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FIFTY EIGHTH DAY

MORNING SESSION

House Chamber, Olympia, Tuesday, March 10, 1998

The House was called to order at 9:00 a.m. by the Speaker (Representative Pennington presiding) . The Clerk called the roll and a quorum was present.

The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Ben McDonald and Dominic Guirardini. Prayer was offered by Pastor Jerry Cook, Eastside Foursquare Church, Kirkland.

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

MESSAGE FROM THE SENATE

March 9, 1998

Mr. Speaker:

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

ENGROSSED SUBSTITUTE SENATE BILL NO. 5305,

SENATE BILL NO. 5622,

SUBSTITUTE SENATE BILL NO. 5636,

SENATE BILL NO. 6113,

SUBSTITUTE SENATE BILL NO. 6208,

SECOND SUBSTITUTE SENATE BILL NO. 6214,

SECOND SUBSTITUTE SENATE BILL NO. 6264,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6293,

ENGROSSED SENATE BILL NO. 6305,

SUBSTITUTE SENATE BILL NO. 6324,

SECOND SUBSTITUTE SENATE BILL NO. 6330,

SENATE BILL NO. 6348,

SUBSTITUTE SENATE BILL NO. 6420,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6421,

SUBSTITUTE SENATE BILL NO. 6439,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6445,

SUBSTITUTE SENATE BILL NO. 6474,

SUBSTITUTE SENATE BILL NO. 6550,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6560,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6562,

SUBSTITUTE SENATE BILL NO. 6565,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6600,

SUBSTITUTE SENATE BILL NO. 6603,

SUBSTITUTE SENATE BILL NO. 6655,

SENATE BILL NO. 6698,

SENATE BILL NO. 6729,

SUBSTITUTE SENATE BILL NO. 6746,

and the same are herewith transmitted.

Mike O'Connell, Secretary

RESOLUTIONS

HOUSE RESOLUTION NO. 98-4722, by Representatives D. Schmidt, Sullivan, Talcott, Dyer, Carlson, Sehlin, Wensman, Alexander, Sheahan, Cooke, McMorris, Lisk, Smith, Clements, Koster, Mason, Crouse, D. Sommers, Conway, Anderson, Kastama, Gombosky, Murray, Cody, Hatfield, Poulsen, Cooper, McDonald, Robertson, L. Thomas and Dunn

WHEREAS, The Washington National Guard is composed of citizen soldiers and airmen who, in the noble and time-honored tradition of the Minutemen, stand ready to answer the call of duty; and

WHEREAS, SrA Lorinda Ecklund, 141st Maintenance Squadron; TSgt Michael Brickert, 141st Security Forces Squadron; MSgt Mark Tormanen, Western Air Defense Sector; SPC Stacie L. Buettner, Headquarters STARC-WA; and SGT Kelly M. Pugh, Company A, 181st Support Battalion, represent the best of the best by their selection as the Washington National Guard's Airmen and Soldiers of the Year; and

WHEREAS, These Airmen and Soldiers of the Year, through the gifts of their time and personal energies, have served the people of Washington State with honor and distinction;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor the National Guard's Airmen and Soldiers of the Year; and

BE IT FURTHER RESOLVED, That the House of Representatives extend its gratitude to the families and employers of the Airmen and Soldiers of the Year for their continued support; and

BE IT FURTHER RESOLVED, That the House of Representatives recognize the value of a strong National Guard to the security and well-being of this state, and extend its appreciation to the eight thousand men and women who serve in the Washington National Guard; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to each of the Airmen and Soldiers of the Year, The Adjutant General of the Washington National Guard, and to the Governor of the State of Washington.

Representative D. Schmidt moved adoption of the resolution.

Representatives D. Schmidt and Sullivan spoke in favor of the adoption of the resolution.

House Resolution No. 4722 was adopted.

HOUSE RESOLUTION NO. 98-4720, by Representatives Chandler, Linville, Cooper, Cooke, Zellinsky, L. Thomas and Dunn

WHEREAS, The Washington State Legislature has designated that the second Wednesday in April each year is celebrated as Arbor Day; and

WHEREAS, Arbor Day is a day to recognize our state tree, the western hemlock, and our state flower, the rhododendron; and

WHEREAS, Arbor Day is a traditional day for the planting of trees and shrubs by citizens in the state of Washington; and

WHEREAS, Arbor Day has been celebrated in Washington since 1917 when Governor Ernest Lister conducted the first official observance; and

WHEREAS, Nurseries, orchards, tree farms, public and private forests, horticulturists, and home orchards and gardens all add to the beauty and vigor of our state; and

WHEREAS, Arbor Day focuses community attention on planting trees while educating school children and community groups about the value of trees; and

WHEREAS, Arbor Day is a symbolic day to recognize the importance of trees and shrubs to the environment, in neighborhoods and communities, in the state's agricultural and timber-based economy, and the importance of continued regeneration of our renewable resources; and

WHEREAS, The state of Washington is appropriately called the Evergreen State due to the existence and special significance that trees and plants contribute to our jobs, natural beauty, environment, and quality of life of our citizens; and

WHEREAS, By observing Arbor Day every year the citizens of the state can show their appreciation for the state's natural resources, the full range of benefits that are provided from trees and shrubs in the state, and the importance of planting trees and shrubs throughout the year; and

WHEREAS, The Community and Urban Forestry Council was established by the legislature in 1991 to empower communities to preserve, plant, and maintain trees in their communities;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives proclaim April 8, 1998, as Arbor Day and encourage residents to plant a tree or shrub and celebrate this day and also proclaim the month of October as Urban and Community Forestry Month and urge residents to celebrate by planting and caring for trees, and by identifying significant and historic trees in their community.

Representative Chandler moved adoption of the resolution.

Representatives Chandler, Linville, Mitchell and Regala spoke in favor of the adoption of the resolution.

House Resolution No. 4720 was adopted.

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

THIRD READING

SUBSTITUTE HOUSE BILL NO. 3001, by House Committee on Commerce & Labor (originally sponsored by Representatives Honeyford, Delvin, Lisk and Cole)

Relating to the furnishing of wine by wineries to nonprofit charitable organizations.

With the consent of the House, Representative Cole withdrew her Scope and Object request on the Senate amendments to Substitute House Bill No. 3001.

There being no objection, the House did not concur in the Senate Amendment(s) to Substitute House Bill No. 3001 and asked the Senate to recede therefrom.

SENATE AMENDMENTS TO HOUSE BILL

March 4, 1998

Mr. Speaker:

The Senate has passed Substitute House Bill No. 1504 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 42.17.310 and 1997 c 310 s 2, 1997 c 274 s 8, 1997 c 250 s 7, 1997 c 239 s 4, 1997 c 220 s 120 (Referendum Bill No. 48), and 1997 c 58 s 900 are each reenacted and amended to read as follows:

(1) The following are exempt from public inspection and copying:

(a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

(b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

(c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 84.08.210, 82.32.330, 84.40.020, or 84.40.340 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

(d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

(e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

(f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

(g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

(h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

(i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

(j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

(k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

(l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

(m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (i) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (ii) highway construction or improvement as required by RCW 47.28.070.

(n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

(o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW, and by persons pertaining to export projects pursuant to RCW 43.23.035.

(p) Financial disclosures filed by private vocational schools under chapters 28B.85 and 28C.10 RCW.

(q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

(r) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency.

(s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

(t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

(u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

(v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers, except that this information may be released to the division of child support or the agency or firm providing child support enforcement for another state under Title IV-D of the federal social security act, for the establishment, enforcement, or modification of a support order.

(w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.140 maintained in the files of the department shall automatically be withheld from public inspection and copying unless the provider specifically requests the information be released, and except as provided for under RCW 42.17.260(9).

(x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

(y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

(z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

(aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

(bb) Financial and valuable trade information under RCW 51.36.120.

(cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or 70.123.075 or a rape crisis center as defined in RCW 70.125.030.

(dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

(ee) Investigative records compiled by an employing agency conducting a current investigation of a possible unfair practice under chapter 49.60 RCW or of a possible violation of other federal, state, or local laws prohibiting discrimination in employment.

(ff) Business related information protected from public inspection and copying under RCW 15.86.110.

(gg) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW.

(hh) Information and documents created specifically for, and collected and maintained by a quality improvement committee pursuant to RCW 43.70.510, regardless of which agency is in possession of the information and documents.

(ii) Personal information in files maintained in a data base created under RCW 43.07.360.

(jj) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010.

(kk) Names of individuals residing in emergency or transitional housing that are furnished to the department of revenue or a county assessor in order to substantiate a claim for property tax exemption under RCW 84.36.043.

(ll) The names, residential addresses, residential telephone numbers, and other individually identifiable records held by an agency in relation to a vanpool, carpool, or other ride-sharing program or service. However, these records may be disclosed to other persons who apply for ride-matching services and who need that information in order to identify potential riders or drivers with whom to share rides.

(mm) Proprietary financial and commercial information that the submitting entity, with review by the department of health, specifically identifies at the time it is submitted and that is provided to or obtained by the department of health in connection with an application for, or the supervision of, an antitrust exemption sought by the submitting entity under RCW 43.72.310. If a request for such information is received, the submitting entity must be notified of the request. Within ten business days of receipt of the notice, the submitting entity shall provide a written statement of the continuing need for confidentiality, which shall be provided to the requester. Upon receipt of such notice, the department of health shall continue to treat information designated under this section as exempt from disclosure. If the requester initiates an action to compel disclosure under this chapter, the submitting entity must be joined as a party to demonstrate the continuing need for confidentiality.

(nn) Records maintained by the board of industrial insurance appeals that are related to appeals of crime victims' compensation claims filed with the board under RCW 7.68.110.

(oo) Records that would reveal the strategy or position of an agency before or during the course of any collective bargaining, labor negotiations, or grievance or mediation proceedings. After the conclusion of the bargaining, negotiations, or grievance or mediation proceedings, the records will be open to public inspection and copying as otherwise provided by this chapter.

(2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

(3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

(4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld."

In line 1 of the title, after "protection;" strike the remainder of the title and insert "and reenacting and amending RCW 42.17.310."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House deferred consideration of Substitute House Bill No. 1504 and the bill held its place on third reading.

SENATE AMENDMENTS TO HOUSE BILL

March 3, 1998

Mr. Speaker:

The Senate has passed Substitute House Bill No. 1829 with the following amendment(s)

On page 2, line 37, after "of" strike "1997" and insert "1998"

On page 2, after line 37, insert the following:

"NEW SECTION. Sec. 4. Sections 1 through 3 of this act do not apply to trade-in or exchange of computers, or computer hardware, between consumers and retailers, or their branch facilities, when the computer or computer hardware was originally purchased from that same retailer."

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

On page 3, line 1, after "through" strike "3" and insert "4"

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1829 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 1829 as amended by the Senate.

Representatives Van Luven and Conway spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1829 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 98.

Substitute House Bill No. 1829, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Substitute House Bill No. 1223 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 59.18.030 and 1973 1st ex.s. c 207 s 3 are each amended to read as follows:

As used in this chapter:

(1) "Dwelling unit" is a structure or that part of a structure which is used as a home, residence, or sleeping place by one person or by two or more persons maintaining a common household, including but not limited to single family residences and units of multiplexes, apartment buildings, and mobile homes.

(2) "Landlord" means the owner, lessor, or sublessor of the dwelling unit or the property of which it is a part, and in addition means any person designated as representative of the landlord.

(3) "Person" means an individual, group of individuals, corporation, government, or governmental agency, business trust, estate, trust, partnership, or association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(4) "Owner" means one or more persons, jointly or severally, in whom is vested:

(a) All or any part of the legal title to property; or

(b) All or part of the beneficial ownership, and a right to present use and enjoyment of the property.

(5) "Premises" means a dwelling unit, appurtenances thereto, grounds, and facilities held out for the use of tenants generally and any other area or facility which is held out for use by the tenant.

(6) "Rental agreement" means all agreements which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit.

(7) A "single family residence" is a structure maintained and used as a single dwelling unit. Notwithstanding that a dwelling unit shares one or more walls with another dwelling unit, it shall be deemed a single family residence if it has direct access to a street and shares neither heating facilities nor hot water equipment, nor any other essential facility or service, with any other dwelling unit.

(8) A "tenant" is any person who is entitled to occupy a dwelling unit primarily for living or dwelling purposes under a rental agreement.

(9) "Reasonable attorney's fees", where authorized in this chapter, means an amount to be determined including the following factors: The time and labor required, the novelty and difficulty of the questions involved, the skill requisite to perform the legal service properly, the fee customarily charged in the locality for similar legal services, the amount involved and the results obtained, and the experience, reputation and ability of the lawyer or lawyers performing the services.

(10) "Gang" means a group that: (a) Consists of three or more persons; (b) has identifiable leadership or an identifiable name, sign, or symbol; and (c) on an ongoing basis, regularly conspires and acts in concert mainly for criminal purposes.

(11) "Gang-related activity" means any activity that occurs within the gang or advances a gang purpose.

Sec. 2. RCW 59.18.130 and 1992 c 38 s 2 are each amended to read as follows:

Each tenant shall pay the rental amount at such times and in such amounts as provided for in the rental agreement or as otherwise provided by law and comply with all obligations imposed upon tenants by applicable provisions of all municipal, county, and state codes, statutes, ordinances, and regulations, and in addition shall:

(1) Keep that part of the premises which he or she occupies and uses as clean and sanitary as the conditions of the premises permit;

(2) Properly dispose from his or her dwelling unit all rubbish, garbage, and other organic or flammable waste, in a clean and sanitary manner at reasonable and regular intervals, and assume all costs of extermination and fumigation for infestation caused by the tenant;

(3) Properly use and operate all electrical, gas, heating, plumbing and other fixtures and appliances supplied by the landlord;

(4) Not intentionally or negligently destroy, deface, damage, impair, or remove any part of the structure or dwelling, with the appurtenances thereto, including the facilities, equipment, furniture, furnishings, and appliances, or permit any member of his or her family, invitee, licensee, or any person acting under his or her control to do so. Violations may be prosecuted under chapter 9A.48 RCW if the destruction is intentional and malicious;

(5) Not permit a nuisance or common waste;

(6) Not engage in drug-related activity at the rental premises, or allow a subtenant, sublessee, resident, or anyone else to engage in drug-related activity at the rental premises with the knowledge or consent of the tenant. "Drug-related activity" means that activity which constitutes a violation of chapter 69.41, 69.50, or 69.52 RCW;

(7) Maintain the smoke detection device in accordance with the manufacturer's recommendations, including the replacement of batteries where required for the proper operation of the smoke detection device, as required in RCW 48.48.140(3);

(8) Not engage in any activity at the rental premises that is:

(a) Imminently hazardous to the physical safety of other persons on the premises; and

(b)(i) Entails physical assaults upon another person which result in an arrest; or

(ii) Entails the unlawful use of a firearm or other deadly weapon as defined in RCW 9A.04.110 which results in an arrest, including threatening another tenant or the landlord with a firearm or other deadly weapon under RCW 59.18.352. Nothing in this subsection (8) shall authorize the termination of tenancy and eviction of the victim of a physical assault or the victim of the use or threatened use of a firearm or other deadly weapon; ((and))

(9) Not engage in any gang-related activity at the premises, as defined in RCW 59.18.030, or allow another to engage in such activity at the premises, that renders people in at least two or more dwelling units or residences insecure in life or the use of property or that injures or endangers the safety or health of people in at least two or more dwelling units or residences. In determining whether a tenant is engaged in gang-related activity, a court should consider the totality of the circumstances, including factors such as whether there have been a significant number of complaints to the landlord about the tenant's activities at the property, damages done by the tenant to the property, including the property of other tenants or neighbors, harassment or threats made by the tenant to other tenants or neighbors that have been reported to law enforcement agencies, any police incident reports involving the tenant, and the tenant's criminal history; and

(10) Upon termination and vacation, restore the premises to their initial condition except for reasonable wear and tear or conditions caused by failure of the landlord to comply with his or her obligations under this chapter: PROVIDED, That the tenant shall not be charged for normal cleaning if he or she has paid a nonrefundable cleaning fee.

Sec. 3. RCW 59.18.180 and 1992 c 38 s 3 are each amended to read as follows:

(1) If the tenant fails to comply with any portion of RCW 59.18.130 or 59.18.140, and such noncompliance can substantially affect the health and safety of the tenant or other tenants, or substantially increase the hazards of fire or accident that can be remedied by repair, replacement of a damaged item, or cleaning, the tenant shall comply within thirty days after written notice by the landlord specifying the noncompliance, or, in the case of emergency as promptly as conditions require. If the tenant fails to remedy the noncompliance within that period the landlord may enter the dwelling unit and cause the work to be done and submit an itemized bill of the actual and reasonable cost of repair, to be payable on the next date when periodic rent is due, or on terms mutually agreed to by the landlord and tenant, or immediately if the rental agreement has terminated. Any substantial noncompliance by the tenant of RCW 59.18.130 or 59.18.140 shall constitute a ground for commencing an action in unlawful detainer in accordance with the provisions of chapter 59.12 RCW, and a landlord may commence such action at any time after written notice pursuant to such chapter. The tenant shall have a defense to an unlawful detainer action filed solely on this ground if it is determined at the hearing authorized under the provisions of chapter 59.12 RCW that the tenant is in substantial compliance with the provisions of this section, or if the tenant remedies the noncomplying condition within the thirty day period provided for above or any shorter period determined at the hearing to have been required because of an emergency: PROVIDED, That if the defective condition is remedied after the commencement of an unlawful detainer action, the tenant may be liable to the landlord for statutory costs and reasonable attorney's fees.

(2) If drug-related activity is alleged to be a basis for termination of tenancy under RCW 59.18.130(6), 59.12.030(5), or 59.20.140(5), the compliance provisions of this section do not apply and the landlord may proceed directly to an unlawful detainer action.

(3) If activity on the premises that creates an imminent hazard to the physical safety of other persons on the premises as defined in RCW 59.18.130(8) is alleged to be the basis for termination of the tenancy, and the tenant is arrested as a result of this activity, then the compliance provisions of this section do not apply and the landlord may proceed directly to an unlawful detainer action against the tenant who was arrested for this activity.

(4) If gang-related activity, as prohibited under RCW 59.18.130(9), is alleged to be the basis for termination of the tenancy, then the compliance provisions of this section do not apply and the landlord may proceed directly to an unlawful detainer action in accordance with chapter 59.12 RCW, and a landlord may commence such an action at any time after written notice under chapter 59.12 RCW.

(5) A landlord may not be held liable in any cause of action for bringing an unlawful detainer action against a tenant for drug-related activity ((or)), for creating an imminent hazard to the physical safety of others, or for engaging in gang-related activity that renders people in at least two or more dwelling units or residences insecure in life or the use of property or that injures or endangers the safety or health of people in at least two or more dwelling units or residences under this section, if the unlawful detainer action was brought in good faith. Nothing in this section shall affect a landlord's liability under RCW 59.18.380 to pay all damages sustained by the tenant should the writ of restitution be wrongfully sued out.

NEW SECTION. Sec. 4. A new section is added to chapter 59.18 RCW to read as follows:

The legislature finds and declares that the ability to feel safe and secure in one's own home and in one's own community is of primary importance. The legislature recognizes that certain gang-related activity can affect the safety of a considerable number of people in the rental premises and dwelling units. Therefore, such activity, although it may be occurring within an individual's home or the surrounding areas of an individual's home, becomes the community's concern.

The legislature intends that the remedy provided in section 5 of this act be used solely to protect the health and safety of the community. The remedy is not a means for private citizens to bring malicious or unfounded actions against fellow tenants or residential neighbors for personal reasons. In determining whether the tenant's activity is the type prohibited under RCW 59.18.130(9), the court should consider the totality of the circumstances, including factors such as whether there have been numerous complaints to the landlord, damage to property, police or incident reports, reports of disturbance, and arrests. An absence of any or all of these factors does not necessarily mean gang activity is not occurring. In determining whether the tenant is engaging in gang-related activity, the court should consider the purpose and intent of section 5 of this act. The legislature intends to give people in the community a tool that will help them restore the health and vibrance of their community.

NEW SECTION. Sec. 5. A new section is added to chapter 59.18 RCW to read as follows:

(1)(a) Any person whose life, safety, health, or use of property is being injured or endangered by a tenant's gang-related activity, who has legal standing and resides, works in, or owns property in the same multifamily building, apartment complex, or within a one-block radius may serve the landlord with a ten-day notice and demand that the landlord commence an unlawful detainer action against the tenant. The notice and demand must set forth, in reasonable detail, facts and circumstances that lead the person to believe gang-related activity is occurring. The notice and demand shall be served by delivering a copy personally to the landlord or the landlord's agent. If the person is unable to personally serve the landlord after exercising due diligence, the person may deposit the notice and demand in the mail, postage prepaid, to the landlord's or the landlord's agent's last known address.

(b) A copy of the notice and demand must also be served upon the tenant engaging in the gang-related activity by delivering a copy personally to the tenant. However, if the person is prevented from personally serving the tenant due to threats or violence, or if personal service is not reasonable under the circumstances, the person may deposit the notice and demand in the mail, postage prepaid, to the tenant's address, or leave a copy of the notice and demand in a conspicuous location at the tenant's residence.

(2)(a) Within ten days from the time the notice and demand is served, the landlord has a duty to take reasonable steps to investigate the tenant's alleged noncompliance with RCW 59.18.130(9). The landlord must notify the person who brought the notice and demand that an investigation is occurring. The landlord has ten days from the time he or she notifies the person in which to conduct a reasonable investigation.

(b) If, after reasonable investigation, the landlord finds that the tenant is not in compliance with RCW 59.18.130(9), the landlord may proceed directly to an unlawful detainer action or take reasonable steps to ensure the tenant discontinues the prohibited activity and complies with RCW 59.18.130(9). The landlord shall notify the person who served the notice and demand of whatever action the landlord takes.

(c) If, after reasonable investigation, the landlord finds that the tenant is in compliance with RCW 59.18.130(9), the landlord shall notify the person who served the notice and demand of the landlord's findings.

(3) The person who served the notice and demand may petition the appropriate court to have the tenancy terminated and the tenant removed from the premises if: (a) Within ten days of service of the notice and demand, the tenant fails to discontinue the gang-related activity and the landlord fails to conduct a reasonable investigation; or (b) the landlord notifies the person that the landlord conducted a reasonable investigation and found that the tenant was not engaged in gang-related activity as prohibited under RCW 59.18.130(9); or (c) the landlord took reasonable steps to have the tenant comply with RCW 59.18.130(9), but the tenant has failed to comply within a reasonable time.

(4) If the court finds that the tenant was not in compliance with RCW 59.18.130(9), the court shall enter an order terminating the tenancy and requiring the tenant to vacate the premises. The court shall not issue the order terminating the tenancy unless it has found that the allegations of gang-related activity are corroborated by a source other than the person who has petitioned the court.

(5) The prevailing party shall recover reasonable attorneys' fees and costs. The court may impose sanctions, in addition to attorneys' fees, on a person who has brought an action under this chapter against the same tenant on more than one occasion, if the court finds the petition was brought with the intent to harass. However, the court must order the landlord to pay costs and reasonable attorneys' fees to the person petitioning for termination of the tenancy if the court finds that the landlord failed to comply with the duty to investigate, regardless of which party prevails.

Sec. 6. RCW 59.12.030 and 1983 c 264 s 1 are each amended to read as follows:

A tenant of real property for a term less than life is guilty of unlawful detainer either:

(1) When he or she holds over or continues in possession, in person or by subtenant, of the property or any part thereof after the expiration of the term for which it is let to him or her. When real property is leased for a specified term or period by express or implied contract, whether written or oral, the tenancy shall be terminated without notice at the expiration of the specified term or period;

(2) When he or she, having leased property for an indefinite time with monthly or other periodic rent reserved, continues in possession thereof, in person or by subtenant, after the end of any such month or period, when the landlord, more than twenty days prior to the end of such month or period, has served notice (in manner in RCW 59.12.040 provided) requiring him or her to quit the premises at the expiration of such month or period;

(3) When he or she continues in possession in person or by subtenant after a default in the payment of rent, and after notice in writing requiring in the alternative the payment of the rent or the surrender of the detained premises, served (in manner in RCW 59.12.040 provided) in behalf of the person entitled to the rent upon the person owing it, has remained uncomplied with for the period of three days after service thereof. The notice may be served at any time after the rent becomes due;

(4) When he or she continues in possession in person or by subtenant after a neglect or failure to keep or perform any other condition or covenant of the lease or agreement under which the property is held, including any covenant not to assign or sublet, than one for the payment of rent, and after notice in writing requiring in the alternative the performance of such condition or covenant or the surrender of the property, served (in manner in RCW 59.12.040 provided) upon him or her, and if there is a subtenant in actual possession of the premises, also upon such subtenant, shall remain uncomplied with for ten days after service thereof. Within ten days after the service of such notice the tenant, or any subtenant in actual occupation of the premises, or any mortgagee of the term, or other person interested in its continuance, may perform such condition or covenant and thereby save the lease from such forfeiture;

(5) When he or she commits or permits waste upon the demised premises, or when he or she sets up or carries on thereon any unlawful business, or when he or she erects, suffers, permits, or maintains on or about the premises any nuisance, and remains in possession after the service (in manner in RCW 59.12.040 provided) upon him or her of three days' notice to quit; ((or))

(6) A person who, without the permission of the owner and without having color of title thereto, enters upon land of another and who fails or refuses to remove therefrom after three days' notice, in writing and served upon him or her in the manner provided in RCW 59.12.040. Such person may also be subject to the criminal provisions of chapter 9A.52 RCW; or

(7) When he or she commits or permits any gang-related activity at the premises as prohibited by RCW 59.18.130."

On page 1, line 1 of the title, after "relations;" strike the remainder of the title and insert "amending sRCW 59.18.030, 59.18.130, 59.18.180, and 59.12.030; and adding new sections to chapter 59.18 RCW."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 1223 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1223 as amended by the Senate.

Representatives Carrell and Costa spoke in favor of final passage of the bill.

MOTION

On motion of Representative Wensman, Representative Clements was excused.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1223 as amended by the Senate and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 97.

Excused: Representative Clements - 1.

Engrossed Substitute House Bill No. 1223, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Second Substitute House Bill No. 1374 with the following amendment(s)

On page 5, after line 2, strike all material down to and including "immediately." on line 6

Renumber the remaining section consecutively.

On page 1, line 3 of the title, after "RCW;" insert "and"

On page 1, line 3 of the title, strike "; and declaring an emergency"

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1374 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 1374 as amended by the Senate.

Representatives Smith and Cole spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1374 as amended by the Senate and the bill passed the House by the following vote: Yeas - 87, Nays - 10, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Constantine, Cooke, Costa, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 87.

Voting nay: Representatives Bush, Cody, Cole, Conway, Cooper, Dickerson, Dunshee, McCune, Murray and Tokuda - 10.

Excused: Representative Clements - 1.

Engrossed Second Substitute House Bill No. 1374, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Substitute House Bill No. 1692 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 79.90.465 and 1984 c 221 s 4 are each amended to read as follows:

The definitions in this section apply throughout chapters 79.90 through 79.96 RCW.

(1) "Water-dependent use" means a use which cannot logically exist in any location but on the water. Examples include, but are not limited to, water-borne commerce; terminal and transfer facilities; ferry terminals; watercraft sales in conjunction with other water-dependent uses; watercraft construction, repair, and maintenance; moorage and launching facilities; aquaculture; log booming; and public fishing piers and parks.

(2) "Water-oriented use" means a use which historically has been dependent on a waterfront location, but with existing technology could be located away from the waterfront. Examples include, but are not limited to, wood products manufacturing, watercraft sales, fish processing, petroleum refining, sand and gravel processing, log storage, and house boats. For the purposes of determining rent under this chapter, water-oriented uses shall be classified as water-dependent uses if the activity either is conducted on state-owned aquatic lands leased on October 1, 1984, or was actually conducted on the state-owned aquatic lands for at least three years before October 1, 1984. If, after October 1, 1984, the activity is changed to a use other than a water-dependent use, the activity shall be classified as a nonwater-dependent use. If continuation of the existing use requires leasing additional state-owned aquatic lands and is permitted under the shoreline management act of 1971, chapter 90.58 RCW, the department may allow reasonable expansion of the water-oriented use.

(3) "Nonwater-dependent use" means a use which can operate in a location other than on the waterfront. Examples include, but are not limited to, hotels, condominiums, apartments, restaurants, retail stores, and warehouses not part of a marine terminal or transfer facility.

