) A city, town, county, or municipal corporation requiring the provision of relocation assistance under this section shall adopt policies, procedures, or regulations to implement such requirement. Such policies, procedures, or regulations shall include provisions for administrative hearings to resolve disputes between tenants and property owners relating to relocation assistance or unlawful detainer actions during relocation, and shall require a decision within thirty days of a request for a hearing by either a tenant or property owner.           Judicial review of an administrative hearing decision relating to relocation assistance may be had by filing a petition, within ten days of the decision, in the superior court in the county where the residential property is located. Judicial review shall be confined to the record of the administrative hearing and the court may reverse the decision only if the administrative findings, inferences, conclusions, or decision is:         (a) In violation of constitutional provisions;           (b) In excess of the authority or jurisdiction of the administrative hearing officer;                (c) Made upon unlawful procedure or otherwise is contrary to law; or   (d) Arbitrary and capricious.  (6) Any city, town, county, or municipal corporation may require relocation assistance, under the terms of this section, for otherwise eligible tenants whose living arrangements are exempted from the provisions of this chapter under RCW 59.18.040(3) and if the living arrangement is considered to be a rental or lease ((pursuant to RCW 67.28.180(1))) not defined as a retail sale under RCW 82.04.050.          (7)(a) Persons who move from a dwelling unit prior to the application by the owner of the dwelling unit for any governmental permit necessary for the demolition, substantial rehabilitation, or change of use of residential property or prior to any notification or filing required for condominium conversion shall not be entitled to the assistance authorized by this section.     (b) Persons who move into a dwelling unit after the application for any necessary governmental permit or after any required condominium conversion notification or filing shall not be entitled to the assistance authorized by this section if such persons receive written notice from the property owner prior to taking possession of the dwelling unit that specifically describes the activity or condition that may result in their temporary or permanent displacement and advises them of their ineligibility for relocation assistance.      Sec. 18. RCW 67.38.140 and 1982 1st ex.s. c 22 s 14 are each amended to read as follows:              The county or counties and each component city included in the district collecting or planning to collect the hotel/motel tax ((pursuant to)) under chapter 67.28 RCW ((67.28.180)) may contribute such revenue ((towards the expense for maintaining and operating the cultural arts, stadium and convention system)) in such manner as shall be agreed upon between them, consistent with this chapter and chapter 67.28 RCW.       Sec. 19. RCW 67.40.110 and 1987 1st ex.s. c 8 s 8 are each amended to read as follows:              No city imposing the tax authorized under chapter 67.28 RCW ((67.40.100(2))) may use the tax proceeds directly or indirectly to acquire, construct, operate, or maintain facilities or land intended to be used by a professional sports franchise if the county within which the city is located uses the proceeds of its tax imposed under chapter 67.28 RCW ((67.28.180)) to directly or indirectly acquire, construct, operate, or maintain a facility used by a professional sports franchise.        Sec. 20. RCW 67.40.120 and 1991 c 336 s 2 are each amended to read as follows:             The state convention and trade center corporation may contract with the Seattle-King county convention and visitors bureau for marketing the convention and trade center facility and services. Any contract with the Seattle-King county convention and visitors bureau shall include, but is not limited to, the following condition: Each dollar in convention and trade center operations account funds provided to the Seattle-King county convention and visitors bureau shall be matched by at least one dollar and ten cents in nonstate funds. "Nonstate funds" does not include funds received under chapter 67.28 RCW ((67.28.180)).

      Sec. 21. RCW 82.02.020 and 1996 c 230 s 1612 are each amended to read as follows:       Except only as expressly provided in ((RCW 67.28.180 and 67.28.190 and the provisions of)) chapters 67.28 and 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. Except as provided in RCW 82.02.050 through 82.02.090, no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.                This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:             (1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;               (2) The payment shall be expended in all cases within five years of collection; and               (3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.                No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.             Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.                 This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.         Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.                Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.       Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.   Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440 and 59.18.450.        This section does not apply to special purpose districts formed and acting pursuant to Titles 54, 57, or 87 RCW, nor is the authority conferred by these titles affected.           NEW SECTION. Sec. 22. The following acts or parts of acts are each repealed:          (1) RCW 67.28.090 and 1991 c 363 s 138 & 1967 c 236 s 2;                (2) RCW 67.28.100 and 1967 c 236 s 3;       (3) RCW 67.28.110 and 1967 c 236 s 4;                (4) RCW 67.28.182 and 1995 c 386 s 9 & 1987 c 483 s 2;      (5) RCW 67.28.185 and 1975 1st ex.s. c 225 s 2;  (6) RCW 67.28.190 and 1967 c 236 s 12;              (7) RCW 67.28.210 and 1996 c 159 s 4, 1995 c 290 s 1, & 1994 c 290 s 1;          (8) RCW 67.28.240 and 1995 c 386 s 10, 1993 sp.s. c 16 s 3, 1991 c 363 s 140, & 1988 ex.s. c 1 s 21;                   (9) RCW 67.28.260 and 1991 c 331 s 1;           (10) RCW 67.28.270 and 1995 c 290 s 2 & 1991 c 357 s 4;      (11) RCW 67.28.280 and 1993 c 389 s 1;              (12) RCW 67.28.290 and 1993 sp.s. c 16 s 1;        (13) RCW 67.28.300 and 1994 c 65 s 1;                     (14) RCW 67.28.310 and 1995 c 340 s 1;         (15) RCW 67.28.320 and 1996 c 159 s 1;              (16) RCW 67.28.360 and 1996 c 159 s 2; and       (17) RCW 67.28.370 and 1996 c 159 s 3.              NEW SECTION. Sec. 23. This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed in this act or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections. As provided in RCW 1.12.020, the sections amended or repealed in this act are continued by section 3 of this act for purposes such as redemption payments on bonds issued in reliance on taxes imposed under those sections. Any moneys held in a fund created under a section repealed in this act shall be deposited in a fund created under section 4 of this act.              NEW SECTION. Sec. 24. 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. 25. This act takes effect January 1, 1998."         On page 1, line 2 of the title, after "towns;" strike the remainder of the title and insert "amending RCW 67.28.080, 67.28.120, 67.28.130, 67.28.150, 67.28.160, 67.28.170, 67.28.180, 67.28.184, 67.28.200, 67.40.100, 35.43.040, 59.18.440, 67.38.140, 67.40.110, 67.40.120, and 82.02.020; adding new sections to chapter 67.28 RCW; creating new sections; repealing RCW 67.28.090, 67.28.100, 67.28.110, 67.28.182, 67.28.185, 67.28.190, 67.28.210, 67.28.240, 67.28.260, 67.28.270, 67.28.280, 67.28.290, 67.28.300, 67.28.310, 67.28.320, 67.28.360, and 67.28.370; providing an effective date; and providing an expiration date."      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator McCaslin moved that the Senate refuse to concur in the House amendments to Substitute Senate Bill No. 5867 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator McCaslin that the Senate refuse to concur in the House amendments to Substitute Senate Bill No. 5867 and asks the House to recede therefrom.

      The motion by Senator McCaslin carried and the Senate refuses to concur in the House amendments to Substitute Senate Bill No. 5867 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5484 with the following amendment(s):

      On page 2, after line 6, insert the following:          "Sec. 2. RCW 70.90.250 and 1987 c 222 s 3 are each amended to read as follows:      This chapter applies to all water recreation facilities regardless of whether ownership is public or private and regardless of whether the intended use is commercial or private, except that this chapter shall not apply to:       (1) Any water recreation facility for the sole use of residents and invited guests at a single family dwelling;             (2) Therapeutic water facilities operated exclusively for physical therapy; ((and))      (3) Steam baths and saunas; and             (4) Metropolitan park districts authorized under chapter 35.61 RCW."                 Correct the title.,      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Hale moved that the Senate refuse to concur in the House amendment to Senate Bill No. 5484 and asks the House to recede therefrom.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Hale that the Senate refuse to concur in the House amendment to Senate Bill No. 5484 and asks the House to recede therefrom.

      The motion by Senator Hale carried and the Senate refuses to concur in the House amendment to Senate Bill No. 5484 and asks the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5230 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 84.33.120 and 1995 c 330 s 1 are each amended to read as follows:  (1) In preparing the assessment rolls as of January 1, 1982, for taxes payable in 1983 and each January 1st thereafter, the assessor shall list each parcel of forest land at a value with respect to the grade and class provided in this subsection and adjusted as provided in subsection (2) of this section and shall compute the assessed value of the land by using the same assessment ratio he or she applies generally in computing the assessed value of other property in his or her county. Values for the several grades of bare forest land shall be as follows.

      LAND                                       OPERABILITYVALUES GRADE CLASSPER ACRE 1$141 1 2136 3131 495 1118 22 114 3110 480 193 3 290 387 466 170 4 268 366 452 151 5 248 346 431 126 6 225 325 423 112                        7                                            2                                                                                                                 12 311 411 8 1