(4) "Log storage" means the water storage of logs in rafts or otherwise prepared for shipment in water-borne commerce, but does not include the temporary holding of logs to be taken directly into a vessel or processing facility.

(5) "Log booming" means placing logs into and taking them out of the water, assembling and disassembling log rafts before or after their movement in water-borne commerce, related handling and sorting activities taking place in the water, and the temporary holding of logs to be taken directly into a processing facility. "Log booming" does not include the temporary holding of logs to be taken directly into a vessel.

(6) "Department" means the department of natural resources.

(7) "Port district" means a port district created under Title 53 RCW.

(8) The "real rate of return" means the average for the most recent ten calendar years of the average rate of return on conventional real property mortgages as reported by the federal home loan bank board or any successor agency, minus the average inflation rate for the most recent ten calendar years.

(9) The "inflation rate" for a given year is the percentage rate of change in the previous calendar year's all commodity producer price index of the bureau of labor statistics of the United States department of commerce. If the index ceases to be published, the department shall designate by rule a comparable substitute index.

(10) "Public utility lines" means pipes, conduits, and similar facilities for distribution of water, electricity, natural gas, telephone, other electronic communication, and sewers, including sewer outfall lines.

(11) "Terminal" means a point of interchange between land and water carriers, such as a pier, wharf, or group of such, equipped with facilities for care and handling of cargo and/or passengers.

(12) "State-owned aquatic lands" means those aquatic lands and waterways administered by the department of natural resources or managed under RCW 79.90.475 by a port district. "State-owned aquatic lands" does not include aquatic lands owned in fee by, or withdrawn for the use of, state agencies other than the department of natural resources.

(13) "City" means a city or town created under Title 35 or 35A RCW.

(14) "Marina" means a waterfront facility that provides moorage for recreation vessels, charter vessels, commercial fishing vessels, and water-based aircraft. A marina facility may include fuel docks and associated chandlery activities designed to serve recreational vessels, charter vessels, commercial fishing vessels, and water-based aircraft.

Sec. 2. RCW 79.90.475 and 1984 c 221 s 6 are each amended to read as follows:

Upon request of a port district, the department and port district may enter into an agreement authorizing the port district to manage state-owned aquatic lands ((abutting or used in conjunction with and contiguous to uplands owned, leased, or otherwise managed by a port district,)) for port purposes as provided in Title 53 RCW. The lands that may be included in a port district aquatic lands management agreement are those state-owned aquatic lands abutting or used in conjunction with and contiguous to uplands owned, leased, or otherwise managed by a port district. If a port district owns or operates a public marina facility within a bay where the distance between the headlands at the entrance to the bay is two miles or less, the state-owned aquatic lands beneath the marina facility shall also be eligible for management by the port district under a management agreement.

((Such)) A port district aquatic lands management agreement shall include, but not be limited to, provisions defining the specific area to be managed, the term, conditions of occupancy, reservations, periodic review, and other conditions to ensure consistency with the state Constitution and the policies of this chapter. If a port district acquires operating management, lease, or ownership of real property which abuts state-owned aquatic lands currently under lease from the state to a person other than the port district, the port district shall manage such aquatic lands if: (1) The port district acquires the leasehold interest in accordance with state law, or (2) the current lessee and the department agree to termination of the current lease to accommodate management by the port. The administration of aquatic lands covered by a port district aquatic lands management agreement shall be consistent with the aquatic land policies of chapters 79.90 through 79.96 RCW and the implementing ((regulations)) rules adopted by the department. The administrative procedures for management of the lands shall be those of Title 53 RCW.

No rent shall be due the state for the use of state-owned aquatic lands managed under this section for water-dependent or water-oriented uses. If a port district manages state-owned aquatic lands under this section and either leases or otherwise permits any person to use such lands, the rental fee attributable to such aquatic land only shall be comparable to the rent charged lessees for the same or similar uses by the department: PROVIDED, That a port district need not itemize for the lessee any charges for state-owned aquatic lands improved by the port district for use by carriers by water. If a port leases state-owned aquatic lands to any person for nonwater-dependent use, eighty-five percent of the revenue attributable to the rent of the state-owned aquatic land only shall be paid to the state.

Upon application for a management agreement, and so long as the application is pending and being diligently pursued, no rent shall be due the department for the lease by the port district of state-owned aquatic lands included within the application for water-dependent or water-oriented uses.

The department and representatives of the port industry shall develop a proposed model management agreement which shall be used as the basis for negotiating the management agreements required by this section. The model management agreement shall be reviewed and approved by the board of natural resources.

NEW SECTION. Sec. 3. A new section is added to chapter 79.90 RCW to read as follows:

(1) Upon request of a city, the department and city may enter into an agreement authorizing the city to manage state-owned aquatic lands for the purpose of operating a publicly owned marina. The lands that may be included in a city aquatic lands management agreement are those state-owned aquatic lands abutting or used in conjunction with and contiguous to uplands owned, leased, or otherwise managed by a city. All state-owned aquatic lands beneath any publicly owned marina developed or maintained by a city are eligible for management by the city under a management agreement.

A city aquatic lands management agreement shall include, but not be limited to, provisions defining the specific area to be managed, the term, conditions of occupancy, reservations, periodic review, and other conditions to ensure consistency with the state Constitution and the policies of this chapter. If a city acquires operating management, lease, or ownership of real property that abuts state-owned aquatic lands currently under lease from the state to a person other than the city, the city shall manage the aquatic lands if: (a) The city acquires the leasehold interest in accordance with state law, or (b) the current lessee and the department agree to termination of the current lease to accommodate management by the city. The administration of aquatic lands covered by a city aquatic lands management agreement shall be consistent with the aquatic land policies of chapters 79.90 through 79.96 RCW and the implementing rules adopted by the department. The administrative procedures for management of the lands shall be those of Title 35 or 35A RCW, whichever is appropriate.

No rent is due the state for the use of state-owned aquatic lands managed under this section for water-dependent or water-oriented uses. If a city manages state-owned aquatic lands under this section and either leases or otherwise permits any person to use the lands, the rental fee attributable to the aquatic land only shall be comparable to the rent charged lessees for the same or similar uses by the department. If a city leases state-owned aquatic lands to any person for nonwater-dependent use, eighty-five percent of the revenue attributable to the rent of the state-owned aquatic land only shall be paid to the state.

Upon application for a management agreement, and so long as the application is pending and being diligently pursued, no rent is due the department for the lease by the city of state-owned aquatic lands included within the application for water-dependent or water-oriented uses.

The department and representatives of the association of Washington cities shall develop a proposed model management agreement that shall be used as the basis for negotiating the management agreements required by this section. The model management agreement shall be reviewed and approved by the board of natural resources.

(2) A city that operates a publicly owned marina within the territorial limits of a port district shall obtain the approval of the port commission prior to applying to the department for a management agreement. A city with marina facilities in existence on the effective date of this act may enter into a management agreement for those facilities without port commission approval.

Sec. 4. RCW 79.90.520 and 1991 c 64 s 1 are each amended to read as follows:

The manager shall, by rule, provide for an administrative review of any aquatic land rent proposed to be charged. The rules shall require that the lessee or applicant for release file a request for review within thirty days after the manager has notified the lessee or applicant of the rent due. For leases issued by the department, the final authority for the review rests with the board of natural resources. For leases managed under RCW 79.90.475, the final authority for the review rests with the appropriate port commission. For leases managed under section 3 of this act, the final authority for the review rests with the appropriate city legislative authority. If the request for review is made within thirty days after the manager's final determination as to the rental, the lessee may pay rent at the preceding year's rate pending completion of the review, and shall pay any additional rent or be entitled to a refund, with interest thirty days after announcement of the decision. The interest rate shall be fixed, from time to time, by rule adopted by the board of natural resources and shall not be less than six percent per annum. Nothing in this section abrogates the right of an aggrieved party to pursue legal remedies. For purposes of this section, "manager" is the department except where state-owned aquatic lands are managed by a port district or a city, in which case "manager" is the appropriate port district or city.

Sec. 5. RCW 79.93.040 and 1984 c 221 s 21 are each amended to read as follows:

If the United States government has established pierhead lines within a waterway created under the laws of this state at any distance from the boundaries established by the state, structures may be constructed in that strip of waterway between the waterway boundary and the nearest pierhead line only with the consent of the department of natural resources and upon such plans, terms, and conditions and for such term as determined by the department. However, no permit shall extend for a period longer than thirty years.

The department may cancel any permit upon sixty days' notice for a substantial breach by the permittee of any of the permit conditions.

If a waterway is within the territorial limits of a port district, the duties assigned by this section to the department may be exercised by the port commission of such port district as provided in RCW 79.90.475. If a waterway is within the territorial limits of a city, the duties assigned by this section to the department may be exercised by the city as provided in section 3 of this act.

Nothing in this section shall confer upon, create, or recognize in any abutting owner any right or privilege in or to any strip of waterway abutting any street and between prolongations of the lines of such street, but the control of and the right to use such strip is hereby reserved to the state of Washington, except as authorized by RCW 79.90.475 and section 3 of this act."

On page 1, line 1 of the title, after "lands;" strike the remainder of the title and insert "amending RCW 79.90.465, 79.90.475, 79.90.520, and 79.93.040; and adding a new section to chapter 79.90 RCW."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1692 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 1692 as amended by the Senate.

Representatives Sehlin and Ogden spoke in favor of final passage of the bill.

MOTION

On motion of Representative Wood, Representative Eickmeyeer was excused.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1692 as amended by the Senate and the bill passed the House by the following vote: Yeas - 95, Nays - 2, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 95.

Voting nay: Representatives Constantine and Poulsen - 2.

Excused: Representative Eickmeyer - 1.

Substitute House Bill No. 1692, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Second Substitute House Bill No. 2345 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 34.05.230 and 1997 c 409 s 202 are each amended to read as follows:

(1) ((An agency may file notice for the expedited adoption of rules in accordance with the procedures set forth in this section for rules meeting any one of the following criteria:

(a) The proposed rules relate only to internal governmental operations that are not subject to violation by a person;

(b) The proposed rules adopt or incorporate by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of state-wide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;

(c) The proposed rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;

(d) The content of the proposed rules is explicitly and specifically dictated by statute;

(e) The proposed rules have been the subject of negotiated rule making, pilot rule making, or some other process that involved substantial participation by interested parties before the development of the proposed rule; or

(f) The proposed rule is being amended after a review under RCW 34.05.328 or section 210 of this act.

(2) The expedited rule-making process must follow the requirements for rule making set forth in RCW 34.05.320, except that the agency is not required to prepare a small business economic impact statement under RCW 19.85.025, a statement indicating whether the rule constitutes a significant legislative rule under RCW 34.05.328(5)(c)(iii), or a significant legislative rule analysis under RCW 34.05.328. An agency is not required to prepare statements of inquiry under RCW 34.05.310 or conduct a hearing for the expedited adoption of rules. The notice for the expedited adoption of rules must contain a statement in at least ten-point type, that is substantially in the following form:

NOTICE

THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO (INSERT NAME AND ADDRESS) AND RECEIVED BY (INSERT DATE).

(3) The agency shall send a copy of the notice of the proposed expedited rule making to any person who has requested notification of proposals for the expedited adoption of rules or of agency rule making, as well as the joint administrative rules review committee, within three days after its publication in the Washington State Register. An agency may charge for the actual cost of providing a requesting party mailed copies of these notices. The notice of the proposed expedited rule making must be preceded by a statement substantially in the form provided in subsection (2) of this section. The notice must also include an explanation of the reasons the agency believes the expedited adoption of the rule is appropriate.

(4) The code reviser shall publish the text of all rules proposed for expedited adoption along with the notice required in this section in a separate section of the Washington State Register. Once the text of the proposed rules has been published in the Washington State Register, the only changes that an agency may make in the text of these proposed rules before their final adoption are to correct typographical errors.

(5) Any person may file a written objection to the expedited adoption of a rule. The objection must be filed with the agency rules coordinator within forty-five days after the notice of the proposed expedited rule making has been published in the Washington State Register. A person who has filed a written objection to the expedited adoption of a rule may withdraw the objection.

(6) If no written objections to the expedited adoption of a rule are filed with the agency within forty-five days after the notice of proposed expedited rule making is published, or if all objections that have been filed are withdrawn by the persons filing the objections, the agency may enter an order adopting the rule without further notice or a public hearing. The order must be published in the manner required by this chapter for any other agency order adopting, amending, or repealing a rule.

(7) If a written notice of objection to the expedited adoption of the rule is timely filed with the agency and is not withdrawn, the notice of proposed expedited rule making published under this section is considered a statement of inquiry for the purposes of RCW 34.05.310, and the agency may initiate further rule adoption proceedings in accordance with this chapter.

(8) Subsections (1) through (8) of this section expire on December 31, 2000.

an [An] agency is encouraged to advise the public of its current opinions, approaches, and likely courses of action by means of interpretive or policy statements. Current)) Interpretive and policy statements or their equivalents, regardless of title, are advisory only. To better inform and involve the public, ((an)) each agency is encouraged to convert long-standing interpretive and policy statements into rules.

(2) A person may petition an agency requesting the conversion of interpretive and policy statements into rules. Upon submission, the agency shall notify the joint administrative rules review committee of the petition. Within sixty days after submission of a petition, the agency shall either deny the petition in writing, stating its reasons for the denial, or initiate rule-making proceedings in accordance with this chapter.

(((11))) (3) Each agency shall maintain a roster of interested persons, consisting of persons who have requested in writing to be notified of all interpretive and policy statements issued by that agency. Each agency shall update the roster once each year and eliminate persons who do not indicate a desire to continue on the roster. Whenever an agency issues an interpretive or policy statement, it shall send a copy of the statement to each person listed on the roster. The agency may charge a nominal fee to the interested person for this service.

(((12))) (4) Whenever an agency issues an interpretive or policy statement, it shall submit to the code reviser for publication in the Washington State Register a statement describing the subject matter of the interpretive or policy statement, and listing the person at the agency from whom a copy of the interpretive or policy statement may be obtained.

(5) When a person requests a copy of a rule from an agency, the agency shall identify any associated interpretive or policy statements, guidelines, documents of general applicability, or their equivalents, and provide copies of the statements upon request.

(6) Within two hundred days after an agency issues a policy or interpretative statement, guideline, document of general applicability, or its equivalent involving an issue, the violation of which can result in a citation, civil penalty, assessment, or other sanction to a business, the agency shall make a good faith effort to notify businesses affected by the statement, guideline, or document and how to obtain technical assistance to comply. For purposes of this section, "good faith" means: (a) The agency at least notifies businesses in the standard industrial classifications or their successor affected by the statement, guideline, or document that are registered with the department of revenue; or (b) for a statement, guideline, or document that applies only to persons or firms that are licensed, registered, or operate under a permit, the agency notifies those persons or firms holding the license, registration, or permit. Inadvertent failure to notify a specific business under this section does not invalidate a rule.

NEW SECTION. Sec. 2. A new section is added to chapter 34.05 RCW to read as follows:

(1) An agency may file notice for the expedited adoption of rules in accordance with the procedures set forth in this section for rules meeting any one of the following criteria:

(a) The proposed rules relate only to internal governmental operations that are not subject to violation by a person;

(c) The proposed rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;

(d) The content of the proposed rules is explicitly and specifically dictated by statute;

(f) The proposed rule is being amended after a review under RCW 34.05.328.

(2) The expedited rule-making process must follow the requirements for rule making set forth in RCW 34.05.320, except that the agency is not required to prepare a small business economic impact statement under RCW 19.85.025, a statement indicating whether the rule constitutes a significant legislative rule under RCW 34.05.328(6)(c)(iii), or a significant legislative rule analysis under RCW 34.05.328. An agency is not required to prepare statements of inquiry under RCW 34.05.310 or conduct a hearing for the expedited adoption of rules. The notice for the expedited adoption of rules must contain a statement in at least ten-point type, that is substantially in the following form:

NOTICE

(8) This section expires December 31, 2000.

Sec. 3. RCW 34.05.328 and 1997 c 430 s 1 are each amended to read as follows:

(1) Before adopting a rule described in subsection (((5))) (6) of this section, an agency shall:

(a) Clearly state in detail the general goals and specific objectives of the statute that the rule implements;

(b) Determine that the rule is needed to achieve the general goals and specific objectives stated under (a) of this subsection, and analyze alternatives to rule making and the consequences of not adopting the rule;

(c) Determine that the probable benefits of the rule are greater than its probable costs, taking into account both the qualitative and quantitative benefits and costs and the specific directives of the statute being implemented;

(d) Determine, after considering alternative versions of the rule and the analysis required under (b) and (c) of this subsection, that the rule being adopted is the least burdensome alternative for those required to comply with it that will achieve the general goals and specific objectives stated under (a) of this subsection;

(e) Determine that the rule does not require those to whom it applies to take an action that violates requirements of another federal or state law;

(f) Determine that the rule does not impose more stringent performance requirements on private entities than on public entities unless required to do so by federal or state law;

(g) Determine if the rule differs from any federal regulation or statute applicable to the same activity or subject matter and, if so, determine that the difference is justified by the following:

(i) A state statute that explicitly allows the agency to differ from federal standards; or

(ii) Substantial evidence that the difference is necessary to achieve the general goals and specific objectives stated under (a) of this subsection; and

(h) Coordinate the rule, to the maximum extent practicable, with other federal, state, and local laws applicable to the same activity or subject matter.

(2) In making its determinations pursuant to subsection (1)(b) through (g) of this section, the agency shall place in the rule-making file documentation of sufficient quantity and quality so as to persuade a reasonable person that the determinations are justified.

(3) Before adopting rules described in subsection (((5))) (6) of this section, an agency shall place in the rule-making file a rule implementation plan for rules filed under each adopting order. The plan shall describe how the agency ((intends to)) will:

(a) Implement and enforce the rule, including a description of the resources the agency intends to use;

(b) Inform and educate affected persons about the rule;

(d) Evaluate whether the rule achieves the purpose for which it was adopted, including, to the maximum extent practicable, the use of interim milestones to assess progress and the use of objectively measurable outcomes; and

(e) Provide appropriate training to agency personnel.

(4) At least twenty days before the effective date of a rule described in subsection (6) of this section, the agency is encouraged to convene a meeting of interested persons affected by the rule to identify ambiguities and problem areas in the rule and determine how to resolve the ambiguities and problem areas. If the agency convenes such a meeting, the agency shall include the meeting in the plan described under subsection (3) of this section.

(5) After adopting a rule described in subsection (((5))) (6) of this section regulating the same activity or subject matter as another provision of federal or state law, an agency shall do all of the following:

(a) Provide to the ((business assistance center)) department of community, trade, and economic development a list citing by reference the other federal and state laws that regulate the same activity or subject matter;

(b) Coordinate implementation and enforcement of the rule with the other federal and state entities regulating the same activity or subject matter by making every effort to do one or more of the following:

(i) Deferring to the other entity;

(ii) Designating a lead agency; or

(iii) Entering into an agreement with the other entities specifying how the agency and entities will coordinate implementation and enforcement.

If the agency is unable to comply with this subsection (((4))) (5)(b), the agency shall report to the legislature pursuant to (c) of this subsection;

(i) The existence of any overlap or duplication of other federal or state laws, any differences from federal law, and any known overlap, duplication, or conflict with local laws; and

(ii) Make recommendations for any legislation that may be necessary to eliminate or mitigate any adverse effects of such overlap, duplication, or difference.

(((5))) (6)(a) Except as provided in (b) of this subsection, this section applies to:

(i) Significant legislative rules of the departments of ecology, labor and industries, health, revenue, social and health services, and natural resources, the employment security department, the forest practices board, the office of the insurance commissioner, and to the legislative rules of the department of fish and wildlife implementing chapter 75.20 RCW; and

(ii) Any rule of any agency, if this section is voluntarily made applicable to the rule by the agency, or is made applicable to the rule by a majority vote of the joint administrative rules review committee within ((forty-five)) seventy-five days of receiving the notice of proposed rule making under RCW 34.05.320.

(b) This section does not apply to:

(i) Emergency rules adopted under RCW 34.05.350;

(ii) Rules relating only to internal governmental operations that are not subject to violation by a nongovernment party;

(iii) Rules adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of state-wide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;

(iv) Rules that only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;

(v) Rules the content of which is explicitly and specifically dictated by statute;

(vi) Rules that set or adjust fees or rates pursuant to legislative standards; or

(vii) Rules of the department of social and health services relating only to client medical or financial eligibility and rules concerning liability for care of dependents.

(i) A "procedural rule" is a rule that adopts, amends, or repeals (A) any procedure, practice, or requirement relating to any agency hearings; (B) any filing or related process requirement for making application to an agency for a license or permit; or (C) any policy statement pertaining to the consistent internal operations of an agency.

(ii) An "interpretive rule" is a rule, the violation of which does not subject a person to a penalty or sanction, that sets forth the agency̓s interpretation of statutory provisions it administers.

(iii) A "significant legislative rule" is a rule other than a procedural or interpretive rule that (A) adopts substantive provisions of law pursuant to delegated legislative authority, the violation of which subjects a violator of such rule to a penalty or sanction; (B) establishes, alters, or revokes any qualification or standard for the issuance, suspension, or revocation of a license or permit; or (C) adopts a new, or makes significant amendments to, a policy or regulatory program.

(d) In the notice of proposed rule making under RCW 34.05.320, an agency shall state whether this section applies to the proposed rule pursuant to (a)(i) of this subsection, or if the agency will apply this section voluntarily.

(((6))) (7) By January 31, 1996, and by January 31st of each even-numbered year thereafter, the office of financial management, after consulting with state agencies, counties, and cities, and business, labor, and environmental organizations, shall report to the governor and the legislature regarding the effects of this section on the regulatory system in this state. The report shall document:

(a) The rules proposed to which this section applied and to the extent possible, how compliance with this section affected the substance of the rule, if any, that the agency ultimately adopted;

(b) The costs incurred by state agencies in complying with this section;

(c) Any legal action maintained based upon the alleged failure of any agency to comply with this section, the costs to the state of such action, and the result;

(d) The extent to which this section has adversely affected the capacity of agencies to fulfill their legislatively prescribed mission;

(e) The extent to which this section has improved the acceptability of state rules to those regulated; and

(f) Any other information considered by the office of financial management to be useful in evaluating the effect of this section.

NEW SECTION. Sec. 4. A new section is added to chapter 34.05 RCW to read as follows:

Within two hundred days after the effective date of a rule that imposes additional requirements on businesses the violation of which subjects a person to a penalty, assessment, or administrative sanction, an agency shall make a good faith effort to notify businesses affected by the rule of the requirements of the rule and how to obtain technical assistance to comply. For purposes of this section, "good faith" means: (1) The agency at least notifies businesses in the standard industrial classifications or their successor identified in the rule-making file as businesses affected by the rule that are registered with the department of revenue; or (2) for rules imposing additional requirements only on persons or firms licensed, registered, or operating under a permit, the agency notifies those persons or firms holding the license, registration, or permit. Inadvertent failure to notify a specific business under this section does not invalidate a rule.

Sec. 5. RCW 34.05.330 and 1996 c 318 s 1 are each amended to read as follows:

(1) Any person may petition an agency requesting the adoption, amendment, or repeal of any rule. The office of financial management shall prescribe by rule the format for such petitions and the procedure for their submission, consideration, and disposition and provide a standard form that may be used to petition any agency. Within sixty days after submission of a petition, the agency shall either (a) deny the petition in writing, stating (i) its reasons for the denial, specifically addressing the concerns raised by the petitioner, and, where appropriate, (ii) the alternative means by which it will address the concerns raised by the petitioner, or (b) initiate rule-making proceedings in accordance with ((this chapter)) RCW 34.05.320.

(2) If an agency denies a petition to repeal or amend a rule submitted under subsection (1) of this section, and the petition alleges that the rule is not within the intent of the legislature or was not adopted in accordance with all applicable provisions of law, the person may petition for review of the rule by the joint administrative rules review committee under RCW 34.05.655.

(3) If an agency denies a petition to repeal or amend a rule submitted under subsection (1) of this section, the petitioner, within thirty days of the denial, may appeal the denial to the governor. The governor shall immediately file notice of the appeal with the code reviser for publication in the Washington state register. Within forty-five days after receiving the appeal, the governor shall either (a) deny the petition in writing, stating (i) his or her reasons for the denial, specifically addressing the concerns raised by the petitioner, and, (ii) where appropriate, the alternative means by which he or she will address the concerns raised by the petitioner; (b) for agencies listed in RCW 43.17.010, direct the agency to initiate rule-making proceedings in accordance with this chapter; or (c) for agencies not listed in RCW 43.17.010, recommend that the agency initiate rule-making proceedings in accordance with this chapter. The governor's response to the appeal shall be published in the Washington state register and copies shall be submitted to the chief clerk of the house of representatives and the secretary of the senate.

(4) In petitioning for repeal or amendment of a rule under this section, a person is encouraged to address, among other concerns:

(a) Whether the rule is authorized;

(b) Whether the rule is needed;

(d) Whether alternatives to the rule exist that will serve the same purpose at less cost;

(e) Whether the rule applies differently to public and private entities;

(f) Whether the rule serves the purposes for which it was adopted;

(g) Whether the costs imposed by the rule are unreasonable;

(h) Whether the rule is clearly and simply stated;

(i) Whether the rule is different than a federal law applicable to the same activity or subject matter without adequate justification; and

(j) Whether the rule was adopted according to all applicable provisions of law.

(5) The ((business assistance center)) department of community, trade, and economic development and the office of financial management shall coordinate efforts among agencies to inform the public about the existence of this rules review process.

(6) The office of financial management shall initiate the rule making required by subsection (1) of this section by September 1, 1995.

Sec. 6. RCW 34.05.354 and 1997 c 409 s 208 are each amended to read as follows:

(1) ((Not later than April 1st or October 1st of each year, each agency shall submit to the code reviser, according to procedures and time lines established by the code reviser, rules that it determines should be repealed by the expedited repeal procedures provided for in this section. An agency shall file a copy of a preproposal notice of inquiry, as provided in RCW 34.05.310(1), that identifies the rule as one that is proposed for expedited repeal.

(2))) An agency may ((propose)) file notice for the expedited repeal of rules under the procedures set forth in this section for rules meeting any one ((or more)) of the following criteria:

(a) The statute on which the rule is based has been repealed and has not been replaced by another statute providing statutory authority for the rule;

(b) The statute on which the rule is based has been declared unconstitutional by a court with jurisdiction, there is a final judgment, and no statute has been enacted to replace the unconstitutional statute;

(d) Other rules of the agency or of another agency govern the same activity as the rule, making the rule redundant.

(((3))) (2) An agency shall file a copy of a preproposal notice of inquiry, as provided in RCW 34.05.310(1), that identifies the rule as one that is proposed for expedited repeal. The agency shall also send a copy of the preproposal notice of inquiry to any person who has requested notification of copies of proposals for the expedited repeal of rules or of agency rule making. The preproposal notice of inquiry shall include a statement that any person who objects to the repeal of the rule must file a written objection to the repeal within thirty days after the preproposal notice of inquiry is published. The notice of inquiry shall also include an explanation of the reasons the agency believes the expedited repeal of the rule is appropriate.

(((4))) (3) The code reviser shall publish all rules proposed for expedited repeal in a separate section of ((a regular edition of)) the Washington state register ((or in a special edition of the Washington state register. The publication shall be not later than May 31st or November 30th of each year, or in the first register published after that date)).

(((5))) (4) Any person may file a written objection to the expedited repeal of a rule. The notice shall be filed with the agency rules coordinator within thirty days after the notice of inquiry has been published in the Washington state register. The written objection need not state any reason for objecting to the expedited repeal of the rule.

(((6))) (5) If no written objections to the expedited repeal of a rule are filed with the agency within thirty days after the preproposal notice of inquiry is published, the agency may enter an order repealing the rule without further notice or an opportunity for a public hearing. The order shall be published in the manner required by this chapter for any other order of the agency adopting, amending, or repealing a rule. If a written objection to the expedited repeal of the rule is filed with the agency within thirty days after the notice of inquiry has been published, the preproposal notice of inquiry published pursuant to this section shall be considered a preproposal notice of inquiry for the purposes of RCW 34.05.310(1) and the agency may initiate rule adoption proceedings in accordance with the provisions of this chapter.

Sec. 7. RCW 34.05.370 and 1996 c 102 s 2 are each amended to read as follows:

(1) Each agency shall maintain an official rule-making file for each rule that it (a) proposes by publication in the state register, or (b) adopts. The file and materials incorporated by reference shall be available for public inspection.

(2) The agency rule-making file shall contain all of the following:

(a) ((Copies of all publications)) A list of citations to all notices in the state register with respect to the rule or the proceeding upon which the rule is based;

(b) Copies of any portions of the agency's public rule-making docket containing entries relating to the rule or the proceeding on which the rule is based;

(c) All written petitions, requests, submissions, and comments received by the agency and all other written material regarded by the agency as important to adoption of the rule or the proceeding on which the rule is based;

(d) Any official transcript of oral presentations made in the proceeding on which the rule is based or, if not transcribed, any tape recording or stenographic record of them, and any memorandum prepared by a presiding official summarizing the contents of those presentations;

(e) All petitions for exceptions to, amendment of, or repeal or suspension of, the rule;

(f) Citations to data, factual information, studies, or reports on which the agency relies in the adoption of the rule, indicating where such data, factual information, studies, or reports are available for review by the public, but this subsection (2)(f) does not require the agency to include in the rule-making file any data, factual information, studies, or reports gathered pursuant to chapter 19.85 RCW or RCW 34.05.328 that can be identified to a particular business;

(g) The concise explanatory statement required by RCW 34.05.325(6); and

(h) Any other material placed in the file by the agency.

(3) Internal agency documents are exempt from inclusion in the rule-making file under subsection (2) of this section to the extent they constitute preliminary drafts, notes, recommendations, and intra-agency memoranda in which opinions are expressed or policies formulated or recommended, except that a specific document is not exempt from inclusion when it is publicly cited by an agency in connection with its decision.

(4) Upon judicial review, the file required by this section constitutes the official agency rule-making file with respect to that rule. Unless otherwise required by another provision of law, the official agency rule-making file need not be the exclusive basis for agency action on that rule.

NEW SECTION. Sec. 8. A new section is added to chapter 34.05 RCW to read as follows:

(1) The legislature finds that under the governor's Executive Order 97-02, agencies have begun systematic reviews of existing rules and have eliminated some unnecessary rules and improved clarity for other rules.

(2) Effective July 1, 2001, each state agency shall review its rules that have significant effects on businesses, labor, consumers, and the environment. Agencies shall establish a rules review schedule that allows each rule filing under the criteria of this section to be reviewed every seven years. Agencies shall determine if their rules should be (a) retained in their current form, or (b) amended or repealed, if they do not meet the review criteria specified in this section. Agencies shall concentrate their regulatory review on rules or portions of a rule that have been the subject of petitions filed under RCW 34.05.330 or have been the source of complaints, concerns, or other difficulties that relate to matters other than the specific mandates of the statute on which the rule is based. Agencies that have already established regulatory review processes shall make them consistent with the requirements of this section. Each agency head shall designate a person responsible for regulatory review who shall serve as the agency's contact for regulatory review.

(3) The following criteria will be used for the review of each rule identified for review:

(a) Need. Is the rule necessary to comply with the statutes that authorize it? Is the rule obsolete, duplicative, or ambiguous to a degree that warrants repeal or revision? Have laws or other circumstances changed so that the rule should be amended or repealed? Is the rule necessary to protect or safeguard the health, welfare, or safety of Washington's citizens?

(b) Effectiveness and efficiency. Is the rule providing the results that it was originally designed to achieve in a reasonable manner? Are there regulatory alternatives or new technologies that could more effectively or efficiently achieve the same objectives?

(c) Clarity. Is the rule written and organized in a clear and concise manner so that it can be readily understood by those to whom it applies?

(d) Intent and statutory authority. Is the rule consistent with legislative intent of the statutes that authorize it? Is the rule based upon sufficient statutory authority? Is there a need to develop a more specific legislative authorization in order to protect the health, safety, and welfare of Washington's citizens?

(e) Coordination. Could additional consultation and coordination with other governmental jurisdictions and state agencies with similar regulatory authority eliminate or reduce duplication and inconsistency? Agencies should consult with and coordinate with other jurisdictions that have similar regulatory requirements when it is likely that coordination can reduce duplication and inconsistency.

(f) Cost. Have qualitative and quantitative benefits of the rule been considered in relation to its cost?

(g) Fairness. Does the rule result in equitable treatment of those required to comply with it? Should it be modified to eliminate or minimize any disproportionate impacts on the regulated community? Should it be strengthened to provide additional protection?

(4)(a) By July 1, 2002, and July 1st of each year thereafter, each agency shall report to the rules review committee on the rules reviewed during the previous fiscal year and other measures taken to improve its regulatory program. The reports must include, but not be limited to: (i) The number of rule sections amended or repealed and the number of pages eliminated in the Washington Administrative Code; (ii) a summary of rules amended or repealed based on the review criteria in this section; (iii) a summary of agency actions in response to petitions under RCW 34.05.330; (iv) a summary of the results of the agency's review of policy and interpretive statements and similar documents; (v) a summary of the agency's review of reporting requirements imposed on businesses; and (vi) recommendations for statutory or administrative changes resulting from the regulatory reviews. More frequent reports may be requested, as necessary. Agencies shall make the reports available to persons who have requested notification of agency rule making and shall submit a summary of the report for publication in the Washington State Register.

(b) As part of its regulatory review, each agency shall review its existing policy and interpretive statements or similar documents to determine whether or not they must, by law, be adopted as rules. The review must include consultation with the attorney general. Agencies shall concentrate their review on those statements and documents that have been the source of complaints, concerns, or other difficulties.

(c) Each agency shall also review its reporting requirements that are applied generally to all businesses or classes of businesses to ensure that they are necessary and consistent with the principles and objectives of this section. The goals of the review must be to achieve reporting requirements that, to the extent possible, are coordinated with other state agencies with similar requirements, are economical and easy to understand, and rely on electronic transfer of information.

(5)(a) An agency is deemed to have met the requirements of this section ninety days after publication in the Washington State Register unless the rules review committee receives a written objection of the agency's compliance with the requirements of this section.

(b) If a written objection is received within the ninety-day period, the rules review committee will make a determination as to whether the agency did indeed comply with this section.

(c) If the committee finds the agency has failed to meet the requirements of this section, the agency will have one hundred twenty days to meet the requirements and receive approval by a majority vote of the committee. If the agency fails to comply with the requirements of this section after the one hundred twenty days, the committee may, by a majority vote of its members, recommend suspension of a rule or rules included in the report. Within seven days of that vote the committee shall transmit to the appropriate standing committees of the legislature, the governor, the code reviser, and the agency written notice of its objection and any recommended suspension based on failure to meet the rules review requirements. Within thirty days of receipt of the notice, the governor shall transmit to the committee, the code reviser, and the agency written approval or disapproval of the recommended suspension. If the suspension is approved by the governor, it is effective from the date of that approval and continues until ninety days after the expiration of the next regular legislative session.

(d) If the governor disapproves the recommendation of the rules review committee to suspend a rule or rules in the report, the agency shall treat the transmittal of that decision, along with the findings of the rules review committee, as a petition by the committee to repeal the rule or rules under RCW 34.05.330.

(e) The code reviser shall publish these transmittals according to RCW 34.05.640(5).

Sec. 9. RCW 34.05.610 and 1996 c 318 s 2 are each amended to read as follows:

(1) There is hereby created a joint administrative rules review committee which shall be a bipartisan committee consisting of four senators and four representatives from the state legislature. The senate members of the committee shall be appointed by the president of the senate, and the house members of the committee shall be appointed by the speaker of the house. Not more than two members from each house may be from the same political party. The appointing authorities shall also appoint one alternate member from each caucus of each house. All appointments to the committee are subject to approval by the caucuses to which the appointed members belong.

(2) Members and alternates shall be appointed as soon as possible after the legislature convenes in regular session in an odd-numbered year, and their terms shall extend until their successors are appointed and qualified at the next regular session of the legislature in an odd-numbered year or until such persons no longer serve in the legislature, whichever occurs first. Members and alternates may be reappointed to the committee.

(3) On or about January 1, 1999, the president of the senate shall appoint the chairperson ((in even-numbered years)) and the vice chairperson ((in odd-numbered years)) from among the committee membership. The speaker of the house shall appoint the chairperson ((in odd-numbered years)) and the vice chairperson in alternating even-numbered years beginning in the year 2000 from among the committee membership. The secretary of the senate shall appoint the chairperson and the vice chairperson in the alternating even-numbered years beginning in the year 2002 from among the committee membership. Such appointments shall be made in January of each even-numbered year as soon as possible after a legislative session convenes.

(4) The chairperson of the committee shall cause all meeting notices and committee documents to be sent to the members and alternates. A vacancy shall be filled by appointment of a legislator from the same political party as the original appointment. The appropriate appointing authority shall make the appointment within thirty days of the vacancy occurring.

Sec. 10. RCW 34.12.040 and 1981 c 67 s 4 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, whenever a state agency conducts a hearing which is not presided over by officials of the agency who are to render the final decision, the hearing shall be conducted by an administrative law judge assigned under this chapter. In assigning administrative law judges, the chief administrative law judge shall wherever practical (((1))) (a) use personnel having expertise in the field or subject matter of the hearing, and (((2))) (b) assign administrative law judges primarily to the hearings of particular agencies on a long-term basis.

(2) An employee of the office of the insurance commissioner may conduct a hearing as provided in RCW 48.04.010(5).

NEW SECTION. Sec. 11. A new section is added to chapter 43.132 RCW to read as follows:

(1) To determine the fiscal impact of proposed rules on units of local government, an agency shall prepare a local government economic impact statement if the proposed rule will impose costs on units of local government.

(2) The economic impact statement shall describe the reporting, recordkeeping, and other compliance requirements of the proposed rule and analyze the costs of compliance for local governments. An agency shall file the statement with the code reviser along with the notice required under RCW 34.05.320.

(3) The department of community, trade, and economic development shall develop a guide to assist agencies in preparing the economic impact statement. The guide shall be developed through a collaborative process with agencies and local governments and other interested persons.

(4) An agency shall maintain a list of proposed rules for which it prepares an economic impact statement and a summary of the costs. By December 1st of each year, an agency shall submit the list and summary to the joint administrative rules review committee.

(5) This section does not apply to:

(a) A rule proposed for expedited repeal or expedited adoption, unless the agency receives written objection;

(b) Rules described in RCW 34.05.310(4); and

Sec. 12. RCW 48.04.010 and 1990 1st ex.s. c 3 s 1 are each amended to read as follows:

(1) The commissioner may hold a hearing for any purpose within the scope of this code as he or she may deem necessary. The commissioner shall hold a hearing:

(a) If required by any provision of this code; or

(b) Upon written demand for a hearing made by any person aggrieved by any act, threatened act, or failure of the commissioner to act, if such failure is deemed an act under any provision of this code, or by any report, promulgation, or order of the commissioner other than an order on a hearing of which such person was given actual notice or at which such person appeared as a party, or order pursuant to the order on such hearing.

(2) Any such demand for a hearing shall specify in what respects such person is so aggrieved and the grounds to be relied upon as basis for the relief to be demanded at the hearing.

(3) Unless a person aggrieved by a written order of the commissioner demands a hearing thereon within ninety days after receiving notice of such order, or in the case of a licensee under Title 48 RCW within ninety days after the commissioner has mailed the order to the licensee at the most recent address shown in the commissioner's licensing records for the licensee, the right to such hearing shall conclusively be deemed to have been waived.

(4) If a hearing is demanded by a licensee whose license has been temporarily suspended pursuant to RCW 48.17.540, the commissioner shall hold such hearing demanded within thirty days after receipt of the demand or within thirty days of the effective date of a temporary license suspension issued after such demand, unless postponed by mutual consent.

(5) A hearing held under this section must be conducted by an administrative law judge unless the person demanding the hearing agrees in writing to have an employee of the commissioner conduct the hearing.

NEW SECTION. Sec. 13. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 14. 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."

In line 1 of the title, after "law;" strike the remainder of the title, and insert "amending RCW 34.05.230, 34.05.328, 34.05.330, 34.05.354, 34.05.370, 34.05.610, 34.12.040, and 48.04.010; adding new sections to chapter 34.05 RCW; adding a new section to chapter 43.132 RCW; creating a new section; and providing an expiration date."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 2345 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 2345 as amended by the Senate.

Representatives Reams and Romero spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2345 as amended by the Senate and the bill passed the House by the following vote: Yeas - 83, Nays - 15, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Clements, Constantine, Cooke, Cooper, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 83.

Voting nay: Representatives Chopp, Cody, Cole, Conway, Costa, Dickerson, Dunshee, Fisher, Kenney, Mason, Murray, O'Brien, Regala, Sommers, H. and Veloria - 15.

Engrossed Second Substitute House Bill No. 2345, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Substitute House Bill No. 2496 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. FINDINGS. The legislature finds that repeated attempts to improve salmonid fish runs throughout the state of Washington have failed to avert listings of salmon and steelhead runs as threatened or endangered under the federal endangered species act (16 U.S.C. Sec. 1531 et seq.). These listings threaten the sport, commercial, and tribal fishing industries as well as the economic well-being and vitality of vast areas of the state. It is the intent of the legislature to begin activities required for the recovery of salmon stocks as soon as possible, although the legislature understands that successful recovery efforts may not be realized for many years because of the life cycle of salmon and the complex array of natural and human-caused problems they face.

The legislature finds that it is in the interest of the citizens of the state of Washington for the state to retain primary responsibility for managing the natural resources of the state, rather than abdicate those responsibilities to the federal government. The legislature also finds that there is a substantial link between the provisions of the federal endangered species act and the federal clean water act (33 U.S.C. Sec. 1251 et seq.). The legislature further finds that habitat restoration is a vital component of salmon recovery efforts. Therefore, it is the intent of the legislature to specifically address salmon habitat restoration in a coordinated manner and to develop a structure that allows for the coordinated delivery of federal, state, and local assistance to communities for habitat projects that will assist in the recovery and enhancement of salmon stocks.

The legislature also finds that credible scientific review and oversight is essential for any salmon recovery effort to be successful.

The legislature therefore finds that a coordinated framework for responding to the salmon crisis is needed immediately. To that end, the salmon recovery office should be created within the governor's office to provide overall coordination of the state's response; an independent science team is needed to provide scientific review and oversight; the appropriate local or tribal government should provide local leadership in identifying and sequencing habitat restoration projects to be funded by state agencies; habitat restoration projects should be implemented without delay; and a strong locally based effort to restore salmon habitat should be established by providing a framework to allow citizen volunteers to work effectively.

NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Adaptive management" means reliance on scientific methods to test the results of actions taken so that the management and related policy can be changed promptly and appropriately.

(2) "Critical pathways methodology" means a project scheduling and management process for examining interactions between habitat projects and salmonid species, prioritizing habitat projects, and assuring positive benefits from habitat projects.

(3) "Habitat project list" is the list of projects resulting from the critical pathways methodology under section 8(2) of this act. Each project on the list must have a written agreement from the landowner on whose land the project will be implemented. Projects include habitat restoration projects, habitat protection projects, habitat projects that improve water quality, habitat projects that protect water quality, habitat-related mitigation projects, and habitat project maintenance and monitoring activities.

(4) "Habitat work schedule" means those projects from the habitat project list that will be implemented during the current funding cycle. The schedule shall also include a list of the entities and individuals implementing projects, the start date, duration, estimated date of completion, estimated cost, and funding sources for the projects.

(5) "Limiting factors" means conditions that limit the ability of habitat to fully sustain populations of salmon. These factors are primarily fish passage barriers and degraded estuarine areas, riparian corridors, stream channels, and wetlands.

(6) "Project sponsor" is a county, city, special district, tribal government, a combination of such governments through interlocal agreements provided under chapter 39.34 RCW, a nonprofit organization, or one or more private citizens.

(7) "Salmon" includes all species of the family Salmonidae which are capable of self-sustaining, natural production.

(8) "Salmon recovery plan" means a state plan developed in response to a proposed or actual listing under the federal endangered species act that addresses limiting factors including, but not limited to harvest, hatchery, hydropower, habitat, and other factors of decline.

(9) "Tribe" or "tribes" means federally recognized Indian tribes.

(10) "WRIA" means a water resource inventory area established in chapter 173-500 WAC as it existed on January 1, 1997.

(11) "Owner" means the person holding title to the land or the person under contract with the owner to lease or manage the legal owners property.

NEW SECTION. Sec. 3. IMPLEMENTATION--SUMMARY--RECOMMENDATIONS. By December 31, 1998, the governor shall submit a summary of the implementation of this act to the legislature, and include recommendations to the legislature that would further the success of salmon recovery. The recommendations may include:

(1) The need to expand or improve nonregulatory programs and activities;

(2) The need to expand or improve state and local laws and regulations; and

(3) The feasibility of forming a state-wide or regional community foundation or any other funding alternatives to assist in financing salmon recovery efforts.

NEW SECTION. Sec. 4. STATE OF THE SALMON REPORT. Beginning in December 2000, the governor shall submit a biennial state of the salmon report to the legislature during the first week of December. The report may include the following:

(1) A description of the amount of in-kind and financial contributions, including volunteer, private, and state, federal, tribal as available, and local government money directly spent on salmon recovery in response to actual, proposed, or expected endangered species act listings;

(2) A summary of habitat projects including but not limited to:

(a) A summary of accomplishments in removing barriers to salmon passage and an identification of existing barriers;

(b) A summary of salmon restoration efforts undertaken in the past two years;

(d) A summary of efforts taken to protect salmon habitat;

(3) A summary of collaborative efforts undertaken with adjoining states or Canada;

(4) A summary of harvest and hatchery management activities affecting salmon recovery;

(5) A summary of information regarding impediments to successful salmon recovery efforts;

(6) A summary of the number and types of violations of existing laws pertaining to: (a) Water quality; and (b) salmon. The summary shall include information about the types of sanctions imposed for these violations;

(7) Information on the estimated carrying capacity of new habitat created pursuant to chapter . . ., Laws of 1998 (this act); and

(8) Recommendations to the legislature that would further the success of salmon recovery. The recommendations may include:

(a) The need to expand or improve nonregulatory programs and activities; and

(b) The need to expand or improve state and local laws and regulations.

NEW SECTION. Sec. 5. GOVERNOR'S SALMON RECOVERY OFFICE. (1) The salmon recovery office is created within the office of the governor to coordinate state strategy to allow for salmon recovery to healthy sustainable population levels with productive commercial and recreational fisheries. The primary purpose of the office is to coordinate and assist in the development of salmon recovery plans for evolutionarily significant units, and submit those plans to the appropriate tribal governments and federal agencies in response to the federal endangered species act. The governor's salmon recovery office may also:

(a) Act as liaison to local governments, the state congressional delegation, the United States congress, federally recognized tribes, and the federal executive branch agencies for issues related to the state's endangered species act salmon recovery plans; and

(b) Provide the biennial state of the salmon report to the legislature pursuant to section 4 of this act.

(2) This section expires June 30, 2006.

NEW SECTION. Sec. 6. SCIENCE PANEL. (1) The governor shall request the national academy of sciences, the American fisheries society, or a comparable institution to screen candidates to serve as members on the independent science panel. The institution that conducts the screening of the candidates shall submit a list of the nine most qualified candidates to the governor, the speaker of the house of representatives, and the majority leader of the senate. The candidates shall reflect expertise in habitat requirements of salmon, protection and restoration of salmon populations, artificial propagation of salmon, hydrology, or geomorphology.

(2) The speaker of the house of representatives and the majority leader in the senate shall each remove one name from the nomination list. The governor shall consult with tribal representatives and the governor shall appoint five scientists from the remaining names on the nomination list.

(3) The members of the independent science panel shall serve four-year terms. The independent science panel members shall elect the chair of the panel among themselves every two years. The members of the independent science panel shall be compensated as provided in RCW 43.03.250 and reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

(4) The independent science panel shall be governed by generally accepted guidelines and practices governing the activities of independent science boards such as the national academy of sciences. The purpose of the independent science panel is to help ensure that sound science is used in salmon recovery efforts. The governor's salmon recovery office shall request review of salmon recovery plans by the science review panel. The science review panel does not have the authority to review individual projects or project lists developed under sections 7, 8, and 9 of this act or to make policy decisions.

(5) The independent science panel shall submit its findings to the legislature and the governor.

NEW SECTION. Sec. 7. HABITAT RESTORATION PROJECT LISTS. (1)(a) Counties, cities, and tribal governments must jointly designate, by official resolution, the area for which a habitat restoration project list is to be developed and the lead entity that is to be responsible for submitting the habitat restoration project list. No project included on a habitat restoration project list shall be considered mandatory in nature and no private landowner may be forced or coerced into participation in any respect. The lead entity may be a county, city, conservation district, special district, tribal government, or other entity.

(b) The lead entity shall establish a committee that consists of representative interests of counties, cities, conservation districts, tribes, environmental groups, business interests, landowners, citizens, volunteer groups, regional fish enhancement groups, and other restoration interests. The purpose of the committee is to provide a citizen-based evaluation of the projects proposed to promote salmon habitat restoration. The interagency review team may provide the lead entity with organizational models that may be used in establishing the committees.

(c) The committee shall compile a list of habitat restoration projects, establish priorities for individual projects, define the sequence for project implementation, and submit these activities as the habitat restoration project list. The committee shall also identify potential federal, state, local, and private funding sources.

(2) The area covered by the habitat project list must be based, at a minimum, on a WRIA, combination of WRIAs, an evolutionarily significant unit, or any other area as agreed to by the counties, cities, and tribes meeting the requirements of this subsection. Preference will be given to projects in an area that contain a salmon species that is listed or proposed for listing under the federal endangered species act.

NEW SECTION. Sec. 8. CRITICAL PATHWAYS METHODOLOGY. (1) Critical pathways methodology shall be used to develop a habitat project list and a habitat work schedule that ensures salmon restoration activities will be prioritized and implemented in a logical sequential manner that produces habitat capable of sustaining healthy populations of salmon.

(2) The critical pathways methodology shall:

(a) Include a limiting factors analysis for salmon in streams, rivers, tributaries, estuaries, and subbasins in the region. The technical advisory group shall have responsibility for the limiting factors analysis;

(b) Identify local habitat projects that sponsors are willing to undertake. The projects identified must have a written agreement from the landowner on which the project is to be implemented. Project sponsors shall have the lead responsibility for this task;

(c) Identify how projects will be monitored and evaluated. The project sponsor, in consultation with the technical advisory group and the appropriate landowner, shall have responsibility for this task; and

(d) Describe the adaptive management strategy that will be used. The committee established under section 7 of this act shall have responsibility for this task. If a committee has not been formed, the technical advisory group shall have the responsibility for this task.

(3) The habitat work list shall include all projects developed pursuant to subsection (2) of this section as well as any other salmon habitat restoration project implemented in the region. The work list shall also include the start date, duration, estimated date of completion, estimated cost, and, if appropriate, the affected salmonid species of each project. Each schedule shall be updated on an annual basis to depict new activities.

NEW SECTION. Sec. 9. INTERAGENCY REVIEW TEAM PROJECT FUNDING. (1) Representatives from the conservation commission, the department of transportation, and the department of fish and wildlife shall establish an interagency review team. Except as provided in subsection (6) of this section, habitat restoration project lists shall be submitted to the interagency review team by January 1st and July 1st of each year beginning in 1999.

(2) If no lead entity has been formed under section 7 of this act, the interagency review team shall rank, prioritize, and dispense funds for habitat restoration projects by giving preference to the projects that:

(a) Provide a greater benefit to salmon recovery;

(b) Will be implemented in a more critical area;

(d) Have the greatest matched, or in-kind funding; and

(e) Will be implemented by a sponsor with a successful record of project implementation.

(3) If a lead entity established under section 7 of this act has been formed, the interagency review team shall evaluate project lists and may remove, but not add, projects from a habitat project list.

(4) The interagency review team shall provide a summary of funding for habitat restoration project lists to the governor and to the legislature by December 1st of each year.

(5) The interagency review team may annually establish a maximum amount of funding available for any individual project, subject to available funding. The interagency review team shall attempt to assure a geographical balance in assigning priorities to projects.

(6) For fiscal year 1998, the department of fish and wildlife, the conservation commission, and the department of transportation may authorize, subject to appropriations, expenditures for projects that have been developed to restore salmon habitat before completion of the project lists required in section 7(2) of this act.

(7) Where a lead entity has been established pursuant to section 7 of this act, the interagency review team may provide block grants to the lead entity, subject to available funding.

NEW SECTION. Sec. 10. TECHNICAL ADVISORY GROUPS. (1) The conservation commission, in consultation with local government and the tribes, shall invite private, federal, state, tribal, and local government personnel with appropriate expertise to act as a technical advisory group.

(2) For state personnel, involvement on the technical advisory group shall be at the discretion of the particular agency. Unless specifically provided for in the budget, technical assistance participants shall be provided from existing full-time equivalent employees.

(3) The technical advisory group shall identify the limiting factors for salmonids to respond to the limiting factors relating to habitat pursuant to section 8(2) of this act.

(4) Where appropriate, the conservation district within the area implementing this chapter shall take the lead in developing and maintaining relationships between the technical advisory group and the private landowners under section 9 of this act. The conservation districts may assist landowners to organize around river, tributary, estuary, or subbasins of a watershed.

(5) Fishery enhancement groups and other volunteer organizations may participate in the activities under this section.

NEW SECTION. Sec. 11. THE SEA GRANT PROGRAM. The sea grant program at the University of Washington is authorized to provide technical assistance to volunteer groups and other project sponsors in designing and performing habitat restoration projects that address the limiting factors analysis of regional habitat work plans. The cost for such assistance may be covered on a fee-for-service basis.

NEW SECTION. Sec. 12. SOUTHWEST WASHINGTON SALMON RECOVERY. The southwest Washington salmon recovery region, whose boundaries are provided in chapter . . ., Laws of 1998 (Engrossed Second Substitute House Bill No. 2836), is created. If Engrossed Second Substitute House Bill No. 2836 is not enacted by July 1, 1998, this section is null and void.

Sec. 13. RCW 90.71.005 and 1996 c 138 s 1 are each amended to read as follows:

(1) The legislature finds that:

(a) Puget Sound and related inland marine waterways of Washington state represent a unique and unparalleled resource. A rich and varied range of marine organisms, comprising an interdependent, sensitive communal ecosystem reside in these sheltered waters. Residents of this region enjoy a way of life centered around the waters of Puget Sound, featuring accessible recreational opportunities, world-class port facilities and water transportation systems, harvest of marine food resources, shoreline-oriented life styles, water-dependent industries, tourism, irreplaceable aesthetics, and other activities, all of which to some degree depend upon a clean and healthy marine resource;

(b) The Puget Sound water quality authority has done an excellent job in developing a comprehensive plan to identify actions to restore and protect the biological health and diversity of Puget Sound;

(c) The large number of governmental entities that now have regulatory programs affecting the water quality of Puget Sound have diverse interests and limited jurisdictions that cannot adequately address the cumulative, wide-ranging impacts that contribute to the degradation of Puget Sound; and

(d) Coordination of the regulatory programs, at the state and local level, is best accomplished through the development of interagency mechanisms that allow these entities to transcend their diverse interests and limited jurisdictions.

(2) It is therefore the policy of the state of Washington to coordinate the activities of state and local agencies by establishing a biennial work plan that clearly delineates state and local actions necessary to protect and restore the biological health and diversity of Puget Sound. It is further the policy of the state to implement the Puget Sound water quality management plan to the maximum extent possible. To further the policy of the state, a recovery plan developed under the federal endangered species act for a portion or all of the Puget Sound shall be considered for inclusion into the Puget Sound water quality management plan.

Sec. 14. RCW 90.71.020 and 1996 c 138 s 3 are each amended to read as follows:

(1) The Puget Sound action team is created. The action team shall consist of: The directors of the departments of ecology; agriculture; natural resources; fish and wildlife; and community, trade, and economic development; the secretaries of the departments of health and transportation; the director of the parks and recreation commission; the director of the interagency committee for outdoor recreation; the administrative officer of the conservation commission designated in RCW 89.08.050; one person representing cities, appointed by the governor; one person representing counties, appointed by the governor; one person representing federally recognized tribes, appointed by the governor; and the chair of the action team. The action team shall also include the following ex officio nonvoting members: The regional director of the United States environmental protection agency; the regional administrator of the national marine fisheries service; and the regional supervisor of the United States fish and wildlife service. The members representing cities and counties shall each be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(2) The action team shall:

(a) Prepare a Puget Sound work plan and budget for inclusion in the governor's biennial budget;

(b) Coordinate monitoring and research programs as provided in RCW 90.71.060;

(d) Coordinate permitting requirements as necessary to expedite permit issuance for any local watershed plan developed pursuant to rules adopted under this chapter;

(e) Identify and resolve any policy or rule conflicts that may exist between one or more agencies represented on the action team;

(f) Periodically amend the Puget Sound management plan;

(g) Enter into, amend, and terminate contracts with individuals, corporations, or research institutions for the purposes of this chapter;

(h) Receive such gifts, grants, and endowments, in trust or otherwise, for the use and benefit of the purposes of the action team. The action team may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments;

(i) Promote extensive public participation, and otherwise seek to broadly disseminate information concerning Puget Sound;

(j) Receive and expend funding from other public agencies;

(k) To reduce costs and improve efficiency, review by December 1, 1996, all requirements for reports and documentation from state agencies and local governments specified in the plan for the purpose of eliminating and consolidating reporting requirements; and

(l) Beginning in December 1998, and every two years thereafter, submit a report to the appropriate policy and fiscal committees of the legislature that describes and evaluates the successes and shortcomings of the current work plan relative to the priority problems identified for each geographic area of Puget Sound.