      (2) On or before December 31, 1981, the department shall adjust, by rule under chapter 34.05 RCW, the forest land values contained in subsection (1) of this section in accordance with this subsection, and shall certify these adjusted values to the county assessor for his or her use in preparing the assessment rolls as of January 1, 1982. For the adjustment to be made on or before December 31, 1981, for use in the 1982 assessment year, the department shall:         (a) Divide the aggregate value of all timber harvested within the state between July 1, 1976, and June 30, 1981, by the aggregate harvest volume for the same period, as determined from the harvester excise tax returns filed with the department under RCW 82.04.291 and 84.33.071; and                (b) Divide the aggregate value of all timber harvested within the state between July 1, 1975, and June 30, 1980, by the aggregate harvest volume for the same period, as determined from the harvester excise tax returns filed with the department under RCW 82.04.291 and 84.33.071; and                  (c) Adjust the forest land values contained in subsection (1) of this section by a percentage equal to one-half of the percentage change in the average values of harvested timber reflected by comparing the resultant values calculated under (a) and (b) of this subsection.                  For the adjustments to be made on or before December 31, 1982, and each succeeding year thereafter, the same procedure shall be followed as described in this subsection utilizing harvester excise tax returns filed under RCW 82.04.291 and this chapter except that this adjustment shall be made to the prior year's adjusted value, and the five-year periods for calculating average harvested timber values shall be successively one year more recent.            (3) In preparing the assessment roll for 1972 and each year thereafter, the assessor shall enter as the true and fair value of each parcel of forest land the appropriate grade value certified to him or her by the department of revenue, and he or she shall compute the assessed value of such land by using the same assessment ratio he or she applies generally in computing the assessed value of other property in his or her county. In preparing the assessment roll for 1975 and each year thereafter, the assessor shall assess and value as classified forest land all forest land that is not then designated pursuant to RCW 84.33.120(4) or 84.33.130 and shall make a notation of such classification upon the assessment and tax rolls. On or before January 15 of the first year in which such notation is made, the assessor shall mail notice by certified mail to the owner that such land has been classified as forest land and is subject to the compensating tax imposed by this section. If the owner desires not to have such land assessed and valued as classified forest land, he or she shall give the assessor written notice thereof on or before March 31 of such year and the assessor shall remove from the assessment and tax rolls the classification notation entered pursuant to this subsection, and shall thereafter assess and value such land in the manner provided by law other than this chapter 84.33 RCW.      (4) In any year commencing with 1972, an owner of land which is assessed and valued by the assessor other than pursuant to the procedures set forth in RCW 84.33.110 and this section, and which has, in the immediately preceding year, been assessed and valued by the assessor as forest land, may appeal to the county board of equalization by filing an application with the board in the manner prescribed in subsection (2) of RCW 84.33.130. The county board shall afford the applicant an opportunity to be heard if the application so requests and shall act upon the application in the manner prescribed in subsection (3) of RCW 84.33.130.      (5) Land that has been assessed and valued as classified forest land as of any year commencing with 1975 assessment year or earlier shall continue to be so assessed and valued until removal of classification by the assessor only upon the occurrence of one of the following events:      (a) Receipt of notice from the owner to remove such land from classification as forest land;               (b) Sale or transfer to an ownership making such land exempt from ad valorem taxation;   (c) Determination by the assessor, after giving the owner written notice and an opportunity to be heard, that, because of actions taken by the owner, such land is no longer primarily devoted to and used for growing and harvesting timber. However, land shall not be removed from classification if a governmental agency, organization, or other recipient identified in subsection (9) or (10) of this section as exempt from the payment of compensating tax has manifested its intent in writing or by other official action to acquire a property interest in classified forest land by means of a transaction that qualifies for an exemption under subsection (9) or (10) of this section. The governmental agency, organization, or recipient shall annually provide the assessor of the county in which the land is located reasonable evidence in writing of the intent to acquire the classified land as long as the intent continues or within sixty days of a request by the assessor. The assessor may not request this evidence more than once in a calendar year;          (d) Determination that a higher and better use exists for such land than growing and harvesting timber after giving the owner written notice and an opportunity to be heard;                (e) Sale or transfer of all or a portion of such land to a new owner, unless the new owner has signed a notice of forest land classification continuance, except transfer to an owner who is an heir or devisee of a deceased owner, shall not, by itself, result in removal of classification. The signed notice of continuance shall be attached to the real estate excise tax affidavit provided for in RCW 82.45.150. The notice of continuance shall be on a form prepared by the department of revenue. If the notice of continuance is not signed by the new owner and attached to the real estate excise tax affidavit, all compensating taxes calculated pursuant to subsection (7) of this section shall become due and payable by the seller or transferor at time of sale. The county auditor shall not accept an instrument of conveyance of classified forest land for filing or recording unless the new owner has signed the notice of continuance or the compensating tax has been paid. The seller, transferor, or new owner may appeal the new assessed valuation calculated under subsection (7) of this section to the county board of equalization. Jurisdiction is hereby conferred on the county board of equalization to hear these appeals.      The assessor shall remove classification pursuant to (c) or (d) of this subsection prior to September 30 of the year prior to the assessment year for which termination of classification is to be effective. Removal of classification as forest land upon occurrence of (a), (b), (d), or (e) of this subsection shall apply only to the land affected, and upon occurrence of (c) of this subsection shall apply only to the actual area of land no longer primarily devoted to and used for growing and harvesting timber: PROVIDED, That any remaining classified forest land meets necessary definitions of forest land pursuant to RCW 84.33.100 ((as now or hereafter amended)).      (6) Within thirty days after such removal of classification as forest land, the assessor shall notify the owner in writing setting forth the reasons for such removal. The owner of such land shall thereupon have the right to apply for designation of such land as forest land pursuant to subsection (4) of this section or RCW 84.33.130. The seller, transferor, or owner may appeal such removal to the county board of equalization.      (7) Unless the owner successfully applies for designation of such land or unless the removal is reversed on appeal, notation of removal from classification shall immediately be made upon the assessment and tax rolls, and commencing on January 1 of the year following the year in which the assessor made such notation, such land shall be assessed on the same basis as real property is assessed generally in that county. Except as provided in subsection((s)) (5)(e) ((and)), (9), or (10) of this section and unless the assessor shall not have mailed notice of classification pursuant to subsection (3) of this section, a compensating tax shall be imposed which shall be due and payable to the county treasurer thirty days after the owner is notified of the amount of the compensating tax. As soon as possible, the assessor shall compute the amount of such compensating tax and mail notice to the owner of the amount thereof and the date on which payment is due. The amount of such compensating tax shall be equal to the difference, if any, between the amount of tax last levied on such land as forest land and an amount equal to the new assessed valuation of such land multiplied by the dollar rate of the last levy extended against such land, multiplied by a number, in no event greater than ten, equal to the number of years, commencing with assessment year 1975, for which such land was assessed and valued as forest land.     (8) Compensating tax, together with applicable interest thereon, shall become a lien on such land which shall attach at the time such land is removed from classification as forest land and shall have priority to and shall be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation or responsibility to or with which such land may become charged or liable. Such lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes as provided in RCW 84.64.050. Any compensating tax unpaid on its due date shall thereupon become delinquent. From the date of delinquency until paid, interest shall be charged at the same rate applied by law to delinquent ad valorem property taxes.      (9) The compensating tax specified in subsection (7) of this section shall not be imposed if the removal of classification as forest land pursuant to subsection (5) of this section resulted solely from:    (a) Transfer to a government entity in exchange for other forest land located within the state of Washington;    (b) A taking through the exercise of the power of eminent domain, or sale or transfer to an entity having the power of eminent domain in anticipation of the exercise of such power;     (c) A donation of fee title, development rights, or the right to harvest timber, to a government agency or organization qualified under RCW 84.34.210 and 64.04.130 for the purposes enumerated in those sections, or the sale or transfer of fee title to a governmental entity or a nonprofit nature conservancy corporation, as defined in RCW 64.04.130, exclusively for the protection and conservation of lands recommended for state natural area preserve purposes by the natural heritage council and natural heritage plan as defined in chapter 79.70 RCW: PROVIDED, That at such time as the land is not used for the purposes enumerated, the compensating tax specified in subsection (7) of this section shall be imposed upon the current owner;                (d) The sale or transfer of fee title to the parks and recreation commission for park and recreation purposes; or                  (e) Official action by an agency of the state of Washington or by the county or city within which the land is located that disallows the present use of such land.     (10) In a county with a population of more than one million inhabitants, the compensating tax specified in subsection (7) of this section shall not be imposed if the removal of classification as forest land pursuant to subsection (5) of this section resulted solely from:      (a) An action described in subsection (9) of this section; or     (b) A transfer of a property interest to a government entity, or to a nonprofit historic preservation corporation or nonprofit nature conservancy corporation, as defined in RCW 64.04.130, to protect or enhance public resources, or to preserve, maintain, improve, restore, limit the future use of, or otherwise to conserve for public use or enjoyment, the property interest being transferred. At such time as the property interest is not used for the purposes enumerated, the compensating tax shall be imposed upon the current owner.      (11) With respect to any land that has been designated prior to May 6, 1974, pursuant to RCW 84.33.120(4) or 84.33.130, the assessor may, prior to January 1, 1975, on his or her own motion or pursuant to petition by the owner, change, without imposition of the compensating tax provided under RCW 84.33.140, the status of such designated land to classified forest land.     Sec. 2. RCW 84.33.140 and 1995 c 330 s 2 are each amended to read as follows: (1) When land has been designated as forest land pursuant to RCW 84.33.120(4) or 84.33.130, a notation of such designation shall be made each year upon the assessment and tax rolls, a copy of the notice of approval together with the legal description or assessor's tax lot numbers for such land shall, at the expense of the applicant, be filed by the assessor in the same manner as deeds are recorded, and such land shall be graded and valued pursuant to RCW 84.33.110 and 84.33.120 until removal of such designation by the assessor upon occurrence of any of the following:       (a) Receipt of notice from the owner to remove such designation;        (b) Sale or transfer to an ownership making such land exempt from ad valorem taxation;         (c) Sale or transfer of all or a portion of such land to a new owner, unless the new owner has signed a notice of forest land designation continuance, except transfer to an owner who is an heir or devisee of a deceased owner, shall not, by itself, result in removal of classification. The signed notice of continuance shall be attached to the real estate excise tax affidavit provided for in RCW 82.45.150. The notice of continuance shall be on a form prepared by the department of revenue. If the notice of continuance is not signed by the new owner and attached to the real estate excise tax affidavit, all compensating taxes calculated pursuant to subsection (3) of this section shall become due and payable by the seller or transferor at time of sale. The county auditor shall not accept an instrument of conveyance of designated forest land for filing or recording unless the new owner has signed the notice of continuance or the compensating tax has been paid. The seller, transferor, or new owner may appeal the new assessed valuation calculated under subsection (3) of this section to the county board of equalization. Jurisdiction is hereby conferred on the county board of equalization to hear these appeals;      (d) Determination by the assessor, after giving the owner written notice and an opportunity to be heard, that:    (i) Such land is no longer primarily devoted to and used for growing and harvesting timber. However, land shall not be removed from designation if a governmental agency, organization, or other recipient identified in subsection (5) or (6) of this section as exempt from the payment of compensating tax has manifested its intent in writing or by other official action to acquire a property interest in designated forest land by means of a transaction that qualifies for an exemption under subsection (5) or (6) of this section. The governmental agency, organization, or recipient shall annually provide the assessor of the county in which the land is located reasonable evidence in writing of the intent to acquire the designated land as long as the intent continues or within sixty days of a request by the assessor. The assessor may not request this evidence more than once in a calendar year;     (ii) The owner has failed to comply with a final administrative or judicial order with respect to a violation of the restocking, forest management, fire protection, insect and disease control and forest debris provisions of Title 76 RCW or any applicable regulations thereunder; or     (iii) Restocking has not occurred to the extent or within the time specified in the application for designation of such land.Removal of designation upon occurrence of any of (a) through (c) of this subsection shall apply only to the land affected, and upon occurrence of (d) of this subsection shall apply only to the actual area of land no longer primarily devoted to and used for growing and harvesting timber, without regard to other land that may have been included in the same application and approval for designation: PROVIDED, That any remaining designated forest land meets necessary definitions of forest land pursuant to RCW 84.33.100 ((as now or hereafter amended)).         (2) Within thirty days after such removal of designation of forest land, the assessor shall notify the owner in writing, setting forth the reasons for such removal. The seller, transferor, or owner may appeal such removal to the county board of equalization.      (3) Unless the removal is reversed on appeal a copy of the notice of removal with notation of the action, if any, upon appeal, together with the legal description or assessor's tax lot numbers for the land removed from designation shall, at the expense of the applicant, be filed by the assessor in the same manner as deeds are recorded, and commencing on January 1 of the year following the year in which the assessor mailed such notice, such land shall be assessed on the same basis as real property is assessed generally in that county. Except as provided in subsection (1)(c), (5), or (6) of this section, a compensating tax shall be imposed which shall be due and payable to the county treasurer thirty days after the owner is notified of the amount of the compensating tax. As soon as possible, the assessor shall compute the amount of such compensating tax and mail notice to the owner of the amount thereof and the date on which payment is due. The amount of such compensating tax shall be equal to the difference between the amount of tax last levied on such land as forest land and an amount equal to the new assessed valuation of such land multiplied by the dollar rate of the last levy extended against such land, multiplied by a number, in no event greater than ten, equal to the number of years for which such land was designated as forest land.  (4) Compensating tax, together with applicable interest thereon, shall become a lien on such land which shall attach at the time such land is removed from designation as forest land and shall have priority to and shall be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation or responsibility to or with which such land may become charged or liable. Such lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes as provided in RCW 84.64.050. Any compensating tax unpaid on its due date shall thereupon become delinquent. From the date of delinquency until paid, interest shall be charged at the same rate applied by law to delinquent ad valorem property taxes.          (5) The compensating tax specified in subsection (3) of this section shall not be imposed if the removal of designation pursuant to subsection (1) of this section resulted solely from:               (a) Transfer to a government entity in exchange for other forest land located within the state of Washington;       (b) A taking through the exercise of the power of eminent domain, or sale or transfer to an entity having the power of eminent domain in anticipation of the exercise of such power;    (c) A donation of fee title, development rights, or the right to harvest timber, to a government agency or organization qualified under RCW 84.34.210 and 64.04.130 for the purposes enumerated in those sections, or the sale or transfer of fee title to a governmental entity or a nonprofit nature conservancy corporation, as defined in RCW 64.04.130, exclusively for the protection and conservation of lands recommended for state natural area preserve purposes by the natural heritage council and natural heritage plan as defined in chapter 79.70 RCW: PROVIDED, That at such time as the land is not used for the purposes enumerated, the compensating tax specified in subsection (3) of this section shall be imposed upon the current owner;      (d) The sale or transfer of fee title to the parks and recreation commission for park and recreation purposes; or                  (e) Official action by an agency of the state of Washington or by the county or city within which the land is located that disallows the present use of such land.      (6) In a county with a population of more than one million inhabitants, the compensating tax specified in subsection (3) of this section shall not be imposed if the removal of classification as forest land pursuant to subsection (1) of this section resulted solely from:    (a) An action described in subsection (5) of this section; or               (b) A transfer of a property interest to a government entity, or to a nonprofit historic preservation corporation or nonprofit nature conservancy corporation, as defined in RCW 64.04.130, to protect or enhance public resources, or to preserve, maintain, improve, restore, limit the future use of, or otherwise to conserve for public use or enjoyment, the property interest being transferred. At such time as the property interest is not used for the purposes enumerated, the compensating tax shall be imposed upon the current owner.         Sec. 3. RCW 84.33.145 and 1992 c 69 s 3 are each amended to read as follows:                 (1) If no later than thirty days after removal of classification or designation the owner applies for classification under RCW 84.34.020 (1), (2), or (3), then the classified or designated forest land shall not be considered removed from classification or designation for purposes of the compensating tax under RCW 84.33.120 or 84.33.140 until the application for current use classification under RCW 84.34.030 is denied or the property is removed from designation under RCW 84.34.108. Upon removal from designation under RCW 84.34.108, the amount of compensating tax due under this chapter shall be equal to:              (a) The difference, if any, between the amount of tax last levied on such land as forest land and an amount equal to the new assessed valuation of such land when removed from designation under RCW 84.34.108 multiplied by the dollar rate of the last levy extended against such land, multiplied by      (b) A number equal to:           (i) The number of years the land was classified or designated under this chapter, if the total number of years the land was classified or designated under this chapter and classified under chapter 84.34 RCW is less than ten; or         (ii) Ten minus the number of years the land was classified under chapter 84.34 RCW, if the total number of years the land was classified or designated under this chapter and classified under chapter 84.34 RCW is at least ten.             (2) Nothing in this section authorizes the continued classification or designation under this chapter or defers or reduces the compensating tax imposed upon forest land not transferred to classification under subsection (1) of this section which does not meet the necessary definitions of forest land under RCW 84.33.100. Nothing in this section affects the additional tax imposed under RCW 84.34.108.   (3) In a county with a population of more than one million inhabitants, no amount of compensating tax is due under this section if the removal from classification under RCW 84.34.108 results from a transfer of property described in RCW 84.34.108(5).       NEW SECTION. Sec. 4. 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 accordingly.,                 and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator West moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5230.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator West to concur in the House amendment to Substitute Senate Bill No. 5230.

      The motion by Senator West carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5230.

MOTION

      On motion of Senator Hale, Senators Finkbeiner and Sellar were excused.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5230, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5230, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, McAuliffe, McCaslin, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44. Absent: Senator McDonald - 1.             Excused: Senators Finkbeiner, Heavey, Loveland and Sellar - 4.         SUBSTITUTE SENATE BILL NO. 5230, as amended by the House, 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.

      President Owen assumed the Chair.

MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 6046 with the following amendment(s):

      On page 2, line 1, after "the" insert "utilities and transportation" 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; P.L. 104-104), whichever is later,",                  and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Hochstatter moved that the Senate do concur in the House amendments to Substitute Senate Bill No. 6046.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Hochstatter to concur in the House amendments to Substitute Senate Bill No. 6046.

      The motion by Senator Hochstatter carried and the Senate concurred in the House amendments to Substitute Senate Bill No. 6046.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6046, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6046, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.  Excused: Senators Finkbeiner, Heavey and Sellar - 3.          SUBSTITUTE SENATE BILL NO. 6046, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5151 with the following amendment(s):

      On page 1, line 18, after “exceed” strike “twenty-five” and insert “((twenty-five)) thirty-five”,           and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Johnson moved that the Senate do concur in the House amendment to Senate Bill No. 5151.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Johnson to concur in the House amendment to Senate Bill No. 5151.

      The motion by Senator Johnson carried and the Senate concurred in the House amendment to Senate Bill No. 5151.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5151, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5151, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.  Excused: Senators Finkbeiner, Heavey and Sellar - 3.          SENATE BILL NO. 5151, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5178 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. A new section is added to chapter 41.05 RCW to read as follows:               The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.  (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.      (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and        (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.          (2) All state-purchased health care purchased or renewed after the effective date of this act, except the basic health plan described in chapter 70.47 RCW, shall provide benefits for at least the following services and supplies for persons with diabetes:      (a) For state-purchased health care that includes coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and       (b) For all state-purchased health care, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents any state agency purchasing health care according to this section from restricting patients to seeing only health care providers who have signed participating provider agreements with that state agency or an insuring entity under contract with that state agency.          (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.             (4) Health care coverage may not be reduced or eliminated due to this section.       (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.   NEW SECTION. Sec. 2. A new section is added to chapter 48.20 RCW to read as follows:     The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.  (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.      (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and        (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.          (2) All disability insurance contracts providing health care services, delivered or issued for delivery in this state and issued or renewed after the effective date of this act, shall provide benefits for at least the following services and supplies for persons with diabetes:      (a) For disability insurance contracts that include pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and      (b) For all disability insurance contracts providing health care services, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the insurer from restricting patients to seeing only health care providers who have signed participating provider agreements with the insurer or an insuring entity under contract with the insurer.              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.   (4) Health care coverage may not be reduced or eliminated due to this section.      (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.     (6) The insurer need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.       (7) This section does not apply to the health benefit plan that provides benefits identical to the schedule of services covered by the basic health plan, as required by RCW 48.20.028.      NEW SECTION. Sec. 3. A new section is added to chapter 48.21 RCW to read as follows:              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.        (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.          (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and      (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.       (2) All group disability insurance contracts and blanket disability insurance contracts providing health care services, issued or renewed after the effective date of this act, shall provide benefits for at least the following services and supplies for persons with diabetes:   (a) For group disability insurance contracts and blanket disabilityinsurance contracts that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and      (b) For all group disability insurance contracts and blanket disability insurance contracts providing health care services, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the insurer from restricting patients to seeing only health care providers who have signed participating provider agreements with the insurer or an insuring entity under contract with the insurer.          (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.     (4) Health care coverage may not be reduced or eliminated due to this section.       (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.   (6) The insurer need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.                 (7) This section does not apply to the health benefit plan that provides benefits identical to the schedule of services covered by the basic health plan, as required by RCW 48.21.045.      NEW SECTION. Sec. 4. A new section is added to chapter 48.44 RCW to read as follows:              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.        (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.                (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and      (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.       (2) All health benefit plans offered by health care service contractors, issued or renewed after the effective date of this act, shall provide benefits for at least the following services and supplies for persons with diabetes:             (a) For health benefit plans that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and                (b) For all health benefit plans, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health care services contractor from restricting patients to seeing only health care providers who have signed participating provider agreements with the health care services contractor or an insuring entity under contract with the health care services contractor.        (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.     (4) Health care coverage may not be reduced or eliminated due to this section.       (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.   (6) The health care service contractor need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.      (7) This section does not apply to the health benefit plans that provide benefits identical to the schedule of services covered by the basic health plan, as required by RCW 48.44.022 and 48.44.023.         NEW SECTION. Sec. 5. A new section is added to chapter 48.46 RCW to read as follows:  The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.      (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and    (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.      (2) All health benefit plans offered by health maintenance organizations, issued or renewed after the effective date of this act, shall provide benefits for at least the following services and supplies for persons with diabetes:      (a) For health benefit plans that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and   (b) For all health benefit plans, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health maintenance organization from restricting patients to seeing only health care providers who have signed participating provider agreements with the health maintenance organization or an insuring entity under contract with the health maintenance organization.      (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.               (4) Health care coverage may not be reduced or eliminated due to this section.    (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.                (6) The health maintenance organization need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.   (7) This section does not apply to the health benefit plans that provide benefits identical to the schedule of services covered by the basic health plan, as required by RCW 48.46.064 and 48.46.066.          NEW SECTION. Sec. 6. This act takes effect January 1, 1998.     NEW SECTION. Sec. 7. A new section is added to chapter 43.131 RCW to read as follows:   The diabetes cost reduction act shall be terminated on June 30, 2001.   NEW SECTION. Sec. 8. A new section is added to chapter 43.131 RCW to read as follows:    The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2002:                 (1) RCW 41.05.--- and 1997 c . . . s 1 (section 1 of this act);                 (2) RCW 48.20.--- and 1997 c . . . s 2 (section 2 of this act);     (3) RCW 48.21.--- and 1997 c . . . s 3 (section 3 of this act);                 (4) RCW 48.44.--- and 1997 c . . . s 4 (section 4 of this act); and          (5) RCW 48.46.--- and 1997 c . . . s 5 (section 5 of this act)."               Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Wood moved that the Senate do concur in the House amendment to Second Substitute Senate Bill No. 5178.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Wood to concur in the House amendment to Second Substitute Senate Bill No. 5178.

      The motion by Senator Wood carried and the Senate concurred in the House amendment to Second Substitute Senate Bill No. 5178.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5178, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5178, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators Finkbeiner and Heavey - 2.     SECOND SUBSTITUTE SENATE BILL NO. 5178, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5179 with the following amendment(s):

      On page 8, line 27, after "74.46.370," strike "and" and insert "((and))"                 On page 8, line 27, after "74.46.380" insert ", and section 8 of this act"       On page 8, line 37, after "lower" insert "; except that section 8 of this act shall be applied if the nursing facility meets all of the criteria specified therein"        On page 11, after line 22, insert the following:      "NEW SECTION. Sec. 8. A new section is added to chapter 74.46 RCW to read as follows:        (1)(a) Notwithstanding any provision to the contrary in this chapter, including RCW 74.46.360 and 74.46.410, for nursing facilities meeting the criteria in (b) of this subsection, the allowable cost of real and personal property assets shall be the lower of the actual cost to the purchaser or the amount allowed under the COBRA asset cost increase limitation for nursing facilities pursuant to 42 C.F.R. 447.253 (d)(2); however, if federally permitted, the department shall use the consumer price index for all urban consumers (CPI-U) (United States city average).           (b) Subsection (1)(a) of this section is applicable only to nursing facilities which satisfy all of the following criteria: (i) The original facility and any major renovations or remodeling, exceeding the expenditure minimum established by the department of health pursuant to chapter 70.38 RCW, is at least twenty years old on January 1, 1997; (ii) the facility has a licensed bed capacity of one hundred sixty beds or greater on January 1, 1997; (iii) the facility's licensee voluntarily banked licensed nursing facility beds during 1995 and 1996, pursuant to chapter 70.38 RCW; (iv) the contractor has been the lessee for a period of ten or more consecutive years by January 1, 1997; and (v) the contractor lessee enters into a duly executed purchase agreement with the arm's-length lessor after January 1, 1997, but prior to January 1, 1998.        (2) The rate adjustment provided in subsection (1) of this section shall be effective upon the completion of the nursing facility's renovation project and only if the costs exceed four million dollars."            Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator West moved that the Senate do concur in the House amendments to Second Substitute Senate Bill No. 5179.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator West to concur in the House amendments to Second Substitute Senate Bill No. 5179.

      The motion by Senator West carried and the Senate concurred in the House amendments to Second Substitute Senate Bill No. 5179.

MOTION

      On motion of Senator Franklin, Senator Sheldon was excused.