(3) By July 1, 1996, the action team shall begin developing its initial work plan, which shall include the coordination of necessary support staff.

(4) The action team shall incorporate, to the maximum extent possible, the recommendations of the council regarding amendments to the Puget Sound (([management])) management plan and the work plan.

(5) All proceedings of the action team are subject to the open public meetings act under chapter 42.30 RCW.

Sec. 15. RCW 90.71.050 and 1996 c 138 s 6 are each amended to read as follows:

(1)(a) Each biennium, the action team shall prepare a Puget Sound work plan and budget for inclusion in the governor's biennial budget. The work plan shall prescribe the necessary federal, state, and local actions to maintain and enhance Puget Sound water quality, including but not limited to, enhancement of recreational opportunities, and restoration of a balanced population of indigenous shellfish, fish, and wildlife. The work plan and budget shall include specific actions and projects pertaining to salmon recovery plans.

(b) In developing a work plan, the action team shall meet the following objectives:

(i) Use the plan elements of the Puget Sound management plan to prioritize local and state actions necessary to restore and protect the biological health and diversity of Puget Sound;

(ii) Consider the problems and priorities identified in local plans; and

(iii) Coordinate the work plan activities with other relevant activities, including but not limited to, agencies' activities that have not been funded through the plan, local plans, and governmental and nongovernmental watershed restoration activities.

(i) The total funds to implement local projects originating from the planning process developed for nonpoint pollution; and

(ii) The total funds to implement any other projects designed primarily to restore salmon habitat.

(2) In addition to the requirements identified under RCW 90.71.020(2)(a), the work plan and budget shall:

(a) Identify and prioritize the local and state actions necessary to address the water quality problems in the following locations:

(i) Area 1: Island and San Juan counties;

(ii) Area 2: Skagit and Whatcom counties;

(iii) Area 3: Clallam and Jefferson counties;

(iv) Area 4: Snohomish, King, and Pierce counties; and

(v) Area 5: Kitsap, Mason, and Thurston counties;

(b) Provide sufficient funding to characterize local watersheds, provide technical assistance, and implement state responsibilities identified in the work plan. The number and qualifications of staff assigned to each region shall be determined by the types of problems identified pursuant to (a) of this subsection;

(c) Provide sufficient funding to implement and coordinate the Puget Sound ambient monitoring plan pursuant to RCW 90.71.060;

(d) Provide funds to assist local jurisdictions to implement elements of the work plan assigned to local governments and to develop and implement local plans;

(e) Provide sufficient funding to provide support staff for the action team; and

(f) Describe any proposed amendments to the Puget Sound (([management])) management plan.

(3) The work plan shall be submitted to the appropriate policy and fiscal committees of the legislature by December 20th of each even-numbered year.

(4) The work plan shall be implemented consistent with the legislative provisos of the biennial appropriation acts.

NEW SECTION. Sec. 16. WORK GROUP. (1) The departments of transportation, fish and wildlife, and ecology, and tribes shall convene a work group to develop policy guidance to evaluate mitigation alternatives. The policy guidance shall be designed to enable committees established under section 7 of this act to develop and implement habitat project lists that maximize environmental benefits from project mitigation while reducing project design and permitting costs. The work group shall seek technical assistance to ensure that federal, state, treaty right, and local environmental laws and ordinances are met. The purpose of this section is not to increase regulatory requirements or expand departmental authority.

(2) The work group shall develop guidance for determining alternative mitigation opportunities. Such guidance shall include criteria and procedures for identifying and evaluating mitigation opportunities within a watershed. Such guidance shall create procedures that provide alternative mitigation that has a low risk to the environment, yet has high net environmental, social, and economic benefits compared to status quo options.

(3) The evaluation shall include:

(a) All elements of mitigation, including but not limited to data requirements, decision making, state and tribal agency coordination, and permitting; and

(b) Criteria and procedures for identifying and evaluating mitigation opportunities, including but not limited to the criteria in chapter 90.74 RCW.

(4) Committees established under section 7 of this act shall coordinate voluntary collaborative efforts between habitat project proponents and mitigation project proponents. Mitigation funds may be used to implement projects identified by a work plan to mitigate for the impacts of a transportation or other development proposal or project.

(5) For the purposes of this section, "mitigation" has the same meaning as provided in RCW 90.74.010.

NEW SECTION. Sec. 17. Only those funds appropriated for the habitat restoration projects under this chapter are subject to the requirements of section 9 of this act.

NEW SECTION. Sec. 18. CAPTIONS NOT LAW. Captions used in this chapter are not any part of the law.

NEW SECTION. Sec. 19. Sections 1 through 12 and 16 through 18 of this act constitute a new chapter in Title 75 RCW."

On page 1, line 1 of the title, after "planning;" strike the remainder of the title and insert "amending RCW 90.71.005, 90.71.020, and 90.71.050; adding a new chapter to Title 75 RCW; and providing an expiration date."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 2496 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2496 as amended by the Senate.

Representatives Buck and Regala spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2496 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Engrossed Substitute House Bill No. 2496, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed House Bill No. 2501 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.70.011 and 1996 c 194 s 1 are each amended to read as follows:

As used in this chapter:

(1) "Vehicle" means and includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks.

(2) "Motor vehicle" means every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails, and which is required to be registered and titled under Title 46 RCW, Motor Vehicles.

(3) "Vehicle dealer" means any person, firm, association, corporation, or trust, not excluded by subsection (4) of this section, engaged in the business of buying, selling, listing, exchanging, offering, brokering, leasing with an option to purchase, auctioning, soliciting, or advertising the sale of new or used vehicles, or arranging or offering or attempting to solicit or negotiate on behalf of others, a sale, purchase, or exchange of an interest in new or used motor vehicles, irrespective of whether the motor vehicles are owned by that person. Vehicle dealers shall be classified as follows:

(a) A "motor vehicle dealer" is a vehicle dealer that deals in new or used motor vehicles, or both;

(b) A "mobile home and travel trailer dealer" is a vehicle dealer that deals in mobile homes, park trailers, or travel trailers, or more than one type of these vehicles;

(c) A "miscellaneous vehicle dealer" is a vehicle dealer that deals in motorcycles or vehicles other than motor vehicles or mobile homes and travel trailers or any combination of such vehicles;

(d) "Wholesale motor vehicle auction dealer" is a person or firm offering motor vehicles for sale by competitive bidding at a permanent location and regularly scheduled dates and times. A salvage pool operation is not a wholesale motor vehicle auction dealer.

(4) The term "vehicle dealer" does not include, nor do the licensing requirements of RCW 46.70.021 apply to, the following persons, firms, associations, or corporations:

(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by, or acting under a judgment or order of, any court; or

(b) Public officers while performing their official duties; or

(d) Any person engaged in an isolated sale of a vehicle in which he is the registered or legal owner, or both, thereof; or

(e) Any person, firm, association, corporation, or trust, engaged in the selling of equipment other than vehicles, subject to registration, used for agricultural or industrial purposes; or

(f) A real estate broker licensed under chapter 18.85 RCW, or his authorized representative, who, on behalf of the legal or registered owner of a used mobile home negotiates the purchase, sale, or exchange of the used mobile home in conjunction with the purchase, sale, exchange, rental, or lease of the land upon which the used mobile home is located and the real estate broker is not acting as an agent, subagent, or representative of a vehicle dealer licensed under this chapter; or

(g) Owners who are also operators of the special highway construction equipment or of the highway construction equipment for which a vehicle license and display vehicle license number plate is required as defined in RCW 46.16.010; or

(h) Any bank, trust company, savings bank, mutual savings bank, savings and loan association, credit union, and any parent, subsidiary, or affiliate thereof, authorized to do business in this state under state or federal law with respect to the sale or other disposition of a motor vehicle owned and used in their business; or with respect to the acquisition and sale or other disposition of a motor vehicle in which the entity has acquired an interest as a lessor, lessee, or secured party.

(5) "Vehicle salesperson" means any person who for any form of compensation sells, auctions, leases with an option to purchase, or offers to sell or to so lease vehicles on behalf of a vehicle dealer.

(6) "Department" means the department of licensing, which shall administer and enforce the provisions of this chapter.

(7) "Director" means the director of licensing.

(8) "Manufacturer" means any person, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new and unused vehicles or remanufactures vehicles in whole or in part and further includes the terms:

(a) "Distributor," which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new and unused vehicle to vehicle dealers or who maintains factory representatives.

(b) "Factory branch," which means a branch office maintained by a manufacturer for the purpose of selling or offering for sale, vehicles to a distributor, wholesaler, or vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives, and further includes any sales promotion organization, whether a person, firm, or corporation, which is engaged in promoting the sale of new and unused vehicles in this state of a particular brand or make to vehicle dealers.

(c) "Factory representative," which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of their vehicles or for supervising or contracting with their dealers or prospective dealers.

(9) "Established place of business" means a location meeting the requirements of RCW 46.70.023(1) at which a vehicle dealer conducts business in this state.

(10) "Principal place of business" means that dealer firm's business location in the state, which place the dealer designates as their principal place of business.

(11) "Subagency" means any place of business of a vehicle dealer within the state, which place is physically and geographically separated from the principal place of business of the firm or any place of business of a vehicle dealer within the state, at which place the firm does business using a name other than the principal name of the firm, or both.

(12) "Temporary subagency" means a location other than the principal place of business or subagency within the state where a licensed vehicle dealer may secure a license to conduct the business and is licensed for a period of time not to exceed ten days for a specific purpose such as auto shows, shopping center promotions, tent sales, exhibitions, or similar merchandising ventures. No more than six temporary subagency licenses may be issued to a licensee in any twelve-month period.

(13) "Wholesale vehicle dealer" means a vehicle dealer who buys and sells other than at retail.

(14) "Retail vehicle dealer" means a vehicle dealer who may buy and sell at both wholesale and retail.

(15) "Listing dealer" means a used mobile home dealer who makes contracts with sellers who will compensate the dealer for obtaining a willing purchaser for the seller's mobile home.

(16) "Auction" means a transaction conducted by means of exchanges between an auctioneer and the members of the audience, constituting a series of oral invitations for offers for the purchase of vehicles made by the auctioneer, offers to purchase by members of the audience, and the acceptance of the highest or most favorable offer to purchase.

(17) "Auction company" means a sole proprietorship, partnership, corporation, or other legal or commercial entity licensed under chapter 18.11 RCW that only sells or offers to sell vehicles at auction or only arranges or sponsors auctions.

(18) "Buyer's agent" means any person, firm, partnership, association, limited liability company, limited liability partnership, or corporation retained or employed by a consumer to arrange for or to negotiate, or both, the purchase of a new motor vehicle on behalf of the consumer, and who is paid a fee or receives other compensation from the consumer for its services.

(19) "New motor vehicle" means any motor vehicle that is self-propelled and is required to be registered and titled under Title 46 RCW, has not been previously titled to a retail purchaser or lessee, and is not a "used vehicle" as defined under RCW 46.04.660.

NEW SECTION. Sec. 2. A new section is added to chapter 46.70 RCW to read as follows:

(1) A wholesale motor vehicle auction dealer may:

(a) Sell any classification of motor vehicle;

(b) Sell only to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state; or

(c) Sell a motor vehicle belonging to the United States government, the state of Washington, or a political subdivision to nonlicensed persons as may be required by the contracting public agency. However, a publicly owned "wrecked vehicle" as defined in RCW 46.80.010 may be sold to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state.

(2) If the wholesale motor vehicle auction dealer knows that a vehicle is a "wrecked vehicle" as defined by RCW 46.80.010, the dealer must disclose this fact on the bill of sale.

Sec. 3. RCW 46.79.010 and 1990 c 250 s 69 are each amended to read as follows:

The definitions set forth in this section apply throughout this chapter unless the context indicates otherwise.

(1) "Junk vehicle" means a motor vehicle certified under RCW 46.55.230 as meeting all the following requirements:

(a) Is three years old or older;

(b) Is extensively damaged, such damage including but not limited to any of the following: A broken window or windshield or missing wheels, tires, motor, or transmission;

(d) Is without a valid, current registration plate;

(e) Has a fair market value equal only to the value of the scrap in it.

(2) "Scrap processor" means a licensed establishment that maintains a hydraulic baler and shears, or a shredder for recycling salvage.

(3) "Demolish" means to destroy completely by use of a hydraulic baler and shears, or a shredder.

(4) "Hulk hauler" means any person who deals in vehicles for the sole purpose of transporting and/or selling them to a licensed ((motor)) vehicle wrecker or scrap processor in substantially the same form in which they are obtained. A hulk hauler may not sell second-hand motor vehicle parts to anyone other than a licensed vehicle wrecker or scrap processor, except for those parts specifically enumerated in RCW 46.79.020(2), as now or hereafter amended, which may be sold to a licensed ((motor)) vehicle wrecker or disposed of at a public facility for waste disposal.

(5) "Director" means the director of licensing.

(6) "Major component parts" include engines and short blocks, frames, transmissions or transfer cases, cabs, doors, front or rear differentials, front or rear clips, quarter panels or fenders, bumpers, truck beds or boxes, seats, and hoods.

(7) "Wholesale motor vehicle auction dealer" is a person or firm offering motor vehicles for sale by competitive bidding at a permanent location and regularly scheduled dates and times. A salvage pool operation is not a wholesale motor vehicle auction dealer.

NEW SECTION. Sec. 4. A new section is added to chapter 46.79 RCW to read as follows:

(1) A wholesale motor vehicle auction dealer may:

(a) Sell any classification of motor vehicle;

(b) Sell only to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state; or

(2) If the wholesale motor vehicle auction dealer knows that a vehicle is a "wrecked vehicle" as defined by RCW 46.80.010, the dealer must disclose this fact on the bill of sale.

Sec. 5. RCW 46.80.010 and 1995 c 256 s 4 are each amended to read as follows:

The definitions set forth in this section apply throughout this chapter.

(1) "Vehicle wrecker" means every person, firm, partnership, association, or corporation engaged in the business of buying, selling, or dealing in vehicles of a type required to be licensed under the laws of this state, for the purpose of wrecking, dismantling, disassembling, or substantially changing the form of a vehicle, or who buys or sells integral second-hand parts of component material thereof, in whole or in part, or who deals in second-hand vehicle parts.

(2) "Established place of business" means a building or enclosure which the vehicle wrecker occupies either continuously or at regular periods and where his books and records are kept and business is transacted and which must conform with zoning regulations.

(3) "Major component part" includes at least each of the following vehicle parts: (a) Engines and short blocks; (b) frame; (c) transmission and/or transfer case; (d) cab; (e) door; (f) front or rear differential; (g) front or rear clip; (h) quarter panel; (i) truck bed or box; (j) seat; (k) hood; (l) bumper; (m) fender; and (n) airbag. The director may supplement this list by rule.

(4) "Wrecked vehicle" means a vehicle which is disassembled or dismantled or a vehicle which is acquired with the intent to dismantle or disassemble and never again to operate as a vehicle, or a vehicle which has sustained such damage that its cost to repair exceeds the fair market value of a like vehicle which has not sustained such damage, or a damaged vehicle whose salvage value plus cost to repair equals or exceeds its fair market value, if repaired, or a vehicle which has sustained such damage or deterioration that it may not lawfully operate upon the highways of this state for which the salvage value plus cost to repair exceeds its fair market value, if repaired; further, it is presumed that a vehicle is a wreck if it has sustained such damage or deterioration that it may not lawfully operate upon the highways of this state.

(5) "Wholesale motor vehicle auction dealer" is a person or firm offering motor vehicles for sale by competitive bidding at a permanent location and regularly scheduled dates and times. A salvage pool operation is not a wholesale motor vehicle auction dealer.

NEW SECTION. Sec. 6. A new section is added to chapter 46.80 RCW to read as follows:

(1) A wholesale motor vehicle auction dealer may:

(a) Sell any classification of motor vehicle;

(b) Sell only to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state; or

(c) Sell a motor vehicle belonging to the United States government, the state of Washington, or a political subdivision to nonlicensed persons as may be required by the contracting public agency. However, a publicly owned "wrecked vehicle" may be sold to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state.

(2) If the wholesale motor vehicle auction dealer knows that a vehicle is a "wrecked vehicle," the dealer must disclose this fact on the bill of sale.

Sec. 7. RCW 46.70.101 and 1996 c 282 s 3 are each amended to read as follows:

The director may by order deny, suspend, or revoke the license of any vehicle dealer or vehicle manufacturer or, in lieu thereof or in addition thereto, may by order assess monetary penalties of a civil nature not to exceed one thousand dollars per violation, if the director finds that the order is in the public interest and that the applicant or licensee:

(1) In the case of a vehicle dealer:

(a) The applicant or licensee, or any partner, officer, director, owner of ten percent or more of the assets of the firm, or managing employee:

(i) Was the holder of a license issued pursuant to this chapter, which was revoked for cause and never reissued by the department, or which license was suspended for cause and the terms of the suspension have not been fulfilled or which license was assessed a civil penalty and the assessed amount has not been paid;

(ii) Has been adjudged guilty of a crime which directly relates to the business of a vehicle dealer and the time elapsed since the adjudication is less than ten years, or suffering any judgment within the preceding five years in any civil action involving fraud, misrepresentation, or conversion. For the purposes of this section, adjudged guilty shall mean in addition to a final conviction in either a state or municipal court, an unvacated forfeiture of bail or collateral deposited to secure a defendant's appearance in court, the payment of a fine, a plea of guilty, or a finding of guilt regardless of whether the sentence is deferred or the penalty is suspended;

(iii) Has knowingly or with reason to know made a false statement of a material fact in his application for license or any data attached thereto, or in any matter under investigation by the department;

(iv) Has knowingly, or with reason to know, provided the department with false information relating to the number of vehicle sales transacted during the past one year in order to obtain a vehicle dealer license plate;

(v) Does not have an established place of business as required in this chapter;

(vi) Refuses to allow representatives or agents of the department to inspect during normal business hours all books, records, and files maintained within this state;

(vii) Sells, exchanges, offers, brokers, auctions, solicits, or advertises a new or current model vehicle to which a factory new vehicle warranty attaches and fails to have a valid, written service agreement as required by this chapter, or having such agreement refuses to honor the terms of such agreement within a reasonable time or repudiates the same, except for sales by wholesale motor vehicle auction dealers to franchise motor vehicle dealers of the same make licensed under Title 46 RCW or franchise motor vehicle dealers of the same make licensed by any other state;

(viii) Is insolvent, either in the sense that their liabilities exceed their assets, or in the sense that they cannot meet their obligations as they mature;

(ix) Fails to pay any civil monetary penalty assessed by the director pursuant to this section within ten days after such assessment becomes final;

(x) Fails to notify the department of bankruptcy proceedings in the manner required by RCW 46.70.183;

(xi) Knowingly, or with reason to know, allows a salesperson employed by the dealer, or acting as their agent, to commit any of the prohibited practices set forth in subsection (1)(a) of this section and RCW 46.70.180.

(b) The applicant or licensee, or any partner, officer, director, owner of ten percent of the assets of the firm, or any employee or agent:

(i) Has failed to comply with the applicable provisions of chapter 46.12 or 46.16 RCW or this chapter or any rules and regulations adopted thereunder;

(ii) Has defrauded or attempted to defraud the state, or a political subdivision thereof of any taxes or fees in connection with the sale or transfer of a vehicle;

(iii) Has forged the signature of the registered or legal owner on a certificate of title;

(iv) Has purchased, sold, disposed of, or has in his or her possession any vehicle which he or she knows or has reason to know has been stolen or appropriated without the consent of the owner;

(v) Has willfully failed to deliver to a purchaser a certificate of ownership to a vehicle which he has sold;

(vi) Has committed any act in violation of RCW 46.70.090 relating to vehicle dealer license plates or manufacturer license plates;

(vii) Has committed any act in violation of RCW 46.70.180 relating to unlawful acts and practices;

(viii) Has engaged in practices inimical to the health or safety of the citizens of the state of Washington including but not limited to failure to comply with standards set by the state of Washington or the federal government pertaining to the construction or safety of vehicles, except for sales by wholesale motor vehicle auction dealers to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW or motor vehicle dealers licensed by any other state;

(ix) Has aided or assisted an unlicensed dealer or salesperson in unlawful activity through active or passive participation in sales, allowing use of facilities, dealer license number, or by any other means;

(x) Converts or appropriates, whether temporarily or permanently, property or funds belonging to a customer, dealer, or manufacturer, without the consent of the owner of the property or funds; or

(xi) Has sold any vehicle with actual knowledge that:

(A) It has any of the following brands on the title: "SALVAGE/REBUILT," "JUNK," or "DESTROYED"; or

(B) It has been declared totaled out by an insurance carrier and then rebuilt; or

without clearly disclosing that brand or comment in writing.

(c) The licensee or any partner, officer, director, or owner of ten percent or more of the assets of the firm holds or has held any such position in any other vehicle dealership licensed pursuant to this chapter which is subject to final proceedings under this section.

(2) In the case of a manufacturer, or any partner, officer, director, or majority shareholder:

(a) Was or is the holder of a license issued pursuant to this chapter which was revoked for cause and never reissued by the department, or which license was suspended for cause and the terms of the suspension have not been fulfilled, or which license was assessed a civil penalty and the assessed amount has not been paid;

(b) Has knowingly or with reason to know, made a false statement of a material fact in his application for license, or any data attached thereto, or in any matter under investigation by the department;

(c) Has failed to comply with the applicable provisions of chapter 46.12 or 46.16 RCW or this chapter or any rules and regulations adopted thereunder;

(d) Has defrauded or attempted to defraud the state or a political subdivision thereof, of any taxes or fees in connection with the sale or transfer of a vehicle;

(e) Has purchased, sold, disposed of, or has in his possession, any vehicle which he knows or has reason to know has been stolen or appropriated without the consent of the owner;

(f) Has committed any act in violation of RCW 46.70.090 relating to vehicle dealer license plates and manufacturer license plates;

(g) Has committed any act in violation of RCW 46.70.180 relating to unlawful acts and practices;

(h) Sells or distributes in this state or transfers into this state for resale, any new or unused vehicle to which a warranty attaches or has attached and refuses to honor the terms of such warranty within a reasonable time or repudiates the same;

(i) Fails to maintain one or more resident employees or agents to provide service or repairs to vehicles located within the state of Washington only under the terms of any warranty attached to new or unused vehicles manufactured and which are or have been sold or distributed in this state or transferred into this state for resale unless such manufacturer requires warranty service to be performed by all of its dealers pursuant to a current service agreement on file with the department;

(j) Fails to reimburse within a reasonable time any vehicle dealer within the state of Washington who in good faith incurs reasonable obligations in giving effect to warranties that attach or have attached to any new or unused vehicle sold or distributed in this state or transferred into this state for resale by any such manufacturer;

(k) Engaged in practices inimical to the health and safety of the citizens of the state of Washington including but not limited to failure to comply with standards set by the state of Washington or the federal government pertaining to the construction and safety of vehicles;

(l) Is insolvent either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature;

(m) Fails to notify the department of bankruptcy proceedings in the manner required by RCW 46.70.183."

In line 1 of the title, after "auctions;" strike the remainder of the title and insert "amending RCW 46.70.011, 46.79.010, 46.80.010, and 46.70.101; adding a new section to chapter 46.70 RCW; adding a new section to chapter 46.79 RCW; and adding a new section to chapter 46.80 RCW."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed House Bill No. 2501 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed House Bill No. 2501 as amended by the Senate.

Representatives Zellinsky and Fisher spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed House Bill No. 2501 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Engrossed House Bill No. 2501, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed House Bill No. 2542 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 36.70A.040 and 1995 c 400 s 1 are each amended to read as follows:

(1) Each county that has:

(a) Both a population of fifty thousand or more and, until May 16, 1995, has had its population increase by more than ten percent in the previous ten years or, ((on or after)) beginning May 16, 1995, through June 30, 1998, has had its population increase by more than seventeen percent in the previous ten years((,)); or

(b) On or after July 1, 1998, has both a population of sixty thousand or more and has had its population increase by more than seventeen percent in the previous ten years, and the cities located within such county, and any other county regardless of its population that has had its population increase by more than twenty percent in the previous ten years, and the cities located within such county, shall ((conform with all of the requirements of this chapter)) plan under this section. However, the county legislative authority of such a county with a population of less than fifty thousand population may adopt a resolution removing the county, and the cities located within the county, from the requirements ((of adopting comprehensive land use plans and development regulations under this chapter)) to plan under this section if this resolution is adopted and filed with the department by December 31, 1990, for counties initially meeting this set of criteria, or within sixty days of the date the office of financial management certifies that a county meets this set of criteria under subsection (5) of this section.

Once a county meets either of these sets of criteria, the requirement to ((conform with all of the requirements of this chapter)) plan under this section remains in effect, even if the county no longer meets one of these sets of criteria.

(2) The county legislative authority of any county that does not meet either of the sets of criteria established under subsection (1) of this section may adopt a resolution indicating its intention ((to have subsection (1) of this section apply to)) that the county plan under this section. Each city, located in a county that ((chooses to plan)) adopts a resolution under this subsection, shall ((conform with all of the requirements of this chapter)) plan under this section. Once such a resolution has been adopted, the county and the cities located within the county remain subject to all of the requirements of this ((chapter)) section, unless the county removes itself, and the cities located within the county, from the requirement to plan under this section under the procedures in subsection (7) of this section.

(3) Any county or city that is initially required to ((conform with all of the requirements of this chapter)) plan under ((subsection (1) of)) this section shall take actions under this chapter as follows: (a) The county legislative authority shall adopt a county-wide planning policy under RCW 36.70A.210; (b) the county and each city located within the county shall designate critical areas, agricultural lands, forest lands, and mineral resource lands, and adopt development regulations conserving these designated agricultural lands, forest lands, and mineral resource lands and protecting these designated critical areas, under RCW 36.70A.170 and 36.70A.060; (c) the county shall designate and take other actions related to urban growth areas under RCW 36.70A.110; (d) if the county has a population of fifty thousand or more, the county and each city located within the county shall adopt a comprehensive plan under this chapter and development regulations that are consistent with and implement the comprehensive plan on or before July 1, 1994, and if the county has a population of less than fifty thousand, the county and each city located within the county shall adopt a comprehensive plan under this chapter and development regulations that are consistent with and implement the comprehensive plan by January 1, 1995, but if the governor makes written findings that a county with a population of less than fifty thousand or a city located within such a county is not making reasonable progress toward adopting a comprehensive plan and development regulations the governor may reduce this deadline for such actions to be taken by no more than one hundred eighty days. Any county or city subject to this subsection may obtain an additional six months before it is required to have adopted its development regulations by submitting a letter notifying the department of community, trade, and economic development of its need prior to the deadline for adopting both a comprehensive plan and development regulations.

(4) Any county or city that is required to ((conform with all the requirements of this chapter)) plan under this section, as a result of the county legislative authority adopting its resolution of intention under subsection (2) of this section, and the county has not removed itself, and the cities located within the county, from the requirement to plan under this section under the procedures in subsection (7) of this section, shall take actions under this chapter as follows: (a) The county legislative authority shall adopt a county-wide planning policy under RCW 36.70A.210; (b) the county and each city that is located within the county shall adopt development regulations conserving agricultural lands, forest lands, and mineral resource lands it designated under RCW 36.70A.060 within one year of the date the county legislative authority adopts its resolution of intention; (c) the county shall designate and take other actions related to urban growth areas under RCW 36.70A.110; and (d) the county and each city that is located within the county shall adopt a comprehensive plan and development regulations that are consistent with and implement the comprehensive plan not later than four years from the date the county legislative authority adopts its resolution of intention, but a county or city may obtain an additional six months before it is required to have adopted its development regulations by submitting a letter notifying the department of community, trade, and economic development of its need prior to the deadline for adopting both a comprehensive plan and development regulations.