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5179, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5179, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46. Excused: Senators Finkbeiner, Heavey and Sheldon - 3.                 SECOND SUBSTITUTE SENATE BILL NO. 5179, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5361 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that when established route operations and normal user requirements are not disrupted Washington state ferries may be used for the transportation of hazardous materials under the chartering procedures and rates described in section 2 of this act.                NEW SECTION. Sec. 2. A new section is added to chapter 47.60 RCW to read as follows:    (1) The charter use of Washington State Ferry vessels when established route operations and normal user requirements are not disrupted is permissible.      (2) Consistent with the policy as established in subsection (1) of this section, the general manager of the Washington State Ferries may approve agreements for the chartering of Washington State Ferry vessels to groups or individuals, including hazardous material transporters, in accordance with the following:             (a) Vessels may be committed to charter only when established route operation and normal user requirements are not disrupted or inconvenienced. If a vessel is engaged in the transport of hazardous materials, the transporter shall pay for all legs necessary to complete the charter, even if the vessel is simultaneously engaged in an operational voyage on behalf of Washington state ferries.           (b) Charter rates for vessels must be established at actual vessel operating costs plus fifty percent of such actual costs rounded to the nearest fifty dollars. Actual vessel operating costs include, but are not limited to, all labor, fuel, and vessel maintenance costs incurred due to the charter agreement, including deadheading and standby.         (c) Recognizing the need for stabilized charter rates in order to encourage use of vessels, rates must be established and revised July 1st of each year and must remain fixed for a one-year period unless actual vessel operating costs increase five percent or more within that year, in which case the charter rates must be revised in accordance with (b) of this subsection.    (d) All charter agreements must be in writing and substantially in the form of (e) of this subsection and available, with calculations, for inspection by the legislature and the public.      (e) Parties chartering Washington State Ferry vessels shall comply with all applicable laws, rules, and regulations during the charter voyage, and failure to so comply is cause for immediate termination of the charter voyage.

"CHARTER CRUISE AGREEMENTOn this . . . . day of . . . ., . . . ., Washington State Ferries (WSF) and . . . . ., hereinafter called Lessee, enter into this agreement for rental of a ferry vessel for the purpose of a charter voyage to be held on . . . . ., the parties agree as follows:

      1. WSF agrees to supply the vessel . . . . . (subject to change) for the use of the Lessee from the period from . . . . . to . . . . . on . . . . . (date).

      2. The maximum number of passengers; or in the case of hazardous materials transports, trucks and trailers; that will be accommodated on the assigned vessel is . . . . .. This number MAY NOT be exceeded.

      3. The voyage will originate at . . . . ., and the route of travel during the voyage will be as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

      4. The charge for the above voyage is . . . . . dollars ($ . . .) plus a property damage deposit of $350 for a total price of $ . . . ., to be paid by cashier's check three working days before the date of the voyage at the offices of the WSF at Seattle Ferry Terminal, Pier 52, Seattle, Washington, 98104. The Lessee remains responsible for property damage in excess of $350.

      5. WSF is responsible only for the navigational operation of the chartered ferry and in no way is responsible for directing voyage activities, providing equipment, or any food service.

      6. Other than for hazardous materials transport, the voyage activities must be conducted exclusively on the passenger decks of the assigned ferry. Voyage patrons will not be permitted to enter the pilot house or the engine room, nor shall the vehicle decks be used for any purpose other than loading or unloading of voyage patrons or hazardous materials.

      7. If the Lessee or any of the voyage patrons will possess or consume alcoholic beverages aboard the vessel, the Lessee must obtain the appropriate licenses or permits from the Washington State Liquor Control Board. The Lessee must furnish copies of any necessary licenses or permits to WSF at the same time payment for the voyage is made. Failure to comply with applicable laws, rules, and regulations of appropriate State and Federal agencies is cause for immediate termination of the voyage, and WSF shall retain all payments made as liquidated damages.

      8. WSF is not obligated to provide shoreside parking for the vehicles belonging to voyage patrons.

      9. The Lessee recognizes that the primary function of the WSF is for the cross-Sound transportation of the public and the maintaining of the existing schedule. The Lessee recognizes therefore the right of WSF to cancel a voyage commitment without liability to the Lessee due to unforeseen circumstances or events that require the use of the chartered vessel on its scheduled route operations. In the event of such a cancellation, WSF agrees to refund the entire amount of the charter fee to the Lessee.

      10. The Lessee agrees to hold WSF harmless from, and shall process and defend at its own expense, all claims, demands, or suits at law or equity, of whatever nature brought against WSF arising in whole or in part from the performance of provisions of this agreement. This indemnity provision does not require the Lessee to defend or indemnify WSF against any action based solely on the alleged negligence of WSF.