(5) If the office of financial management certifies that the population of a county that ((previously had not been required to)) does not plan under ((subsection (1) or (2) of)) this section has changed sufficiently to meet either of the sets of criteria specified under subsection (1) of this section, and where applicable, the county legislative authority has not adopted a resolution removing the county from these requirements as provided in subsection (1) of this section, the county and each city within such county shall take actions under this chapter as follows: (a) The county legislative authority shall adopt a county-wide planning policy under RCW 36.70A.210; (b) the county and each city located within the county shall adopt development regulations under RCW 36.70A.060 conserving agricultural lands, forest lands, and mineral resource lands it designated within one year of the certification by the office of financial management; (c) the county shall designate and take other actions related to urban growth areas under RCW 36.70A.110; and (d) the county and each city located within the county shall adopt a comprehensive land use plan and development regulations that are consistent with and implement the comprehensive plan within four years of the certification by the office of financial management, but a county or city may obtain an additional six months before it is required to have adopted its development regulations by submitting a letter notifying the department of community, trade, and economic development of its need prior to the deadline for adopting both a comprehensive plan and development regulations.

(6) A copy of each document that is required under this section shall be submitted to the department at the time of its adoption.

(7) The county legislative authority of any county with a population of less than fifty thousand that is required to plan by reason of adopting a resolution under subsection (2) of this section, and any county with a population of less than fifty thousand that at any time has had the authority to remove itself from the requirements of this chapter by adoption of a resolution under subsection (1) of this section, may remove the county and the cities located within the county from the requirement to plan under this section under the procedures in this subsection.

(a) By December 31, 1998, the county legislative authority, by majority vote, may adopt a resolution stating its intent to remove the county, and the cities located within the county, from the requirement to plan under this section and submit the resolution to the cities located within the county.

(b) If the county has two or more cities, the county and the cities located within the county are no longer subject to the requirement to plan:

(i) If within sixty days of submission of the resolution of intent, a majority of the cities adopt resolutions concurring in the resolution of the county; or

(ii) If the cities do not concur within sixty days under (b)(i) of this subsection, if a resolution removing the county and the cities located within the county from the requirement to plan under this section is submitted to and approved by a majority of the registered voters in the county at the next general election.

(c) If the county has one city, the county and the city located within the county are no longer subject to the requirement to plan:

(i) If within sixty days of submission of the resolution of intent, the city adopts a resolution concurring in the resolution of the county; or

(ii) If the city does not concur within sixty days under (c)(i) of this subsection, if a resolution removing the county and the city located within the county from the requirement to plan under this section is submitted to and approved by a majority of the registered voters in the county at the next general election.

(d) A county, and the cities located within the county, that are no longer required to plan under this section remain subject to the requirements for the designation and protection of critical areas and the designation of natural resource lands under RCW 36.70A.060(2), 36.70A.170, and 36.70A.172.

NEW SECTION. Sec. 2. A new section is added to chapter 36.70A RCW to read as follows:

If a resolution is adopted or approved under RCW 36.70A.040(7) removing the county and the cities located within the county from the requirement to plan under this chapter, any claim pending before a board or court that relates to the requirement to plan under this chapter is moot and the claim shall be dismissed.

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."

On page 1, line 3 of the title, after "act;" strike the remainder of the title and insert "amending RCW 36.70A.040; adding a new section to chapter 36.70A RCW; and declaring an emergency."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to House Bill No. 2542 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of House Bill No. 2542 as amended by the Senate.

Representative Mulliken spoke in favor of final passage of the bill.

Representative Lantz spoke against the final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2542 as amended by the Senate and the bill passed the House by the following vote: Yeas - 70, Nays - 28, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cooke, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Eickmeyer, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kenney, Kessler, Koster, Lambert, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Morris, Mulliken, Parlette, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 70.

Voting nay: Representatives Anderson, Butler, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Dunshee, Fisher, Gardner, Kastama, Keiser, Lantz, Linville, Mason, Mitchell, Murray, O'Brien, Ogden, Poulsen, Regala, Romero, Scott, Sommers, H., Tokuda and Veloria - 28.

House Bill No. 2542, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Substitute House Bill No. 2551 with the following amendment(s)

On page 2, line 1, after "mail." insert "When a city or town provides a real property owner or the owner's designee with duplicates of tenant utility service bills or notice that a tenant's utility account is delinquent, the city or town shall notify the tenant that it is providing the duplicate bills or delinquency notice to the owner or the owner's designee."

On page 4, line 2, after "mail." insert "When a district provides a real property owner or the owner's designee with duplicates of tenant utility service bills or notice that a tenant's utility account is delinquent, the district shall notify the tenant that it is providing the duplicate bills or delinquency notice to the owner or the owner's designee."

On page 6, line 30, after "mail." insert "When a district provides a real property owner or the owner's designee with duplicates of tenant utility service bills or notice that a tenant's utility account is delinquent, the district shall notify the tenant that it is providing the duplicate bills or delinquency notice to the owner or the owner's designee."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 2551 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2551 as amended by the Senate.

Representatives Crouse and Poulsen spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2551 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Engrossed Substitute House Bill No. 2551, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Substitute House Bill No. 2724 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 43.88 RCW to read as follows:

A state agency shall not expend moneys except pursuant to an appropriation by law if the moneys are received in an administrative or judicial regulatory or civil enforcement action, or settlement thereof, brought by the state.

In any regulatory or civil enforcement action brought by the attorney general under the authority of the attorney general or another state agency where moneys are to be paid to the state or to a state-administered account, the attorney general shall seek a court order or settlement that includes a requirement that the moneys received by the state shall not be expended except pursuant to an appropriation by law.

This section does not apply to:

(1) Moneys received by the state for payment by the state to injured parties or a class of parties as damages, restitution, or refunds. However, if such payments to a class of parties in lieu of damages, restitution, or refunds, such as payments under the doctrine of cy pres, include a payment to a state agency, the expenditure of the payment by the state agency shall be subject to this section;

(2) Fees or enforcement actions to collect fees, including investigation or examination fees, that are established by administrative rule or statute;

(3) Expenditures from accounts outside the state treasury, including court registries, exclusively for purposes of remedial action or natural resource damages under chapters 70.105D, 90.48, and 90.56 RCW, 33 U.S.C. Sec. 2701 et seq., or 42 U.S.C. Sec. 9601 et seq., or for purposes of financial assurance under chapter 70.95 or 70.105 RCW; (4) Moneys recovered by the department of social and health services for client services, benefits, or vendor overpayments or moneys collected by the division of child support; and

(5) Expenditures from nonappropriated funds and accounts that are specifically established by statute if the statute does not incorporate a reference to this section.

NEW SECTION. Sec. 2. A new section is added to chapter 43.88 RCW to read as follows:

Except as provided in section 1 of this act or as otherwise provided by law, recoveries of amounts expended pursuant to an appropriation, including but not limited to, payments for material supplied or services rendered under chapter 39.34 RCW, may be expended as part of the original appropriation of the fund to which such recoveries belong, without further or additional appropriation. Such expenditures shall be subject to conditions and procedures prescribed by the director of financial management. The director may authorize expenditures with respect to recoveries accrued but not received, in accordance with generally accepted accounting principles, except that such recoveries shall not be included in revenues or expended against an appropriation for a subsequent fiscal period. This section does not apply to the repayment of loans, except for loans between state agencies.

Sec. 3. RCW 43.79.270 and 1996 c 288 s 37 are each amended to read as follows:

Whenever any money, from the federal government, or from other sources, which was not anticipated in the budget approved by the legislature has actually been received and is designated to be spent for a specific purpose, the head of any department, agency, board, or commission through which such expenditure shall be made is to submit to the governor a statement which may be in the form of a request for an allotment amendment setting forth the facts constituting the need for such expenditure and the estimated amount to be expended: PROVIDED, That no expenditure shall be made in excess of the actual amount received, ((and)) no money shall be expended for any purpose except the specific purpose for which it was received, and no money shall be expended under this section if an appropriation is required under section 1 of this act. A copy of any proposal submitted to the governor to expend money from an appropriated fund or account in excess of appropriations provided by law which is based on the receipt of unanticipated revenues shall be submitted to the joint legislative audit and review committee and also to the standing committees on ways and means of the house and senate if the legislature is in session at the same time as it is transmitted to the governor.

Sec. 4. RCW 9.46.100 and 1991 sp.s. c 16 s 917 are each amended to read as follows:

There is hereby created the gambling revolving fund which shall consist of all moneys receivable for licensing, penalties, forfeitures, and all other moneys, income, or revenue received by the commission. The state treasurer shall be custodian of the fund. All moneys received by the commission or any employee thereof, except for change funds and an amount of petty cash as fixed by rule or regulation of the commission, shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the gambling revolving fund. Disbursements from the revolving fund shall be on authorization of the commission or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control the gambling revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund except as provided in section 1 of this act. All expenses relative to commission business, including but not limited to salaries and expenses of the director and other commission employees shall be paid from the gambling revolving fund.

The state treasurer shall transfer to the general fund one million dollars from the gambling revolving fund for the 1991-93 fiscal biennium.

Sec. 5. RCW 15.13.470 and 1993 c 120 s 17 are each amended to read as follows:

All moneys collected under this chapter shall be paid to the director, deposited in an account within the agricultural local fund, and used solely for carrying out this chapter and rules adopted under this chapter. Except as provided in section 1 of this act, no appropriation is required for the disbursement of moneys from the account by the director. Any residual balance of funds remaining in the nursery inspection fund on July 26, 1987, shall be transferred to that account within the agricultural local fund: PROVIDED, That all fees collected for fruit tree, fruit tree related ornamental tree, and fruit tree rootstock assessments as set forth in this chapter shall be deposited in the northwest nursery fund to be used only for the Washington fruit tree and fruit tree related ornamental tree certification and nursery improvement programs as set forth in this chapter and chapter 15.14 RCW.

Sec. 6. RCW 15.36.441 and 1995 c 374 s 7 are each amended to read as follows:

(1) If the results of an antibiotic, pesticide, or other drug residue test under RCW 15.36.201 are above the actionable level established in the PMO and determined using procedures set forth in the PMO, a person holding a milk producer's license is subject to a civil penalty. The penalty shall be in an amount equal to one-half the value of the sum of the volumes of milk equivalent produced under the license on the day prior to and the day of the adulteration. The value of the milk shall be computed by the weighted average price for the federal market order under which the milk is delivered.

(2) The penalty is imposed by the department giving a written notice which is either personally served upon or transmitted by certified mail, return receipt requested, to the person incurring the penalty. The notice of the civil penalty shall be a final order of the department unless, within fifteen days after the notice is received, the person incurring the penalty appeals the penalty by filing a notice of appeal with the department. If a notice of appeal is filed in a timely manner, a hearing shall be conducted on behalf of the department by the office of administrative hearings in accordance with chapters 34.05 and 34.12 RCW. At the conclusion of the hearing, the department shall determine whether the penalty should be affirmed, and, if so, shall issue a final order setting forth the civil penalty assessed, if any. The order may be appealed to superior court in accordance with chapter 34.05 RCW. Tests performed for antibiotic, pesticide, or other drug residues by an official laboratory or an officially designated laboratory of a milk sample drawn by a department official or a licensed dairy technician shall be admitted as prima facie evidence of the presence or absence of an antibiotic, pesticide, or other drug residue.

(3) Any penalty imposed under this section is due and payable upon the issuance of the final order by the department. The penalty shall be deducted by the violator's marketing organization from the violator's final payment for the month following the issuance of the final order. The department shall promptly notify the violator's marketing organization of any penalties contained in the final order.

(4) All penalties received or recovered from violations of this section shall be remitted monthly by the violator's marketing organization to the Washington state dairy products commission and deposited in a revolving fund to be used solely for the purposes of education and research. Except as provided in section 1 of this act, no appropriation is required for disbursements from this fund.

(5) In case of a violation of the antibiotic, pesticide, or other drug residue test requirements, an investigation shall be made to determine the cause of the residue which shall be corrected. Follow-up sampling and testing must be done in accordance with the requirements of the PMO.

Sec. 7. RCW 15.36.471 and 1994 c 143 s 511 are each amended to read as follows:

(1) The director of agriculture shall adopt rules imposing a civil penalty for violations of the standards for component parts of fluid dairy products which are established under this chapter or adopted pursuant to RCW 69.04.398. The penalty shall not exceed ten thousand dollars and shall be such as is necessary to achieve proper enforcement of the standards. The rules shall be adopted before January 1, 1987, and shall become effective on July 1, 1987.

(2) The penalty is imposed by the department giving a written notice which is either personally served upon or transmitted by certified mail, return receipt requested, to the person incurring the penalty. The notice of the civil penalty shall be a final order of the department unless, within fifteen days after the notice is received, the person incurring the penalty appeals the penalty by filing a notice of appeal with the department. If a notice of appeal is filed in a timely manner, a hearing shall be conducted on behalf of the department by the office of administrative hearings in accordance with chapters 34.05 and 34.12 RCW. At the conclusion of the hearing, the department shall determine whether the penalty should be affirmed, reduced, or not imposed and shall issue a final order setting forth the civil penalty assessed, if any. The order may be appealed to superior court in accordance with chapter 34.05 RCW. Tests performed for the component parts of milk products by a state laboratory of a milk sample collected by a department official shall be admitted as prima facie evidence of the amounts of milk components in the product.

(3) Any penalty imposed under this section is due and payable upon the issuance of the final order by the department.

(4) All penalties received or recovered from violations of this section shall be remitted by the violator to the department and deposited in the revolving fund of the Washington state dairy products commission. One-half of the funds received shall be used for purposes of education with the remainder one-half to be used for dairy processing or marketing research, or both. Except as provided in section 1 of this act, no appropriation is required for disbursements from this fund.

(5) In case of a violation of the standards for the composition of milk products, an investigation shall be made to determine the cause of the violation which shall be corrected. Additional samples shall be taken as soon as possible and tested by the department.

Sec. 8. RCW 18.160.050 and 1990 c 177 s 6 are each amended to read as follows:

(1)(a) All certificate of competency holders that desire to continue in the fire protection sprinkler business shall annually, prior to January 1, secure from the state director of fire protection a renewal certificate of competency upon payment of the fee as prescribed by the state director of fire protection. Application for renewal shall be upon a form prescribed by the state director of fire protection and the certificate holder shall furnish the information required by the director.

(b) Failure of any certificate of competency holder to secure his or her renewal certificate of competency within sixty days after the due date shall constitute sufficient cause for the state director of fire protection to suspend the certificate of competency.

(c) The state director of fire protection may, upon the receipt of payment of all delinquent fees including a late charge, restore a certificate of competency that has been suspended for failure to pay the renewal fee.

(d) A certificate of competency holder may voluntarily surrender his or her certificate of competency to the state director of fire protection and be relieved of the annual renewal fee. After surrendering the certificate of competency, he or she shall not be known as a certificate of competency holder and shall desist from the practice thereof. Within two years from the time of surrender of the certificate of competency, he or she may again qualify for a certificate of competency, without examination, by the payment of the required fee. If two or more years have elapsed, he or she shall return to the status of a new applicant.

(2)(a) All licensed fire protection sprinkler system contractors desiring to continue to be licensed shall annually, prior to January 1, secure from the state director of fire protection a renewal license upon payment of the fee as prescribed by the state director of fire protection. Application for renewal shall be upon a form prescribed by the state director of fire protection and the license holder shall furnish the information required by the director.

(b) Failure of any license holder to secure his or her renewal license within sixty days after the due date shall constitute sufficient cause for the state director of fire protection to suspend the license.

(c) The state director of fire protection may, upon the receipt of payment of all delinquent fees including a late charge, restore a license that has been suspended for failure to pay the renewal fee.

(3) The initial certificate of competency or license fee shall be prorated based upon the portion of the year such certificate of competency or license is in effect, prior to renewal on January 1.

(4) The fire protection contractor license fund is created in the custody of the state treasurer. All receipts from license and certificate fees and charges or from the money generated by the rules and regulations promulgated under this chapter shall be deposited into the fund. Expenditures from the fund may be used only for purposes authorized under this chapter. Only the state director of fire protection or the director's designee may authorize expenditures from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required for expenditures from the fund.

Sec. 9. RCW 19.146.228 and 1997 c 106 s 13 are each amended to read as follows:

The director shall establish fees by rule in accordance with RCW 43.24.086 sufficient to cover, but not exceed, the costs of administering this chapter. These fees may include:

(1) An annual assessment paid by each licensee on or before a date specified by rule;

(2) An investigation fee to cover the costs of any investigation of the books and records of a licensee or other person subject to this chapter; and

(3) An application fee to cover the costs of processing applications made to the director under this chapter.

Mortgage brokers shall not be charged investigation fees for the processing of complaints when the investigation determines that no violation of this chapter occurred or when the mortgage broker provides a remedy satisfactory to the complainant and the director and no order of the director is issued. All moneys, fees, and penalties collected under the authority of this chapter shall be subject to section 1 of this act and shall be deposited into the banking examination fund, unless the consumer services account is created as a dedicated, nonappropriated account, in which case all moneys, fees, and penalties collected under this chapter shall be deposited in the consumer services account.

Sec. 10. RCW 22.09.411 and 1991 sp.s. c 13 s 67 are each amended to read as follows:

(1) There is hereby established a fund to be known as the grain indemnity fund. The grain indemnity fund shall consist of assessments remitted by licensees pursuant to the provisions of RCW 22.09.416 through 22.09.426.

(2) All assessments shall be paid to the department and shall be deposited in the grain indemnity fund. The state treasurer shall be the custodian of the grain indemnity fund. Disbursements shall be on authorization of the director. Except as provided in section 1 of this act, no appropriation is required for disbursements from this fund.

(3) The grain indemnity fund shall be used exclusively for purposes of paying claimants pursuant to this chapter, and paying necessary expenses of administering the grain indemnity fund, provided however, that moneys equivalent to one-half of the interest earned by the fund for deposit to the general fund may be paid to the department to defray costs of administering the warehouse audit program. The state of Washington shall not be liable for any claims presented against the fund.

Sec. 11. RCW 22.09.830 and 1994 sp.s. c 6 s 901 and 1994 c 46 s 6 are each reenacted and amended to read as follows:

(1) All moneys collected as fees for weighing, grading, and inspecting commodities and all other fees collected under the provisions of this chapter, except as provided in subsections (2) and (3) of this section, shall be deposited in the grain inspection revolving fund, which is hereby established. The state treasurer is the custodian of the revolving fund. Disbursements from the revolving fund shall be on authorization of the director of the department of agriculture. The revolving fund is subject to the allotment procedure provided in chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required for disbursements from the fund. The fund shall be used for all expenses directly incurred by the grain inspection program in carrying out the provisions of this chapter and for departmental administrative expenses during the 1993-95 biennium. The department may use so much of such fund not exceeding five percent thereof as the director of agriculture may determine necessary for research and promotional work, including rate studies, relating to wheat and wheat products.

(2) All fees collected for the inspection, grading, and testing of hops shall be deposited into the hop inspection fund, which is hereby established, and shall be retained by the department for the purpose of inspecting, grading, and testing hops. Any moneys in any fund retained by the department on July 1, 1963, and derived from hop inspection and grading shall be deposited to this hop inspection fund. For the purposes of research which would contribute to the development of superior hop varieties and to improve hop production and harvest practices, the department may expend up to twenty percent of the moneys deposited in the hop inspection fund during the fiscal year ending June 30th immediately preceding the year in which such expenditures are to be made. No expenditures shall be made under the provisions of this subsection when the hop inspection fund is, or the director may reasonably anticipate that it will be, reduced below twenty thousand dollars as the result of such expenditure or other necessary expenditures made to carry out the inspection, grading, and testing of hops.

(3) All moneys collected by the grain warehouse audit program, including grain warehouse license fees pursuant to RCW 22.09.050 and 22.09.055, shall be deposited by the director into the grain warehouse audit account, hereby created within the agricultural local fund established in RCW 43.23.230. Moneys collected shall be used to support the grain warehouse audit program.

Sec. 12. RCW 28C.10.082 and 1991 sp.s. c 13 s 85 are each amended to read as follows:

The tuition recovery trust fund is hereby established in the custody of the state treasurer. The agency shall deposit in the fund all moneys received under RCW 28C.10.084. Moneys in the fund may be spent only for the purposes under RCW 28C.10.084. Disbursements from the fund shall be on authorization of the agency. The fund is subject to the allotment procedure provided under chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required for disbursements from the fund.

Sec. 13. RCW 43.10.200 and 1971 ex.s. c 71 s 6 are each amended to read as follows:

Except as provided in section 1 of this act, court costs, attorneys' fees, and other expenses recovered by the attorney general shall be deposited in the legal services revolving fund and shall be considered as returned loans of materials supplied or services rendered. Such amounts may be expended in the same manner and under the same conditions and restrictions as set forth in section 11, chapter 282, Laws of 1969 ex. sess.

Sec. 14. RCW 43.10.220 and 1974 ex.s. c 162 s 3 are each amended to read as follows:

Except as provided in section 1 of this act, the attorney general is authorized to expend from the antitrust revolving fund, created by RCW 43.10.210 through 43.10.220, such funds as are necessary for the payment of costs, expenses and charges incurred in the preparation, institution and maintenance of antitrust actions under the state and federal antitrust acts.

Sec. 15. RCW 43.23.230 and 1988 c 254 s 1 are each amended to read as follows:

The agricultural local fund is hereby established in the custody of the state treasurer. The fund shall consist of such money as is directed by law for deposit in the fund, and such other money not subject to appropriation that the department authorizes to be deposited in the fund. Any money deposited in the fund, the use of which has been restricted by law, may only be expended in accordance with those restrictions. The department may make disbursements from the fund. The fund is not subject to legislative appropriation except as provided in section 1 of this act.

Sec. 16. RCW 43.320.110 and 1995 c 238 s 9 are each amended to read as follows:

There is created a local fund known as the "banking examination fund" which shall consist of all moneys received by the department of financial institutions from banks, savings banks, foreign bank branches, savings and loan associations, consumer loan companies, check cashers and sellers, trust companies and departments, and escrow agents, and which shall be used for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the proper regulation of these companies. The state treasurer shall be the custodian of the fund. Disbursements from the fund shall be on authorization of the director of financial institutions or the director's designee. In order to maintain an effective expenditure and revenue control, the fund shall be subject in all respects to chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required to permit expenditures and payment of obligations from the fund.

Sec. 17. RCW 43.320.120 and 1993 c 472 s 26 are each amended to read as follows:

There is created a local fund known as the "credit unions examination fund" which shall consist of all moneys received by the department of financial institutions from credit unions and which shall be used for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the regulation of these institutions. The state treasurer shall be the custodian of the fund. Disbursements from the fund shall be on authorization of the director of financial institutions or the director's designee. In order to maintain an effective expenditure and revenue control, the fund shall be subject in all respects to chapter 43.88 RCW((, but)) and, except as provided in section 1 of this act, no appropriation is required to permit expenditures and payment of obligations from the fund.

Sec. 18. RCW 43.320.130 and 1993 c 472 s 27 are each amended to read as follows:

(1) There is created in the state treasury a fund known as the "securities regulation fund" that shall consist of thirteen percent of all moneys received by the division of securities of the department of financial institutions, except as provided in subsection (2) of this section. Expenditures from the account may be used only for the purchase of supplies and necessary equipment and the payment of salaries, wages, utilities, and other incidental costs required for the regulation of securities, franchises, business opportunities, commodities, and other similar areas regulated by the division. Moneys in the account may be spent only after appropriation.

(2) All moneys that are received by the division of securities in settlement of a regulatory or enforcement action that are designated for a specific purpose shall be placed in the securities regulation fund and be subject to appropriation for that purpose. If those settlement moneys are not appropriated by the end of the following biennium, eighty-seven percent of those moneys shall be deposited into the general fund on the first day of the succeeding biennium.

Sec. 19. 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)). Except as provided in section 1 of this act, 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.

Sec. 20. RCW 59.21.050 and 1995 c 122 s 9 are each amended to read as follows:

(1) The existence of the mobile home park relocation fund in the custody of the state treasurer is affirmed. Expenditures from the fund may be used only for relocation assistance under RCW 59.21.015 through 59.21.025. Only the director or the director's designee may authorize expenditures from the fund. All relocation payments to tenants shall be made from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required for expenditures from the fund.

(2) A park tenant is eligible for assistance under RCW 59.21.015 only after an application is submitted by that tenant or an organization acting on the tenant's account under RCW 59.21.021(4) on a form approved by the director which shall include:

(a) For those persons who maintained ownership of and relocated their homes: (i) A copy of the notice from the park-owner, or other adequate proof, that the tenancy is terminated due to closure of the park or its conversion to another use; (ii) a copy of the rental agreement then in force, or other proof that the applicant was a tenant at the time of notice of closure; (iii) a copy of the contract for relocating the home which includes the date of relocation, or other proof of actual relocation expenses incurred on a date certain; and (iv) a statement of any other available assistance;

(b) For those persons who sold their homes and incurred no relocation expenses: (i) A copy of the notice from the park-owner, or other adequate proof, that the tenancy is terminated due to closure of the park or its conversion to another use; (ii) a copy of the rental agreement then in force, or other proof that the applicant was a tenant at the time of notice of closure; and (iii) a copy of the record of title transfer issued by the department of licensing when the tenant sold the home rather than relocate it due to park closure or conversion.

Sec. 21. RCW 70.47.030 and 1995 2nd sp.s. c 18 s 913 are each amended to read as follows:

(1) The basic health plan trust account is hereby established in the state treasury. Any nongeneral fund-state funds collected for this program shall be deposited in the basic health plan trust account and may be expended without further appropriation. Moneys in the account shall be used exclusively for the purposes of this chapter, including payments to participating managed health care systems on behalf of enrollees in the plan and payment of costs of administering the plan.

During the 1995-97 fiscal biennium, the legislature may transfer funds from the basic health plan trust account to the state general fund.

(2) The basic health plan subscription account is created in the custody of the state treasurer. All receipts from amounts due from or on behalf of nonsubsidized enrollees shall be deposited into the account. Funds in the account shall be used exclusively for the purposes of this chapter, including payments to participating managed health care systems on behalf of nonsubsidized enrollees in the plan and payment of costs of administering the plan. The account is subject to allotment procedures under chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required for expenditures.

(3) The administrator shall take every precaution to see that none of the funds in the separate accounts created in this section or that any premiums paid either by subsidized or nonsubsidized enrollees are commingled in any way, except that the administrator may combine funds designated for administration of the plan into a single administrative account.

Sec. 22. RCW 77.21.080 and 1989 c 11 s 29 are each amended to read as follows:

The state wildlife conservation reward fund is established in the custody of the state treasurer. The director shall deposit in the fund all moneys designated to be placed in the fund by rule of the director. Moneys in the fund shall be spent to provide rewards to persons informing the department about violations of this title or rules adopted pursuant to this title. Disbursements from the fund shall be on the authorization of the director or the director's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW((, but)). Except as provided in section 1 of this act, no appropriation is required for disbursements from the fund.

NEW SECTION. Sec. 23. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

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 July 1, 1999."

On page 1, line 3 of the title, after "enforcement actions;" strike the remainder of the title and insert "amending RCW 43.79.270, 9.46.100, 15.13.470, 15.36.441, 15.36.471, 18.160.050, 19.146.228, 22.09.411, 28C.10.082, 43.10.200, 43.10.220, 43.23.230, 43.320.110, 43.320.120, 43.320.130, 43.70.340, 59.21.050, 70.47.030, and 77.21.080; reenacting and amending RCW 22.09.830; adding new sections to chapter 43.88 RCW; creating a new section; and providing an effective date."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 2724 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 2724 as amended by the Senate.