      11. This writing is the full agreement between the parties.

. . . . . . . . . . . . . WASHINGTON STATE FERRIESLessee

By: . . . . . . . . . . By: . . . . . . . . . . . .                                                                                             General Manager"",                and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Wood, the Senate concurred in the House amendment to Senate Bill No. 5361.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5361, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5361, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 48.    Excused: Senator Heavey - 1.                SENATE BILL NO. 5361, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5838 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "NEW SECTION. Sec. 1. The legislature finds that improperly designed, installed, or maintained on-site sewage disposal systems are a major contributor to water pollution in this state. The legislature also recognizes that evolving technology has produced many viable alternatives to traditional on-site septic systems. It is the purpose of this act to help facilitate the siting of new alternative on-site septic systems and to assist local governments in promoting efficient operation of on-site septic these systems.     NEW SECTION. Sec. 2. A new section is added to chapter 70.05 RCW to read as follows:              (1) The local health officer must respond to the applicant for an on-site sewage system permit within thirty days after receiving a fully completed application. The local health officer must respond that the application is either approved, denied, or pending.     (2) If the local health officer denies an application to install an on-site sewage system, the denial must be for cause and based upon public health and environmental protection concerns, including concerns regarding the ability to operate and maintain the system, or conflicts with other existing laws, regulations, or ordinances. The local health officer must provide the applicant with a written justification for the denial, along with an explanation of the procedure for appeal.      (3) If the local health officer identifies the application as pending and subject to review beyond thirty days, the local health officer must provide the applicant with a written justification that the site-specific conditions or circumstances necessitate a longer time period for a decision on the application. The local health officer must include any specific information necessary to make a decision and the estimated time required for a decision to be made.             (4) A local health officer may not limit the number of alternative sewage systems within his or her jurisdiction without cause. Any such limitation must be based upon public health and environmental protection concerns, including concerns regarding the ability to operate and maintain the system, or conflicts with other existing laws, regulations, or ordinances. If such a limitation is established, the local health officer must justify the limitation in writing, with specific reasons, and must provide an explanation of the procedure for appealing the limitation.               NEW SECTION. Sec. 3. A new section is added to chapter 70.118 RCW to read as follows:      The department of health must include one person who is familiar with the operation and maintenance of certified proprietary devices on the technical review committee responsible for evaluating and making recommendations to the department of health regarding the general use of alternative on-site sewage systems in the state.        NEW SECTION. Sec. 4. A new section is added to chapter 57.04 RCW to read as follows:              (1) As an alternative means to forming a water-sewer district, a county legislative authority may authorize the formation of a water-sewer district to serve a new development that at the time of formation does not have any residents, at written request of sixty percent of the owners of the area to be included in the proposed district. The county legislative authority shall review the proposed district according to the procedures and criteria in RCW 57.02.040.        (2) The county legislative authority shall appoint the initial water-sewer commissioners of the district. The commissioners shall serve until seventy-five percent of the development is sold and occupied, or until some other time as specified by the county legislative authority when the district is approved. Commissioners serving under this section are not entitled to any form of compensation from the district.        (3) New commissioners shall be elected according to the procedures in chapter 57.12 RCW at the next election held under RCW 29.13.010 that follows more than ninety days after the date seventy-five percent of the development is sold and occupied, or after the time specified by the county legislative authority when the district is approved.       (4) A water-sewer district created under this section may be transferred to a city or county, or dissolved if the district is inactive, by order of the county legislative authority at the written request of sixty percent of the owners of the area included in the district.   NEW SECTION. Sec. 5. A new section is added to chapter 70.118 RCW to read as follows:               In order to assure that technical guidelines and standards keep pace with advancing technologies, the department of health in collaboration with the technical review committee, local health departments, and other interested parties, must review and update as appropriate, the state guidelines and standards for alternative on-site sewage disposal every three years. The first review and update must be completed by January 1, 1999.            NEW SECTION. Sec. 6. Nothing in sections 2 through 4 of this act may be deemed to eliminate any requirements for approval from public health agencies under applicable law in connection with the siting, design, construction, and repair of on-site septic systems.             Sec. 7. RCW 35.67.010 and 1965 c 110 s 1 are each amended to read as follows:      A "system of sewerage" means and may include((s)) any or all of the following:                 (1) Sanitary sewage ((disposal sewers)) collection, treatment, and/or disposal facilities and services, on-site or off-site sanitary sewerage facilities, inspection services and maintenance services for public or private on-site systems, or any other means of sewage treatment and disposal approved by the city;     (2) Combined sanitary sewage disposal and storm or surface water sewers;                 (3) Storm or surface water sewers;         (4) Outfalls for storm drainage or sanitary sewage and works, plants, and facilities for storm drainage or sanitary sewage treatment and disposal, ((or)) and rights and interests in property relating to the system;     (5) Combined water and sewerage systems;      (6) Point and nonpoint water pollution monitoring programs that are directly related to the sewerage facilities and programs operated by a city or town;                 (7) Public restroom and sanitary facilities; and      (8) Any combination of or part of any or all of such facilities.              The words "public utility" when used in this chapter ((shall have)) has the same meaning as the words "system of sewerage."          Sec. 8. RCW 35.67.020 and 1995 c 124 s 3 are each amended to read as follows:              Every city and town may construct, condemn and purchase, acquire, add to, maintain, conduct, and operate systems of sewerage and systems and plants for refuse collection and disposal together with additions, extensions, and betterments thereto, within and without its limits, with full jurisdiction and authority to manage, regulate, and control them and to fix, alter, regulate, and control the rates and charges for their use. The rates charged must be uniform for the same class of customers or service and facilities furnished.                In classifying customers served or service and facilities furnished by such system of sewerage, the city or town legislative body may in its discretion consider any or all of the following factors: (1) The difference in cost of service and facilities to the various customers; (2) the location of the various customers within and without the city or town; (3) the difference in cost of maintenance, operation, repair, and replacement of the various parts of the system; (4) the different character of the service and facilities furnished various customers; (5) the quantity and quality of the sewage delivered and the time of its delivery; (6) the achievement of water conservation goals and the discouragement of wasteful water use practices; (7) capital contributions made to the system, including but not limited to, assessments; (8) the nonprofit public benefit status, as defined in RCW 24.03.490, of the land user; and (9) any other matters which present a reasonable difference as a ground for distinction. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.            A city or town may provide assistance to aid low-income persons in connection with services provided under this chapter.      Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer.         Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.          A city or town shall not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using city or town employees unless the on-site system is connected by a publicly owned collection system to the city or town's sewerage system, and the on-site system represents the first step in the sewage disposal process. Nothing in this section shall affect the authority of state or local health officers to carry out their responsibilities under any other applicable law.              Sec. 9. RCW 35.92.020 and 1995 c 124 s 5 are each amended to read as follows:               A city or town may construct, condemn and purchase, purchase, acquire, add to, alter, maintain, and operate systems, plants, sites, or other facilities of sewerage as defined in RCW 35.67.010, or solid waste handling as defined by RCW 70.95.030, and shall have full authority to manage, regulate, operate, control, and to fix the price of service and facilities of those systems, plants, sites, or other facilities within and without the limits of the city or town. The rates charged shall be uniform for the same class of customers or service and facilities. In classifying customers served or service and facilities furnished by a system or systems of sewerage, the legislative authority of the city or town may in its discretion consider any or all of the following factors: (1) The difference in cost of service and facilities to customers; (2) the location of customers within and without the city or town; (3) the difference in cost of maintenance, operation, repair, and replacement of the parts of the system; (4) the different character of the service and facilities furnished to customers; (5) the quantity and quality of the sewage delivered and the time of its delivery; (6) capital contributions made to the systems, plants, sites, or other facilities, including but not limited to, assessments; (7) the nonprofit public benefit status, as defined in RCW 24.03.490, of the land user; and (8) any other factors that present a reasonable difference as a ground for distinction. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.  A city or town may provide assistance to aid low-income persons in connection with services provided under this chapter.          Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer.      Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.          A city or town shall not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using city or town employees unless the on-site system is connected by a publicly owned collection system to the city or town's sewerage system, and the on-site system represents the first step in the sewage disposal process. Nothing in this section shall affect the authority of state or local health officers to carry out their responsibilities under any other applicable law.                Sec. 10. RCW 36.94.010 and 1981 c 313 s 14 are each amended to read as follows:  As used in this chapter:      (1) A "system of sewerage" means and may include((s)) any or all of the following:      (a) Sanitary sewage collection, treatment, and/or disposal ((sewers and)) facilities and services, including without limitation on-site or off-site sanitary sewerage facilities ((consisting of an approved septic tank or septic tank systems)), inspection services and maintenance services for private or public on-site systems, or any other means of sewage treatment and disposal approved by the county;                (b) Combined sanitary sewage disposal and storm or surface water drains and facilities;   (c) Storm or surface water drains, channels, and facilities;      (d) Outfalls for storm drainage or sanitary sewage and works, plants, and facilities for storm drainage or sanitary sewage treatment and disposal, and rights and interests in property relating to the system;            (e) Combined water and sewerage systems;           (f) Point and nonpoint water pollution monitoring programs that are directly related to the sewerage facilities and programs operated by a county;      (g) Public restroom and sanitary facilities;             (h) The facilities and services authorized in RCW 36.94.020; and        (i) Any combination of or part of any or all of such facilities.       (2) A "system of water" means and includes:         (a) A water distribution system, including dams, reservoirs, aqueducts, plants, pumping stations, transmission and lateral distribution lines and other facilities for distribution of water;      (b) A combined water and sewerage system;         (c) Any combination of or any part of any or all of such facilities.        (3) A "sewerage and/or water general plan" means a general plan for a system of sewerage and/or water for the county which shall be an element of the comprehensive plan established by the county pursuant to RCW 36.70.350(6) and/or chapter 35.63 RCW, if there is such a comprehensive plan.      (a) A sewerage general plan shall include the general location and description of treatment and disposal facilities, trunk and interceptor sewers, pumping stations, monitoring and control facilities, channels, local service areas and a general description of the collection system to serve those areas, a description of on-site sanitary sewerage system inspection services and maintenance services, and other facilities and services as may be required to provide a functional and implementable plan, including preliminary engineering to assure feasibility. The plan may also include a description of the regulations deemed appropriate to carrying out surface drainage plans.           (b) A water general plan shall include the general location and description of water resources to be utilized, wells, treatment facilities, transmission lines, storage reservoirs, pumping stations, and monitoring and control facilities as may be required to provide a functional and implementable plan.   (c) Water and/or sewerage general plans shall include preliminary engineering in adequate detail to assure technical feasibility and, to the extent then known, shall further discuss the methods of distributing the cost and expense of the system and shall indicate the economic feasibility of plan implementation. The plans may also specify local or lateral facilities and services. The sewerage and/or water general plan does not mean the final engineering construction or financing plans for the system.                 (4) "Municipal corporation" means and includes any city, town, metropolitan municipal corporation, any public utility district which operates and maintains a sewer or water system, any sewer, water, diking, or drainage district, any diking, drainage, and sewerage improvement district, and any irrigation district.                 (5) A "private utility" means and includes all utilities, both public and private, which provide sewerage and/or water service and which are not municipal corporations within the definition of this chapter. The ownership of a private utility may be in a corporation, nonprofit or for profit, in a cooperative association, in a mutual organization, or in individuals.   (6) "Board" means one or more boards of county commissioners and/or the legislative authority of a home rule charter county.      Sec. 11. RCW 36.94.020 and 1981 c 313 s 1 are each amended to read as follows:             The construction, operation, and maintenance of a system of sewerage and/or water is a county purpose. Subject to the provisions of this chapter, every county has the power, individually or in conjunction with another county or counties to adopt, provide for, accept, establish, condemn, purchase, construct, add to, operate, and maintain a system or systems of sanitary and storm sewers, including outfalls, interceptors, plans, and facilities and services necessary for sewerage treatment and disposal, and/or system or systems of water supply within all or a portion of the county((: PROVIDED, That)). However, counties shall not have power to condemn sewerage and/or water systems of any municipal corporation or private utility.    Such county or counties shall have the authority to control, regulate, operate, and manage such system or systems and to provide funds therefor by general obligation bonds, revenue bonds, local improvement district bonds, utility local improvement district or local improvement district assessments, and in any other lawful fiscal manner. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.          Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer.               Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.            A county shall not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using county employees unless the on-site system is connected by a publicly owned collection system to the county's sewerage system, and the on-site system represents the first step in the sewage disposal process. Nothing in this section shall affect the authority of a state or local health officer to carry out their responsibilities under any other applicable law.      A county may, as part of a system of sewerage established under this chapter, provide for, finance, and operate any of the facilities and services and may exercise the powers expressly authorized for county storm water, flood control, pollution prevention, and drainage services and activities under chapters 36.89, 86.12, 86.13, and 86.15 RCW. A county also may provide for, finance, and operate the facilities and services and may exercise any of the powers authorized for aquifer protection areas under chapter 36.36 RCW; for lake management districts under chapter 36.61 RCW; for diking districts, and diking, drainage, and sewerage improvement districts under chapters 85.05, 85.08, 85.15, 85.16, and 85.18 RCW; and for shellfish protection districts under chapter 90.72 RCW. However, if a county by reference to any of those statutes assumes as part of its system of sewerage any powers granted to such areas or districts and not otherwise available to a county under this chapter, then (1) the procedures and restrictions applicable to those areas or districts apply to the county's exercise of those powers, and (2) the county may not simultaneously impose rates and charges under this chapter and under the statutes authorizing such areas or districts for substantially the same facilities and services, but must instead impose uniform rates and charges consistent with RCW 36.94.140. By agreement with such an area or district that is not part of a county's system of sewerage, a county may operate that area's or district's services or facilities, but a county may not dissolve any existing area or district except in accordance with any applicable provisions of the statute under which that area or district was created.      Sec. 12. RCW 36.94.140 and 1995 c 124 s 2 are each amended to read as follows:             Every county, in the operation of a system of sewerage and/or water, shall have full jurisdiction and authority to manage, regulate, and control it and to fix, alter, regulate, and control the rates and charges for the service and facilities to those to whom such ((county)) service ((is)) and facilities are available, and to levy charges for connection to the system. The rates for availability of service and facilities, and connection charges so charged must be uniform for the same class of customers or service and facility.     In classifying customers served, service furnished or made available by such system of sewerage and/or water, or the connection charges, the county legislative authority may consider any or all of the following factors:       (1) The difference in cost of service to the various customers within or without the area;         (2) The difference in cost of maintenance, operation, repair and replacement of the various parts of the systems;          (3) The different character of the service and facilities furnished various customers;      (4) The quantity and quality of the sewage and/or water delivered and the time of its delivery;           (5) Capital contributions made to the system or systems, including, but not limited to, assessments;     (6) The cost of acquiring the system or portions of the system in making system improvements necessary for the public health and safety;            (7) The nonprofit public benefit status, as defined in RCW 24.03.490, of the land user; and     (8) Any other matters which present a reasonable difference as a ground for distinction.                A county may provide assistance to aid low-income persons in connection with services provided under this chapter.                 The service charges and rates shall produce revenues sufficient to take care of the costs of maintenance and operation, revenue bond and warrant interest and principal amortization requirements, and all other charges necessary for the efficient and proper operation of the system.            NEW SECTION. Sec. 13. A new section is added to chapter 35.58 RCW to read as follows:          A metropolitan municipal corporation authorized to perform water pollution abatement may exercise all the powers relating to systems of sewerage authorized by RCW 36.94.010, 36.94.020, and 36.94.140 for counties.      NEW SECTION. Sec. 14. A new section is added to chapter 35.21 RCW to read as follows:            The legislative authority of any city or town may exercise all the powers relating to systems of sewerage authorized by RCW 35.67.010 and 35.67.020.                NEW SECTION. Sec. 15. A new section is added to chapter 53.08 RCW to read as follows:                A port district may exercise all the powers relating to systems of sewerage authorized by RCW 35.67.010 and 35.67.020 for cities and towns.           Sec. 16. RCW 57.08.005 and 1996 c 230 s 301 are each amended to read as follows:           A district shall have the following powers:            (1) To acquire by purchase or condemnation, or both, all lands, property and property rights, and all water and water rights, both within and without the district, necessary for its purposes. The right of eminent domain shall be exercised in the same manner and by the same procedure as provided for cities and towns, insofar as consistent with this title, except that all assessment or reassessment rolls to be prepared and filed by eminent domain commissioners or commissioners appointed by the court shall be prepared and filed by the district, and the duties devolving upon the city treasurer are imposed upon the county treasurer;             (2) To lease real or personal property necessary for its purposes for a term of years for which that leased property may reasonably be needed;             (3) To construct, condemn and purchase, add to, maintain, and supply waterworks to furnish the district and inhabitants thereof and any other persons, both within and without the district, with an ample supply of water for all uses and purposes public and private with full authority to regulate and control the use, content, distribution, and price thereof in such a manner as is not in conflict with general law and may construct, acquire, or own buildings and other necessary district facilities. Where a customer connected to the district's system uses the water on an intermittent or transient basis, a district may charge for providing water service to such a customer, regardless of the amount of water, if any, used by the customer. District waterworks may include facilities which result in combined water supply and electric generation, if the electricity generated thereby is a byproduct of the water supply system. That electricity may be used by the district or sold to any entity authorized by law to use or distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of water supply. For such purposes, a district may take, condemn and purchase, acquire, and retain water from any public or navigable lake, river or watercourse, or any underflowing water, and by means of aqueducts or pipeline conduct the same throughout the district and any city or town therein and carry it along and upon public highways, roads, and streets, within and without such district. For the purpose of constructing or laying aqueducts or pipelines, dams, or waterworks or other necessary structures in storing and retaining water or for any other lawful purpose such district may occupy the beds and shores up to the high water mark of any such lake, river, or other watercourse, and may acquire by purchase or condemnation such property or property rights or privileges as may be necessary to protect its water supply from pollution. For the purposes of waterworks which include facilities for the generation of electricity as a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owner;      (4) To purchase and take water from any municipal corporation, private person, or entity. A district contiguous to Canada may contract with a Canadian corporation for the purchase of water and for the construction, purchase, maintenance, and supply of waterworks to furnish the district and inhabitants thereof and residents of Canada with an ample supply of water under the terms approved by the board of commissioners;  (5) To construct, condemn and purchase, add to, maintain, and operate systems of sewers for the purpose of furnishing the district, the inhabitants thereof, and persons outside the district with an adequate system of sewers for all uses and purposes, public and private, including but not limited to on-site sewage disposal facilities, approved septic tanks or approved septic tank systems, on-site sanitary sewerage systems, inspection services and maintenance services for private and public on-site systems, point and nonpoint water pollution monitoring programs that are directly related to the sewerage facilities and programs operated by a district, other facilities, programs, and systems for the collection, interception, treatment, and disposal of wastewater, and for the control of pollution from wastewater and for the protection, preservation, and rehabilitation of surface and underground waters, facilities for the drainage and treatment of storm or surface waters, public highways, streets, and roads with full authority to regulate the use and operation thereof and the service rates to be charged. Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer. Sewage facilities may include facilities which result in combined sewage disposal, treatment, or drainage and electric generation, except that the electricity generated thereby is a byproduct of the system of sewers. Such electricity may be used by the district or sold to any entity authorized by law to distribute electricity. Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of sewage disposal, treatment, or drainage. For such purposes a district may conduct sewage throughout the district and throughout other political subdivisions within the district, and construct and lay sewer pipe along and upon public highways, roads, and streets, within and without the district, and condemn and purchase or acquire land and rights of way necessary for such sewer pipe. A district may erect sewage treatment plants within or without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to protect any lakes, rivers, or watercourses and also other areas of land from pollution from its sewers or its sewage treatment plant. For the purposes of sewage facilities which include facilities that result in combined sewage disposal, treatment, or drainage and electric generation where the electric generation is a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owners;                (6) To construct, condemn, acquire, and own buildings and other necessary district facilities;             (7) To compel all property owners within the district located within an area served by the district's system of sewers to connect their private drain and sewer systems with the district's system under such penalty as the commissioners shall prescribe by resolution. The district may for such purpose enter upon private property and connect the private drains or sewers with the district system and the cost thereof shall be charged against the property owner and shall be a lien upon property served;      (8) Where a district contains within its borders, abuts, or is located adjacent to any lake, stream, ground water as defined by RCW 90.44.035, or other waterway within the state of Washington, to provide for the reduction, minimization, or elimination of pollutants from those waters in accordance with the district's comprehensive plan, and to issue general obligation bonds, revenue bonds, local improvement district bonds, or utility local improvement bonds for the purpose of paying all or any part of the cost of reducing, minimizing, or eliminating the pollutants from these waters;         (9) To fix rates and charges for water, sewer, and drain service supplied and to charge property owners seeking to connect to the district's systems, as a condition to granting the right to so connect, in addition to the cost of the connection, such reasonable connection charge as the board of commissioners shall determine to be proper in order that those property owners shall bear their equitable share of the cost of the system. For the purposes of calculating a connection charge, the board of commissioners shall determine the pro rata share of the cost of existing facilities and facilities planned for construction within the next ten years and contained in an adopted comprehensive plan and other costs borne by the district which are directly attributable to the improvements required by property owners seeking to connect to the system. The cost of existing facilities shall not include those portions of the system which have been donated or which have been paid for by grants. The connection charge may include interest charges applied from the date of construction of the system until the connection, or for a period not to exceed ten years, whichever is shorter, at a rate commensurate with the rate of interest applicable to the district at the time of construction or major rehabilitation of the system, or at the time of installation of the lines to which the property owner is seeking to connect. A district may permit payment of the cost of connection and the reasonable connection charge to be paid with interest in installments over a period not exceeding fifteen years. The county treasurer may charge and collect a fee of three dollars for each year for the treasurer's services. Those fees shall be a charge to be included as part of each annual installment, and shall be credited to the county current expense fund by the county treasurer. Revenues from connection charges excluding permit fees are to be considered payments in aid of construction as defined by department of revenue rule. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.            Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.            A water-sewer district shall not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using water-sewer district employees unless the on-site system is connected by a publicly owned collection system to the water-sewer district's sewerage system, and the on-site system represents the first step in the sewage disposal process.              Except as otherwise provided in RCW 90.03.525, any public entity and public property, including the state of Washington and state property, shall be subject to rates and charges for sewer, water, storm water control, drainage, and street lighting facilities to the same extent private persons and private property are subject to those rates and charges that are imposed by districts. In setting those rates and charges, consideration may be made of in-kind services, such as stream improvements or donation of property;     (10) To contract with individuals, associations and corporations, the state of Washington, and the United States;           (11) To employ such persons as are needed to carry out the district's purposes and fix salaries and any bond requirements for those employees;             (12) To contract for the provision of engineering, legal, and other professional services as in the board of commissioner's discretion is necessary in carrying out their duties;     (13) To sue and be sued;              (14) To loan and borrow funds and to issue bonds and instruments evidencing indebtedness under chapter 57.20 RCW and other applicable laws;   (15) To transfer funds, real or personal property, property interests, or services subject to RCW 57.08.015;      (16) To levy taxes in accordance with this chapter and chapters 57.04 and 57.20 RCW;      (17) To provide for making local improvements and to levy and collect special assessments on property benefitted thereby, and for paying for the same or any portion thereof in accordance with chapter 57.16 RCW;             (18) To establish street lighting systems under RCW 57.08.060;          (19) To exercise such other powers as are granted to water-sewer districts by this title or other applicable laws; and             (20) To exercise any of the powers granted to cities and counties with respect to the acquisition, construction, maintenance, operation of, and fixing rates and charges for waterworks and systems of sewerage and drainage. Sec. 17. RCW 57.08.065 and 1996 c 230 s 313 are each amended to read as follows:         (1) A district shall have power to establish, maintain, and operate a mutual water, ((sewer)) sewerage, drainage, and street lighting system, a mutual system of any two or three of the systems, or separate systems.              (2) Where any two or more districts include the same territory as of July 1, 1997, none of the overlapping districts may provide any service that was made available by any of the other districts prior to July 1, 1997, within the overlapping territory without the consent by resolution of the board of commissioners of the other district or districts.                (3) A district that was a water district prior to July 1, 1997, that did not operate a ((sewer)) system of sewerage prior to July 1, 1997, may not proceed to exercise the powers to establish, maintain, construct, and operate any ((sewer)) system of sewerage without first obtaining written approval and certification of necessity from the department of ecology and department of health. Any comprehensive plan for a system of sewers or addition thereto or betterment thereof proposed by a district that was a water district prior to July 1, 1997, shall be approved by the same county and state officials as were required to approve such plans adopted by a sewer district immediately prior to July 1, 1997, and as subsequently may be required.      Sec. 18. RCW 57.16.010 and 1996 c 230 s 501 are each amended to read as follows:         Before ordering any improvements or submitting to vote any proposition for incurring any indebtedness, the district commissioners shall adopt a general comprehensive plan for the type or types of facilities the district proposes to provide. A district may prepare a separate general comprehensive plan for each of these services and other services that districts are permitted to provide, or the district may combine any or all of its comprehensive plans into a single general comprehensive plan.     (1) For a general comprehensive plan of a water supply system, the commissioners shall investigate the several portions and sections of the district for the purpose of determining the present and reasonably foreseeable future needs thereof; shall examine and investigate, determine, and select a water supply or water supplies for such district suitable and adequate for present and reasonably foreseeable future needs thereof; and shall consider and determine a general system or plan for acquiring such water supply or water supplies, and the lands, waters, and water rights and easements necessary therefor, and for retaining and storing any such waters, and erecting dams, reservoirs, aqueducts, and pipe lines to convey the same throughout such district. There may be included as part of the system the installation of fire hydrants at suitable places throughout the district. The commissioners shall determine a general comprehensive plan for distributing such water throughout such portion of the district as may then reasonably be served by means of subsidiary aqueducts and pipe lines, and a long-term plan for financing the planned projects and the method of distributing the cost and expense thereof, including the creation of local improvement districts or utility local improvement districts, and shall determine whether the whole or part of the cost and expenses shall be paid from revenue or general obligation bonds.          (2) For a general comprehensive plan for a sewer system, the commissioners shall investigate all portions and sections of the district and select a general comprehensive plan for a sewer system for the district suitable and adequate for present and reasonably foreseeable future needs thereof. The general comprehensive plan shall provide for treatment plants and other methods and services, if any, for the prevention, control, and reduction of water pollution and for the treatment and disposal of sewage and industrial and other liquid wastes now produced or which may reasonably be expected to be produced within the district and shall, for such portions of the district as may then reasonably be served, provide for the acquisition or construction and installation of laterals, trunk sewers, intercepting sewers, syphons, pumping stations or other sewage collection facilities, septic tanks, septic tank systems or drainfields, and systems for the transmission and treatment of wastewater. The general comprehensive plan shall provide a long-term plan for financing the planned projects and the method of distributing the cost and expense of the sewer system and services, including the creation of local improvement districts or utility local improvement districts; and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds.                (3) For a general comprehensive plan for a drainage system, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan for a drainage system for the district suitable and adequate for present and future needs thereof. The general comprehensive plan shall provide for a system to collect, treat, and dispose of storm water or surface waters, including use of natural systems and the construction or provision of culverts, storm water pipes, ponds, and other systems. The general comprehensive plan shall provide for a long-term plan for financing the planned projects and provide for a method of distributing the cost and expense of the drainage system, including local improvement districts or utility local improvement districts, and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds.           (4) For a general comprehensive plan for street lighting, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan for street lighting for the district suitable and adequate for present and future needs thereof. The general comprehensive plan shall provide for a system or systems of street lighting, provide for a long-term plan for financing the planned projects, and provide for a method of distributing the cost and expense of the street lighting system, including local improvement districts or utility local improvement districts, and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds.                (5) The commissioners may employ such engineering and legal service as in their discretion is necessary in carrying out their duties.       (6) Any general comprehensive plan or plans shall be adopted by resolution and submitted to an engineer designated by the legislative authority of the county in which fifty-one percent or more of the area of the district is located, and to the director of health of the county in which the district or any portion thereof is located, and must be approved in writing by the engineer and director of health, except that a comprehensive plan relating to street lighting shall not be submitted to or approved by the director of health. The general comprehensive plan shall be approved, conditionally approved, or rejected by the director of health and by the designated engineer within sixty days of their respective receipt of the plan. However, this sixty-day time limitation may be extended by the director of health or engineer for up to an additional sixty days if sufficient time is not available to review adequately the general comprehensive plans.       Before becoming effective, the general comprehensive plan shall also be submitted to, and approved by resolution of, the legislative authority of every county within whose boundaries all or a portion of the district lies. The general comprehensive plan shall be approved, conditionally approved, or rejected by each of the county legislative authorities pursuant to the criteria in RCW 57.02.040 for approving the formation, reorganization, annexation, consolidation, or merger of districts. The resolution, ordinance, or motion of the legislative body that rejects the comprehensive plan or a part thereof shall specifically state in what particular the comprehensive plan or part thereof rejected fails to meet these criteria. The general comprehensive plan shall not provide for the extension or location of facilities that are inconsistent with the requirements of RCW 36.70A.110. Nothing in this chapter shall preclude a county from rejecting a proposed plan because it is in conflict with the criteria in RCW 57.02.040. Each general comprehensive plan shall be deemed approved if the county legislative authority fails to reject or conditionally approve the plan within ninety days of the plan's submission to the county legislative authority or within thirty days of a hearing on the plan when the hearing is held within ninety days of submission to the county legislative authority. However, a county legislative authority may extend this ninety-day time limitation by up to an additional ninety days where a finding is made that ninety days is insufficient to review adequately the general comprehensive plan. In addition, the commissioners and the county legislative authority may mutually agree to an extension of the deadlines in this section.           If the district includes portions or all of one or more cities or towns, the general comprehensive plan shall be submitted also to, and approved by resolution of, the legislative authorities of the cities and towns before becoming effective. The general comprehensive plan shall be deemed approved by the city or town legislative authority if the city or town legislative authority fails to reject or conditionally approve the plan within ninety days of the plan's submission to the city or town or within thirty days of a hearing on the plan when the hearing is held within ninety days of submission to the county legislative authority. However, a city or town legislative authority may extend this time limitation by up to an additional ninety days where a finding is made that insufficient time exists to adequately review the general comprehensive plan within these time limitations. In addition, the commissioners and the city or town legislative authority may mutually agree to an extension of the deadlines in this section.      Before becoming effective, the general comprehensive plan shall be approved by any state agency whose approval may be required by applicable law. Before becoming effective, any amendment to, alteration of, or addition to, a general comprehensive plan shall also be subject to such approval as if it were a new general comprehensive plan. However, only if the amendment, alteration, or addition affects a particular city or town, shall the amendment, alteration, or addition be subject to approval by such particular city or town governing body.      Sec. 19. RCW 57.08.081 and 1996 c 230 s 314 are each amended to read as follows:         The commissioners of any district shall provide for revenues by fixing rates and charges for furnishing sewer and drainage service and facilities to those to whom service is available or for providing water, such rates and charges to be fixed as deemed necessary by the commissioners, so that uniform charges will be made for the same class of customer or service and facility. Rates and charges may be combined for the furnishing of more than one type of sewer service((,)) and facility such as but not limited to storm or surface water and sanitary.                  In classifying customers of such water, sewer, or drainage system, the board of commissioners may in its discretion consider any or all of the following factors: The difference in cost ((of service)) to various customers; the location of the various customers within and without the district; the difference in cost of maintenance, operation, repair, and replacement of the various parts of the system; the different character of the service furnished various customers; the quantity and quality of the service and facility furnished; the time of its use; the achievement of water conservation goals and the discouragement of wasteful practices; capital contributions made to the system including but not limited to assessments; and any other matters which present a reasonable difference as a ground for distinction. Rates shall be established as deemed proper by the commissioners and as fixed by resolution and shall produce revenues sufficient to take care of the costs of maintenance and operation, revenue bond and warrant interest and principal amortization requirements, and all other charges necessary for efficient and proper operation of the system.                 The commissioners shall enforce collection of connection charges, and rates and charges for water supplied against property owners connecting with the system or receiving such water, and for sewer and drainage services charged against property to which and its owners to whom the service is available, such charges being deemed charges against the property served, by addition of penalties of not more than ten percent thereof in case of failure to pay the charges at times fixed by resolution. The commissioners may provide by resolution that where either connection charges or rates and charges for services supplied are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon at the rate of not more than the prime lending rate of the district's bank plus four percentage points per year shall be a lien against the property upon which the service was received, subject only to the lien for general taxes.      The district may, at any time after the connection charges or rates and charges for services supplied or available and penalties are delinquent for a period of sixty days, bring suit in foreclosure by civil action in the superior court of the county in which the real property is located. The court may allow, in addition to the costs and disbursements provided by statute, attorneys' fees, title search and report costs, and expenses as it adjudges reasonable. The action shall be in rem, and may be brought in the name of the district against an individual or against all of those who are delinquent in one action. The laws and rules of the court shall control as in other civil actions.               In addition to the right to foreclose provided in this section, the district may also cut off all or part of the service after charges for water or sewer service supplied or available are delinquent for a period of sixty days.          Sec. 20. RCW 90.72.040 and 1992 c 100 s 3 are each amended to read as follows: (1) The county legislative authority may create a shellfish protection district on its own motion or by submitting the question to the voters of the proposed district and obtaining the approval of a majority of those voting. The boundaries of the district shall be determined by the legislative authority. The legislative authority may create more than one district. A district may include any area or areas within the county, whether incorporated or unincorporated. Counties shall coordinate and cooperate with cities, towns, and water-related special districts within their boundaries in establishing shellfish protection districts and carrying out shellfish protection programs. Where a portion of the proposed district lies within an incorporated area, the county shall develop procedures for the participation of the city or town in the determination of the boundaries of the district and the administration of the district, including funding of the district's programs. The legislative authority of more than one county may by agreement provide for the creation of a district including areas within each of those counties. County legislative authorities are encouraged to coordinate their plans and programs to protect shellfish growing areas, especially where shellfish growing areas are located within the boundaries of more than one county. The legislative authority or authorities creating a district may abolish a shellfish protection district on its or their own motion or by submitting the question to the voters of the district and obtaining the approval of a majority of those voting.   (2) If the county legislative authority creates a shellfish protection district by its own motion, any registered voter residing within the boundaries of the shellfish protection district may file a referendum petition to repeal the ordinance that created the district. Any referendum petition to repeal the ordinance creating the shellfish protection district shall be filed with the county auditor within seven days of passage of the ordinance. Within ten days of the filing of a petition, the county auditor shall confer with the petitioner concerning form and style of the petition, issue an identification number for the petition, and write a ballot title for the measure. The ballot title shall be posed as a question so that an affirmative answer to the question and an affirmative vote on the measure results in creation of the shellfish protection district and a negative answer to the question and a negative vote on the measure results in the shellfish protection district not being created. The petitioner shall be notified of the identification number and ballot title within this ten-day period.      After this notification, the petitioner shall have thirty days in which to secure on petition forms the signatures of not less than twenty-five percent of the registered voters residing within the boundaries of the shellfish protection district and file the signed petitions with the county auditor. Each petition form shall contain the ballot title and full text of the measure to be referred. The county auditor shall verify the sufficiency of the signatures on the petitions. If sufficient valid signatures are properly submitted, the county auditor shall submit the referendum measure to the registered voters residing in the shellfish protection district in a special election no later than one hundred twenty days after the signed petition has been filed with the county auditor. The special election may be conducted by mail ballot as provided for in chapter 29.36 RCW.     (3) The county legislative authority shall not impose fees, rates, or charges for shellfish protection district programs upon properties on which fees, rates, or charges are imposed ((to pay for another program to eliminate or decrease contamination in storm water runoff)) under chapter 36.89 or 36.94 RCW for substantially the same programs and services.                  NEW SECTION. Sec. 21. (1) The department of health shall convene a work group for the purpose of making recommendations to the legislature for the development of a certification program for different classes of people involved with on-site septic systems. The work group shall study certification of persons who pump, install, design, perform maintenance, inspect, or regulate any of the above listed functions with regard to on-site septic systems. The work group shall make recommendations regarding appropriate bonding levels and other standards for the various occupations for which certification will be recommended. The work group shall also examine the development of a risk analysis pertaining to the installation and maintenance of different types of septic systems for different parts of the state. The work group shall report its findings and recommendations to the senate agriculture and environment committee and the house of representatives agriculture and ecology committee by January 1, 1998.      (2) The work group shall consist of a representative from each of the following groups: On-site septic system pumpers, installers, designers, maintenance operators, and inspectors, as well as a representative of cities, counties, the department of health, engineers, residential construction, the Puget Sound water quality action team, public utility districts, water-sewer districts, and two members from the general public. The members of the work group shall be appointed by the governor. The representative of the department of health shall serve as the chair of the work group. Staff support for the work group shall be provided by the department of health."            Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Morton moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5838.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Morton to concur in the House amendment to Substitute Senate Bill No. 5838.