Representative Boldt spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2724 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Substitute House Bill No. 2724, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Second Substitute House Bill No. 2831 with the following amendment(s)

On page 5, line 32, after "utilities;" strike "and"

On page 5, line 35, after "reliability" insert "; and

(e) An examination of alternative formats for simple, standardized disclosure of fuel mix, air emissions, and other environmental impacts of coal, hydroelectric, natural gas, nuclear, wind, and other generating resources, including the approaches used by utilities that have offered pilot programs to their customers allowing market access"

On page 6, after line 18, insert the following:

"NEW SECTION. Sec. 5. Any municipal electric utility formed by a municipality with a population of more than four hundred thousand as of the effective date of this section shall submit a report to its governing body by December 1, 1998, with the following information:

(1) The ratio of the municipal electric utility's customers to its employees as of the effective date of this section, and the changes in the ratio that have occurred over the previous ten years; and

(2) The annual sources of funding and the amount of annual expenditures, including federal funds, by the municipal electric utility on conservation, renewable resources, and low-income weatherization and energy bill-paying assistance programs during the previous ten years. This part of the report shall describe: (i) the amount of electricity saved by such conservation programs; (ii) the overhead costs to the municipal electric utility to administer such programs, including but not limited to amounts expended by other municipal departments and nonprofit entities in administering such programs; and (iii) for low-income weatherization programs, the overhead cost per unit weatherized as compared to the overhead costs of comparable programs administered by the state. "

Renumber the sections consecutively and correct any internal references accordingly.

Amend the title accordingly.

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 2831 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 2831 as amended by the Senate.

Representatives Crouse and Poulsen spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2831 as amended by the Senate and the bill passed the House by the following vote: Yeas - 86, Nays - 12, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Mulliken, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 86.

Voting nay: Representatives Chopp, Cody, Cole, Constantine, Conway, Cooper, Hatfield, Mason, Morris, Murray, Tokuda and Veloria - 12.

Engrossed Second Substitute House Bill No. 2831, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Second Substitute House Bill No. 2880 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the practice of engaging nonprofit entities to provide social services by use of fee-for-services and/or client services contracts has become necessary to effective state agency operations. The legislature further finds that there is a need to fundamentally examine how state contracts of this type are managed. Thus, the legislature intends that a comprehensive study take place that will identify methods for improving state-wide practices relating to fee-for-services and client services contracts.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this act, unless the context clearly requires otherwise.

(1) "Agency" means every state office, department, division, bureau, board, committee, or other state agency.

(2) "Task force" means the task force on agency vendor contracting practices.

(3) "Contractor" means any nonprofit entity holding a fee-for-services and/or client services contract or grant for the provision of social services with the state of Washington, as defined in chapter 39.29 RCW.

(4) "Contract" means any fee-for-services and/or client services contract or grant for the provision of social services as defined in chapter 39.29 RCW.

NEW SECTION. Sec. 3. A task force on agency vendor contracting practices is established. The task force shall be convened by the office of financial management and shall be composed of nine members to be appointed by the director of the office of financial management. Two members of the task force shall be chosen as representatives of contractors. Two members of the task force shall be chosen for their personal work experiences as state employees responsible for administering contracts. All other task force members shall be selected for their knowledge and experience with state agency practices governing contracts. The director of the office of financial management shall appoint a chair from among the members of the task force. The task force shall invite and incorporate the participation of interested legislative members.

NEW SECTION. Sec. 4. (1) The task force shall review and propose legislative and administrative recommendations for the following issues:

(a) The adequacy of chapter 39.29 RCW in governing agency contract management. Such a review shall include, but is not limited to, whether the exemptions contained in RCW 39.29.040 (4) and (6) are appropriate in maintaining agency oversight and accountability for moneys used to engage contractors;

(b) Process improvements that ensure adequacy of contract oversight and provide accountability for taxpayer moneys, including the specific roles of the office of financial management and other state agencies in ensuring the accountability of public funds;

(c) The appropriate level of state reimbursement which will determine which contractors are eligible to be audited by the office of the state auditor using his/her authority under RCW 43.88.570. The task force shall additionally recommend appropriate funding resources for the office of the state auditor to exercise its authority to audit nonprofit corporations who provide personal services to a state agency or to clients of a state agency, under chapter 43.09 RCW, and nongovernmental entities under RCW 43.88.570;

(d) Whether uniform contract guidelines as exemplified by those adopted in other states, such as Texas, are appropriate or necessary, and the adequacy of current contract requirements and practices for contractor selection and award, contract compliance with state and federal standards, contract management and monitoring, accounting methods, payment mechanisms, postcontract procedures, contract legal remedies and performance audits, sanctions to ensure contract compliance, and financial reporting.

(2) The task force may utilize a cost-benefit analysis in preparing its recommendations. The task force shall develop proposed procedures, policies, and guidelines, and, if necessary, proposed legislation or administrative rules, to address the issues of its review.

NEW SECTION. Sec. 5. The task force, where feasible, shall collaborate with individuals from the public and private sector and may ask such persons to establish an advisory committee. Agencies shall cooperate with the office of financial management and provide the task force with support and assistance necessary to carry out the purposes of this act. The task force may consider the suggestions of agencies in preparing its recommendations, including any findings and information provided by the joint legislative audit and review committee.

NEW SECTION. Sec. 6. The task force, where feasible, shall use office of financial management staff and facilities. The office of financial management may hire additional staff with specific technical expertise if such expertise is necessary to carry out the mandates of the study in this act. Each member of the task force is eligible to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 7. By November 1, 1999, the task force shall report its findings to the director of financial management, to the house of representatives vendor contracting and services select committee or to the most appropriate house of representatives standing committee in the event that the vendor contracting and services select committee no longer exists, and to the senate committee on government operations.

NEW SECTION. Sec. 8. 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. 9. This act expires January 1, 2000.

NEW SECTION. Sec. 10. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

On page 1, line 2 of the title, after "guidelines;" strike the remainder of the title and insert "creating new sections; and providing an expiration date."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 2880 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 2880 as amended by the Senate.

Representatives Clements and Dickerson spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2880 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Engrossed Second Substitute House Bill No. 2880, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Second Substitute House Bill No. 2881 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the state auditor lacks the needed authority to investigate the finances of state nongovernmental contractors. The legislature further finds that current contract oversight and management procedures cannot ensure that services under contract are delivered effectively and efficiently. Therefore, the legislature intends to enhance the authority of the state auditor to audit entities that provide services to the state or its clients under contract with state agencies.

Sec. 2. RCW 43.88.570 and 1997 c 374 s 3 are each amended to read as follows:

(1) Each state agency shall submit a report to the office of the state auditor listing each nongovernment entity that received over three hundred thousand dollars in state moneys during the previous fiscal year under contract with the agency for purposes related to the provision of social services. The report must be submitted by September 1 each year, and must be in a form prescribed by the office of the state auditor.

(2) The office of the state auditor shall select ((two groups of entities from the reports for audit as follows:

(a) The first group shall be selected)) at random a group of entities from the reports using a procedure prescribed by the office of the state auditor. The office of the state auditor shall ensure that the number of entities selected under this subsection (2)(((a))) each year is sufficient to ensure a statistically representative sample of all reported entities.

(((b) The second group shall be selected based on a risk assessment of entities conducted by the office of the state auditor in consultation with state agencies. The office of the state auditor shall consider, at a minimum, the following factors when conducting risk assessments: Findings from previous audits; decentralization of decision making and controls; turnover in officials and key personnel; changes in management structure or operations; and the presence of new programs, technologies, or funding sources.))

(3) Each entity selected under subsection (2) of this section shall be required to complete a comprehensive entity-wide audit in accordance with generally accepted government auditing standards. The audit shall be completed by, or under the supervision of, a certified public accountant licensed in this state. The audit shall determine, at a minimum, whether:

(a) The financial statements of the entity are presented fairly in all material respects in conformity with generally accepted accounting principles;

(b) The schedule of expenditures of state moneys is presented fairly in all material respects in relation to the financial statements taken as a whole;

(d) The entity has complied with laws, regulations, and contract and grant provisions that have a direct and material effect on performance of the contract and the expenditure of state moneys.

(4) The office of the state auditor shall also select a second group based on a risk assessment of entities conducted by the office of the state auditor in consultation with state agencies. The office of the state auditor shall consider, at a minimum, the following factors when conducting risk assessments: Findings from audits of entities under contract with the state to provide services for the same state or federal program; findings from previous audits; decentralization of decision making and controls; turnover in officials and key personnel; changes in management structure or operations; and the presence of new programs, technologies, or funding sources.

(5) The office of the state auditor is required to complete a comprehensive entity-wide audit, in accordance with generally accepted government auditing standards, of each entity selected under subsection (4) of this section. The office of the state auditor may procure the services of a certified public accountant to perform such an audit, as set forth under RCW 43.09.045. The audit shall determine, at a minimum, whether:

(a) The financial statements of the entity are presented fairly in all material respects in conformity with generally accepted accounting principles;

(b) The schedule of expenditures of state moneys is presented fairly in all material respects in relation to the financial statements taken as a whole;

(d) The entity has complied with statutes, rules, regulations, and contract and grant provisions that have a direct and material effect on performance of the contract and the expenditure of state moneys.

(6) The office of the state auditor shall prescribe policies and procedures for the conduct of audits under this section. The office of the state auditor shall deem single audits completed in compliance with federal requirements to be in fulfillment of the requirements of this section if the audit meets the requirements of subsection (3)(a) through (d) or subsection (5)(a) through (d) of this section. If the entity is selected under subsection (4) of this section, the office of the state auditor shall review the single audit to determine if there is evidence of misuse of public moneys.

(((5))) (7) Completed audits must be delivered to the office of the state auditor and the state agency by April 1 in the year following the selection of the entity for audit. Entities must resolve any findings contained in the audit within six months of the delivery of the audit. Entities may not enter into new contracts with state agencies until all major audit findings are resolved.

(((6))) (8) Nothing in this section limits the authority of the state auditor to carry out statutorily and contractually prescribed powers and duties.

NEW SECTION. Sec. 3. A new section is added to chapter 43.09 RCW to read as follows:

The state auditor may, where there is reasonable cause to believe that a misuse of state moneys has occurred, conduct an audit of financial and legal compliance of any entity that receives public moneys through contract or grant in return for services. This authority includes examinations of not-for-profit corporations who provide personal services to a state agency or to clients of a state agency. Such a financial audit shall be performed in a manner consistent with this chapter, and may be performed according to an agreed upon procedures engagement as in the existing 1998 standards of the American institute of certified public accountants professional standards section 600.

The state auditor may charge the contracting agency, whether state or local, for the costs of an audit of a not-for-profit corporation that receives public moneys through contract or grant in return for services. Any contracting agency that is responsible to the state auditor for such costs shall use due diligence to recover costs from the audited entity.

NEW SECTION. Sec. 4. A new section is added to chapter 43.09 RCW to read as follows:

If after a financial audit of an entity that receives public moneys under contract or grant in return for services, there is reasonable cause to believe that a criminal misuse of public moneys has occurred, the office of the state auditor, within thirty days from receipt of the report, shall deliver a copy of the report to the appropriate local prosecuting authority.

NEW SECTION. Sec. 5. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

On page 1, line 2 of the title, after "auditor;" strike the remainder of the title and insert "amending RCW 43.88.570; adding new sections to chapter 43.09 RCW; and creating new sections."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 2881 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 2881 as amended by the Senate.

Representative Clements spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2881 as amended by the Senate and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Engrossed Second Substitute House Bill No. 2881, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed House Bill No. 3052 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The legislature finds that protection of insurance consumers likely is enhanced by insurers' voluntary compliance with this state's insurance and other laws and that the public will benefit from incentives to identify and remedy insurance and other compliance issues. One method to encourage insurers both to conduct voluntary internal audits of their compliance programs and management systems and to assess and improve compliance with state and federal statutes, rules, and orders, is to provide an insurance compliance self-evaluative privilege to protect the confidentiality of communications relating to voluntary internal compliance audits. The legislature intends to study public policy issues regarding a limited privilege to encourage voluntary compliance and improve insurance market conduct quality, and whether the expanded privilege could inhibit the exercise of the regulatory authority by those entrusted with protecting insurance consumers.

(2) The house financial institutions and insurance committee and the senate financial institutions, insurance and housing committee shall jointly study insurance compliance self-evaluative audits and make recommendations on whether a limited privilege should be authorized in Washington state to encourage such audits. The chairs of the two committees shall oversee the study. If the recommendations include authorizing the limited privilege, the study shall develop a bill for consideration in the 1999 legislative session.

(3) The two committee chairs shall organize a study group that includes the voluntary participation of the insurance industry, the office of the insurance commissioner, and other interested parties. The ranking minority members of each committee shall also participate in the study group.

(4) The house office of program research and senate committee services shall staff the study group.

(5) The recommendations of the study group are due by December 31, 1998. This section expires January 1, 1999."

On page 1, line 1 of the title, after "insurers;" strike the remainder of the title and insert "creating a new section; and providing an expiration date."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to House Bill No. 3052 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of House Bill No. 3052 as amended by the Senate.

Representatives L. Thomas and Wolfe spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 3052 as amended by the Senate and the bill passed the House by the following vote: Yeas - 96, Nays - 2, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 96.

Voting nay: Representatives Appelwick and Gardner - 2.

House Bill No. 3052, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Substitute House Bill No. 3099 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that to fulfill the economic development goal of this chapter, it is beneficial to expand the limited authorization for pilot projects for identifying locations for major industrial activity in advance of specific proposals by an applicant. The legislature further finds that land bank availability may provide economically disadvantaged counties the opportunity to attract new industrial activity by offering expeditious siting and therefore promote a community's economic health and vitality. The purpose of this act is to authorize and evaluate additional pilot projects for major industrial activity in economically disadvantaged counties.

Sec. 2. RCW 36.70A.367 and 1997 c 402 s 1 are each amended to read as follows:

(1) In addition to the major industrial development allowed under RCW 36.70A.365, a county required or choosing to plan under RCW 36.70A.040 that ((has a population greater than two hundred fifty thousand and that is part of a metropolitan area that includes a city in another state with a population greater than two hundred fifty thousand or a county that has a population greater than one hundred forty thousand and is adjacent to another country)) meets the criteria in subsection (9) of this section may establish, in consultation with cities consistent with provisions of RCW 36.70A.210, a process for designating a bank of no more than two master planned locations for major industrial activity outside urban growth areas.

(2) A master planned location for major industrial developments outside an urban growth area may be included in the urban industrial land bank for the county if criteria including, but not limited to, the following are met:

(a) New infrastructure is provided for and/or applicable impact fees are paid;

(b) Transit-oriented site planning and traffic demand management programs are implemented;

(d) Environmental protection including air and water quality has been addressed and provided for;

(e) Development regulations are established to ensure that urban growth will not occur in adjacent nonurban areas;

(f) Provision is made to mitigate adverse impacts on designated agricultural lands, forest lands, and mineral resource lands;

(g) The plan for the major industrial development is consistent with the county's development regulations established for protection of critical areas; and

(h) An inventory of developable land has been conducted as provided in RCW 36.70A.365.

(3) In selecting master planned locations for inclusion in the urban industrial land bank, priority shall be given to locations that are adjacent to, or in close proximity to, an urban growth area.

(4) Final approval of inclusion of a master planned location in the urban industrial land bank shall be considered an adopted amendment to the comprehensive plan adopted pursuant to RCW 36.70A.070, except that RCW 36.70A.130(2) does not apply so that inclusion or exclusion of master planned locations may be considered at any time.

(5) Once a master planned location has been included in the urban industrial land bank, manufacturing and industrial businesses that qualify as major industrial development under RCW 36.70A.365 may be located there.

(6) Nothing in this section may be construed to alter the requirements for a county to comply with chapter 43.21C RCW.

(7) The authority of a county to engage in the process of including or excluding master planned locations from the urban industrial land bank shall terminate on December 31, ((1998)) 1999. However, any location included in the urban industrial land bank on December 31, ((1998)) 1999, shall remain available for major industrial development as long as the criteria of subsection (2) of this section continue to be met.

(8) For the purposes of this section, "major industrial development" means a master planned location suitable for manufacturing or industrial businesses that: (a) Requires a parcel of land so large that no suitable parcels are available within an urban growth area; or (b) is a natural resource-based industry requiring a location near agricultural land, forest land, or mineral resource land upon which it is dependent; or (c) requires a location with characteristics such as proximity to transportation facilities or related industries such that there is no suitable location in an urban growth area. The major industrial development may not be for the purpose of retail commercial development or multitenant office parks.

(9) This section applies to a county that at the time the process is established under subsection (1) of this section:

(a) Has a population greater than two hundred fifty thousand and is part of a metropolitan area that includes a city in another state with a population greater than two hundred fifty thousand;

(b) Has a population greater than one hundred forty thousand and is adjacent to another country; or

(c) Has a population greater than forty thousand but less than seventy-five thousand and has an average level of unemployment for the preceding three years that exceeds the average state unemployment for those years by twenty percent; and

(i) Is bordered by the Pacific Ocean; or

(ii) Is located in the Interstate 5 or Interstate 90 corridor."

On page 1, line 1 of the title, after "developments;" strike the remainder of the title and insert "amending RCW 36.70A.367; and creating a new section."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 3099 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 3099 as amended by the Senate.

Representatives DeBolt and Lantz spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 3099 as amended by the Senate and the bill passed the House by the following vote: Yeas - 97, Nays - 1, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 97.

Voting nay: Representative Cole - 1.

Substitute House Bill No. 3099, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Substitute House Bill No. 1074 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. Every individual or personality, as the case may be, has a property right in the use of his or her name, voice, signature, photograph, or likeness, and such right shall be freely transferable, assignable, and licensable, in whole or in part, by any otherwise permissible form of inter vivos or testamentary transfer, including without limitation a will, trust, contract, community property agreement, or cotenancy with survivorship provisions or payable-on-death provisions, or, if none is applicable, under the laws of intestate succession applicable to interests in intangible personal property. The property right does not expire upon the death of the individual or personality, as the case may be. The right exists whether or not it was commercially exploited by the individual or the personality during the individual's or the personality's lifetime.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Deceased personality" means any individual whose name, voice, signature, photograph, or likeness had commercial value at the time of his or her death, whether or not during the lifetime of that individual he or she used his or her name, voice, signature, photograph, or likeness on or in products, merchandise or goods, or for purposes of advertising or selling, or soliciting the purchase or sale of, products, merchandise, goods, or services. A "deceased personality" includes, without limitation, any such individual who has died within fifty years before January 1, 1998.

(2) "Definable group" means an assemblage of individuals existing or brought together with or without interrelation, orderly form, or arrangement, including but not limited to: A crowd at any sporting event; a crowd in any street or public building; the audience at any theatrical, musical, or stage production; or a performing group or sports team.

(3) "Fund raising" means an organized activity to solicit donations of money or other goods or services from persons or entities by an organization, company, or public entity. A fund-raising activity does not include a live, public performance by an individual or group of individuals for which money is received in solicited or unsolicited gratuities.

(4) "Individual" means a natural person, living or dead.

(5) "Likeness" means an image, painting, sketching, model, diagram, or other clear representation, other than a photograph, of an individual's face, body, or parts thereof, or the distinctive appearance, gestures, or mannerisms of an individual.

(6) "Name" means the actual or assumed name, or nickname, of a living or deceased individual that is intended to identify that individual.

(7) "Person" means any natural person, firm, association, partnership, corporation, joint stock company, syndicate, receiver, common law trust, conservator, statutory trust, or any other concern by whatever name known or however organized, formed, or created, and includes not-for-profit corporations, associations, educational and religious institutions, political parties, and community, civic, or other organizations.

(8) "Personality" means any individual whose name, voice, signature, photograph, or likeness has commercial value, whether or not that individual uses his or her name, voice, signature, photograph, or likeness on or in products, merchandise, or goods, or for purposes of advertising or selling, or solicitation of purchase of, products, merchandise, goods, or services.

(9) "Photograph" means any photograph or photographic reproduction, still or moving, or any videotape, online or live television transmission, of any individual, so that the individual is readily identifiable.

(10) "Signature" means the one handwritten or otherwise legally binding form of an individual's name, written or authorized by that individual, that distinguishes the individual from all others.

NEW SECTION. Sec. 3. (1) Every individual or personality, as the case may be, has a property right in the use of his or her name, voice, signature, photograph, or likeness, and such right shall be freely transferable, assignable, and licensable, in whole or in part, by contract or inter vivos transfer, and shall not expire upon the death of the individual or personality, as the case may be, so protected but shall pass:

(a) Under the deceased individual's or personality's, as the case may be, last will and testament or, if none, then under the laws of intestate succession applicable to interests in intangible personal property of the individual's or personality's, as the case may be, domicile; or

(b) If the individual or personality, as the case may be, transferred or assigned any interest in the personality rights during his or her life, then the transferred or assigned interest shall pass as follows:

(i) If the transferred or assigned interest was held in trust, in accordance with the terms of the trust;

(ii) If the interest is subject to a cotenancy with any survivorship provisions or payable-on-death provisions, in accordance with those provisions;

(iii) If the interest is subject to any contract, including without limitation a community property agreement, in accordance with the terms of the applicable contract or contracts;

(iv) If the interest has been transferred or assigned to a third person in a form that is not addressed earlier in this section, then the interest may be transferred, assigned, or licensed by such third person, in whole or in part, by any otherwise permissible form of inter vivos or testamentary transfer or, if none is applicable, under the laws of intestate succession applicable to interests in intangible personal property of the third person's domicile.

(2) A property right exists whether or not such rights were commercially exploited by the individual or the personality during the individual's or the personality's, as the case may be, lifetime.

NEW SECTION. Sec. 4. (1) For individuals, except to the extent that the individual may have assigned or licensed such rights, the rights protected in this chapter are exclusive to the individual, subject to the assignment or licensing of such rights, during such individual's lifetime and are exclusive to the persons entitled to such rights under section 3 of this act for a period of ten years after the death of the individual except to the extent that the persons entitled to such rights under section 3 of this act may have assigned or licensed such rights to others.

(2) For personalities, except to the extent that the personality may have assigned or licensed such rights, the rights protected in this chapter are exclusive to the personality, subject to the assignment or licensing of such rights, during such personality's lifetime and to the persons entitled to such rights under section 3 of this act for a period of seventy-five years after the death of the personality except to the extent that the persons entitled to such rights under section 3 of this act may have assigned or licensed such rights to others.

(3) The rights granted in this chapter may be exercised by a personal representative, attorney in fact, or guardian, or as authorized by a court of competent jurisdiction. The terms "personal representative", "attorney in fact", and "guardian" shall have the same meanings in this chapter as they have in Title 11 RCW.

NEW SECTION. Sec. 5. Any person who uses or authorizes the use of a living or deceased individual's or personality's name, voice, signature, photograph, or likeness, on or in goods, merchandise, or products entered into commerce in this state, or for purposes of advertising products, merchandise, goods, or services, or for purposes of fund raising or solicitation of donations, or if any person disseminates or publishes such advertisements in this state, without written or oral, express or implied consent of the owner of the right, has infringed such right. An infringement may occur under this section without regard to whether the use or activity is for profit or not for profit.

NEW SECTION. Sec. 6. (1) The superior courts of this state may grant injunctions on reasonable terms to prevent or restrain the unauthorized use of the rights in a living or deceased individual's or personality's name, voice, signature, photograph, or likeness.

(2) Any person who infringes the rights under this chapter shall be liable for the greater of one thousand five hundred dollars or the actual damages sustained as a result of the infringement, and any profits that are attributable to the infringement and not taken into account when calculating actual damages. To prove profits under this section, the injured party or parties must submit proof of gross revenues attributable to the infringement, and the infringing party is required to prove his or her deductible expenses. For the purposes of computing statutory damages, use of a name, voice, signature, photograph, and/or likeness in or related to one work constitutes a single act of infringement regardless of the number of copies made or the number of times the name, voice, signature, photograph, or likeness is displayed.

(3) At any time while an action under this chapter is pending, the court may order the impounding, on reasonable terms, of all materials or any part thereof claimed to have been made or used in violation of the injured party's rights, and the court may enjoin the use of all plates, molds, matrices, masters, tapes, film negatives, or other articles by means of which such materials may be reproduced.

(4) As part of a final judgment or decree, the court may order the destruction or other reasonable disposition of all materials found to have been made or used in violation of the injured party's rights, and of all plates, molds, matrices, masters, tapes, film negatives, or other articles by means of which such materials may be reproduced.

(5) The prevailing party may recover reasonable attorneys' fees, expenses, and court costs incurred in recovering any remedy or defending any claim brought under this section.

(6) The remedies provided for in this section are cumulative and are in addition to any others provided for by law.

NEW SECTION. Sec. 7. (1) For purposes of section 5 of this act, the use of a name, voice, signature, photograph, or likeness in connection with matters of cultural, historical, political, religious, educational, newsworthy, or public interest, including, without limitation, comment, criticism, satire, and parody relating thereto, shall not constitute a use for which consent is required under this chapter. A matter exempt from consent under this subsection does not lose such exempt status because it appears in the form of a paid advertisement if it is clear that the principal purpose of the advertisement is to comment on such matter.

(2) This chapter does not apply to the use or authorization of use of an individual's or personality's name, voice, signature, photograph, or likeness, in any of the following:

(a) Single and original works of fine art, including but not limited to photographic, graphic, and sculptural works of art that are not published in more than five copies;

(b) A literary work, theatrical work, musical composition, film, radio, online or television program, magazine article, news story, public affairs report, or sports broadcast or account, or with any political campaign when the use does not inaccurately claim or state an endorsement by the individual or personality;

(c) An advertisement or commercial announcement for a use permitted by subsection (1) of this section and (a) or (b) of this subsection;

(d) An advertisement, commercial announcement, or packaging for the authorized sale, distribution, performance, broadcast, or display of a literary, musical, cinematographic, or other artistic work using the name, voice, signature, photograph, or likeness of the writer, author, composer, director, actor, or artist who created the work, where such individual or personality consented to the use of his or her name, voice, signature, photograph, or likeness on or in connection with the initial sale, distribution, performance, or display thereof; and

(e) The advertisement or sale of a rare or fine product, including but not limited to books, which incorporates the signature of the author.

(3) It is no defense to an infringement action under this chapter that the use of an individual's or personality's name, voice, signature, photograph, or likeness includes more than one individual or personality so identifiable. However, the individuals or personalities complaining of the use shall not bring their cause of action as a class action.

(4) Section 5 of this act does not apply to the owners or employees of any medium used for advertising, including but not limited to, newspapers, magazines, radio and television stations, on-line service providers, billboards, and transit ads, who have published or disseminated any advertisement or solicitation in violation of this chapter, unless the advertisement or solicitation was intended to promote the medium itself.

(5) This chapter does not apply to a use or authorization of use of an individual's or personality's name that is merely descriptive and used fairly and in good faith only to identify or describe something other than the individual or personality, such as, without limitation, to describe or identify a place, a legacy, a style, a theory, an ownership interest, or a party to a transaction or to accurately describe the goods or services of a party.

(6) This chapter does not apply to the use of an individual's or personality's name, voice, signature, photograph, or likeness when the use of the individual's or personality's name, voice, signature, photograph, or likeness is an insignificant, de minimis, or incidental use.

NEW SECTION. Sec. 8. Nothing contained in this chapter is intended to invalidate any community property rights.

NEW SECTION. Sec. 9. Sections 1 through 8 of this act constitute a new chapter in Title 63 RCW."

On page 1, line 1 of the title, after "rights;" strike the remainder of the title and insert "adding a new chapter to Title 63 RCW; and prescribing penalties."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 1074 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1074 as amended by the Senate.

Representatives Sheahan and Constantine spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1074 as amended by the Senate and the bill passed the House by the following vote: Yeas - 97, Nays - 1, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 97.

Voting nay: Representative Thomas, B. - 1.

Engrossed Substitute House Bill No. 1074, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 6, 1998

Mr. Speaker:

The Senate has passed Engrossed Substitute House Bill No. 2514 with the following amendment(s)

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 90.82.040 and 1997 c 442 s 105 are each amended to read as follows:

(1) Once a WRIA planning unit has been ((organized)) initiated under section 2 of this act and ((designated)) a lead agency has been designated, it shall notify the department and may apply to the department for funding assistance for conducting the planning. Funds shall be provided from and to the extent of appropriations made by the legislature to the department expressly for this purpose.

(2) Each planning unit that has complied with subsection (1) of this section is eligible to receive ((fifty thousand dollars for each WRIA to initiate the planning process. The department shall allocate additional funds to WRIA planning units based on need demonstrated by a detailed proposed budget submitted by the planning unit for carrying out the duties of the planning unit. Each WRIA planning unit may receive up to two hundred fifty thousand dollars for each WRIA during the first two-year period of planning, with a maximum allocation of five hundred thousand dollars for each WRIA. Funding provided under this section shall be considered a contractual obligation against the moneys appropriated for this purpose)) watershed planning grants in the following amounts for three phases of watershed planning:

(a) Initiating governments may apply for an initial organizing grant of up to fifty thousand dollars for a single WRIA or up to seventy-five thousand dollars for a multi-WRIA management area in accordance with section 2(4) of this act;

(b) A planning unit may apply for up to two hundred thousand dollars for each WRIA in the management area for conducting watershed assessments in accordance with section 3 of this act; and

(c) A planning unit may apply for up to two hundred fifty thousand dollars for each WRIA in the management area for developing a watershed plan and making recommendations for actions by local, state, and federal agencies, tribes, private property owners, private organizations, and individual citizens, including a recommended list of strategies and projects that would further the purpose of the plan in accordance with sections 2, 3, 4, 5, and 6 of this act.