      The motion by Senator Morton carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5838.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5838, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5838, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 2; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46.   Absent: Senators Finkbeiner and Morton - 2.        Excused: Senator Heavey - 1.                SUBSTITUTE SENATE BILL NO. 5838, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 11, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5188 with the following amendment(s):

      On page 4, line 5, after "in RCW" strike "9.9A.030" and insert "9.94A.030",       and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Long moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5188.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Long to concur in the House amendment to Substitute Senate Bill No. 5188.

      The motion by Senator Long carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5188.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5188, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5188, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 4; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Deccio, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, West, Winsley, Wojahn, Wood and Zarelli - 44.                    Voting nay: Senators Brown, Fairley, Kohl and Thibaudeau - 4.     Excused: Senator Heavey - 1.                SUBSTITUTE SENATE BILL NO. 5188, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 14, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5193 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 82.08.02745 and 1996 c 117 s 1 are each amended to read as follows:         (1) The tax levied by RCW 82.08.020 shall not apply to charges made for labor and services rendered by any person in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures used as agricultural employee housing, or to sales of tangible personal property that becomes an ingredient or component of the buildings or other structures during the course of the constructing, repairing, decorating, or improving the buildings or other structures, but only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department by rule.     (2) The exemption provided in this section for agricultural employee housing provided to year-round employees of the agricultural employer, only applies if that housing is built to the current building code for single-family or multifamily dwellings according to the state building code, chapter 19.27 RCW.               (3) Any agricultural employee housing built under this section shall be used according to this section for at least five consecutive years from the date the housing is approved for ((occupation)) occupancy, or the full amount of tax otherwise due shall be immediately due and payable together with interest, but not penalties, from the date the housing is approved for occupancy until the date of payment. If at any time agricultural employee housing that is not located on agricultural land ceases to be used in the manner specified in subsection (2) of this section, the full amount of tax otherwise due shall be immediately due and payable with interest, but not penalties, from the date the housing ceases to be used as agricultural employee housing until the date of payment.                (4) The exemption provided in this section shall not apply to housing built for the occupancy of an employer, family members of an employer, or persons owning stock or shares in a farm partnership or corporation business.      (5) For purposes of this section and RCW 82.12.02685:        (a) "Agricultural employee" or "employee" has the same meaning as given in RCW 19.30.010;           (b) "Agricultural employer" or "employer" has the same meaning as given in RCW 19.30.010; and   (c) "Agricultural employee housing" means all facilities provided by ((the)) an agricultural employer, housing authority, local government, state or federal agency, nonprofit community or neighborhood-based organization that is exempt from income tax under section 501(c) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)), or for-profit provider of housing for housing ((the employer's)) agricultural employees on a year-round or seasonal basis, including bathing, food handling, hand washing, laundry, and toilet facilities, single-family and multifamily dwelling units and dormitories, and includes labor camps under RCW 70.54.110. "Agricultural employee housing" does not include housing regularly provided on a commercial basis to the general public ((that is provided to agricultural employees on the same terms and conditions as it is provided to the general public)). "Agricultural employee housing" does not include housing provided by a housing authority unless at least eighty percent of the occupants are agricultural employees whose adjusted income is less than fifty percent of median family income, adjusted for household size, for the county where the housing is provided.      Sec. 2. RCW 82.12.02685 and 1996 c 117 s 2 are each amended to read as follows:      (1) The provisions of this chapter shall not apply in respect to the use of tangible personal property that becomes an ingredient or component of buildings or other structures used as agricultural employee housing during the course of constructing, repairing, decorating, or improving the buildings or other structures by any person.            (2) The exemption provided in this section for agricultural employee housing provided to year-round employees of the agricultural employer, only applies if that housing is built to the current building code for single-family or multifamily dwellings according to the state building code, chapter 19.27 RCW.       (3) Any agricultural employee housing built under this section shall be used according to this section for at least five consecutive years from the date the housing is approved for ((occupation)) occupancy, or the full amount of a tax otherwise due shall be immediately due and payable together with interest, but not penalties, from the date the housing is approved for occupancy until the date of payment. If at any time agricultural employee housing that is not located on agricultural land ceases to be used in the manner specified in subsection (2) of this section, the full amount of tax otherwise due shall be immediately due and payable with interest, but not penalties, from the date the housing ceases to be used as agricultural employee housing until the date of payment.      (4) The exemption provided in this section shall not apply to housing built for the occupancy of an employer, family members of an employer, or persons owning stock or shares in a farm partnership or corporation business.              (5) The definitions in RCW 82.08.02745(5) apply to this section.            NEW SECTION. Sec. 3. 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.",           and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Prentice, the Senate concurred in the House amendment to Senate Bill No. 5193

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5193, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5193, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Voting nay: Senator Kohl - 1.                Excused: Senator Heavey - 1.                SENATE BILL NO. 5193, as amended by the House, 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.

MOTION

      On motion of Senator Hale, Senator McCaslin was excused.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5295 with the following amendment(s):

      On page 2, beginning on line 31, after "trial." strike everything through "perjury." on line 34,             and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Roach moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5295.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Roach to concur in the House amendment to Substitute Senate Bill No. 5295.

      The motion by Senator Roach carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5295.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5295, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5295, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators Heavey and McCaslin - 2..      SUBSTITUTE SENATE BILL NO. 5295, as amended by the House, 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.

MOTION FOR ADJOURNMENT

      At 5:40 p.m., Senator Loveland moved that the Senate adjourn until 9:00 a.m., Monday, April 21, 1997.

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

      The President declared the question before the Senate to be the roll call on the motion by Senator Loveland to adjourn until 9:00 a.m., Monday, April 21, 1997.

ROLL CALL

      The Secretary called the roll and the motion to adjourn failed by the following vote: Yeas, 22; Nays, 26; Absent, 0; Excused, 1.

      Voting yea: Senators Bauer, Brown, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Jacobsen, Kline, Kohl, Loveland, McAuliffe, Patterson, Prentice, Rasmussen, Sheldon, Snyder, Spanel, Swanson, Thibaudeau and Wojahn - 22.          Voting nay: Senators Anderson, Benton, Deccio, Finkbeiner, Hale, Hochstatter, Horn, Johnson, Long, McCaslin, McDonald, Morton, Newhouse, Oke, Prince, Roach, Rossi, Schow, Sellar, Stevens, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 26.            Excused: Senator Heavey - 1.

MESSAGES FROM THE HOUSE

April 19, 1997

MR. PRESIDENT:

      The House concurred in the Senate amendments(s) to the following House Bills and passed the bills as amended by the Senate:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1085,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1110,

      SECOND SUBSTITUTE HOUSE BILL NO. 1191,

      HOUSE BILL NO. 1367,

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1372,

      SUBSTITUTE HOUSE BILL NO. 1387,

      SECOND SUBSTITUTE HOUSE BILL NO. 1392,

      HOUSE BILL NO. 1398,

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1423,

      SUBSTITUTE HOUSE BILL NO. 1433,

      HOUSE BILL NO. 1457,

      HOUSE BILL NO. 1458,

      SUBSTITUTE HOUSE BILL NO. 1464,

      HOUSE BILL NO. 1468,

      ENGROSSED HOUSE BILL NO. 1472,

      SUBSTITUTE HOUSE BILL NO. 1474,

      SUBSTITUTE HOUSE BILL NO. 1491,

      ENGROSSED HOUSE BILL NO. 1647.

TIMOTHY A. MARTIN, Chief Clerk

April 19, 1997

MR. PRESIDENT:

      The House concurred in the Senate amendments(s) to the following House Bills and passed the bills as amended by the Senate:

      SUBSTITUTE HOUSE BILL NO. 1499,

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1527,

      SUBSTITUTE HOUSE BILL NO. 1536,

      HOUSE BILL NO. 1589,

      SUBSTITUTE HOUSE BILL NO. 1620,

      SUBSTITUTE HOUSE BILL NO. 1632,

      HOUSE BILL NO. 1646,

      SUBSTITUTE HOUSE BILL NO. 1693.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Hale, Senator McCaslin was excused.

MESSAGE FROM THE HOUSE

April 9, 1997

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5318 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 59.18.390 and 1989 c 342 s 11 are each amended to read as follows:  (1) The sheriff shall, upon receiving the writ of restitution, forthwith serve a copy thereof upon the defendant, his or her agent, or attorney, or a person in possession of the premises, and shall not execute the same for three days thereafter, and the defendant, or person in possession of the premises within three days after the service of the writ of restitution may execute to the plaintiff a bond to be filed with and approved by the clerk of the court in such sum as may be fixed by the judge, with sufficient surety to be approved by the clerk of ((said)) the court, conditioned that they will pay to the plaintiff such sum as the plaintiff may recover for the use and occupation of the ((said)) premises, or any rent found due, together with all damages the plaintiff may sustain by reason of the defendant occupying or keeping possession of ((said)) the premises, together with all damages which the court theretofore has awarded to the plaintiff as provided in this chapter, and also all the costs of the action. The plaintiff, his or her agent or attorneys, shall have notice of the time and place where the court or judge thereof shall fix the amount of the defendant's bond, and shall have notice and a reasonable opportunity to examine into the qualification and sufficiency of the sureties upon ((said)) the bond before ((said)) the bond shall be approved by the clerk. After the issuance of a writ of restitution, acceptance of a payment by the landlord or plaintiff that only partially satisfies the judgment will not invalidate the writ unless pursuant to a written agreement executed by both parties. The eviction will not be postponed or stopped unless a copy of that written agreement is provided to the sheriff. It is the responsibility of the tenant or defendant to ensure a copy of the agreement is provided to the sheriff. Upon receipt of the agreement the sheriff will cease action unless ordered to do otherwise by the court. The writ of restitution and the notice that accompanies the writ of restitution required under RCW 59.18.312 shall conspicuously state in bold face type, all capitals, not less than twelve points information about partial payments as set forth in subsection (2) of this section. If the writ of restitution has been based upon a finding by the court that the tenant, subtenant, sublessee, or a person residing at the rental premises has engaged in drug-related activity or has allowed any other person to engage in drug-related activity at those premises with his or her knowledge or approval, neither the tenant, the defendant, nor a person in possession of the premises shall be entitled to post a bond in order to retain possession of the premises. The writ may be served by the sheriff, in the event he or she shall be unable to find the defendant, an agent or attorney, or a person in possession of the premises, by affixing a copy of ((said)) the writ in a conspicuous place upon the premises: PROVIDED, That the sheriff shall not require any bond for the service or execution of the writ. The sheriff shall be immune from all civil liability for serving and enforcing writs of restitution unless the sheriff is grossly negligent in carrying out his or her duty.          (2) The notice accompanying a writ of restitution required under RCW 59.18.312 shall be substantially similar to the following:

IMPORTANT NOTICE - PARTIAL PAYMENTS

      YOUR LANDLORD'S ACCEPTANCE OF A PARTIAL PAYMENT FROM YOU AFTER SERVICE OF THIS WRIT OF RESTITUTION WILL NOT AUTOMATICALLY POSTPONE OR STOP YOUR EVICTION. IF YOU HAVE A WRITTEN AGREEMENT WITH YOUR LANDLORD THAT THE EVICTION WILL BE POSTPONED OR STOPPED, IT IS YOUR RESPONSIBILITY TO PROVIDE A COPY OF THE AGREEMENT TO THE SHERIFF. THE SHERIFF WILL NOT CEASE ACTION UNLESS YOU PROVIDE A COPY OF THE AGREEMENT. AT THE DIRECTION OF THE COURT THE SHERIFF MAY TAKE FURTHER ACTION.",

      and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Roach moved that the Senate do concur in the House amendment to Substitute Senate Bill No. 5318.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Roach to concur in the House amendment to Substitute Senate Bill No. 5318.

      The motion by Senator Roach carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5318.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5318, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5318, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators Heavey and McCaslin - 2..      SUBSTITUTE SENATE BILL NO. 5318, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 8, 1997

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5340 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:     "Sec. 1. RCW 28A.405.100 and 1994 c 115 s 1 are each amended to read as follows:         (1) The superintendent of public instruction shall establish and may amend from time to time minimum criteria for the evaluation of the professional performance capabilities and development of certificated classroom teachers and certificated support personnel. For classroom teachers the criteria shall be developed in the following categories: Instructional skill; classroom management, professional preparation and scholarship; effort toward improvement when needed; the handling of student discipline and attendant problems; and interest in teaching pupils and knowledge of subject matter.                Every board of directors shall, in accordance with procedure provided in RCW 41.59.010 through 41.59.170, 41.59.910 and 41.59.920, establish evaluative criteria and procedures for all certificated classroom teachers and certificated support personnel. The evaluative criteria must contain as a minimum the criteria established by the superintendent of public instruction pursuant to this section and must be prepared within six months following adoption of the superintendent of public instruction's minimum criteria. The district must certify to the superintendent of public instruction that evaluative criteria have been so prepared by the district.               Except as provided in subsection (5) of this section, it shall be the responsibility of a principal or his or her designee to evaluate all certificated personnel in his or her school. During each school year all classroom teachers and certificated support personnel, hereinafter referred to as "employees" in this section, shall be observed for the purposes of evaluation at least twice in the performance of their assigned duties. Total observation time for each employee for each school year shall be not less than sixty minutes. Following each observation, or series of observations, the principal or other evaluator shall promptly document the results of the observation in writing, and shall provide the employee with a copy thereof within three days after such report is prepared. New employees shall be observed at least once for a total observation time of thirty minutes during the first ninety calendar days of their employment period.      ((Every)) At any time after October 15th, an employee whose work is judged unsatisfactory based on district evaluation criteria shall be notified in writing of ((stated)) the specific areas of deficiencies along with a ((suggested specific and)) reasonable program for improvement ((on or before February 1st of each year)). During the period of probation, the employee may not be transferred from the supervision of the original evaluator. Improvement of performance or probable cause for nonrenewal must occur and be documented by the original evaluator before any consideration of a request for transfer or reassignment as contemplated by either the individual or the school district. A probationary period of sixty school days shall be established ((beginning on or before February 1st and ending no later than May 1st)). The establishment of a probationary period does not adversely affect the contract status of an employee within the meaning of RCW 28A.405.300. The

purpose of the probationary period is to give the employee opportunity to demonstrate improvements in his or her areas of deficiency. The establishment of the probationary period and the giving of the notice to the employee of deficiency shall be by the school district superintendent and need not be submitted to the board of directors for approval. During the probationary period the evaluator shall meet with the employee at least twice monthly to supervise and make a written evaluation of the progress, if any, made by the employee. The evaluator may authorize one additional certificated employee to evaluate the probationer and to aid the employee in improving his or her areas of deficiency; such additional certificated employee shall be immune from any civil liability that might otherwise be incurred or imposed with regard to the good faith performance of such evaluation. The probationer may be removed from probation if he or she has demonstrated improvement to the satisfaction of the principal in those areas specifically detailed in his or her initial notice of deficiency and subsequently detailed in his or her improvement program. Lack of necessary improvement ((shall be)) during the established probationary period, as specifically documented in writing with notification to the probationer and shall constitute grounds for a finding of probable cause under RCW 28A.405.300 or 28A.405.210.     ((The establishment of a probationary period shall not be deemed to adversely affect the contract status of an employee within the meaning of RCW 28A.405.300.))               Immediately following the completion of a probationary period that does not produce performance changes detailed in the initial notice of deficiencies and improvement program, the employee may be removed from his or her assignment and placed into an alternative assignment for the remainder of the school year. This reassignment may not displace another employee nor may it adversely affect the probationary employee's compensation or benefits for the remainder of the employee's contract year. If such reassignment is not possible, the district may, at its option, place the employee on paid leave for the balance of the contract term.    (2) Every board of directors shall establish evaluative criteria and procedures for all superintendents, principals, and other administrators. It shall be the responsibility of the district superintendent or his or her designee to evaluate all administrators. Such evaluation shall be based on the administrative position job description. Such criteria, when applicable, shall include at least the following categories: Knowledge of, experience in, and training in recognizing good professional performance, capabilities and development; school administration and management; school finance; professional preparation and scholarship; effort toward improvement when needed; interest in pupils, employees, patrons and subjects taught in school; leadership; and ability and performance of evaluation of school personnel.           (3) Each certificated employee shall have the opportunity for confidential conferences with his or her immediate supervisor on no less than two occasions in each school year. Such confidential conference shall have as its sole purpose the aiding of the administrator in his or her assessment of the employee's professional performance.           (4) The failure of any evaluator to evaluate or supervise or cause the evaluation or supervision of certificated employees or administrators in accordance with this section, as now or hereafter amended, when it is his or her specific assigned or delegated responsibility to do so, shall be sufficient cause for the nonrenewal of any such evaluator's contract under RCW 28A.405.210, or the discharge of such evaluator under RCW 28A.405.300.      (5) After an employee has four years of satisfactory evaluations under subsection (1) of this section, a school district may use a short form of evaluation, a locally bargained evaluation emphasizing professional growth, an evaluation under subsection (1) of this section, or any combination thereof. The short form of evaluation shall include either a thirty minute observation during the school year with a written summary or a final annual written evaluation based on the criteria in subsection (1) of this section and based on at least two observation periods during the school year totaling at least sixty minutes without a written summary of such observations being prepared. However, the evaluation process set forth in subsection (1) of this section shall be followed at least once every three years unless this time is extended by a local school district under the bargaining process set forth in chapter 41.59 RCW. The employee or evaluator may require that the evaluation process set forth in subsection (1) of this section be conducted in any given school year. No evaluation other than the evaluation authorized under subsection (1) of this section may be used as a basis for determining that an employee's work is unsatisfactory under subsection (1) of this section or as probable cause for the nonrenewal of an employee's contract under RCW 28A.405.210 unless an evaluation process developed under chapter 41.59 RCW determines otherwise."        Correct the title.,     and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Hochstatter moved that the Senate do concur in the House amendment to Senate Bill No. 5340.

POINT OF INQUIRY

      Senator McAuliffe: “Senator Hochstatter, does the employee have the opportunity to request that they be changed from the original evaluator if there is a need?”

      Senator Hochstatter: “Senator McAuliffe, if it says so in the script, they do.”

      Senator McAuliffe: “Thank you.”

      The President declared the question before the Senate to be the motion by Senator Hochstatter to concur in the House amendment to Senate Bill No. 5340.

      The motion by Senator Hochstatter carried and the Senate concurred in the House amendment to Senate Bill No. 5340.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5340, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5340, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.    Excused: Senators Heavey and McCaslin - 2..      SENATE BILL NO. 5340, as amended by the House, 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.

      EDITOR'S NOTE : See motion by Senator Sheldon on the Ninety-Ninth Day, April 21, 1997, that all remarks be spread upon the Journal with the verbatim debate on the following items: Senate Resolution 1997-8669, the amendments to the resolution and the final passage of Substitute Senate Bill No. 6062. Also, that all the remarks of each Senator, as well as the points of order, parliamentary inquires and personal privileges during that time, be spread upon the Journal.

MOTION