(3) ((Preference shall be given to planning units requesting funding for conducting multi-WRIA planning under section 108 of this act)) (a) The department shall use the eligibility criteria in this subsection (3) instead of rules, policies, or guidelines when evaluating grant applications at each stage of the grants program.

(b) In reviewing grant applications under this subsection (3), the department shall evaluate whether:

(i) The planning unit meets all of the requirements of this chapter;

(ii) The application demonstrates a need for state planning funds to accomplish the objectives of the planning process; and

(iii) The application and supporting information evidences a readiness to proceed.

(c) In ranking grant applications submitted at each stage of the grants program, the department shall give preference to applications in the following order of priority:

(i) Applications from existing planning groups that have been in existence for at least one year;

(ii) Applications that address protection and enhancement of fish habitat in watersheds that have aquatic fish species listed or proposed to be listed as endangered or threatened under the federal endangered species act, 16 U.S.C. Sec. 1531 et seq. and for which there is evidence of an inability to supply adequate water for population and economic growth from:

(A) First, multi-WRIA planning; and

(B) Second, single WRIA planning;

(iii) Applications that address protection and enhancement of fish habitat in watersheds or for which there is evidence of an inability to supply adequate water for population and economic growth from:

(A) First, multi-WRIA planning; and

(B) Second, single WRIA planning.

(d) The department may not impose any local matching fund requirement as a condition for grant eligibility or as a preference for receiving a grant.

(4) The department may retain up to one percent of funds allocated under this section to defray administrative costs.

(5) Planning under this chapter should be completed as expeditiously as possible, with the focus being on local stakeholders cooperating to meet local needs.

(6) Funding provided under this section shall be considered a contractual obligation against the moneys appropriated for this purpose.

NEW SECTION. Sec. 2. INITIATION OF WATERSHED PLANNING. (1) Planning conducted under this chapter must provide for a process to allow the local citizens within a WRIA or multi-WRIA area to join together in an effort to: (a) Assess the status of the water resources of their WRIA or multi-WRIA area; and (b) determine how best to manage the water resources of the WRIA or multi-WRIA area to balance the competing resource demands for that area within the parameters under section 8 of this act.

(2) Watershed planning under this chapter may be initiated for a WRIA only with the concurrence of: (a) All counties within the WRIA; (b) the largest city or town within the WRIA unless the WRIA does not contain a city or town; and (c) the water supply utility obtaining the largest quantity of water from the WRIA. To apply for a grant for organizing the planning unit as provided for under RCW 90.82.040(2)(a), these entities shall designate the entity that will serve as the lead agency for the planning effort and indicate how the planning unit will be staffed.

(3) Watershed planning under this chapter may be initiated for a multi-WRIA area only with the concurrence of: (a) All counties within the multi-WRIA area; (b) the largest city or town in each WRIA unless the WRIA does not contain a city or town; and (c) the water supply utility obtaining the largest quantity of water in each WRIA.

(4) If entities in subsection (2) or (3) of this section decide jointly and unanimously to proceed, they shall invite all tribes with reservation lands within the management area.

(5) The entities in subsection (2) or (3) of this section, including the tribes if they affirmatively accept the invitation, constitute the initiating governments for the purposes of this section.

(6) The organizing grant shall be used to organize the planning unit and to determine the scope of the planning to be conducted. In determining the scope of the planning activities, consideration shall be given to all existing plans and related planning activities. The scope of planning must include water quantity elements as provided in section 3 of this act, and may include water quality elements as contained in section 5 of this act, habitat elements as contained in section 6 of this act, and instream flow elements as contained in section 4 of this act. The initiating governments shall work with state government, other local governments within the management area, and affected tribal governments, in developing a planning process. The initiating governments may hold public meetings as deemed necessary to develop a proposed scope of work and a proposed composition of the planning unit. In developing a proposed composition of the planning unit, the initiating governments shall provide for representation of a wide range of water resource interests.

(7) Each state agency with regulatory or other interests in the WRIA or multi-WRIA area to be planned shall assist the local citizens in the planning effort to the greatest extent practicable, recognizing any fiscal limitations. In providing such technical assistance and to facilitate representation on the planning unit, state agencies may organize and agree upon their representation on the planning unit. Such technical assistance must only be at the request of and to the extent desired by the planning unit conducting such planning. The number of state agency representatives on the planning unit shall be determined by the initiating governments in consultation with the governor's office.

(8) As used in this section, "lead agency" means the entity that coordinates staff support of its own or of other local governments and receives grants for developing a watershed plan.

NEW SECTION. Sec. 3. WATER QUANTITY. Watershed planning under this chapter shall address water quantity in the management area by undertaking an assessment of water supply and use in the management area and developing strategies for future use.

(1) The assessment shall include:

(a) An estimate of the surface and ground water present in the management area;

(b) An estimate of the surface and ground water available in the management area, taking into account seasonal and other variations;

(c) An estimate of the water in the management area represented by claims in the water rights claims registry, water use permits, certificated rights, existing minimum instream flow rules, federally reserved rights, and any other rights to water;

(d) An estimate of the surface and ground water actually being used in the management area;

(e) An estimate of the water needed in the future for use in the management area;

(f) An identification of the location of areas where aquifers are known to recharge surface bodies of water and areas known to provide for the recharge of aquifers from the surface; and

(g) An estimate of the surface and ground water available for further appropriation, taking into account the minimum instream flows adopted by rule or to be adopted by rule under this chapter for streams in the management area including the data necessary to evaluate necessary flows for fish.

(2) Strategies for increasing water supplies in the management area, which may include, but are not limited to, increasing water supplies through water conservation, water reuse, the use of reclaimed water, voluntary water transfers, aquifer recharge and recovery, additional water allocations, or additional water storage and water storage enhancements. The objective of these strategies is to supply water in sufficient quantities to satisfy the minimum instream flows for fish and to provide water for future out-of-stream uses for water identified in subsection (1)(e) and (g) of this section and to ensure that adequate water supplies are available for agriculture, energy production, and population and economic growth under the requirements of the state's growth management act, chapter 36.70A RCW. These strategies, in and of themselves, shall not be construed to confer new water rights. The watershed plan must address the strategies required under this subsection.

NEW SECTION. Sec. 4. INSTREAM FLOWS. (1)(a) If the initiating governments choose, by majority vote, to include an instream flow component, it shall be accomplished in the following manner:

(i) If minimum instream flows have already been adopted by rule for a stream within the management area, unless the members of the local governments and tribes on the planning unit by a recorded unanimous vote request the department to modify those flows, the minimum instream flows shall not be modified under this chapter. If the members of local governments and tribes request the planning unit to modify instream flows and unanimous approval of the decision to modify such flow is not achieved, then the instream flows shall not be modified under this section;

(ii) If minimum stream flows have not been adopted by rule for a stream within the management area, setting the minimum instream flows shall be a collaborative effort between the department and members of the planning unit. The department must attempt to achieve consensus and approval among the members of the planning unit regarding the minimum flows to be adopted by the department. Approval is achieved if all government members and tribes that have been invited and accepted on the planning unit present for a recorded vote unanimously vote to support the proposed minimum instream flows, and all nongovernmental members of the planning unit present for the recorded vote, by a majority, vote to support the proposed minimum instream flows.

(b) The department shall undertake rule making to adopt flows under (a) of this subsection. The department may adopt the rules either by the regular rules adoption process provided in chapter 34.05 RCW, the expedited rules adoption process as set forth in RCW 34.05.230, or through a rules adoption process that uses public hearings and notice provided by the county legislative authority to the greatest extent possible. Such rules do not constitute significant legislative rules as defined in RCW 34.05.328, and do not require the preparation of small business economic impact statements.

(c) If approval is not achieved within four years of the date the planning unit first receives funds from the department for conducting watershed assessments under RCW 90.82.040, the department may promptly initiate rule making under chapter 34.05 RCW to establish flows for those streams and shall have two additional years to establish the instream flows for those streams for which approval is not achieved.

(2)(a) Notwithstanding RCW 90.03.345, minimum instream flows set under this section for rivers or streams that do not have existing minimum instream flow levels set by rule of the department shall have a priority date of two years after funding is first received from the department under RCW 90.82.040, unless determined otherwise by a unanimous vote of the members of the planning unit but in no instance may it be later than the effective date of the rule adopting such flow.

(b) Any increase to an existing minimum instream flow set by rule of the department shall have a priority date of two years after funding is first received for planning in the WRIA or multi-WRIA area from the department under RCW 90.82.040 and the priority date of the portion of the minimum instream flow previously established by rule shall retain its priority date as established under RCW 90.03.345.

(c) Any existing minimum instream flow set by rule of the department that is reduced shall retain its original date of priority as established by RCW 90.03.345 for the revised amount of the minimum instream flow level.

(3) Before setting minimum instream flows under this section, the department shall engage in government-to-government consultation with affected tribes in the management area regarding the setting of such flows.

(4) Nothing in this chapter either: (a) Affects the department's authority to establish flow requirements or other conditions under RCW 90.48.260 or the federal clean water act (33 U.S.C. Sec. 1251 et seq.) for the licensing or relicensing of a hydroelectric power project under the federal power act (16 U.S.C. Sec. 791 et seq.); or (b) affects or impairs existing instream flow requirements and other conditions in a current license for a hydroelectric power project licensed under the federal power act.

(5) If the planning unit is unable to obtain unanimity under subsection (1) of this section, the department may adopt rules setting such flows.

NEW SECTION. Sec. 5. WATER QUALITY. If the initiating governments choose to include a water quality component, the watershed plan shall include the following elements:

(1) An examination based on existing studies conducted by federal, state, and local agencies of the degree to which legally established water quality standards are being met in the management area;

(2) An examination based on existing studies conducted by federal, state, and local agencies of the causes of water quality violations in the management area, including an examination of information regarding pollutants, point and nonpoint sources of pollution, and pollution-carrying capacities of water bodies in the management area. The analysis shall take into account seasonal stream flow or level variations, natural events, and pollution from natural sources that occurs independent of human activities;

(3) An examination of the legally established characteristic uses of each of the nonmarine bodies of water in the management area;

(4) An examination of any total maximum daily load established for nonmarine bodies of water in the management area, unless a total maximum daily load process has begun in the management area as of the date the watershed planning process is initiated under section 2 of this act.

(5) An examination of existing data related to the impact of fresh water on marine water quality;

(6) A recommended approach for implementing the total maximum daily load established for achieving compliance with water quality standards for the nonmarine bodies of water in the management area, unless a total maximum daily load process has begun in the management area as of the date the watershed planning process is initiated under section 2 of this act; and

(7) Recommended means of monitoring by appropriate government agencies whether actions taken to implement the approach to bring about improvements in water quality are sufficient to achieve compliance with water quality standards.

This chapter does not obligate the state to undertake analysis or to develop strategies required under the federal clean water act (33 U.S.C. Sec. 1251 et seq.). This chapter does not authorize any planning unit, lead agency, or local government to adopt water quality standards or total maximum daily loads under the federal clean water act.

NEW SECTION. Sec. 6. HABITAT. If the initiating governments choose to include a habitat component, the watershed plan shall be coordinated or developed to protect or enhance fish habitat in the management area. Such planning must rely on existing laws, rules, or ordinances created for the purpose of protecting, restoring, or enhancing fish habitat, including the shoreline management act, chapter 90.58 RCW, the growth management act, chapter 36.70A RCW, and the forest practices act, chapter 76.09 RCW. Planning established under this section shall be integrated with strategies developed under other processes to respond to potential and actual listings of salmon and other fish species as being threatened or endangered under the federal endangered species act, 16 U.S.C. Sec. 1531 et seq. Where habitat restoration activities are being developed under chapter . . ., Laws of 1998 (Engrossed Substitute House Bill No. 2496), such activities shall be relied on as the primary nonregulatory habitat component for fish habitat under this chapter.

NEW SECTION. Sec. 7. IDENTIFICATION OF PROJECTS AND ACTIVITIES. The planning unit shall review historical data such as fish runs, weather patterns, land use patterns, seasonal flows, and geographic characteristics of the management area, and also review the planning, projects, and activities that have already been completed regarding natural resource management or enhancement in the management area and the products or status of those that have been initiated but not completed for such management in the management area, and incorporate their products as appropriate so as not to duplicate the work already performed or underway.

The planning group is encouraged to identify projects and activities that are likely to serve both short-term and long-term management goals and that warrant immediate financial assistance from the state, federal, or local government. If there are multiple projects, the planning group shall give consideration to ranking projects that have the greatest benefit and schedule those projects that should be implemented first.

NEW SECTION. Sec. 8. PLAN PARAMETERS. (1) Watershed planning developed and approved under this chapter shall not contain provisions that: (a) Are in conflict with existing state statutes, federal laws, or tribal treaty rights; (b) impair or diminish in any manner an existing water right evidenced by a claim filed in the water rights claims registry established under chapter 90.14 RCW or a water right certificate or permit; (c) require a modification in the basic operations of a federal reclamation project with a water right the priority date of which is before the effective date of this section or alter in any manner whatsoever the quantity of water available under the water right for the reclamation project, whether the project has or has not been completed before the effective date of this section; (d) affect or interfere with an ongoing general adjudication of water rights; (e) modify or require the modification of any waste discharge permit issued under chapter 90.48 RCW; (f) modify or require the modification of activities or actions taken or intended to be taken under a habitat restoration work schedule developed under chapter . . ., Laws of 1998 (Engrossed Substitute House Bill No. 2496); or (g) modify or require the modification of activities or actions taken to protect or enhance fish habitat if the activities or actions are: (i) Part of an approved habitat conservation plan and an incidental take permit, an incidental take statement, a management or recovery plan, or other cooperative or conservation agreement entered into with a federal or state fish and wildlife protection agency under its statutory authority for fish and wildlife protection that addresses the affected habitat; or (ii) part of a water quality program adopted by an irrigation district under chapter 87.03 RCW or a board of joint control under chapter 87.80 RCW. This subsection (1)(g) applies as long as the activities or actions continue to be taken in accordance with the plan, agreement, permit, or statement. Any assessment conducted under section 3, 5, or 6 of this act shall take into consideration such activities and actions and those taken under the forest practices rules, including watershed analysis adopted under the forest practices act, chapter 76.09 RCW.

(2) Watershed planning developed and approved under this chapter shall not change existing local ordinances or existing state rules or permits, but may contain recommendations for changing such ordinances or rules.

(3) Notwithstanding any other provision of this chapter, watershed planning shall take into account forest practices rules under the forest practices act, chapter 76.09 RCW, and shall not create any obligations or restrictions on forest practices additional to or inconsistent with the forest practices act and its implementing rules, whether watershed planning is approved by the counties or the department.

NEW SECTION. Sec. 9. DECISIONS--HEARINGS--APPROVAL. (1)(a) Upon completing its proposed watershed plan, the planning unit may approve the proposal by consensus of all of the members of the planning unit or by consensus among the members of the planning unit appointed to represent units of government and a majority vote of the nongovernmental members of the planning unit.

(b) If the proposal is approved by the planning unit, the unit shall submit the proposal to the counties with territory within the management area. If the planning unit has received funding beyond the initial fifty thousand dollars under RCW 90.82.040, such a proposal approved by the planning unit shall be submitted to the counties within four years of the date the funding was first received by the planning unit.

(c) If the watershed plan is not approved by the planning unit, the planning unit may submit the components of the plan for which agreement is achieved using the procedure under (a) of this subsection, or the planning unit may terminate the planning process.

(2)(a) The legislative authority of each of the counties with territory in the management area shall provide public notice of and conduct at least one public hearing on the proposed watershed plan submitted under this section. After the public hearings, the legislative authorities of these counties shall convene in joint session to consider the proposal. The counties may approve or reject the proposed watershed plan for the management area, but may not amend it. Approval of such a proposal shall be made by a majority vote of the members of each of the counties with territory in the management area.

(b) If a proposed watershed plan is not approved, it shall be returned to the planning unit with recommendations for revisions. Approval of such a revised proposal by the planning unit and the counties shall be made in the same manner provided for the original watershed plan. If approval of the revised plan is not achieved, the process shall terminate.

(3) The planning unit shall not add an element to its watershed plan that creates an obligation unless each of the governments to be obligated has at least one representative on the planning unit and the respective members appointed to represent those governments agree to adding the element that creates the obligation. A member's agreeing to add an element shall be evidenced by a recorded vote of all members of the planning unit in which the members record support for adding the element. If the watershed plan is approved under subsections (1) and (2) of this section and the plan creates obligations: (a) For agencies of state government, the agencies shall adopt by rule the obligations of both state and county governments and rules implementing the state obligations, the obligations on state agencies are binding upon adoption of the obligations into rule, and the agencies shall take other actions to fulfill their obligations as soon as possible; or (b) for counties, the obligations are binding on the counties and the counties shall adopt any necessary implementing ordinances and take other actions to fulfill their obligations as soon as possible.

(4) As used in this section, "obligation" means any action required as a result of this chapter that imposes upon a tribal government, county government, or state government, either: A fiscal impact; a redeployment of resources; or a change of existing policy.

NEW SECTION. Sec. 10. PERMIT PROCESSING. Nothing in this chapter may be interpreted as authorizing or directing the department to establish a moratorium on the investigation of and decisions on applications for permits for the withdrawal of surface water or ground water, or changes or transfers of water rights under existing permits.

NEW SECTION. Sec. 11. A new section is added to chapter 43.27A RCW to read as follows:

If planning is being conducted under chapter 90.82 RCW or a plan has been adopted under section 9 of this act, the department shall not conduct planning under this chapter that conflicts with the planning being conducted under chapter 90.82 RCW or a plan that has been adopted under section 9 of this act.

NEW SECTION. Sec. 12. A new section is added to chapter 90.54 RCW to read as follows:

Sec. 13. RCW 43.27A.090 and 1988 c 127 s 25 are each amended to read as follows:

The department shall be empowered as follows:

(1) To represent the state at, and fully participate in, the activities of any basin or regional commission, interagency committee, or any other joint interstate or federal-state agency, committee or commission, or publicly financed entity engaged in the planning, development, administration, management, conservation or preservation of the water resources of the state.

(2) To prepare the views and recommendations of the state of Washington on any project, plan or program relating to the planning, development, administration, management, conservation and preservation of any waters located in or affecting the state of Washington, including any federal permit or license proposal, and appear on behalf of, and present views and recommendations of the state at any proceeding, negotiation or hearing conducted by the federal government, interstate agency, state or other agency.

(3) To cooperate with, assist, advise and coordinate plans with the federal government and its officers and agencies, and serve as a state liaison agency with the federal government in matters relating to the use, conservation, preservation, quality, disposal or control of water and activities related thereto.

(4) To cooperate with appropriate agencies of the federal government and/or agencies of other states, to enter into contracts, and to make appropriate contributions to federal or interstate projects and programs and governmental bodies to carry out the provisions of this chapter.

(5) To apply for, accept, administer and expend grants, gifts and loans from the federal government or any other entity to carry out the purposes of this chapter and make contracts and do such other acts as are necessary insofar as they are not inconsistent with other provisions hereof.

(6) To develop and maintain a coordinated and comprehensive state water and water resources related development plan, and adopt, with regard to such plan, such policies as are necessary to insure that the waters of the state are used, conserved and preserved for the best interest of the state. There shall be included in the state plan a description of developmental objectives and a statement of the recommended means of accomplishing these objectives. To the extent the director deems desirable, the plan shall integrate into the state plan, the plans, programs, reports, research and studies of other state agencies. A plan adopted under chapter 90.82 RCW satisfies the requirements of planning under this section.

(7) To assemble and correlate information relating to water supply, power development, irrigation, watersheds, water use, future possibilities of water use and prospective demands for all purposes served through or affected by water resources development.

(8) To assemble and correlate state, local and federal laws, regulations, plans, programs and policies affecting the beneficial use, disposal, pollution, control or conservation of water, river basin development, flood prevention, parks, reservations, forests, wildlife refuges, drainage and sanitary systems, waste disposal, water works, watershed protection and development, soil conservation, power facilities and area and municipal water supply needs, and recommend suitable legislation or other action to the legislature, the congress of the United States, or any city, municipality, or to responsible state, local or federal executive departments or agencies.

(9) To cooperate with federal, state, regional, interstate and local public and private agencies in the making of plans for drainage, flood control, use, conservation, allocation and distribution of existing water supplies and the development of new water resource projects.

(10) To encourage, assist and advise regional, and city and municipal agencies, officials or bodies responsible for planning in relation to water aspects of their programs, and coordinate local water resources activities, programs, and plans.

(11) To promulgate such rules and regulations as are necessary to carry out the purposes of this chapter.

(12) To hold public hearings, and make such investigations, studies and surveys as are necessary to carry out the purposes of the chapter.

(13) To subpoena witnesses, compel their attendance, administer oaths, take the testimony of any person under oath and require the production of any books or papers when the department deems such measures necessary in the exercise of its rule-making power or in determining whether or not any license, certificate, or permit shall be granted or extended.

Sec. 14. RCW 90.54.040 and 1997 c 32 s 2 are each amended to read as follows:

(1) The department, through the adoption of appropriate rules, is directed, as a matter of high priority to insure that the waters of the state are utilized for the best interests of the people, to develop and implement in accordance with the policies of this chapter a comprehensive state water resources program which will provide a process for making decisions on future water resource allocation and use. The department may develop the program in segments so that immediate attention may be given to waters of a given physioeconomic region of the state or to specific critical problems of water allocation and use. A plan adopted under chapter 90.82 RCW satisfies the requirements of planning under this section.

(2) In relation to the management and regulatory programs relating to water resources vested in it, the department is further directed to modify existing regulations and adopt new regulations, when needed and possible, to insure that existing regulatory programs are in accord with the water resource policy of this chapter and the program established in subsection (1) of this section.

(3) The department is directed to review all statutes relating to water resources which it is responsible for implementing. When any of the same appear to the department to be ambiguous, unclear, unworkable, unnecessary, or otherwise deficient, it shall make recommendations to the legislature including appropriate proposals for statutory modifications or additions. Whenever it appears that the policies of any such statutes are in conflict with the policies of this chapter, and the department is unable to fully perform as provided in subsection (2) of this section, the department is directed to submit statutory modifications to the legislature which, if enacted, would allow the department to carry out such statutes in harmony with this chapter.

NEW SECTION. Sec. 15. CAPTIONS. As used in this act, captions constitute no part of the law.

NEW SECTION. Sec. 16. Sections 2 through 10 of this act are each added to chapter 90.82 RCW.

NEW SECTION. Sec. 17. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

On page 1, line 1 of the title, after "management;" strike the remainder of the title and insert "amending RCW 90.82.040, 43.27A.090, and 90.54.040; adding new sections to chapter 90.82 RCW; adding a new section to chapter 43.27A RCW; adding a new section to chapter 90.54 RCW; and creating new sections."

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 2514 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2514 as amended by the Senate.

Representatives Chandler, Linville and Schoesler spoke in favor of final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2514 as amended by the Senate and the bill passed the House by the following vote: Yeas - 88, Nays - 10, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Clements, Cody, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 88.

Voting nay: Representatives Appelwick, Chopp, Cole, Constantine, Conway, Dickerson, Fisher, Kenney, Murray and Romero - 10.

Engrossed Substitute House Bill No. 2514, as amended by the Senate, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

March 9, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SUBSTITUTE SENATE BILL NO. 6181 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Johnson, Bauer and Roach, and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate Request for a conference on Substitute Senate Bill No. 6181.

APPOINTMENT OF CONFEREES

The Speaker appointed Representatives Sheahan, Carlson and Costa as conferees on Substitute Senate Bill No. 6181.

MESSAGE FROM THE SENATE

March 9, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SECOND SUBSTITUTE SENATE BILL NO. 6544 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Deccio, Wojahn and Wood, and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate Request for a conference on Second Substitute Senate Bill No. 6544.

APPOINTMENT OF CONFEREES

The Speaker appointed Representatives Dyer, Backlund and Cody as conferees on Second Substitute Senate Bill No. 6544.

SENATE AMENDMENTS TO HOUSE BILL

There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 1504 and advanced the bill as amended by the Senate to final passage.

FINAL PASSAGE OF HOUSE BILL AS AMENDED BY SENATE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 1504 as amended by the Senate.

Representatives D. Schmidt and McMorris spoke in favor of final passage of the bill.

Representatives Gardner and Conway spoke against the final passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1504 as amended by the Senate and the bill passed the House by the following vote: Yeas - 58, Nays - 40, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Dunn, Dyer, Eickmeyer, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Koster, Lambert, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Mulliken, Parlette, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 58.

Voting nay: Representatives Anderson, Appelwick, Butler, Cairnes, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gardner, Gombosky, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Quall, Regala, Romero, Scott, Sommers, H., Sterk, Sullivan, Tokuda, Veloria, Wolfe and Wood - 40.

Substitute House Bill No. 1504, as amended by the Senate, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

March 7, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SENATE BILL NO. 6539 and aks the House for a conference thereon. The President has appointed the following members as conferees: Senators Schow, Heavey and Horn, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

MOTION

Representative McMorris moved that the House recede from its position and pass Senate Bill No. 6539 without the House's amendments.

Representative Conway spoke in favor of the motion. The motion was adopted.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 6539 without the House amendments.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6539 without the House amendments and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Senate Bill No. 6539, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

March 8, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SUBSTITUTE SENATE BILL NO. 6727, adheres to the Senate position regarding said amendments, and asks the House to recede therefrom,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

MOTION

Representative Carlson moved that the House recede from its position and pass Substitute Senate Bill No. 6727 without the House's amendment(s). Representative Carlson spoke in favor of the motion. The motion was adopted.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 6727 without the House amendments.

Representatives Carlson and Mason spoke in favor of the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6727 without the House amendments and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Substitute Senate Bill No. 6727, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 6108 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Strannigan, West and Spanel, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate request for a conference on Engrossed Substitute Senate Bill No. 6108.

APPOINTMENT OF CONFEREES

The Speaker appointed Representatives Huff, Alexander and H. Sommers as conferees on Engrossed Substitute Senate Bill No. 6108.

MESSAGE FROM THE SENATE

March 7, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SUBSTITUTE SENATE BILL NO. 6253 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Schow, Heavey and Horn, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House refused to grant the Senate's request for a conference on Substitute Senate Bill No. 6253, insisted on its position and asked the Senate to concur therein.

The Speaker assumed the chair.

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

SUBSTITUTE HOUSE BILL NO. 1072,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1221,

HOUSE BILL NO. 1252,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1769,

SUBSTITUTE HOUSE BILL NO. 1781,

SUBSTITUTE HOUSE BILL NO. 1786,

SUBSTITUTE HOUSE BILL NO. 1867,

SUBSTITUTE HOUSE BILL NO. 2166,

SUBSTITUTE HOUSE BILL NO. 2394,

HOUSE BILL NO. 2463,

HOUSE BILL NO. 2550,

SUBSTITUTE HOUSE BILL NO. 2688,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2819,

SUBSTITUTE HOUSE BILL NO. 2936,

SUBSTITUTE HOUSE BILL NO. 2941,

HOUSE JOINT MEMORIAL NO. 4039,

SENATE BILL NO. 5164,

SENATE BILL NO. 5217,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5305,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5527,

SENATE BILL NO. 5622,

SUBSTITUTE SENATE BILL NO. 5636,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5760,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5769,

SENATE BILL NO. 6113,

SUBSTITUTE SENATE BILL NO. 6114,

SENATE BILL NO. 6122,

SUBSTITUTE SENATE BILL NO. 6130,

ENGROSSED SENATE BILL NO. 6139,

ENGROSSED SENATE BILL NO. 6142,

SECOND SUBSTITUTE SENATE BILL NO. 6156,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6166,

SUBSTITUTE SENATE BILL NO. 6175,

SUBSTITUTE SENATE BILL NO. 6182,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6191,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6203,

SUBSTITUTE SENATE BILL NO. 6208,

SECOND SUBSTITUTE SENATE BILL NO. 6214,

SENATE BILL NO. 6219,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6235,

ENGROSSED SENATE BILL NO. 6257,

SECOND SUBSTITUTE SENATE BILL NO. 6264,

SENATE BILL NO. 6278,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6293,

SENATE BILL NO. 6301,

SUBSTITUTE SENATE BILL NO. 6302,

ENGROSSED SENATE BILL NO. 6305,

SUBSTITUTE SENATE BILL NO. 6306,

SUBSTITUTE SENATE BILL NO. 6324,

SECOND SUBSTITUTE SENATE BILL NO. 6330,

SUBSTITUTE SENATE BILL NO. 6341,

SENATE BILL NO. 6348,

SENATE BILL NO. 6355,

SUBSTITUTE SENATE BILL NO. 6358,

SENATE BILL NO. 6380,

SUBSTITUTE SENATE BILL NO. 6420,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6421,

SUBSTITUTE SENATE BILL NO. 6439,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6445,

SUBSTITUTE SENATE BILL NO. 6474,

SUBSTITUTE SENATE BILL NO. 6550,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6560,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6562,

SUBSTITUTE SENATE BILL NO. 6565,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6600,

SUBSTITUTE SENATE BILL NO. 6603,

SUBSTITUTE SENATE BILL NO. 6655,

SENATE BILL NO. 6698,

SENATE BILL NO. 6729,

SUBSTITUTE SENATE BILL NO. 6746,

The Speaker called upon Representative Pennington to preside.

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The President has signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5305,

SENATE BILL NO. 5622,

SUBSTITUTE SENATE BILL NO. 5636,

SENATE BILL NO. 6113,

SUBSTITUTE SENATE BILL NO. 6208,

SECOND SUBSTITUTE SENATE BILL NO. 6214,

SECOND SUBSTITUTE SENATE BILL NO. 6264,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6293,

ENGROSSED SENATE BILL NO. 6305,

SUBSTITUTE SENATE BILL NO. 6324,

SECOND SUBSTITUTE SENATE BILL NO. 6330,

SENATE BILL NO. 6348,

SUBSTITUTE SENATE BILL NO. 6420,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6421,

SUBSTITUTE SENATE BILL NO. 6439,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6445,

SUBSTITUTE SENATE BILL NO. 6474,

SUBSTITUTE SENATE BILL NO. 6550,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6560,

SUBSTITUTE SENATE BILL NO. 6565,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6562,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6600,

SUBSTITUTE SENATE BILL NO. 6603,

SUBSTITUTE SENATE BILL NO. 6655,

SENATE BILL NO. 6698,

SENATE BILL NO. 6729,

SUBSTITUTE SENATE BILL NO. 6746,

and the same are herewith transmitted.

Mike O'Connell, Secretary

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 6238 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Long, Hargrove and Stevens, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate Request for a conference on Engrossed Substitute Senate Bill No. 6238.

APPOINTMENT OF CONFEREES

The Speaker appointed Representatives Cooke, Boldt and Dickerson as conferees on Engrossed Substitute Senate Bill No. 6238.

MESSAGE FROM THE SENATE

March 9, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 5703 and asks the House to recede therefrom, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the rules were suspended and Engrossed Substitute Senate Bill No. 5703 was returned to second reading for purpose of amendments.

Representative Linville moved the adoption of the following amendment by Representative Chandler: (1182)

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) If a person placed surface or ground water to beneficial use before January 1, 1993, for irrigation, stock watering, or domestic use supplied by a public water supply system with one hundred or fewer service connections for which a permit or certificate was not issued by the department or its predecessors, the person or the public water supply system, or their respective successors may continue to use water on an interim basis as provided in section 2 of this act and only in the amount that has been beneficially used if:

(a) The person or the public water supply system files with the department a statement of claim and the evidence required under subsections (2) and (3) of this section during the period beginning September 1, 1998, and ending midnight June 30, 1999, using the standard form prescribed by RCW 90.14.051;

(b) The person or public water supply system has applied the water to beneficial use to the full extent stated in the statement of claim during at least three of the five years preceding the date the statement is filed and the person attests to having done so on the statement; and

(c) The claimant has filed or simultaneously files with the statement of claim an application to appropriate public water under RCW 90.03.250 or 90.44.060 for the quantity of water being put to beneficial use.

(2) The person or public water supply system must file with the statement of claim evidence that the quantity of water described in the claim was used beneficially before January 1, 1993, and during three of the five years preceding the date the statement was filed in the form of any two of the following:

(a) A statement signed by two persons other than the person filing the statement of claim verifying that the claimant beneficially used the water before January 1, 1993, and during three of the five years preceding the date the statement was filed as described in the statement of claim;

(b) A copy of a dated photograph clearly demonstrating the presence of grass or a crop requiring irrigation in the amounts asserted in the statement of claim or of livestock requiring water in such amounts; or records of receipts of the sale of crops by the person or the person's successor indicating that irrigation in the amount claimed was required to produce the crops;

(c) Receipts or records of irrigation or stockwatering equipment purchases or repairs associated with the water use specified in the statement of claim;

(d) Water well construction records identifying the date the well specified in the statement of claim as the point of withdrawal was constructed;

(e) Records of electricity bills directly associated with the withdrawal of water as specified in the statement of claim;

(f) Personal records such as photographs, journals, or correspondence indicating the use of water as asserted in the statement of claim.

(3) Public water supply systems must, in addition to the requirements of subsection (2) of this section, provide evidence of service connections existing and using water as of January 1, 1993, including documentation that the homes were built and occupied.

(4) A claimant who has filed both a statement of claim and an application for a water right has standing to assert a claim of a water right in a general adjudication under RCW 90.03.105 through 90.03.245 for the water use stated in the statement of claim. The statement of claim shall be reviewed by the court as provided in section 2(5) of this act.

NEW SECTION. Sec. 2. (1) A person may continue to use water on an interim basis for the purposes claimed as provided in section 1 of this act until one of the following occurs:

(a) The department makes its final decision granting or denying the water right application filed by the applicant. However, for an application filed under chapter . . ., Laws of 1998 (this act) located within a watershed in which a watershed management planning process established under chapter 90.82 or 90.54 RCW has been initiated prior to July 1, 2000, the department shall make a final decision on the application only after completion of the watershed management plan. The decision must be consistent with an approved and adopted watershed management plan. If the watershed management plan recommends granting applications for water rights or for transfer of water or water rights to uses that are represented by claims filed under section 1 of this act, the department shall grant the application according to the plan. If the planning effort is abandoned or if a watershed management plan is not completed within four years of the date it was initiated, whichever comes earlier, the department shall thereafter make a final decision on the application; or

(b) If the department has not made a final decision on the water right application and a court of competent jurisdiction issues a decree pursuant to a general adjudication under RCW 90.03.200 that defines or denies the claimant's right to appropriate water as provided in subsection (5) of this section.

(2) The department shall notify the claimant/applicant of the instream flow conditions with which each diversion or withdrawal must comply pending the completion of a watershed management plan or general adjudication. If instream flows have been established by rule, the department shall use those flows to regulate the diversion or withdrawal of water during times when the flows are not being met. For areas in which instream flows have not been established by rule, the department shall specify the flow conditions, determined in consultation with the department of fish and wildlife, to which the diversions or withdrawals will be conditioned pending completion of watershed management planning or general adjudication. Upon the completion of a watershed management plan and adoption of instream flows by rule, the diversions or withdrawals permitted under this section shall thereafter be conditioned in accordance with the rule adopting the flows.

(3) In making decisions regarding an application associated with such a claim in the watershed, the department shall consider alternative sources or augmented sources of water for the water use in the application, including but not limited to water supplied through storage enhancements or through the substitution of the use of ground water for the use of surface water. The department may approve the use of such an alternative or augmented source under the application without requiring the application to be resubmitted and without affecting the priority date of the application.

(4) If a watershed management plan adopts locally based standards for water use efficiency, any certificates issued thereafter under this section shall be conditioned accordingly.

(5) The department or the court may authorize the continued use of water under subsection (1) of this section only if the claimant's application meets the requirements of RCW 90.03.247 through 90.03.330, chapter 90.44 RCW, and RCW 90.54.020. If the department finds that the applicable requirements are met, it shall grant the water right application and issue a certificate under RCW 90.03.330 authorizing the person to use that quantity of water that has been put to beneficial use, not to exceed that quantity requested in the application or documented in the statement of claim under section 1 of this act, whichever is less. If in a general adjudication the court finds that the requirements are met, it shall confirm such use of water in a decree issued under RCW 90.03.200 and the department shall issue a certificate under RCW 90.03.240. The claimant has the burden of presenting evidence that the claim and application meet the requirements for granting a water right. The court shall consider all relevant evidence in making its findings and decision. The court may not confirm a right in excess of the quantity of water that has been applied to beneficial use as documented in the statement of claim under section 1 of this act or the quantity requested in the application for a water right, whichever is less. The priority date of any right issued by the department or confirmed by a court under sections 1 through 9 of this act shall be the effective date of this act.

(6) If the department or the court denies the claimant's use of water under subsection (5) of this section, the claimant must cease the use of the water. A decision by the department or a court limiting or denying a claimant's right to continue using water does not constitute a compensable taking under state or federal law because such claimants have no continuing legal right to use water.

NEW SECTION. Sec. 3. If no watershed management planning process under chapter 90.82 or 90.54 RCW has been initiated as of July 1, 2000, in the water resource inventory area in which a water use affected by section 1 of this act is made, the claimant/applicant may continue to use water, subject to the same limitation provided in section 2 (2) and (4) of this act, for the purposes described in the statement of claim until the department makes its decision to grant or deny the application or a court makes its findings and decision under section 2(5) of this act. The department shall make its findings and decision on an application as soon as it is able to do so, taking into consideration its total permit processing workload. A water right certificate issued under this section is subject to the same limitations and conditions as are provided in section 2 of this act.

NEW SECTION. Sec. 4. Sections 1 through 9 of this act do not apply to or authorize any use of water that was the subject of a water right application filed with the department, where the department denied such application.

NEW SECTION. Sec. 5. A continuing interim use of water authorized under sections 1 through 9 of this act shall not affect or impair in any respect whatsoever a water right existing before the effective date of this act. Sections 1 through 9 of this act do not limit the ability of a senior water right holder to take legal action against any other water user to prevent impairment of his or her water right. A right granted under sections 1 through 9 of this act is junior in every respect to a right with a more senior date of priority. Any right granted under sections 1 through 9 of this act may only be exercised in a manner that does not impair or interfere with a water right that is senior to it. The filing of a statement of claim under this section does not constitute an adjudication of any claim to the right to the use of waters as between the claimant and the state, or as between one or more water use claimants. A statement of claim filed under this section shall be admissible in a general adjudication of water rights as prima facie evidence of the times of use and the quantity of water the claimant was withdrawing or diverting to the same extent as is provided by RCW 90.14.081 for a statement of claim in the water rights claims registry on the effective date of this act.

NEW SECTION. Sec. 6. Sections 1 through 9 of this act do not apply to ground water in an area that is, during the period established by section 1(1)(a) of this act, the subject of a general adjudication proceeding for water rights in superior court under RCW 90.03.110 through 90.03.245 and the proceeding applies to ground water rights. Sections 1 through 9 of this act do not apply to surface water in an area that is, during the period established by section 1(1)(a) of this act, the subject of a general adjudication proceeding for water rights in superior court under RCW 90.03.110 through 90.03.245 and the proceeding applies to surface water rights.

NEW SECTION. Sec. 7. The two-dollar fee for filing a water right claim required in RCW 90.14.061 is waived for purposes of claims filed under section 1(1)(a) of this act.

NEW SECTION. Sec. 8. Sections 1 through 9 of this act do not apply to rights embodied in a water right permit or certificate issued by the department or its predecessors, a water right represented by a claim in the water rights claims registry, created under RCW 90.14.111, before September 1, 1998, or a water right exempted from permit and application requirements by RCW 90.44.050.

NEW SECTION. Sec. 9. Sections 1 through 9 of this act do not apply to claims for the use of water in a ground water area or subarea for which a management program adopted by the department by rule and in effect on the effective date of this act establishes acreage expansion limitations for the use of ground water.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act are each added to chapter 90.03 RCW."

Correct the title.

Representatives Linville and Chandler spoke in favor of the adoption of the amendment.

The amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

MOTIONS

On motion of Representative Robertson, Representatives Huff and Alexander were excused. On motion of Representative Butler, Representative Kastama was excused.

The Speaker (Representative Pennington presiding) stated the question before the House to be Engrossed Substitute Senate Bill No. 5703 as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5703 as amended by the House and the bill passed the House by the following vote: Yeas - 65, Nays - 30, Absent - 0, Excused - 3.

Voting yea: Representatives Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Eickmeyer, Gardner, Grant, Hankins, Hatfield, Hickel, Honeyford, Johnson, Kessler, Koster, Lambert, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Parlette, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 65.

Voting nay: Representatives Anderson, Appelwick, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Dunshee, Fisher, Gombosky, Keiser, Kenney, Lantz, Mason, Murray, O'Brien, Ogden, Poulsen, Regala, Romero, Scott, Sommers, H., Tokuda, Veloria, Wolfe and Wood - 30.

Excused: Representatives Alexander, Huff and Kastama - 3.

Engrossed Substitute Senate Bill No. 5703, as amended by the House, having received the constitutional majority, was declared passed.

There being no objection, Engrossed Substitute Senate Bill No. 5703 was immediately transmitted to the Senate.

MESSAGE FROM THE SENATE

March 9, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 6328 and asks the House to recede therefrom, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the rules were suspended and Engrossed Substitute Senate Bill No. 6328 was returned to second reading for purpose of amendment.

There being no objection, the rules were suspended and the House reconsidered the House amendment.

Representative Buck moved the adoption of amendment (1181) to the House amendment.

On page 1, line 23 of the amendment, after "including" strike "defining new crimes and"

On page 2, at the beginning of line 8 of the amendment, strike "kill,"

On page 2, line 9 of the amendment, after "unlawfully" strike "killed, taken," and insert "taken"

On page 3, line 27 of the amendment, after "(b)" strike "Recklessly" and insert "Maliciously"

On page 5, line 30 of the amendment, after "possesses," strike all material through "wildlife or" and insert "maliciously harasses or kills fish or wildlife, or maliciously"

On page 6, line 16 of the amendment, after "possesses, or" insert "maliciously"

On page 6, line 17 of the amendment, after "possesses or" insert "maliciously"

On page 6, line 28 of the amendment, after "transports," strike "injures, or harms" and insert "or maliciously injures or harms"

On page 11, line 29 of the amendment, after "in the" insert "magazine or"

On page 12, after line 5 of the amendment, insert the following:

"(5) For purposes of this section, a firearm shall not be considered loaded if the detachable clip or magazine is not inserted in or attached to the firearm."

On page 76, beginning on line 22 of the amendment, after "fisher" strike all material through "fur buyer" on line 26, and insert "or wholesale dealer or fish buyer. Fish and wildlife officers may similarly inspect without warrant the premises, containers, fishing equipment, fish and wildlife, and records required by the department of any shipping agent or other person placing or attempting to place fish or wildlife into interstate commerce, any cold storage plant that the department has probable cause to believe contains fish or wildlife, or of any taxidermist or fur buyer"

Representatives Buck and Regala spoke in favor of the adoption of the amendment.

The amendment to the House amendment was adopted.

MOTION

On motion by Representative Butler, Representative H. Sommers was excused.

The Speaker (Representative Pennington presiding) stated the question before the House to be the House amendment as amended. The House amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Buck, Sump and Regala spoke in favor of the passage of the bill.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6328 as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6328, as amended by the House and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Voting yea: Representatives Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Johnson, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 94.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Engrossed Substitute Senate Bill No. 6328, as amended by the House, having received the constitutional majority, was declared passed.

The Speaker assumed the chair.

MESSAGES FROM THE SENATE

March 9, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SUBSTITUTE SENATE BILL NO. 6119 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Horn, Patterson and Schow, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

March 10, 1998

Mr. Speaker:

The President has appointed Senator Haugen to replace Senator Patterson as Conferee on SUBSTITUTE SENATE BILL NO. 6119, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House refused to grant a conference, insisted on its position and asked the Senate to concur in the House amendments to Substitute Senate Bill No. 6119.

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SUBSTITUTE SENATE BILL NO. 6455 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Strannigan, Fraser and Rossi, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate Request for a conference on Substitute Senate Bill No. 6455.

APPOINTMENT OF CONFEREES

The Speaker appointed Representatives Sehlin, Honeyford and Ogden as conferees on Substitute Senate Bill No. 6455.

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2596,

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The President has signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2596,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objections, the House reverted to the sixth order of business.

SECOND READING

ENGROSSED SUBSTITUTE SENATE BILL NO. 6533, by Senate Committee on Ways & Means (originally sponsored by Senators Strannigan, Anderson, Long, Schow, Wood, Finkbeiner, Benton, Roach, West, Stevens, Winsley, Hale, Oke, Patterson and Heavey)

Providing property tax exemptions and deferrals for senior citizens and persons retired for reasons of physical disability.

The bill was read the second time.

There being no objection, the committee amendment(s) by the Committee on Finance was not adopted. (For committee amendment(s), see Journal, 52nd Day, March 4, 1998.)

With the consent of the House, amendment 1139 was withdrawn.

Representative O'Brien moved the adoption of amendment (1131):

On page 5, line 4 of the amendment, after "payments" insert "and benefits for disabilities related to the performance of military duties"

Representatives O'Brien and B. Thomas spoke in favor of the adoption of the amendment.

The amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas, Dunshee and Conway spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6533, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6533, as amended by the House, and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama and Sommers, H. - 4.

Engrossed Substitute Senate Bill No. 6533, as amended by the House, having received the constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5309, by Senate Committee on Ways & Means (originally sponsored by Senators Morton and Anderson)

Providing excise tax exemptions related to horses.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas, Anderson, Dunshee and B. Thomas (again) spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5309.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5309 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Substitute Senate Bill No. 5309, having received the constitutional majority, was declared passed.

SENATE BILL NO. 5631, by Senators Wood, Jacobsen and Oke

Exempting education loan guarantee services from business and occupation tax.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Senate Bill No. 5631.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5631 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 5631, having received the constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 6077, by Senate Committee on Ways & Means (originally sponsored by Senators McCaslin and Snyder)

Exempting from business and occupation tax nonprofit hospice agencies.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 6077.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6077 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Substitute Senate Bill No. 6077, having received the constitutional majority, was declared passed.

ENGROSSED SUBSTITUTE SENATE BILL NO. 6187, by Senate Committee on Law & Justice (originally sponsored by Senators Stevens, Oke, Schow, Benton, Zarelli and Swecker)

Adding penalties for alcohol offenders.

The bill was read the second time.

Representative Sheahan moved the adoption of amendment (1180):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.20.311 and 1997 c 58 s 807 are each amended to read as follows:

(1)(a) The department shall not suspend a driver's license or privilege to drive a motor vehicle on the public highways for a fixed period of more than one year, except as specifically permitted under RCW 46.20.342 or other provision of law. Except for a suspension under RCW 46.20.289, 46.20.291(5), or 74.20A.320, whenever the license or driving privilege of any person is suspended by reason of a conviction, a finding that a traffic infraction has been committed, pursuant to chapter 46.29 RCW, or pursuant to RCW 46.20.291 or 46.20.308, the suspension shall remain in effect until the person gives and thereafter maintains proof of financial responsibility for the future as provided in chapter 46.29 RCW. If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reinstatement until enrollment and participation in an approved program has been established and the person is otherwise qualified. Whenever the license or driving privilege of any person is suspended as a result of certification of noncompliance with a child support order under chapter 74.20A RCW or a residential or visitation order, the suspension shall remain in effect until the person provides a release issued by the department of social and health services stating that the person is in compliance with the order.

(b)(i) The department shall not issue to the person a new, duplicate, or renewal license until the person pays a reissue fee of twenty dollars.

(ii) If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, or is the result of administrative action under RCW 46.20.308, the reissue fee shall be one hundred fifty dollars.

(2)(a) Any person whose license or privilege to drive a motor vehicle on the public highways has been revoked, unless the revocation was for a cause which has been removed, is not entitled to have the license or privilege renewed or restored until: (((a))) (i) After the expiration of one year from the date the license or privilege to drive was revoked; (((b))) (ii) after the expiration of the applicable revocation period provided by RCW 46.20.3101 or 46.61.5055; (((c))) (iii) after the expiration of two years for persons convicted of vehicular homicide; or (((d))) (iv) after the expiration of the applicable revocation period provided by RCW 46.20.265.

(b)(i) After the expiration of the appropriate period, the person may make application for a new license as provided by law together with a reissue fee in the amount of twenty dollars((, but)).

(ii) If the revocation is the result of a violation of RCW 46.20.308, 46.61.502, or 46.61.504, the reissue fee shall be one hundred fifty dollars. If the revocation is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reissuance of a license, permit, or privilege to drive until enrollment and participation in an approved program has been established and the person is otherwise qualified.

(c) Except for a revocation under RCW 46.20.265, the department shall not then issue a new license unless it is satisfied after investigation of the driving ability of the person that it will be safe to grant the privilege of driving a motor vehicle on the public highways, and until the person gives and thereafter maintains proof of financial responsibility for the future as provided in chapter 46.29 RCW. For a revocation under RCW 46.20.265, the department shall not issue a new license unless it is satisfied after investigation of the driving ability of the person that it will be safe to grant that person the privilege of driving a motor vehicle on the public highways.

(3)(a) Whenever the driver's license of any person is suspended pursuant to Article IV of the nonresident violators compact or RCW 46.23.020 or 46.20.289 or 46.20.291(5), the department shall not issue to the person any new or renewal license until the person pays a reissue fee of twenty dollars.

(b) If the suspension is the result of a violation of the laws of this or any other state, province, or other jurisdiction involving (((a))) (i) the operation or physical control of a motor vehicle upon the public highways while under the influence of intoxicating liquor or drugs, or (((b))) (ii) the refusal to submit to a chemical test of the driver's blood alcohol content, the reissue fee shall be one hundred fifty dollars.

NEW SECTION. Sec. 2. A new section is added to chapter 46.68 RCW to read as follows:

The impaired driving safety account is created in the custody of the state treasurer. All receipts from fees collected under RCW 46.20.311 (1)(b)(ii), (2)(b)(ii), and (3)(b) shall be deposited according to RCW 46.68.041. Expenditures from this account may be used only to fund projects to reduce impaired driving and to provide funding to local governments for costs associated with enforcing laws relating to driving and boating while under the influence of intoxicating liquor or any drug. The account is subject to allotment procedures under chapter 43.88 RCW. Moneys in the account may be spent only after appropriation.

Sec. 3. RCW 46.68.041 and 1995 2nd sp.s. c 3 s 1 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the department shall forward all funds accruing under the provisions of chapter 46.20 RCW together with a proper identifying, detailed report to the state treasurer who shall deposit such moneys to the credit of the highway safety fund.

(2) Sixty-three percent of each fee collected by the department under RCW 46.20.311 (1)(b)(ii), (2)(b)(ii), and (3)(b) shall be deposited in the impaired driving safety account."

Correct the title.

Representatives Sheahan and Appelwick spoke in favor of the adoption of the amendment.

The amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representative Sheahan spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6187, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6187, as amended by the House, and the bill passed the House by the following vote: Yeas - 93, Nays - 1, Absent - 0, Excused - 4.

Voting yea: Representatives Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Johnson, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 93.

Voting nay: Representative Appelwick - 1.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Engrossed Substitute Senate Bill No. 6187, as amended by the House, having received the constitutional majority, was declared passed.

ENGROSSED SUBSTITUTE SENATE BILL NO. 6205, by Senate Committee on Government Operations (originally sponsored by Senators McCaslin, Haugen, Patterson, Benton, Bauer, Winsley and Oke)

Allowing waiver of interest and penalties on property taxes delinquent because of hardship.

The bill was read the second time.

There being no objection, the committee amendment(s) by the Committee on Finance was adopted. (For committee amendment(s), see Journal, 50th Day, March 2, 1998.)

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6205, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6205, as amended by the House, and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Engrossed Substitute Senate Bill No. 6205, as amended by the House, having received the constitutional majority, was declared passed.

SENATE BILL NO. 6270, by Senators Anderson, Spanel, Swecker, West and Oke; by request of Department of Revenue

Eliminating the business and occupation tax on internal distributions.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dickerson spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Senate Bill No. 6270.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6270 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6270, having received the constitutional majority, was declared passed.

SENATE BILL NO. 6449, by Senators West, Anderson, Kohl, T. Sheldon, Jacobsen, Goings and Winsley; by request of Governor Locke

Specifying a business and occupation tax rate for income in the nature of royalties for the use of intangible rights.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Senate Bill No. 6449.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6449 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6449, having received the constitutional majority, was declared passed.

SENATE BILL NO. 6552, by Senators Strannigan and Bauer; by request of Department of Revenue

Concerning the ad valorem taxation of vessels or ferries.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker stated the question before the House to be final passage of Senate Bill No. 6552.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6552 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6552, having received the constitutional majority, was declared passed.

The Speaker called upon Representative Pennington to preside.

SENATE BILL NO. 6588, by Senators Winsley, Snyder, Kohl, B. Sheldon and Oke

Exempting movie theater snack counters from the stadium tax imposed on restaurants.

The bill was read the second time.

Representative Mason moved the adoption of amendment (1112):

On page 1, line 18, after "counters" insert ", and snack counters located in theaters or centers for the performing arts"

Representatives Mason and B. Thomas spoke in favor of the adoption of the amendment.

The amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 6588, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6588, as amended by the House, and the bill passed the House by the following vote: Yeas - 85, Nays - 9, Absent - 0, Excused - 4.

Voting yea: Representatives Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Clements, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Johnson, Keiser, Kessler, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Ogden, Parlette, Pennington, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 85.

Voting nay: Representatives Appelwick, Chopp, Cody, Fisher, Kenney, Koster, Murray, Poulsen and Veloria - 9.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6588, as amended by the House, having received the constitutional majority, was declared passed.

SENATE BILL NO. 6599, by Senators Benton, Spanel, Kohl and Oke; by request of Department of Revenue

Exempting fund-raising activities by nonprofit organizations from sales and use taxation.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 6599.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6599 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6599, having received the constitutional majority, was declared passed.

There being no objection, the House deferred consideration of Substitute Senate Bill No. 6602 and the bill held its place on second reading.

SENATE BILL NO. 6662, by Senators Strannigan, T. Sheldon and Schow

Eliminating the business and occupation tax on property managers' compensation.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas, Dickerson, Van Luven and Dunshee spoke in favor of passage of the bill.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 6662.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6662 and the bill passed the House by the following vote: Yeas - 88, Nays - 6, Absent - 0, Excused - 4.

Voting yea: Representatives Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Clements, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Johnson, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 88.

Voting nay: Representatives Chopp, Cody, Fisher, Mason, Tokuda and Veloria - 6.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6662, having received the constitutional majority, was declared passed.

SENATE BILL NO. 6668, by Senators Heavey, Schow, Anderson, West, T. Sheldon, Rasmussen, Strannigan and Johnson

Extending tax deferrals for new thoroughbred race tracks.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas, Dunshee, Robertson and Smith spoke in favor of passage of the bill.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 6668.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 6668 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Senate Bill No. 6668, having received the constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 6602, by Senate Committee on Ways & Means (originally sponsored by Senators Anderson, Loveland, Bauer, Long, Goings, B. Sheldon, Strannigan, Benton, Rossi, Swecker, West, Schow and Oke)

AN ACT Relating to carbonated beverage taxes; adding a new section to chapter 82.04 RCW; and providing an effective date.

The bill was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives B. Thomas, Mulliken, Carrell and Pennington spoke in favor of passage of the bill.

Representatives Dickerson, Tokuda, Conway, Dickerson (again) and Mason spoke against passage of the bill.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 6602.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6602 and the bill passed the House by the following vote: Yeas - 76, Nays - 18, Absent - 0, Excused - 4.

Voting yea: Representatives Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Clements, Constantine, Cooke, Cooper, Crouse, DeBolt, Delvin, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Johnson, Kessler, Koster, Lambert, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 76.

Voting nay: Representatives Appelwick, Chopp, Cody, Cole, Conway, Costa, Dickerson, Fisher, Keiser, Kenney, Lantz, Mason, Murray, Ogden, Regala, Romero, Tokuda and Veloria - 18.

Excused: Representatives Alexander, Huff, Kastama, Sommers, H. - 4.

Substitute Senate Bill No. 6602, having received the constitutional majority, was declared passed.

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

MOTION

On motion of Representative Lisk, the House adjourned until 9:00 a.m., Wednesday, March 11, 1998.

TIMOTHY A. MARTIN, Chief Clerk CLYDE BALLARD, Speaker